Federal Spotlight: Treasury & IRS Release Proposed Regulations on Tax

Last week, the Trump administration proposed three regulations regarding bonus depreciation, repatriation and Section 199A. The comment period closes in only 60 days, and any feedback you may have is requested. The first regulation on bonus depreciation increases the allowable first-year depreciation deduction for qualified property from 50% to 100%. The second regulation deals with Section 965, “which levies a transitional tax on post-1986 untaxed foreign earnings of specified foreign corporations owned by United States shareholders by deeming those earnings to be repatriated.” You can read more here. The third regulation deals with the new Qualified Business Income deduction, otherwise known as Section 199A. You can read more about that here. The regulations are being issued in compliance with the Tax Cuts and Jobs Act, which was signed into law last year by President Trump. If you would like to submit comments, please send them to Nicole Crain.