Will You Be Able To Deduct Interest?
The House Republicans will release a blueprint on June 24 regarding their plans for a tax code overhaul. This plan includes the following major changes to the tax code:
- Reduce the corporate tax rate to 20% (from the current 35% rate).
- Allow 100% business expensing of capital purchases.
- Eliminate the interest deduction.
This blueprint will be presented on June 24 and we will update you after we review the document, but we wanted to give you a heads up that the House Republicans are very serious about tax reform. It will not happen in 2016, but it will be on the table for 2017 (no matter who wins the White House or Senate) and the House plans may well be the starting point for any discussions.
Paul Neiffer, CPA