The House and Senate are both proposing massive changes to the individual and corporate income tax system of the U.S. And it’s not just the rates that are changing. Many tax benefits are shifting.
The House bill especially shifts tax benefits from individuals to businesses and investors. Gone are many of the nontaxable fringe benefits that employers can give employees.
The Senate bill even eliminates the tax benefit for providing meals to employees on the employer’s campus. Gone are most itemized deductions. The Senate bill would severely reduce the tax benefit for conservation easements. Instead of a 400% deduction, investors would only receive a 100% deduction. And many of these tax benefit reductions apply to 2017.
Your best answer is to get your year-end tax calculation done right away. Then, spend some time with your tax advisor to look at how you can mitigate the effects of the bill on tax benefits that you now enjoy and will not have once the bill passes.
Also, look at the new tax benefits and how you can take advantage of them, including the amazing new depreciation tax benefits.