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Biggest Reform EVER passed thread

The last minute changes in the senate plan, keeping the million dollar limit on interest & adding $10k back for property taxes makes it so the plan is even better for CA residents with million dollar homes and 2 kids (barely).

Really the only people left screwed are rich lawyers. No wonder this board hates the bill.
 
Mentioning last minute changes, how can they be sure all those hand written scribbles didn't break Senate rules?
 
WFFaithful said:
Mentioning last minute changes, how can they be sure all those hand written scribbles didn't break Senate rules?
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Because...winning and why do you hate MAGA? idiot.


"Stamper: Uh, Noonan's got two women friends that he'd like to see made American citizens, no questions asked. Max would like you to...bring back eight-track tapes. Not sure if that's gonna work, but, uh, let's see what else. Um, Chick wants a full week's Emperor's Package at Caesar's Palace. Um - hey, you guys wouldn't be able to tell us who actually killed Kennedy, would ya? Didn't think so. Um, Bear would like to stay at the... "White horse?"

Bear: White. House. White House.

Stamper: White House. Yeah, he'd like to stay in the Lincoln bedroom of the White House for the summer. Stuff like that.

Truman: Sure, I think we can, uh, take care of... some of that.

Rockhound: Harry!

Stamper: Yeah, one more thing, um...none of them wanna pay taxes again. Ever."
 
This pass through deduction is going to give me a huge tax break. Not really sure why I deserve that over some W-2 wage earner.
 
Are there restrictions on the type of business or services that can get the reduced pass through rate?
 
ConnorEl said:
Are there restrictions on the type of business or services that can get the reduced pass through rate?
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Like anyone knows those types of details...whatever comes out of "as I call it, the mixer" will be great and beautiful and save everyone money.
 
Trying to read about the pass through stuff it’s a bit confusing.

I thought the house proposal put some serious limits on the advantage—but the senate plan seems to carve out exceptions to the restrictions.

Just wondering if a lot of (relatively—not super high) high earners working as employees might try to restructure into pass through companies...?
 
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ConnorEl said:
Are there restrictions on the type of business or services that can get the reduced pass through rate?
Click to expand...


Service businesses, like accounting, but it doesn't apply to taxpayers that make less than $500K MFJ or $250K single.

The Chairman’s modification provides that in the case of a taxpayer who has qualified business income from a partnership, S corporation or sole proprietorship, the amount of the 17.4- percent deduction is generally limited to 50 percent of the taxpayer’s allocable or pro rata share of W-2 wages of the partnership or S corporation, or 50 percent of the W-2 wages of the sole proprietorship. W-2 wages of a partnership, S corporation, or sole proprietorship is the sum of wages subject to wage withholding, elective deferrals, and deferred compensation paid by the partnership, S corporation, or sole proprietorship during the calendar year ending during the taxable year. Under a special rule, the W-2 wage limit does not apply in the case of a taxpayer with taxable income not exceeding $500,000 for married individuals filing jointly or $250,000 for other individuals. The application of the W-2 wage limit is phased in for individuals with taxable income exceeding this $500,000 (or $250,000) amount over the next $100,000 of taxable income for married individuals filing jointly or $50,000 for other individuals. The modification further provides that the exception allowing the 17.4-percent deduction in the case of certain taxpayers with income from a specified service business applies to those whose taxable income does not exceed $500,000 for married individuals filing jointly or $250,000 for other individuals. The benefit of the deduction for service businesses is phased out over the next $100,000 of taxable income for married individuals filing jointly or $50,000 for other individuals.

This provision, under the modification, sunsets on December 3
 
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Yes, that's a bizarre comment when both sides agreed to 20%.
 
Maybe he's getting some sense that the public is restless and wants to appease them.
 
ConnorEl said:
Trying to read about the pass through stuff it’s a bit confusing.

I thought the house proposal put some serious limits on the advantage—but the senate plan seems to carve out exceptions to the restrictions.

Just wondering if a lot of (relatively—not super high) high earners working as employees might try to restructure into pass through companies...?
Click to expand...

Not really. The self-employment taxes increase ($13k) pretty much make up the savings you get while taking the deduction ($22k) for someone making $500k/yr.

If you had someone paying you $500k/yr would you risk it by starting your own business to save $9k? If you had a perfect relationship with your employer and could pass through the self-employment tax, sure. But still not worth it for $22k, I wouldn't think.
 
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