With the Senate narrowly passing their version of tax reform early Saturday morning, both the House of Representatives and the Senate have now each passed their own versions of a tax legislation bill. The two versions include many technical differences, so we currently do not know what the final legislation will look like. Both bills are now headed to the Joint Committee of Taxation, a conference committee for reconciliation between the chambers of Congress, with the anticipation of a final bill to be on President Trump's desk to be signed before the end of the year.
We have been closely monitoring the progress of these bills. Although the final details of the bill are yet to be determined, it is clear that it will have a dramatic impact on your 2018 tax return (filed in 2019). The final legislation may present some year-end income tax planning we need to do in 2017, even though the effective date for most of the bill will be in 2018. With that in mind, we will be sending you advice as to year-end planning as soon as the law is final.
Rather than providing a summary of the two different versions of the tax bill right now, we are going to wait for the final bill agreed to by both chambers of Congress. We want to avoid "harmful planning" based on anticipated versions of the new bill that never make it into law. We will fully advise you in a timely and responsible manner as soon as we know what the final version of the law looks like.
If you have any questions or concerns regarding the new tax bill, please contact us at your convenience and we will assist in any way possible.