The House Ways and Means Committee approved a Tax Reform 2.0 package and is expected to be voted on by the House by the end of September. Here is a summary of some of the more notable provisions:

Individual & Small Business Tax Cuts

Many individual and small business tax cuts originally enacted temporarily through 2025 would become permanent:

  • Lowered individual income tax rates
  • 20% deduction of income for qualifying pass-through entities
  • $12,000 (individual) and $24,000 (married filing jointly) standard deduction
  • $10,000 cap on state and local tax deduction

Retirement Savings

  • Eliminate the age limit on IRA contributions
  • Create a Universal Savings Account (USA)
  • Allow Section 529 Plans to be used for expenses related to trade schools, homeschooling, and up to $10,000 in total distributions for repayment of student loans

Business Innovation

  • Allow new businesses to write off up to $20,000 of start-up and organization expenditures
  • Allow changes in ownership without triggering a Section 382 limitation on corporate net operating losses incurred during a 3-year start-up period

Delap's CPA's are committed to bringing you the most up-to-date information regarding the Tax Reform 2.0 package as it makes its way through the legislative process toward the Senate. For more information about the many changes associated with tax reform, contact a Delap advisor or call 503-697-4118 today.

Check out our previous 2018 presentation on Tax Reform, click here to view the slides:

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