This is the summary of the bill, but I have questions about these three items for any tax people on this board:
"Seeking to win over House Republicans from high-tax states, the conference committee legislation caps the state and local tax deduction at $10,000, with filers allowed to deduct property taxes and state and local income and sales taxes."
That's confusing. Are they saying that the total state and local tax deduction is $10k, including income and property and sales, or is the 10K just for income taxes?
"The final bill provides tax relief to pass-through businesses — entities such as small businesses whose income is taxed through the individual code — through a 20-percent deduction. The first $75,000 of pass-through income would be subject to an 8 percent rate."
Are they saying that K1 passthrough income will be taxed at 20%, and the first $75K taxed at an even lower 8%?
"Under reconciliation, bills can’t add to the deficit after 10 years, so the bill’s tax cuts for individuals expire after eight years. The corporate tax changes and individual mandate repeal are permanent."
So will the pass-thru tax cuts expire in 8 years?
"Seeking to win over House Republicans from high-tax states, the conference committee legislation caps the state and local tax deduction at $10,000, with filers allowed to deduct property taxes and state and local income and sales taxes."
That's confusing. Are they saying that the total state and local tax deduction is $10k, including income and property and sales, or is the 10K just for income taxes?
"The final bill provides tax relief to pass-through businesses — entities such as small businesses whose income is taxed through the individual code — through a 20-percent deduction. The first $75,000 of pass-through income would be subject to an 8 percent rate."
Are they saying that K1 passthrough income will be taxed at 20%, and the first $75K taxed at an even lower 8%?
"Under reconciliation, bills can’t add to the deficit after 10 years, so the bill’s tax cuts for individuals expire after eight years. The corporate tax changes and individual mandate repeal are permanent."
So will the pass-thru tax cuts expire in 8 years?
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