Congress gets ready to pass historic “Tax Cuts and Jobs Act”; a look at the complex new world of the qualified business deduction rule applicable to partnerships, S corporations and sole proprietors
Adapted from an article to be published in the January, 2018 issue of the CPA Journal which is the official journal of the NY State Society of CPAs
By the time this article is published, we will know whether the new tax law was enacted by Congress and signed into law by President Trump. While the conference committee resolved the differences between the bills, and there indeed were many differences, at this point the conference agreement has selected the provisions going forward for the final vote of Congress. This article will focus on the new reforms to the tax rates applied to owners of unincorporated businesses with respect to qualified business income.
This summary is based on the conference committee report released on December 15 with respect to the versions of the Tax Cuts and Jobs Act passed by the House of Representatives on November 16, 2017 and then by the Senate on December 2, 2017. The mangers of the House and Senate tax-writing committees included a Joint Explanatory Statement of the Committee of Conference on December 16, 2017 along with a version of the tax bill.