Tax reform, one of President Trump’s key legislative agenda items, is moving closer to fruition – but how close is still the question. Last week the Trump administration and congressional Republican leaders released a vague framework to help Congress develop legislation to carry out reform goals. Citing dramatic tax cuts and code simplification, the much-awaited “Big Six” tax framework leaves many lingering questions about who will be the clear winners and how will the changes be sustainable.
With a big task ahead for the House Ways and Means Committee and the Senate Finance Committee, any tax reform legislation changes likely won’t be ready to slide into effect in the 2018 tax year. However, it’s still technically possible to pass a bill by the end of the year, so planning ahead for the proposed changes we do know about is always a smart approach.
Doeren Mayhew has outlined below the major proposed tax changes that may impact individuals and businesses, and should be considered in year-end tax planning.
The framework covers many tax issues, but unfortunately paints reform with a broad brush – leaving many unanswered questions. With the details still to be hashed out, along with budgetary and political hurdles to overcome, its likely many provisions won’t go into effect until 2018 or later. That doesn’t mean there wouldn’t be a potential impact on your 2017 tax planning. You may find proposed changes provide you with incentives to defer income to 2018 and accelerate deduction in 2017. Doeren Mayhew’s tax advisors can be a key resource to help you navigate the uncertainty. Contact them today.
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