Thursday, December 28, 2017
You can drive a truck through some of them
Loopholes, those fabulous exceptions in the latest tax bill, both intentional and otherwise, that make preparing taxes such big business are going to be studied closely this coming year. Given the sloppiness with which this bill was prepared and the haste of its passage insure that there will be more loopholes than apples in an orchard.
The latest overhaul could play out the same way. Already, lawyers and accountants are eyeing several provisions that investors and companies could potentially exploit.And that is just a start
The bill, for example, lowers the taxes on so-called pass-through income, which is earned by partnerships and other types of businesses. Congress sold the provision as a way to help smaller companies. But lawmakers added language that allowed big real estate developers to benefit. The result could be a tax break for any company that buys and operates a building for its business.
The new law is also supposed to encourage companies to make investments in the United States. But the rules were written in such a way that they could give businesses an incentive to keep their money in foreign countries and build factories abroad.
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