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What’s the word on technical corrections?

What’s the word on technical corrections?

Mar 28, 2018

Pretty much everyone agrees that the last-minute scramble to write and pass a tax bill that would garner enough votes to pass resulted in a lot of “unexpected consequences”:

  • Inconsistency between the tax treatment of ag co-ops versus corporate grain buyers — farmers are given a 20% deduction on sales receipts for crops sold to farmer-owned cooperatives but not for sales to private or investor-owned grain handlers. 
  • Qualified improvement property having a 39-year tax life instead of 15 years and bonus eligible.
  • The effective date of a change impacting the use of NOLs, allowing calendar-year taxpayers to use their 2018 losses while many fiscal-year taxpayers cannot. 
  • Charitable contribution limit increased to 60% unless $1 or more of assets other than cash are donated, in which case the limit stays at 50%.

So, when can we expect a “fix”? As I write this, there are efforts being made to attach some of these supposedly easier corrections in the omnibus spending bill that is moving through Congress and must be passed by March 23 to keep the government funded. However, there are no guarantees at this point that any or all of these will be included.

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Christenson_Crystal
Crystal Christenson, CPA, MST
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