Met with our accountant today. We would save a very small amount on the pass-through tax (we’re an S Corp) but we would lose a good bit due to personal exemptions being eliminated. Net loss around $3,500. Figures.
@MaineLonghorn that’s the key. I keep emphasizing to my friends that personal exemptions are huge. It’s all smoke and mirrors with the whole” we are doubling your std deduction “
@MaineLonghorn, you should email Senator Collins and give her that info.
Exactly. This whole thing is a huge scam. The average person will get crumbs. Not the Massive, massive cuts that trump keeps shouting about. The rich will save huge and business also. This was a reverse Robin Hood. They are taking it away from the people and giving it to the big multinationals.
Next come all the domestic spending cuts because we just do not have the money and cannot increase the deficit.
Like watching a train wreck.
Reminds me of the bumper sticker: “I can’t be overdrawn, I still have more checks”.
In slow motion, over and over again.
It calls for slow blues in a minor key and a stiff drink.
Maybe “Since I’ve Been Loving You” by Led Zeppelin.
My son is the employee. He HAS unreimbursed expenses related to his business. Things like equipment and instrument replacement.
Guess he should make himself an LLC.
Definitely incorporate if that helps!
Did you see the Lockhorns (comic strip) Dec 4? He is poring over bills and says, “We can’t pay as we go until we pay for where we’ve been.” Seemed appropriate!
Expenses are deductible on the Schedule C.
More on the promises to Collins and Flake that are likely to not be met:
https://www.thedailybeast.com/house-republicans-already-shooting-down-tax-bills-promises
Some of these folks were led down a primrose path.
I do not believe there will be reconciliation because that would mean another senate vote…which could very well go down…as the promises that were made to get those yes votes don’t come to fruition.
This tax reform is complicated…who knew?
^ Except now they have that problem with the corporate ATM rate.
Piece about how this will affect grad students (and how we’re fighting back): https://www.washingtonpost.com/news/grade-point/wp/2017/12/05/grad-students-arrested-during-tax-protest-at-speaker-ryans-office/
@emilybee et al, sorry if this is a repeat, but the size of the corporate AMT problem was news to me. The corporate AMT problem seems to have grown by an order of magnitude, from $40B to at least $300B.
This increases the likelihood that the bill will have to go back to conference.
I haven’t heard anything from Senators Collins or Flake about their betrayal. I don’t know if their support is wavering.
I don’t have any confidence that a new version that comes out of conference would be any better.
“This increases the likelihood that the bill will have to go back to conference.”
If the corporate AMT is such a massive hole, it sure looks like our “public servants” painted themselves into a corner. I wish them a lot of fun with their bill.
It could fall apart yet… that corporate AMT problem means the House isn’t likely to be able to just accept the Senate’s version. It’d serve them right if they double crossed Senators to get a deal they never meant to abide by, and then lose their votes.
But where might they look for that AMT $40 billion? Isn’t that close to the amount for all the education changes in the House bill that the Senste didn’t include? I have a bad feeling about this…
Anyone heard details about them axing the PLSF for student loans?
There are no details on the reconciliation process if that is what you are wondering. I think the House has named their participants for negotiating, Senate hasn’t yet.
Writing the bill at the last minute, a process that was bound to produce big errors, ended up resulting in big errors. What a shock.
I’m sorry- I know this has been asked before but the search function is giving me too many results.
In the Senate bill- do we know the status of mortgage & HELOC interest deductions?