On Dec. 13, House and Senate conferees reached an agreement on final tax reform language. The legislation is expected to be approved by the House and Senate early this week and signed by President Donald Trump shortly thereafter.
Some proposals that were not retained in the final legislation include:
- An additional interest expense limitation that would have applied to U.S. shareholders of multinational groups with excess domestic indebtedness
- The House provisions that would have repealed many business credits
- A proposal to require individuals selling stock to use basis from the oldest shares acquired instead of specific identification
The corporate tax cuts are permanent. The individual tax cuts, including the pass-through entity deduction, sunset on Dec. 31, 2025. Businesses also will need to consider the impact of the Accounting Standards Codification (ASC) 740 changes on their financial statements.
Download a summary of key provisions of the bill.