Ways and Means releases list of tax provisions for budget bi

Technical topics regarding tax preparation.
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#2
novacpa  
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Thanks MVT, very impressive reading. This may well become law if the Parliamentarian rules the BBB Act qualifies as "Budget Reconciliation" thus avoiding a 60-vote threshold in the Senate, and Sen(s) Manchin & Sinema hold the line and vote for it.
And, or, the House doesn't lose 3-votes.
The howls of the Repubs for "tax simplification" are ignored in this proposed legislation, just the opposite.
If passed, this Act will necessitate major changes in tax software, and us Practitioners learning all of it.
High earners will pay much more, and estates will lose the $22-M exemption, reduced to $5-M each.
If the stars align, this may all happen by end of Sept.
 

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What I'm seeing in the link is very unfriendly to high net worth and high income clients. And if even some of that is passed, will require analysis and conversations with clients and financial planners.

I was hoping for an easy Nov and Dec. It appears that won't happen again this year.
 

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Did I read the bottom bit right? Credit for paid FMLA will end two years sooner? I am mildly surprised at that.
 

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Yes.

Also, the retirement account changes are going to throw a monkey wrench into retirement / end of life planning...

I personally think it's a little horrifying that they're proposing cutting off Traditional and Roth IRA contributions after $10million in retirement account assets, especially in the context of ultra-low interest rates and yields.

Plus the Roth conversion phase out means no back door Roth IRAs anymore for many of my clients.
 

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jon  
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What about S corps may change to partnerships if Corp formed before some date (1996?). If so I have a couple I will change - basically you can move assets out to partners without creating taxes? a few complications have to happen, but your saying there is a chance???
 

#7
deniz  
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I understand that it is a matter of getting Biden's budget passed, which will not be easy, because it is so large. If it does pass, there is a 90% chance that these changes will take place.

An increased corporate rate would mean that the US could no longer can be considered a tax haven. I wonder if the IP migration tax attorneys will be back in business, or does GILTI prevent that.
 

#8
jon  
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Biden's group says the tax bill will be a straight parliamentary vote and everyone knows it will pass the Senate by 1 vote... They saw the problem in the House with moderates saying toooooooo big.
 

#9
novacpa  
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The revenue side of both Bills are not the problem, these tax hikes will pass.
It is the spending of the revenue that has attracted opposition, i.e. green new deal, climate change, 8-50 million dreams and migrants get - citizenship.
 

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A small part of the $3.5T goes towards reducing greenhouse gasses. Most of the $3.5T is expanding the safety net. The game changer is the child tax credit. I think of it as guaranteed income for children. It's a D wet dream.
Steve
 


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