TCJA TECHNICAL CORRECTIONS UPDATE

[Lee B]

Copied from Tax Pro Today:

 

Technical corrections

 

While a number of errors have been identified in the TCJA, Democrats have been reluctant to help the Republicans correct errors in legislation that passed without Democratic input without getting something in return. That issue continues to be the impediment to passage of technical corrections. A “grain glitch” in the TCJA was corrected in budget legislation early in 2018 by giving something to the Democrats on low-income housing. A so-called “retail glitch” involving the depreciation of leasehold improvements, retail improvements and restaurant property (referred to as qualified improvement property under the TCJA) and an error in the dates applicable to changes to net operating losses are the two most substantive errors for which corrections are being sought. The repeal of the Kiddie Tax changes made by the TCJA, as proposed in the current retirement legislation in Congress, could also be viewed as a TCJA correction. Ways and Means Committee Chair Richard Neal, D.-Mass., may seek an expansion of the Earned Income Tax Credit and the Child Tax Credit as part of any bargain.

Some Republicans and Democrats from high-tax states are also pushing for repeal of the TCJA limit on the state and local tax deduction. However, this is viewed as a fix that would largely benefit higher-income taxpayers, and Democrats may not want to focus on that with the theme of the 2020 election campaigns being help for the middle class. There is also a bipartisan bill to restore a deduction for performing artists that was removed by TCJA.

In spite of the clear unintended consequences in the TCJA for qualified improvement property and net operating losses, movement on technical corrections does not seem to be a top priority in the House and might not get enacted in 2019.

[RitaB]

11 hours ago, cbslee said:

Copied from Tax Pro Today:

 

Technical corrections

 

...may seek an expansion of the Earned Income Tax Credit and the Child Tax Credit as part of any bargain.

 

[Lion EA]

And, an expansion of OUR Due Diligence requirements?!

[Abby Normal]

On 6/17/2019 at 1:06 PM, cbslee said:

The repeal of the Kiddie Tax changes made by the TCJA

Darn. I like the new kiddie tax, though I hear that some kids tax went up. I'd prefer they just come up with a new kiddie tax table and keep the new simpler method of calculation, rather than go back to the tortured way used to be.