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12-20-2017, 07:14 PM
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#461
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,370
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Just read this re: signing. Stay tuned.
https://www.pwc.com/us/en/tax-servic...&elq_cid=40982
Quote:
White House officials have stated that
President Trump wants to sign HR 1
into law before the end of this
year. The actual signing could be
delayed until January 2018 because
the projected increases in federal
budget deficits could trigger
automatic cuts to various federal
spending programs including
Medicare under a 2010 ‘pay-as-yougo’
(PAYGO’) statute. Congress later
this week may waive the PAYGO
requirement for HR 1 as part of a
temporary funding bill that the House
and Senate are considering to avoid a
partial shutdown of the federal
government when a temporary
funding bill expires on December 22.
If the PAYGO requirement is not
waived this week, President Trump
could sign the legislation in January
2018 and Congress would have
additional time to resolve the PAYGO
issue next year before automatic
spending reductions would be
triggered in 2019. Even if the PAYGO
requirement is not waived this week it
remains possible the President will
choose to sign the legislation anyway
on the presumption that Congress will
address the automatic spending cuts
when they return in January.
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__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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12-20-2017, 07:16 PM
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#462
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,370
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And with respect to corporate deferred taxes:
Quote:
The bill proposes significant changes,
as discussed below, that, upon
enactment, will have pervasive
financial reporting implications, both
in the period of enactment and on a
prospective basis. For example, US
deferred taxes will need to be
remeasured as a result of the reduced
corporate income tax rate. For
companies with foreign operations,
mandatory taxation of deferred
foreign income, as well as various
provisions intended to prevent
erosion of the US tax base, may
impact measurement of deferred taxes
and taxes payable in the period of
enactment. Other changes, such as
elimination or limitation of certain
deductions, will impact both current
and deferred taxes on a prospective
basis. Changes in enacted tax law also
will require the reassessment of
realizability of deferred tax assets.
Companies will need to carefully
evaluate the impact that the changes
will have on their existing financial
statement positions, assertions, and
disclosures, in order to appropriately
account for changes in the period of
enactment. For many companies, this
assessment will be complex and will
require significant effort.
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__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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12-20-2017, 08:03 PM
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#463
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Posts: 1,994
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Quote:
Originally Posted by jetpack
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Thanks jetpack. This affects me as well since the majority of my income is K1 income from an S corp.
After a quick run thru, whatever deduction I may receive on the pass thru income may be offset somewhat by the loss of the Domestic Production Activities Deduction...if in fact that rumor becomes true. It's not a total wash but from last years taxes, it would be a little over a 50% loss of the full 20% Pass Thru exemption.
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12-20-2017, 08:57 PM
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#464
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Recycles dryer sheets
Join Date: Mar 2008
Posts: 410
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Quote:
Originally Posted by RunningBum
Looks to me that they went with the Senate version and retained it. Page 537-538.
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I've been trying to find this for days. Thanks.
__________________
ACC USN-(Ret)
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12-20-2017, 10:01 PM
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#465
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Recycles dryer sheets
Join Date: Sep 2016
Location: Lincoln
Posts: 128
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I called my tax assessor' office. The woman I spoke with said I could only pay the part due in April '18 now ($3600) and not the part due next December since it hadn't been billed yet. I'm in CA and our State income tax alone will be $11000 so w the $10k cap on all state/local/prop tax combined, it makes sense to get some extra relief this year. We are in the 28% marginal bracket by about 7k in 2017 so this extra prop tax paid in 2017 will help minimize the part of our income taxes at 28%.
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12-20-2017, 10:18 PM
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#466
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Recycles dryer sheets
Join Date: May 2017
Posts: 256
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Quote:
Originally Posted by golfnut
I see the bill includes a proviso which abolishes the mandate that all citizens must have have hc insurance in 2019. The talking heads are all saying this will result in higher hc premiums going forward. Wondering what will happen to hc subsidies?
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Fewer people will buy health insurance if they don't have to pay a penalty, which will probably increase premiums since it's more likely that older, sick, or at risk people will be the ones buying insurance. And, because health insurance companies still can't discriminate based on pre-existing conditions, they would have to insure someone who went years without buying insurance and then bought when they got seriously ill or developed a chronic condition. This will drive up costs for insurance companies and therefore drive up premiums. And when uninsured people end up in the hospital and can't pay the bills, those costs will be passed on to others and may increase insurance premiums.
My understanding is that the amount of subsidies is based on the cost of the silver plan. If the silver plan premium goes up, so do the subsidies. So, in theory, if you qualify for subsidies, your overall cost shouldn't change. But, if insurance companies can no longer get enough people, especially younger and healthier people, to buy insurance and if they still have to cover CSRs without reimbursement, there's a good chance that there will be many areas of the country without insurers on the exchange. So, if there are no insurers were you live, then no insurance, so no subsidies.
This all assumes that the ACA is not repealed next year.
So, I suppose the answer to your question is "it depends."
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12-21-2017, 01:59 AM
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#467
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 2,844
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Quote:
Originally Posted by Cobra9777
I've always thought that so-called "one-shots" should not be so easily dismissed. These companies all took credits to the P&L as they accumulated these deferred tax assets. Were those credits dismissed? No. So why should the write-off?
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The “credits” were “earned” when the companies nearly went bankrupt. The value of the credit is in shielding future income from all taxes. Since tax rates go down, companies are being able to keep more money. Since they have tax losses companies, to the extent of their deferred tax assets, do not gain additionally from the tax cut. But there is no financial hit to the company for the tax cut, as the amount of cash paid for taxes is exactly the same — zero. Anyone that was creating a cash flow model is showing the same cash flow for the amortization of the deferred asset as it was showing under the previous tax rates. What they are not gaining is the additional cash flow other corporations are gaining from lower taxes.
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12-21-2017, 05:48 AM
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#468
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,328
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DC announced yesterday that they would accept prepayments for 2018 and provided a link to pay online on their website so I paid it.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
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12-21-2017, 06:08 AM
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#469
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gone traveling
Join Date: Apr 2011
Posts: 3,375
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Quote:
Originally Posted by donheff
I keep hearing news folks speculating on the advantages of waiting till the new year to sign the tax bill. But my memory from civics is that the President has 10 days to sign or the Bill is automatically passed (pocket vetoed if Congress recesses). Ten days from now is the 30th.
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I wondered the same. My take is that Congress won't go into recess that long, if at all, by having some "pro forma" gaveling in/out days. Reminds me of when Obama wanted to declare that Congress was in recess to make some interim appointments & SC ruled that Congress decides when they are in recess.
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12-22-2017, 07:12 AM
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#470
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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I didn’t see it explicitly mentioned in the agreement - well maybe in a present law section - but the Net Investment Income Tax of 3.8% on long-term cap gains assets exceeding $250,000 of AGI for MFJ persists. This was added effective in 2013 I believe as a Medicare surtax as part of the ACA.
Kitces shows this in his long-term cap gains rates where he shows long-term cap gains rates going from 0% and 15% to 18.3% and 23.8% at the higher total income levels.
__________________
Retired since summer 1999.
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12-22-2017, 07:24 AM
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#471
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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Quote:
Originally Posted by donheff
DC announced yesterday that they would accept prepayments for 2018 and provided a link to pay online on their website so I paid it.
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Good for DC and Arlington County, VA that are helping citizens lower their expenses. I haven't heard anything about other counties in VA, but in MD, Prince George's and Montgomery say "no can do" and Howard says "OK". It's up to each county and seems pretty hodgepodge overall. I think some locations just don't want to modify their systems to accept the prepayment which is not unreasonable.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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12-22-2017, 07:33 AM
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#472
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Full time employment: Posting here.
Join Date: Jun 2012
Posts: 691
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Quote:
Originally Posted by jetpack
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Thanks, jetpack! There's been so much talk about this and mentions of various terms without apparent definitions and this really helps clear it up.
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12-22-2017, 08:11 AM
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#473
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by someguy
Thanks, jetpack! There's been so much talk about this and mentions of various terms without apparent definitions and this really helps clear it up.
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Here is a good updated overall summary from the same place.
https://www.watsoncpagroup.com/tax-cuts-jobs-acts-2017/
https://www.watsoncpagroup.com/section-199a-deduction/
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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12-22-2017, 08:27 AM
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#474
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Chicago
Posts: 1,154
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I am sorry I may have missed this in all these posts but I am wondering is the stepped up basis for taxable accounts for heirs still in play? Thanks.
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12-22-2017, 08:50 AM
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#475
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Quote:
Originally Posted by ripper1
I am sorry I may have missed this in all these posts but I am wondering is the stepped up basis for taxable accounts for heirs still in play? Thanks.
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Stepped up basis for heirs is still in effect.
__________________
Retired since summer 1999.
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12-22-2017, 09:19 AM
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#476
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Chicago
Posts: 1,154
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Quote:
Originally Posted by audreyh1
Stepped up basis for heirs is still in effect.
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Thanks, Audrey1
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12-22-2017, 10:07 AM
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#477
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Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,495
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The bill was signed this morning, it is now the law. They used a "pay-go waiver" to be able to sign it this year.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
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12-22-2017, 10:13 AM
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#478
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Chicago
Posts: 1,154
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I thought the idea was to sign in new year to avoid immediate cuts to medicare and medicaid. Am I right or wrong. Or is this avoid that per pay go.
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12-22-2017, 10:19 AM
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#479
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Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,495
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Quote:
Originally Posted by ripper1
I thought the idea was to sign in new year to avoid immediate cuts to medicare and medicaid. Am I right or wrong. Or is this avoid that per pay go.
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That is what the pay-go waiver does.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
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12-22-2017, 10:27 AM
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#480
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Chicago
Posts: 1,154
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Quote:
Originally Posted by USGrant1962
That is what the pay-go waiver does.
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Thanks, General
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