Comparing Tax Reform Proposals
Several tax reform proposals have been released over the last couple of years. These proposals will help frame tax reform that is likely to occur in 2017. It can be hard to keep track of all of the proposals that have been issued and the Tax Foundation just posted a nice chart that tracks five of the major ones issued since 2014.
None of these proposals will become final law, however, many of the items included in each proposal may be finally included in final tax reform. For example, the new tax law passed in December 0f 2015 included a bonus depreciation provision for planting certain specified plants. This new law had been brought up earlier that year and had gone nowhere. However, the final tax bill included the provision.
Most of the tax plans do seem to call for increasing Section 179 to at least a $1 million. However, some of the plans call for a curtailment on the use of cash method of accounting while others call for an increase.
We will keep you posted, but if you are curious where the proposals are headed, the chart does a good job of outlining each major component of the tax plans.
CliftonLarsonAllen, LLP
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
Comments are closed.