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Tuesday, January 2, 2018

Tax Reform - A few provisions in track changes

I often find it helpful to see how tax legislation changes existing Internal Revenue Code sections. So, I took a few and made the modifications called for in P.L. 115-97 (12/22/17) (the Tax Cuts and Jobs Act), and show how they change the relevant Code section using track changes.  I also include the effective date information.  For the changes to 448, I also include a caution about how the favorable methods changes don't apply to "tax shelters" which could include some limited partnerships and LLCs even though they don't act like a typical tax shelter.

Here are the ones I modified:

Section 1 - tax rates including kiddie tax change

Section 62 - changes to AGI

Section 163 - changes to mortgage interest and the new interest limitation for non-small entities (and tax shelters - see comment above)

Section 274 - changes to entertainment, meals, travel and awards

Section 448 - changes to broaden availability of the cash method of accounting as well as similar changes to unicap (263A), inventory (471) and certain construction contracts (460(e))

Section 451 - changes to timing of income for accrual method taxpayers

Section 1031 - restricts like-kind exchanges to non-dealer real property

Hope you find this useful.  Note, these are just a few of the many changes in P.L. 115-97!

Also see historical links here.

What do you think?

1 comment:

L. Carpenter said...

Interesting. Thank you for doing this, Professor Nellen.