Tax Cuts and Jobs Act UPDATE

The House approved the Tax Cuts and Jobs Act Tuesday afternoon (Dec. 19) and the Senate voted after midnight today to approve a slightly different bill. Now the House must re-vote to pass the bill as amended.

The changes in the Senate’s version of the bill were made to conform the bill to the Senate’s Byrd rule, allowing it to be passed with only 51 votes. The Senate’s changes are:

• The removal of an expansion of the Sec. 529 accounts that would have allowed distributions of up to $10,000 to be used for home-schooling expenses (Section 11032 of the bill).

• The removal of an exception to the endowment excise tax for colleges with fewer than 500 tuition-paying students (Section 13701 of the bill).

The House is expected to re-vote on the bill this morning, when it is expected to pass, after which it will go to President Donald Trump for his signature.

We will continue to keep you updated as the process is completed.

About the Author(s)

Jim is a Principal in the Tax Advisory Group in the Youngstown, Ohio office of HBK CPAs & Consultants and has been with the firm since 1986.

He has extensive experience in personal and estate planning, charitable planning, tax-exempt organizations and individual tax and financial planning. Jim earned a Bachelor of Science degree in Business Administration for the University of Toledo and the Personal Financial Specialist (PFS) designation, which is awarded by the American Institute of Certified Public Accountants to recognize CPAs who provide financial planning service. Jim also has experience in tax policies, procedures and resources, which HBK uses in their tax practices. He provides counsel to high-net worth individuals throughout HBK. He is one of the firm’s preeminent presenters and specializes in addressing business owners and individuals on topics such as the Affordable Care Act, Shale energy planning, charitable giving opportunities, estate and gift planning and exempt organization issues.

Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.