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JLK Rosenberger Hot Take: For many of our nonprofit clients that pay parking for their employees, this legislation would prevent them from being subject to Unrelated Business Income Tax (UBIT). In addition, they would not need to consider grossing up wages for the parking benefit. We will keep you updated on any changes.
What’s in the Tax Package?
The Republican’s tax package, which includes the Retirement, Savings and Other Tax Relief Act of 2018 (H.R. 88), provides tax relief in key areas impacting both individual and business taxpayers. Specifically, the legislation includes the repeal of the required minimum distribution requirement for small retirement plans, the deduction of qualified tuition and related expenses as well as the treatment of mortgage premiums as qualified residence interest. It also provides tax-related disaster relief for those impacted by recent natural disasters, Obamacare requirements and addresses tax rules scheduled to sunset at the end of the year. Finally, it will allow startups to deduct up to $20,000 in qualifying expenses.
There has been a significant amount of change in taxes over the last year. The changes have opened the door to many new opportunities while also creating some confusion about the best way to take advantage of them. The current legislation, if passed, will generate more tax saving opportunities for qualifying taxpayers. If you have questions about the tax package, tax planning after tax reform, or need assistance with another issue, JLK Rosenberger can help. For additional information, please call us at (818) 334-8623 or click here to contact us. We look forward to speaking with you