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
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.
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