Congress moved one step closer to the finish line on November 28th with the Senate Budget Committee approving its tax reform package for a vote by the full Senate in the coming days. If passed, it would then need to be reconciled with the tax reform bill already passed by the House before a final version could be sent to the White House.
The current House and Senate versions would impact virtually every individual and business in significant ways, including lowering individual and corporate tax rates, reducing the effective tax rate on K-1 income from certain flow-through entities, repealing numerous tax credits and deductions, eliminating the alternative minimum tax (AMT), enhancing business expensing, increasing the estate tax exemption amount, and more.
Most of these proposed changes would not be effective until after 2017, and it is not yet known whether final legislation will be passed and, if so, when it would be signed into law.
In the meantime, consult your tax advisor if you have questions regarding how you may be impacted by the proposed legislation and click here to read our article on Year-End Planning for Individuals.