It’s Final…the Tax Cuts and Jobs Act of 2017
With much fanfare, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was signed by the President on December 22, 2017.
Given how quickly this bill moved through the House and Senate, and as we saw with the confusion regarding the prepayment of property taxes, there will be issues to work through and loopholes to close. Such fixes are not uncommon; however, they do require passage of a separate technical corrections bill (or bills) which must be voted on by both chambers of Congress. As discussed in this Business Insider article, the current political climate may make the passage of any such follow-up bill(s) challenging at best.
Summary of Select Provisions of the TCJA
While updating the chart below, which contains a summary of select provisions of TCJA, I found inaccuracies in the reporting of the new tax law in various publications. For example, according to this story published in the Chicago Tribune, the ability to deduct alimony payments will end in 2019. In fact, the changes regarding alimony will only impact those divorce agreements entered into after December 31, 2018 (or agreements that were executed prior but then modified to expressly provide for the new law).
The takeaway? Don’t believe everything you read, and seek out advice specific to your situation before taking action.If you are looking for more detailed and accurate information, the Bloomberg Tax – Tax Reform Roadmap provides a great pre- and post- tax reform comparison. Of course, the best source to review is the Tax Cuts and Jobs Act of 2017 itself.