Webinar Slides: 2014 First Quarter Accounting and Financial Reporting Update
Webinar Slides: First Quarter Accounting and Financial Reporting Issues Update
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Transcript of Webinar Slides: First Quarter Accounting and Financial Reporting Issues Update
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#cbizmhmwebinar 1
CBIZ & MHM Executive Education Series
First Quarter Accounting and Financial Reporting Issues Update Mike Loritz, Mark Winiarski, Steve Henley April 13, 2017; Rebroadcast April 21, 2017
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About Us
Together, CBIZ & MHM are a Top Ten accounting provider Offices in most major markets Tax, audit and attest and advisory services Over 2,900 professionals nationwide
A member of Kreston International A global network of independent
accounting firms
MHM (Mayer Hoffman McCann P.C.) is an independent CPA firm that provides audit, review and attest services, and works closely with CBIZ, a business consulting, tax and financial services provider. CBIZ and MHM are members of Kreston International Limited, a global network of independent accounting firms.
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Before We Get Started
To view this webinar in full screen mode, click on view options in the upper right hand corner.
Click the Support tab for technical assistance.
If you have a question during the presentation, please use the Q&A feature at the bottom of your screen.
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CPE Credit
This webinar is eligible for CPE credit. To receive credit, you will need to answer periodic participation markers throughout the webinar. External participants will receive their CPE certificate via email immediately following the webinar.
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Disclaimer
The information in this Executive Education Series course is a brief summary and may not include all
the details relevant to your situation.
Please contact your service provider to further discuss the impact on your business.
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Presenters
Mike has 17 years of experience in public accounting with diversified
financial companies and other service based companies, including
banking, broker/dealer, investment companies, and other diversified
companies ranging from audits of public entities in the Fortune 100 to
small private entities.
He is a member of MHM's Professional Standards Group, providing
accounting knowledge leadership in the areas of derivative financial
instruments, financial instruments, share-based compensation, fair
value, revenue recognition and others.
816.945.5611 [email protected]
MIKE LORITZ, CPA MHM Shareholder
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Presenters
Located in our Kansas City office, Mark is a member of our Professional
Standards Group (PSG). Mark's role includes instructing in our national
training program, presenting as a subject matter expert at webinars and
conferences, and preparing MHM publications on accounting and
auditing issues.
As a PSG member, Mark consults with clients and engagement teams
across the country in many areas of accounting and auditing. Mark has
served clients as an auditor, consultant and advisor in numerous
industries including manufacturing, distribution, mining, retail sales,
services and software.
816.945.5614 [email protected] @KCWini
MARK WINIARSKI, CPA MHM Shareholder
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Presenters
Steve Henley is the National Tax Practice Leader for CBIZ. Steve's
responsibilities include developing and implementing strategies for the
successful operation of the tax practice, including national support for
the CBIZ MHM's local tax practices through the National Tax Office.
770.858.4500 [email protected]
STEPHEN HENLEY National Tax Practice Leader
CBIZ
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Agenda
Accounting Standards Updates
02
01
03
Other Financial Reporting Matters
Federal Tax Update
Questions 04
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ACCOUNTING STANDARDS UPDATE
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Definition of a Business (ASU 2017-01)
Revision narrows the definition of a business Improves alignment with IFRS Results in fewer business combinations (ASC 805)
Three significant revisions:
Application of a screen Narrows the definition of an output Requires an input and substantive process that
significantly contribute to create/develop an output
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Asset Acquisition vs Business Combination
Asset Acquisition Business Combination
Measurement Cost allocated based on fair value
Fair value
Transaction costs Included in cost Expensed
Goodwill or gain None Recognized
Contingent consideration May be recognized when paid
Fair value
Identifiable intangibles Includes assembled workforce
Subsumes assembled workforce into goodwill
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Effective Date and Transition Definition of a Business
Public business entities: Annual, including interim periods within, beginning after December 15, 2017 (Calendar year 2018)
All other entities: Annual periods beginning after December 15, 2018 (Calendar year 2019)
Early adoption permitted Including for transactions completed but not yet included in
financial statements issued or available for issuance
Applied prospectively
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Derecognition of Nonfinancial Assets (ASU 2017-05)
Aligns de-recognition guidance Transfers of nonfinancial assets treated in same manner
as a businesses If a controlling financial interest is retained it is accounted
for as an equity transaction Otherwise if control has transferred (per Topic 606) full
gain or loss is recognized Any retained noncontrolling ownership interest is measured at
fair value
Applies to the formation of a Joint Venture
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Derecognition of Nonfinancial Assets (ASU 2017-05)
New terminology: In substance nonfinancial asset
Financial asset that is part of a contract in which substantially all the fair value of the assets promised to a counterparty is concentrated in nonfinancial assets
A consolidated subsidiary that is not a business in which substantially all the fair value of the assets is concentrated in nonfinancial assets.
Eliminates the concept of in substance real estate
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Example
Transfer real estate, equipment, and receivables to a newly formed entity
Receive 20% of the newly formed entity and $1 million
Concluded that the transaction is not a contract with a customer that the net assets transferred are not a business
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Example
First, determine if the receivable is an in substance nonfinancial asset Only 6.7% of the fair value of the
assets transferred are financial (100,000 / 1,500,000)
Conclusion: the receivable is in substance nonfinancial
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Example
Second, determine the fair value of the consideration received: assume $1,500,000 ($1 million + 20% interest with fair value of $500,000)
Third, allocate the consideration between the distinct nonfinancial assets
The 20% retained interest in the new entity becomes an equity method investment
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Effective Date & Transition Derecognition Nonfinancial Assets
Public business entities: Annual, including interim periods within, beginning after December 15, 2017
Including not-for-profit entities that are conduit bond obligors for traded, listed or quoted securities
Including employee benefit plans that file or furnish statements with the Securities and Exchange Commission (SEC)
All other entities: Annual periods beginning after December 15, 2018 (Calendar year 2019)
Early adoption permitted at the same time as ASU 2015-09 Revenue from Contracts with Customers (Topic 606)
Applied using the retrospective or modified retrospective method
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Simplifying the Test for Goodwill Impairment (ASU 2017-04)
Eliminates the computation of implied fair value of goodwill (Step 2)
Eliminates the required qualitative test for reporting units with negative carrying value
New test format Optional qualitative assessment (formerly Step 0) Quantitative test (formerly Step 1)
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Expected Impact
Reduce the cost of the impairment test when Step 2 was previously required
Reduce the accuracy of the impairments recognized Ignores the allocation of value to non-recognized
intangible assets and changes in value of other types of assets
Increase the number of impairments recognized by elimination of Step 2
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Qualitative Assessment (formerly Step 0)
Evaluate qualitative factors to determine if it is more likely than not (>50%) that fair value of the reporting unit is less than its carrying amount
Example factors to consider: Macroeconomic conditions Industry and market Cost factors Overall financial performance
Entity specific events Changes to reporting units Share price
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Quantitative Test (formerly Step 1)
Applies when qualitative test is failed or not performed
*Impairment is the amount of the difference limited to the total amount of goodwill assigned to the reporting unit
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Other Goodwill Impairment Reminders
Required to test at least annually Test is performed at the reporting unit level Any impairments of other assets is recorded before
performing the quantitative test
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Effective Date and Transition Goodwill Impairment
Annual and interim impairment tests in annual periods beginning after:
SEC Filer: December 15, 2019
Other public business entities: December 15, 2020
All other entities: December 15, 2021
Early adoption permitted for impairment tests performed after January 1, 2017
Applied prospectively
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Benefit Plans: Master Trust Reporting (ASU 2017-06)
Align Topic 960, 962 and 965 to require: Interest and changes in interest for each master trust presented
separately on the statement of net assets available for benefits and changes in net assets available for benefits
Disclose dollar amount of interest by general types of investments
Disclose other assets and liabilities of the master trusts Remove:
Percentage interest disclosure Redundant disclosure of 401(h) account assets
Effective years beginning after December 15, 2018, early adoption permitted
Applied retrospectively
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Pension Cost and Postretirement Benefit Cost (ASU 2017-07)
Service cost component presented with other compensation costs Service cost is the only component that is capitalizable
Present separately from service cost: interest cost, return on plan assets, amortization, and gains or losses Present outside of income from operations
Effective date & transition: Public business entity: Annual periods and interim periods within beginning
after December 15, 2017
All other entities: Annual periods beginning after December 15, 2018 Early adoption permitted Retrospective for presentation; prospective for capitalization
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Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08)
Premiums on callable debt securities are amortized over the period to the earliest call date Unless elected to estimate prepayments
Discounts on callable debt securities continue to be amortized to the
maturity date
Effective date and transition: Public business entity: Annual periods and interim periods within
beginning after December 15, 2018 All other entities: Annual periods beginning after December 15, 2019 Early adoption permitted Modified retrospective
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OTHER FINANCIAL REPORTING MATTERS
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Exposure Draft
Nonemployee share-based payments proposed changes Measure based on fair value of the shares
Measurement date on the grant date for equity awards
Performance conditions accounted for in the same manner as employee share-based payment (i.e. probability assessment)
Classification for equity classified awards continues to be subject to ASC 718 unless modified
Nonpublic entity can use calculated values in place of volatility and use intrinsic value for liability based awards
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Exposure Drafts - AICPA Task Forces on Revenue Recognition
16 task forces organized on industry lines Final interpretations have been issued by Aerospace &
Defense and Asset Management task forces Exposure drafts have been issued by several other task
forces including: Construction Brokers & Dealers Health Care Not-for-Profit Software Telecommunications
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Exposure Drafts - AICPA Task Forces on Revenue Recognition
Airlines Example Identifying Performance Obligations
Selling a round-trip ticket from Kansas City to Tampa Bay with a layover both directions in Atlanta for $400
At check-in, the passenger pays $25 luggage fee for each leg of the trip
The passenger also purchased access to the airline lounge for a one-year period for $250
How does the airline determine its performance obligations?
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Airlines Example Identifying Performance Obligations
Services transferred to the customer:
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Airlines Example Identifying Performance Obligations
Each flight is a separate performance obligation Capable of being distinct
Each flight is sold separately to other customers Other airlines sell the same service
Distinct within the context of the contract Customer elected the route (over other possible routes) Failure to perform one flight would result in loss of
compensation
Utility for the customer exists in getting to Atlanta Each flight does not significantly modify the other
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Airlines Example Identifying Performance Obligations
Baggage handling is not a separate performance obligation Capable of being distinct
Possible legal restrictions Cannot benefit separately from the service
Airline lounge
Capable of being distinct Separately sold service
Distinct within the context of the contract Not dependent on any flight
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Airlines Example What If Scenarios?
What if an airline partner provides the service between Tampa Bay and Atlanta? Evaluate whether the selling airline is a principle or
agent in the contract for the performance obligations
What if instead of annual access to the airlines lounge the customer bought a years worth of seat upgrades? Combined performance obligation with each flight
covered by the seat upgrade subscription
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Hotel Management Variable Consideration
A hotel management company and a hotel owner enter into a contract with two performance obligations:
License the managers brand
Operate the hotel
Booking system, employee management, cleaning services, accounting back office, etc.
The manager will receive 4% of revenues, 10% of operating profit and direct reimbursement for costs incurred (payroll) How should the variable consideration be allocated?
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Hotel Management Variable Consideration
Assume the variable consideration is commensurate to the services performed:
4% of revenues specifically relates to the license of the brand
10% of operating profit and cost reimbursement specifically relates to the operations services
Each form of variable consideration is linked to their respective performance obligations
In practice the total amount of variable consideration need not be estimated:
The manager would elect the practical expedient to not disclose variable fees allocated entirely to a wholly unsatisfied performance obligation
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FEDERAL TAX UPDATE
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LEGISLATIVE
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Trumps Proposals Compared to House Blueprint
Trump Plan Tax Issue House Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).
Corporate Tax
Top rate of 20%. Full expensing of capital investment. No deduction for net interest.
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for individuals, including unborn children. Total annual contributions limited to $2,000. Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
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Trumps Proposals Compared to House Blueprint
Trump Plan Tax Issue House Blueprint
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends
Pass-Through Entities
Lower the top marginal rate on pass-through businesses to 25%
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
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Trumps Proposals Compared to House Blueprint
Trump Plan Tax Issue House Blueprint
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction).
Individual Tax
Standard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child).
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child).
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
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#cbizmhmwebinar 44
Trumps Proposals Compared to House Blueprint
Trump Plan Tax Issue House Blueprint
Maintain maximum rate of 20% for highest bracket above.
Capital Gains and Interest Income
Tax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
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#cbizmhmwebinar 45
Trumps Proposals Compared to House Blueprint
Trump Plan Tax Issue House Blueprint
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP).
Exemptions, Deductions and Credits
Eliminates itemized deductions except mortgage interest and charitable donations.
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations.
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
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#cbizmhmwebinar 46
Trumps Proposals Compared to House Blueprint
Trump Plan Tax Issue House Blueprint
Repeal AMT Repeal
RepealNet
Investment Income Tax
Repeal
Repeal and Replace. Currently Fate Unknown.
Affordable Care Act
Repeal and Replace. Currently Fate Unknown.
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for individuals, including unborn children. Total annual contributions limited to $2,000. Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for individuals, including unborn children. Total annual contributions limited to $2,000. Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for individuals, including unborn children. Total annual contributions limited to $2,000. Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
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#cbizmhmwebinar 47
Trumps Proposals Compared to House Blueprint
Trump Plan Tax Issue House Blueprint
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.
Estate Tax Repeal
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
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#cbizmhmwebinar 48
Trumps Proposals Compared to House Blueprint
Trump Plan Tax Issue House Blueprint
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan.
International Tax -
Repatriation
Deemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
-
#cbizmhmwebinar 49
Trumps Proposals Compared to House Blueprint
Trump Plan Tax Issue House Blueprint
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.
International Tax -
Border Adjustment
Corporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death will be subject to tax (first $10 million tax-free). Contributions of appreciated assets into a private charity established by the decedent or the decedents relatives will be disallowed.Estate TaxRepeal
A one-time deemed repatriation of corporate cash held overseas at 10% rate. Originally sought end of deferral of taxes on corporate income earned abroad, but removed in revised plan. International Tax - RepatriationDeemed repatriation tax of 8.75% for cash and cash-equivalents profits and 3.5% on other profits
Trump initially opposed idea as too complicated but since has reconsidered saying it is one of many options being discussed.International Tax - Border AdjustmentCorporations would no longer be able to deduct costs of goods purchased offshore, but gross income from exports would be free of taxation.
Business: Credit for onsite childcare increased to $500,000 (from $150,000) and recapture reduced to 5 years (from 10). Individual: Above the line deduction for care of up to 4 children or elderly relatives up to state average.ChildcareNo provision
Establish Dependent Care Savings Accounts (DCSAs) for the benefit of specific individuals, including unborn children. Total annual contributions limited to $2,000 per year . Funds remaining in account when child reaches 18 can be used for education expenses. Government will provide a 50 percent match on parental contributions of up to $1,000 per year. Check the box available to directly deposit any portion of their EITC into their Dependent Care Savings Account. All deposits and earnings thereon will be free from taxation, and unused balances can rollover from year to year.Dependent Care Savings AccountsNo provision
Sheet2
Sheet3
Sheet1
Trump PlanTax IssueHouse Blueprint
Top rate of 15%. Eliminate most deductions and credits except R&D. Manufacturers may expense capital investment but lose interest deduction (election revocable within 3 years, then permanent).Corporate TaxTop rate of 20%. Full expensing of capital investment. No deduction for net interest.
Owners of pass-through entities (sole proprietorships, partnerships, and S corporations) could elect to be taxed at a flat rate of 15 percent on their pass-through income rather than under regular individual income tax rates. However, distributions from large pass-through businesses received by owners who elected the 15 percent flat rate would be taxed as dividends Pass-Through EntitiesLower the top marginal rate on pass-through businesses to 25%
Single and earn less than $15,000, or married and jointly earn less than $30,000, no income tax (increase to standard deduction). Individual TaxStandard deduction increased to $12,000/$24,000 (with an additional $6,000 single taxpayers with at least one child)
Maintain maximum rate of 20% for highest bracket above.Capital Gains and Interest IncomeTax capital gains, dividends and interest as ordinary income with a 50% exclusion (16.5% maximum rate)
Cap itemized deductions at $100,000 single/$200,000 joint (eliminates Pease issue). Increase standard deduction to $15,000 individual/$30,000 joint. Eliminate personal exemptions (no need to increase PEP). Exemptions, Deductions and CreditsEliminates itemized deductions except mortgage interest and charitable donations
RepealAMTRepeal
RepealNet Investment Income TaxRepeal
Repeal and Replace. Currently Fate Unknown.Affordable Care ActRepeal and Replace. Currently Fate Unknown.
Repeal, but capital gains held until death wil