by Kathleen M. Sablone, JD, Director of Wealth Planning
by Last Friday, the House and Senate Conference Committee agreed on a final version of the Tax Cuts and Jobs Act.
The bill has passed a final vote in the Senate and is likely to pass in the House today. This means that the President could have the bill on his desk before Christmas.
The reconciled version eliminates some of the controversial provisions from prior bills. The following are some of the proposals that are no longer included:
- The FIFO rule that would have required investors to sell sharesof any one company in the order they were acquired did not make it into the final version.
- The medical expense deduction will not be eliminated.
- All of the education incentives, such as graduate tuition waivers and deduction for student loan interest, remain the same.
- No change to rules for capital gains tax exclusion on sale of a primary residence.
Individual Income Taxes
Please note that all of these provisions expire on December 31, 2025.
Corporate Taxes
These provisions are all permanent.
What does this mean for you?
We highly recommend that you contact your tax professional to determine if you should take any steps before year-end to prepare for these potential tax changes.
If you have any questions or would like to discuss the Tax Act in more detail, please contact our Estate and Financial Planning Group.
Important: This article does not contain any legal or tax advice. You should always consult with your attorney, accountant or other professional advisors before changing or implementing any tax, investment or estate planning strategy.
IRS Circular 230 Disclosure: Pursuant to IRS Regulations, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax related penalties or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.