• Posted by wilki
    Wednesday, December 06 2017 at 10:50 AM
    If the ability to specifically identify securities is eliminated, it will not prevent a taxpayer from donating or selling low-basis stock. The low-basis stock will simply need to be in a different account from the high-basis stock. Section 1012 states that basis of property is determined on an account by account basis.
  • Posted by ca@fma
    Wednesday, December 06 2017 at 10:41 AM
    The increase in the standard deduction doesn't do much more than offset the loss of the exemptions, and that is for MFJ with no dependents. So at that point the couple loses virtually all of their itemized deductions unless (whereas before they would get their itemized deductions plus their exemptions). If they have children under 17, the increase in the child tax credit doesn't do much more than offset the loss of exemption as well (House bill offsets it at a 15% rate, Senate at 25% rate).
  • Posted by duboff
    Wednesday, December 06 2017 at 9:30 AM
    In response to RJSKAL: the point was that personal exemptions are eliminated so low income families with many children will lose the benefit of those dependents, but the upside is that they will potentially get a higher Child Tax Credit. Current law would allow for some portion of the Child Tax Credit to be refundable. However the Credit under the Senate Bill would not be refundable. Therefore, those who have tax to pay will benefit and those who have no tax to pay will not benefit.
  • Posted by rjskal
    Wednesday, December 06 2017 at 9:07 AM
    Not following the logic here regarding the exemptions...“But my understanding is it’s not refundable so if you have no tax at all, which is highly likely, then you don’t get any credit. So a taxpayer who makes a lot of money will get a Child Care Credit, whereas a taxpayer who doesn’t may not get anything as a result of some of these changes.” If the taxpayer doesn't have any tax, an exemption would be of no value to them. They're in the same position under the old and new law in that case.