Tax Reform

So what’s the deal? I keep searching and can find no authorative information about how the tax reform bill is going to work & nothing about how the calculations & formulas will work.

I have read various articles about the pass-through deduction for pass-through entities. And they all differ and all leave out too much pertinent facts to tie it all together. Plus they don’t define or explain why cooperative divends & depreciationplay a role. Nor do the explain the role that ‘capital’ plays. In the meantime I have clients rattling my cage because they want to know how it’s going to affect them.

I read that the legislation had created Section 199A and 199A(a). So I read the bill itself. I found 13 references to the code section, but not the section itself. Google didn’t turn it up. Finally Thomson Reuters Checkpoint did. So I read it but that just left me with more questions.

Here’s my take. And it’s scary. It looks like this bill is so complicated with long equations that no publisher is willing to risk their reputation on the chopping block. They are dribbling out bits & pieces waiting for consensus to form.

My advice. If your tax guy tells you he understands this bill, slap him on the back, grab your files and run for your life.