Tax Reform Moves One Step Closer to Finalization
As of Wednesday afternoon (December 13, 2017), information has begun to emerge regarding the tax reform bill that has been negotiated by the House and Senate conference committee. Though details remain somewhat scarce, it appears the new plan will include the following provisions that could effect financial institutions:
- A 21% C Corporation tax rate that is effective for 2018
- A repeal of the corporate alternative minimum tax (AMT)
- A top personal tax rate of 37% compared to the current top rate of 39.6% (tax brackets to be released)
- A 20% deduction on pass-through business income (including S corporation income)
- An extension of the pass-through deduction to trusts as well as individuals
- A combined limit of $10,000 on itemized deductions for state and local property taxes and income taxes
The House and Senate are expected to begin voting on the revised bill early next week. It is possible that these proposals could be revised further, but it appears the Republicans are one step closer to tax reform.
To discuss how these proposals may impact your institution, please contact CLA.
Amanda Garnett is a principal in the financial institutions practice of CliftonLarsonAllen (CLA) from Peoria, Illinois. She currently leads the firm’s Midwest financial institution tax team and serves institutions ranging in size from $15 million to $3.5 billion in total assets. In addition to tax compliance, Amanda assists clients in the areas of tax consulting, mergers and acquisitions, and regulatory reporting. She also routinely teaches courses for banking associations across the country.
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