The Tax Cuts and Jobs Act (TCJA) passed the House on December 19, 2017 by a vote of 227 to 203 (with no Democratic votes and with 13 Republican members voting “no”). The Senate Parliamentarian ruled that three provisions in the version passed by the House were “extraneous” to reconciliation (one of which was removing the short title) and were removed in the bill that passed the Senate early December 20, by a straight party-line vote of 51 to 48. This forced a House revote of the version passed by the Senate later that same morning. The President signed the TCJA on December 22, 2017.
Most of the provisions are effective for taxable years beginning after 2017. Most of the provisions regarding individual tax changes (including estate tax provisions) are effective for taxable years from 2018 to 2025. Those provisions sunset after that date in order to satisfy the “Byrd Rule” so that the TCJA could be passed with just a majority vote in the Senate under the reconciliation process. Most of the business and corporate changes are effective permanently.
Members of the Firm have been following the legislative process and trying to understand the new law. There are four things we can say about the TCJA, without question:
To help inform you of some of the major provisions of the TCJA, we are providing herein a Manuscript prepared by the Firm. Many of the paragraphs may not be applicable to you. No doubt some of the items will be of interest or concern. Hopefully, the Manuscript will help you identify items which you need to address further with your accountant. Obviously, we will be glad to assist you in any way we can.
Please click on the link below for an overview of the provisions: