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Tax News Now Ep. 7 - Tax Topics with Kasey Pittman
274 Plays13 days ago
Mark Gallegos, Tax Partner at Porte Brown, and his guest delve into the leading tax topics each month. Gain insights from their expertise on the current tax landscape, with 2025 looking like a pivotal year for expiring tax provisions and potentially a new tax policy landscape. Recognizing the many uncertainties tax professionals face this year, Mark and his guests emphasize the opportunities to strengthen client relationships and drive future revenue for tax practitioners.
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Transcript
Introduction and Overview
00:00:09
Speaker
Welcome back to Tax News Now, the podcast where we shine a flashlight into the footnotes of tax legislation and translate it into actionable intelligence for real people, real firms, a real business. I'm your host, Mark Galagos, tax partner at Portie Brown, and I'm the guy who thought reading the proposed tax bill would be a quick Sunday afternoon project.
00:00:28
Speaker
However, spoiler alert, turned it into be a marathon. So breaking news on July 4th, 2025, the president signed the one big, beautiful bill act into law. It's just, isn't just another ah proposal. It's now our tax code and it's packed with changes that will ripple through every ledger in W2 in America to help us unpack.
Meet the Expert: Casey Pittman
00:00:47
Speaker
With what just became permanent policy, I'm joined by someone I greatly admire, both as a friend and a fellow tax policy junkie, Casey Pittman, who's a managing director of tax policy at Cherry Becker Advisory and a trusted voice for decoding complex legislation and keeping firms ahead of the curve.
00:01:03
Speaker
Today, we'll walk through the final law, what matched the House, what the Senate held firm on, and what you need to do to adapt. We'll zero in on the big five and a bunch of provisions in there, but we'll also talk about how this can help turn your tax navigation into where this roadmap's going.
00:01:21
Speaker
So with that further ado, Casey, welcome back and glad to have you here. Yeah, thank you so much for having me. I'm glad to be here. Awesome. So Casey, um congrats on surviving the Votorama Week and all this stuff. I know it's been a lot of long days and nights working through the tax bill and watching this um unfold from a almost like a reality TV, right? In in Washington.
00:01:46
Speaker
I have told my children who are fully uninterested in what I do, to be clear, that it is as good as any drama, any like TV primetime drama show, if you're really paying attention.
00:01:58
Speaker
I agree with you. And so I'm the same way. I just love watching it and love everything that comes, the drama that comes out of it and seeing how tax provisions and and specifically the tax side of the bill really come to life. so But before we dive deep into the new law, want to get listeners to know who you are specifically.
Understanding Tax Policy
00:02:17
Speaker
So quick question for you. What drew you into tax and specifically the policy and legislation world?
00:02:25
Speaker
Give us your story. You know, I always um loved tax. I think um from my first accounting class that really, you know, clicked for me. And then I took my first tax class and and ah enjoyed that even more. And so, ah you know, I pursued my master's in tax and um have been in that arena ever since.
00:02:44
Speaker
But it was Tax Cuts and Jobs Act where i eat in 2017, where I really moved into sort of tax intelligence and and morphing into tax policy.
00:02:55
Speaker
um And that's just sort of my you know tax dork brain. I mean, you know you go to a cocktail party and people are like, what do you do? And you're like, I i promise it's nothing you're probably interested in. But for me, it's very exciting. um And for the people we work with, it's ah very impactful. And for the, you know, we work with practitioners and and for the practitioners who are serving clients, you know, it all translates to real dollars. this These items drive markets. And so I think, and incentivize behaviors.
00:03:23
Speaker
And so I think having an understanding of that and being able to bring that again to practitioners and clients is is something I'm really passionate about. That's awesome. That's awesome. No, I agree. I think there's, there's something about that once you get in, you know, and you start to figure out that you find a fit and then you just take off with it.
00:03:41
Speaker
Now, along the way, has there been a mentor or multiple people that have been pivotal in your shape, your path, your career? um my It would be so difficult to call out one. I have worked with some of the most extraordinary people. um And I would say, you know, for certainly in this tax intelligence space, it has been people who are so smart and so collaborative and without any ego. And it just makes for a wonderful teaming and work environment.
00:04:12
Speaker
And then, um as you know, I love working with the AICPA, volunteering there, just some of the greatest minds and loveliest humans um who are just there to, you know, help help other practitioners along the way. And and so um it would be very hard to call out one. I have been very, very lucky ah in my career.
00:04:31
Speaker
That's awesome. That's awesome. So now after the years of
The Reconciliation Process Explained
00:04:34
Speaker
reconciliation chaos, you know TCGA and now the Inflation Reduction Act and now the OBBB, what still fires you up about this work from that perspective?
00:04:47
Speaker
Yeah, I mean, again the actual impact that these items have on businesses, on families, on, you know, again, and all of those combined on markets, on trends, on behaviors, I think is what drives me.
00:05:03
Speaker
I will say... that it remains interesting because of the way we're passing ah tax law recently. um You know, we used this reconciliation process for the um One Big Beautiful Bill Act, which actually the name was stripped. Chuck Schumer got the name stripped right before, ah because it did not comply with reconciliation rules, so ah right before the Senate passed the bill. ah So sometimes OBBBA, O-B-B-B-A, And sometimes H.R. 1 and sometimes the reconciliation bill and sometimes the bill. We'll use those all interchangeably. But um I think in this conversation we'll use them all.
00:05:42
Speaker
But it was a completely partisan process. And reconciliation was chosen as the vehicle because you're able to overcome the filibuster in the Senate.
00:05:52
Speaker
So I think that... There's a little bit of a misconception on how bills pass in the Senate, and you only need 51 votes in the Senate to pass a bill.
00:06:03
Speaker
But generally speaking, under regular order, you need 60 votes to end a debate on a bill and to force the vote on the floor. And there are certain types of legislation that are privileged. They have a privileged status and they are not subject to that 60 vote threshold, which is known as the filibuster.
00:06:22
Speaker
And reconciliation is one of them. The trade-off is reconciliation comes with a lot of rules, right? um And they sort of range. We won't get into too much detail here, but they're generally surrounding revenue expense costs.
00:06:37
Speaker
ah expense Provisions, um you can only have a provision in a reconciliation bill if it directly impacts ah federal ah income or outlays.
00:06:50
Speaker
And it can't be sort of like merely incidental you. It has to sort of have a ah generally primary purpose of increasing revenue or increasing expenditures. so You cannot increase the deficit outside of the budget window, which is typically 10 years with a reconciliation bill.
00:07:09
Speaker
And inside the budget window, you can only increase or decrease the deficit by the amount you have outlined when you pass your budget resolution. And in the budget resolution, when you pass that, you've got reconciliation instructions.
00:07:21
Speaker
Those instructions say, hey, Senate Finance Committee, you're allowed to spend X dollars. Senate Agriculture... I need you to raise X dollars, Senate help. I need you to raise X dollars, you know, whatever the case may be.
00:07:33
Speaker
So we've got those those parameters that are outlined in the beginning and we have to adhere to them. um There's also a limit on reconciliation bills. You actually can have three.
00:07:44
Speaker
in a in a year, but one dealing with revenue, one dealing with expenses, one dealing with the debt limit, or you can combine them. And in this case, they were all combined. So just generally speaking, we're passing these tax laws with the exception of the 2015 PATH Act, pretty much via reconciliation. And we have not had a minority party vote for a tax reconciliation bill since 2005, since Bush was in office.
00:08:13
Speaker
Right. So that's a long time. and So for 20 years, we've been passing these bills to include, right, ACA, which is commonly referred to as Obamacare or the Affordable Care Act, the Tax Cuts and Jobs Act, ah the Inflation Reduction Act, which literally but for Joe Manchin and Kyrsten Sinema, two senators who are no longer in office who chose not to run again would have been build back better, which was BBB. So this was very confusing with the OBBB, you know, for a little bit.
00:08:46
Speaker
um But we almost had that bill, but for those two senators. And now we've got, um, I guess we're probably going to commonly call it OBBBA, which is still a mouthful, you know.
00:09:01
Speaker
But so here we are and we've got this not a single Democratic vote for Inflation Reduction Act, not a single Republican vote, you know, and and down the line. So we see when power shifts in Washington um that there is the opportunity for significant changes in tax law.
00:09:20
Speaker
And so, you know, some of these things that we're going to talk about, I'm sure we talked about that it was a hard line for many Senate Republicans to include Senate leadership to make some of these provisions permanent.
00:09:33
Speaker
That was a hard line for them. That was their entire premise. That's why they chose this. current policy baseline, which was a novel approach to reconciliation. um And we can talk little about that if you want to. It's a, you know, a little bit of a sidetrack.
00:09:47
Speaker
But that permanent, for me, just means not expiring, right? That doesn't mean that there won't be a new tax law in four years, in eight years, in, you know, 12 years, whatever it may be, that will come and change these provisions. And so I think that's important to keep in mind, too.
00:10:01
Speaker
We've got this law. We now need to learn everything about what's in the statute. then we need to wait for guidance. and And for a while, we're sort of looking until we have guidance to other sources, right? Where, where could we find, ah you know, some information on where we think this may be going in terms of guidance or having a filing position.
00:10:18
Speaker
But then after that, we're looking to midterms. And after that, we're looking to 2028. And again, knowing that all of this could have an impact on the future of tax policy keeps me, I would say pretty engaged.
00:10:29
Speaker
Yeah. right? um And keeps tax policy pretty relevant. And it's something that I think is important to consider. think it's something important for clients to talk to their advisors, for um you know practitioners to talk to their clients about what could be on the landscape, right?
00:10:44
Speaker
We know what's happening now. We know it's happening for four years pretty much. and But what should we at least have our eye on down the road? you know What should we be watching? So important. So important. So now if someone's listening and they're like, you know, I understand this a little bit, but you mentioned reconciliation and kind of gave some great insights there.
00:11:03
Speaker
But, you know, of walk us through not just the whole reconciliation process, but like the fact that the House had its version under H.R. 1 and then it went to the Senate and then they kept talking about it had to be the same bill.
00:11:15
Speaker
Can you kind of give us an overview of that? Just so if someone's listening is like, i don't understand how this policy gets developed in a reconciliation and how does it eventually get to the president? Yeah, absolutely.
00:11:26
Speaker
So this was a big priority from day one. And there was a ticking clock. um to The primary two ticking clocks were that Tax Cuts and Jobs Act were going to were many of those provisions, the individual and the flow-through provisions were going to expire at the end of this calendar year. And number two is we hit our debt limit in January. And so we were unable to borrow funds after January 2nd. And we were using extraordinary measures to meet our obligations and that we can't use extraordinary measures forever.
00:11:56
Speaker
That was likely to expire sort of late summer, early fall. And then and that would have been catastrophic. So we've avoided that, thankfully. and But Republicans took office right in January. And actually, the it came out of Congress exactly six months after the new Congress was seated.
00:12:14
Speaker
So they came into office January 3rd. 17 days later, President Trump took office. And then um on July 3rd, Congress was done with the OBBBA, H.R.1.
00:12:27
Speaker
sent it to the president, president, send it on the fourth. So they came in, they knew we've got to do something. And this was a huge priority. They'd been talking about it pre-election, post-election, you know post-inauguration, pre-inauguration, post-inauguration.
00:12:41
Speaker
So they started with the budget resolution, which is how all of these bills start. And inside the budget resolution are reconciliation instructions. And the House and the Senate are two very different bodies, even though they're both controlled by Republicans.
00:12:55
Speaker
They both have very small margins. And Republicans are a diverse conference right now, right? You've got some senators from purple states, including, you know, Maine, Susan Collins, who ultimately voted against the bill.
00:13:10
Speaker
And you've got representatives from blue states, straight up blue states, but purple districts inside blue states. and And so there's a whole host of different issues. And just sort of even in more conservative states, you have to imagine, right, middle America versus coastal America, you know, big cities versus more suburbs.
00:13:30
Speaker
Everybody's got different needs. And so they're all coming to the conference with a different perspective. So getting everybody on board, knowing you could only lose three votes in each chamber, that was difficult.
00:13:41
Speaker
And each leader, Speaker Johnson. So when we say Johnson, that's Speaker Johnson, Speaker of the House, or Thune, Majority Leader Thune in the Senate. When we say Thune, that's who we're talking about.
00:13:53
Speaker
um Each had to work within their conference to get their instructions. House goes first, right? House always goes first for um ah fiscal bills. And they said, hey, look, we've gotten everybody on board.
00:14:05
Speaker
We are going to be able to spend $4 trillion dollars on tax cuts. If we raise and we have to raise $1.5 trillion dollars from other committees and they specified other committees, you know, they said, hey, we need you to cut this, you to cut this, you to cut this.
00:14:21
Speaker
um And, you know, defense, you can spend a little bit here. There were there were some spends we're not really talking about here, a little bit of defense and and immigration. ah enforcement that pale in comparison to tax.
00:14:31
Speaker
ah So um everybody got their instructions. It was and that was hard thought, right? That was a struggle to get everybody on the same page. Over in the Senate, Thune took it entirely different approach um and said not only Are we gonna have different instructions with different spends? We're not even using your baseline. We are gonna use a current policy baseline because we wanna make a lot of these provisions permanent.
00:14:54
Speaker
And so what we're gonna say, and we think it's within our power, and ultimately they wind up getting it through. Ultimately, we think that instead of comparing What we are proposing against current law, which we've always done, we're going to compare it against current policy because we want these you know tax rates to be permanent. And we can't increase the deficit outside of the budget window. So unless we're comparing to current policy, there's no way we can make them permanent.
00:15:19
Speaker
um So they took an entirely different approach, had really minimum spends, all comes together. And each, they passed ultimately the same budget resolution with each chamber having very, very different instructions.
00:15:32
Speaker
And so now we've got the budget resolution. And again, house goes first. House goes first. works And they've been working for some time to put together this bill. There are definitely some last minute negotiations, particularly with SALT and the House Freedom Caucus, who really want to cut spending and really want to attack the rollbacks of the Inflation Reduction Act ah incentives.
00:15:55
Speaker
And so they've had a really hard-fought process of putting forth and passing their version of a bill. The Senate came over and said, all right, we're going to do our thing.
00:16:07
Speaker
And all the while, you know, Johnson is pleading with Thune publicly and privately, hey, please don't change very much. This was really difficult for us to get through. I don't know that we're going if you have major changes, we're going to be able to get this through.
00:16:21
Speaker
Well, then it comes out and it's very different. Not necessarily in terms of priorities. Some priorities were changed. Some things that the House had, the senate didn't the Senate added some things that the House didn't have. By and large, generally the attacking the same items you know or or but general areas, but with a much larger spend, right?
00:16:43
Speaker
And a much more moderate approach to rolling back IRA credits. Senate didn't care about SALT. They're not from blue states.
00:16:53
Speaker
The Republicans are not from blue states. So and that was a really difficult decision there. There were some tense negotiations with the SALT caucus and because the SALT caucus probably stood firm.
00:17:05
Speaker
the most They were probably the group that stood the firmest in these negotiations in terms of, hey, we're not going to sign on. There's enough of us to take the bill and we're not going to sign on unless we get the relief we need for our constituents. um So ultimately, Senate put out their bill.
00:17:20
Speaker
Big backlash in the House. Huge backlash, particularly House Freedom Caucus, who said, you know, we're not
Bill Passage & Political Maneuvers
00:17:26
Speaker
signing off on this. This is, you know, we are going to own these green subsidies if we let this bill pass in its current form.
00:17:33
Speaker
But ultimately, President Trump essentially came in and said, it's it's pencils down, guys. It's time to pass it. I'll issue an executive order. We'll talk about that when we get to IRAs. I'll issue some executive orders to try and make sure we really hone in on these ah Inflation Reduction Act incentives, but pencils down.
00:17:51
Speaker
And so the House wound up passing something they really publicly railed against that they did not like, that a number of them did not like. And and that's how it all came together. And ultimately, that's how wash that's how things happen in Washington sometimes. There is a train and it is moving.
00:18:06
Speaker
Right. And, and what's on it. And so there's something in here we can talk about when we get to individuals, there is a provision they just passed and there's already a bipartisan proposal to remove it. You know, sometimes it's in there and this train is going and, and, and that's what happened with TCJA. Do you remember? That's right.
00:18:24
Speaker
The drafting error for Quip. It took like years to fix that. They, you know, it was fix completely unintended, but this train was going. Right. Yeah. So.
00:18:35
Speaker
So that's where we are. We've got a bill and it is definitely like every other legislation imperfect. It's not what anybody wanted or would have designed exactly. um But it was a place where everybody was happy or unhappy enough to sign on.
00:18:51
Speaker
yeah And so it passed and it was signed. And, you know, now we're going to dig into it and implement it and talk about planning opportunities with our clients. So good. Yeah. Thanks for sharing that. I think that's, it sums it up really well of how this all came together. And obviously, you know, you, if you, if you listen to what Casey just shared with us and you kind of break that down between the house and the Senate and,
00:19:16
Speaker
in the executive branch, um there's a lot of drama that goes on with, and she just gave you the very high level view of what those discussions look like. And, you know, lot of tense moments there.
00:19:28
Speaker
I mean, in the end, the Senate needed the vice president to break the tie, right? They lost three. um They lost three Republican senators. um One of whom said that he was not going to run again.
00:19:43
Speaker
of, sort of in conjunction with coming out and speaking his mind on the impact of this bill on his home state, um Tom Tillis from North Carolina. and So, um you know, that it was very dramatic. The whole thing was very dramatic. um But yeah, they needed the vice president.
00:20:01
Speaker
um And those margins wound up, they were tight. and And they got passed with what they could get passed. And so here we are ah on the sort of eve of implementation. Some of these or have retroactive dates.
00:20:13
Speaker
So we're already in it. That's right. And this, you may think, oh, I got a 10-year window to deal with these tax revisions. But the reality is, We have a short window on this and we have midterm elections next year. And with tight margins, we don't know where the balance of power will shift and what, you know, in four years, what that may look like too with the tax bill. So again, we need to know this stuff, but also at the same time, we need to keep it on our radar that this isn't something that even though it's called permanent, it may change down the road.
00:20:43
Speaker
Yeah. Permanent for me means and does not expire. and go So now a question that comes up before we even kind of get into the nuts and bolts of this is, since this bill now has passed with administrative rulemakings, what are the next steps for Treasury and the IRS as far as providing guidance? And is there a is there a runway? Is there a window? What what are your thoughts on that, Casey?
00:21:08
Speaker
They're going to have to prioritize, right? there Some of these provisions are pretty much a continuation of current policy. There's not much guidance to provide, but some of them are novel.
00:21:19
Speaker
They're new, new approaches. um Some of them have timelines built in, not to say that Treasury doesn't sometimes miss these timelines that are built into the law. um So like no tax on tips that has a 90-day clock from enactment is when Treasury is supposed to issue at least initial guidance.
00:21:36
Speaker
um And we can see guidance come out in various forms. so We're not going to get regs in 90 days, right? ah We're probably going to get notices. ah Maybe they'll be followed by regs.
00:21:48
Speaker
And we'll see. i do think that as we... We should be looking for um less authoritative guidance up front and then more authoritative guidance sort of as they're able to work through it. But there is going to have to be some prioritization here.
00:22:04
Speaker
Now, Treasury has been, reports are, I haven't spoken to any Treasury officials about this, but there are reports they have been staffing up for this, um dividing themselves into working teams, and knowing what is likely to wind up in the bill and and kind of working ahead a little bit on what they can and will provide.
Business Tax Provisions
00:22:23
Speaker
And um Ken Keyes was just confirmed by the Senate, I want to say, two-ish weeks ago. um So Deputy deputy um Secretary for Tax Policy, he is in seat.
00:22:36
Speaker
So we're going to see what we get here. But it is we're going to have guidance over years for some of these things, right? The guidance, and the issuance of final regs takes years, um not days.
00:22:50
Speaker
ah So we're going to see. And we're still waiting on guidance from TCGA. So, I mean, why not throw it on the top of the list here, right? so I mean, we are working with 461L, which is one of the provisions we'll talk about.
00:23:02
Speaker
We have but three page of three pages of instructions on a form and the statute. you know That's what we have for that so far. um and And that's not as complex of a provision.
00:23:13
Speaker
you know, to to understand there have been some questions, but they're not the highest need. And so we haven't received comprehensive guidance on that. We haven't received comprehensive guidance on PTIT yet. So we're going to see, ah and but we'll be looking for it. we'll We're certainly now shifting our focus from watching Capitol Hill on some of these items to now we're watching Treasury.
00:23:34
Speaker
Exactly. So now why don't we just kind of jump into what what's this bill bring to us? What's some big provisions that, you know, listeners should be aware of? And, you know, i think there's a number of them and obviously everyone needs to go and read up on this stuff, but let's just talk about some of the big ones and kind of go from there.
00:23:54
Speaker
Casey, I think that'd be ideal. Yeah. I mean, you Let's start with businesses. We'll start with businesses. So we have the trio of what have been referred to as orphan TCJA provisions.
00:24:10
Speaker
They didn't expire, but their treatment has already changed, right, in in previous years. And so we are talking about bonus depreciation, which has been on a phase down from 2023. You know, had through and was eighty 2024 was 60. Now we're in 2025, it's 40.
00:24:31
Speaker
We were going to go to 20 and then zero if there was no bill passed. 174 research and experimental provisions. We've been capitalizing those since 2022, amortizing over five years for domestic and 15 years for foreign.
00:24:47
Speaker
And then we've got 163J, which effective in 2022 switched from ahched from EBIT, you know, calculating ATI, it's 30% of ATI. ah Calculating ATI based on EBITDA, we switched to the more restrictive EBIT.
00:25:01
Speaker
um And man, that was bad timing, right? Because we had inflation. And so we saw a rising interest rates and ah constriction in our ability to deduct business interest expense.
00:25:12
Speaker
um And just, you know, as we talked about earlier, looking forward in terms of, hey, What if there is a power shift down in down the road in 2028? These provisions all feel pretty safe to me.
00:25:24
Speaker
These have had wide bipartisan support. um And they're all gonna play together a little bit, actually. There's some decision-making here for 174, which I think has really captured the media in terms of these um orphan provisions.
00:25:40
Speaker
There are some options for small taxpayers, like nominally 31 million gross receipts average and under. They have the ability to go back to 2022 and amend their returns and and essentially pretend capitalization was never required ah for domestic expenditures.
00:25:57
Speaker
All of the changes to 174 are for domestic. you know Now we're back to effective in 2025, being able to deduct those expenses currently. And for everybody else,
00:26:08
Speaker
there are a few options to include just letting the rest of these play out over their amortization schedule or deducting the unamortized balances over either one or two years. And, you know, diss Mark and I were talking earlier about this,
00:26:24
Speaker
You know, that is going to affect your taxable income. it's going to affect your ATI. Your ATI obviously is going to affect how much business interest you can take. Now, again, when we're doing this, you know, EBITDA base, that's great. We can add back depreciation. You know, we're making different depreciation decisions potentially.
00:26:42
Speaker
It's all of these provisions ultimately can play together mostly through the business interest expense um ah limitation is is where they come together for some decisions. So this is going to be not necessarily a simple decision. There's there's going to be some modeling here for taxpayers, I would say. 100%. And you know, one of the things on that 174 piece that the ability for small business to be able to go back and amend.
00:27:10
Speaker
When I look at that, I think, oh no, do we really want to amend? mean, so you're talking a lot of that small business pass through in these S-corps partnerships. You got to amend the S-corpor partnership return. um If I'm a partnership, maybe I got to deal with BBA potentially issues, and then and then I got to amend trust or individual returns or end user returns. So again, it creates this compliance headache that if I'm getting refunds in that process, how long is a refund going to take? And and now have I entered the old yeah ERC world of getting things processed with the ah current administration, with the IRS? Or
00:27:42
Speaker
Can I do things going forward? So we'll have to wait and see what the good decision is there. But I think the key right now is to know this is a good thing that I think you're going to have to kind of look at who your clients are that are affected and kind of point those out for them. So.
00:27:57
Speaker
And I mean, i ideally, taxpayers will be excited about these conversations, right? Because these are all net positive changes for the taxpayer. And there are some options in there as well, right?
00:28:09
Speaker
You can still capitalize your 174 if you want to. There's an option for that. Because, you know, we're halfway through 2025, there's an option to remain at that 40% bonus level rather than moving to 100% if you'd like. um So I think there's some flexibility in these provisions and they are very generally taxpayer favorable. So these are hopefully ideally conversations your clients are going to be excited to have.
00:28:36
Speaker
Exactly. Yep. um There's a couple other you know fixed asset provisions to include the ability to deduct a qualified production property currently.
00:28:47
Speaker
right and that's And that's meant two help increase our domestic manufacturing capabilities. right and And that ties into ah President Trump's overall, I would say, approach in terms of making America manufacturing-friendly approach.
00:29:08
Speaker
ah country Right. and There's a little bit of a bump for Section 179 expenses for those people who aren't putting too much into service. 179 is a great option.
00:29:21
Speaker
I always, you know, between bonus and 179, if you're eligible for both, for me, it comes down to state conformity issues. And so depends sort of on your on your locality, your location, your state, what their 179 and bonus treatments are.
00:29:36
Speaker
There's an interesting change to um QSBS, qualified small business stock, right? and Previously, or ah if you acquired a stock before, on or before July 4th, you had to hold it for five years to get this exclusion, you know, this gain exclusion. And now there's like a phase which I think is really representative of the way markets are moving now, right? We see a lot of PE deals, general turn is five years, and now sometimes it's three years.
00:30:03
Speaker
And I think it just provides more options for taxpayers who are building a company, right? And and if it's the right time to exit, man, it's a bummer if it's the right time to exit and you get a great deal at year four, you know, you just got to hold it one more year to get full gain exclusion.
00:30:19
Speaker
and So this does provide, I think, some great flexibility. Again, mainly taxpayer-favorable provisions that we're working with here. um couple bummers, right?
00:30:31
Speaker
1% floor on charitable contributions for corporations, you know, a little bit of an expansion of the $1 million complementations, but nothing huge. um A little bit of a change in percentage of being able to opt out of the percentage completion method.
00:30:47
Speaker
um Again, taxpayer favorable. And for flow-throughs, there were a couple sort of near misses here, right? And so i kind of want to get into those.
00:30:58
Speaker
the Let's talk about PTIT first, right? mark Mark and I have talked a bunch about PTIT over the years. um And um I don't know, you want to a little, should we do a little background on it?
00:31:10
Speaker
Yeah, let's do that. Because I mean, I think that is, we got to go back to pre-2018, going back to TCGA enactments and go, what what was PTIT? Why did it get created? And who created it, right?
00:31:24
Speaker
And we'll start from there. Yeah. So before Tax Cuts and Jobs Act, yeah there was no limitation on SALT deductions. And so, um you know, Mark and I have a ah business. We have and car washes. I think that's what we had, right? In our example, we had car washes ah sort of up and down the East Coast. I think that's where we chose our location.
00:31:46
Speaker
And, um you know, we would file our South Carolina return, our North Carolina return, Virginia, Maryland, you know wherever we were. And you could have a composite payment. That's fine. But ultimately, i had to pay the tax, right? And Mark had to pay the tax. We all paid our taxes and we got a deduction for the taxes that we paid to North Carolina, South Carolina, Virginia, whoever we paid.
00:32:09
Speaker
and And we could deduct it on our tax return. Now, It's not quite so simple, right? Because SALT is an AMT ad back, and maybe we're an AMT, and there was a P's limitation. there are a bunch of things that go in there. But just generally, we can deduct it on our Schedule a We pay it, or they pay it on our behalf, but essentially, we get the deduction on our Schedule A. Well, Tax Cuts and Jobs that cuts and jobs Act came around and said, hey, $10,000 SALT deduction, that's it.
00:32:36
Speaker
And people were like, whoa, that's not cool because corporations can deduct their salt and I have a flow through business. You know, we have this car wash and we're a partnership and we need that flexibility because of whatever. You know, we don't want to be a corporation. We want to be a partnership.
00:32:50
Speaker
And so ultimately, there were a few states, I think Connecticut was first, and they said, goodness, we're going to actually let the company pay it. they can deduct it as an entity level deduction and voila, it's deductible.
00:33:06
Speaker
We've sort of bypassed schedule a And um ultimately the IRS in 2020 came out and said, there was a little bit of, you know, like, can we do that? Can we not? and IRS said, I mean, you can do it. We'll issue regs later.
00:33:19
Speaker
We have yet to see those regs. I don't know if they're ever coming. out I used to think they were never coming, but now that you know, we're going to get to this. P-TIT's here to stay. Maybe they are ah one day. We'll see.
00:33:30
Speaker
But, you know, they said, you know, you can do it. Go ahead. And so I think we've got like 39 states where there's a P-TIT regime where you know our car washes can pay the tax on our behalf and then it becomes deductible.
00:33:43
Speaker
Well, the House had a version that said that's fine for your car wash business, but it's not fine for your CPA business for the certain specified service trades or businesses.
00:33:54
Speaker
And that had a whole backlash, right? And so that is bankers and CPAs and lawyers and there's a bunch people who would have gotten caught up in that. and And then the Senate came out with their original version and they said, we're not going to discriminate.
00:34:10
Speaker
Essentially, everybody gets half of the PTIP, you know. And again, businesses were like, what the heck? You know, CVS can deduct. This is what we saw the media. CVS can deduct their taxes, but my local pharmacy can't, you know. And and that that was impactful.
00:34:25
Speaker
And ultimately, in the final bill, there was no limitation on PTIP. It was silent on PTIP. So, going forward for now anyway, there is no limitation PTIP. We are going to continue under the same regime.
00:34:40
Speaker
So that was, i want to say there were many flow through entities that were sweating the potential outcome of that. Right. And so that was a win for taxpayers.
00:34:51
Speaker
Um, we got that salt bump, uh, which we'll get to when we get to individual provisions, but without the PTIP sort of, you know, um, revenue raiser attached to it. So I think, uh,
00:35:02
Speaker
Ultimately, there are a lot of people wiping their foreheads today. Absolutely. 100%. hundred percent And the other one that was sort of a near miss was section 461L. And section 461L came about, as again, as part of TCJA. And it had a couple, you know, bumps in the road where we had sort of retroactive changes because of COVID. And we needed people to be able to get cash back. and And we were coming out of COVID. But ultimately, this provision says you can deduct a certain amount of business losses from our car wash.
00:35:39
Speaker
against our other income, our W-2 income or you know whatever non-business income we have on our individual tax return. um And it's $500,000 if you're married, you know index for inflation. So now it's like 600 something at this point.
00:35:54
Speaker
And whatever you can't deduct. So you know Mark and I have a really bad year. And we each get a $3 million dollars loss on our K-1s. And we can each deduct, you know, $600,000 of it. So we've got like $2.4 million dollars we can't deduct.
00:36:11
Speaker
Now it goes forward, gets rolled to the next year and becomes an NOL subject to NOL rules. So we get it. It's like a one-year deferral effectively, right? If you've got enough income to take it as an NOL rule.
00:36:23
Speaker
They were going to, in both bills, actually retest the income. They were going to say, you know, okay, it's an NOL, but it has to go back through this funnel. So every year you're only getting up to $600,000. And maybe we make money most years or we run at a net zero and we have this really bad year. You know, it would have taken us five years to get through that loss if we usually run at a net zero, um if we were retesting it. And that would have been impactful for people who have flow through businesses who typically run at losses because maybe they have a corporation where that runs at a profit. You know, they've got other, yeah everybody's got different structures for different types of businesses. And so for a handful of taxpayers that I know of personally, so I'm sure you know of personally, you know, collectively, that would have been really damaging.
Individual Tax Provisions
00:37:07
Speaker
and So another one, ultimately was made permanent, but we didn't have any of those issues. There's no retesting. So we're going to maintain the same treatment, but it is going to be a permanent provision.
00:37:19
Speaker
So good. So good. Yeah. And I think that's sort mean, these are the things that, and unfortunately, when you read, there's a lot of information out there and you'll see stuff on the house language that was initially proposed, the original Senate language that proposed, the amended Senate language.
00:37:34
Speaker
And I think, you know, you want to make sure you're looking at what are we looking at? Cause there's, you can get caught up in the different rules that came out all in a very short period of time. You just make sure we're advising on what is the actual final language.
00:37:48
Speaker
And it's hard for people to find the text sometimes, right? Like congress.gov has it. That's where I would go. Congress.gov, H.R. 1, if you're looking for it. um But yeah, there are a lot of ideas that have gotten stuck in people's heads, and that's not what wound up in the actual bill.
00:38:04
Speaker
And there were, again, numerous iterations. You can definitely be looking at the wrong article, the wrong version of the bill, the wrong summary of the bill. You know, we we have a, you can go look at the Senate summary, the provision section by section. You can look at the House section by section summary.
00:38:21
Speaker
there That's just not ultimately, some of them wound up exactly the same, but some of them did not. So that's, you're right. That's a good point. It's really important to look at the right right version. And now the individual side, there's some changes there. Obviously, you kind of already alluded to some of them, but I think this is good for people, especially if you're dealing with, you're listening and you're dealing with your own return, but also you're advising clients on the individual side.
00:38:45
Speaker
Yeah. You know, usually I'll model tax laws through my own return to see how they work. I haven't even gotten to do this yet because we're just sort of coming up for air here now. Yeah. yeah I mean, by and large,
00:38:56
Speaker
an extension of current law, right? um The current TCJA provisions that were set to expire, by and large, they've been extended. So rates and brackets have been extended a number of times, so I will say several times during this process, four or five,
00:39:14
Speaker
There were proposals from different Republicans to include support at one point by President Trump for an increase in the top rate to either back to 39.6 or to 40 percent for really high now you know ah earners.
00:39:32
Speaker
um And so while it didn't make it into this bill, I was shocked at the amount of Republican support that proposal garnered. So that's something I'm keeping my eye on as well. If we need revenue raisers in the future.
00:39:49
Speaker
Very good. Very good. no I think, yeah I think there's some good things there. And I think, you know, even beyond this stuff, there's, you know, there was changes in, um, international tax provisions were regarding beat and guilty and fitty. And then also, know, they've been renamed their name. You got to get, we got to get used to the new names too for international.
00:40:09
Speaker
Um, And then we have the energy credits. And international isn't my isn't my specialty area, I will tell you that. But there were definitely some um meaningful changes in GILTI, FIDI, and BEAT. And um really interesting change for um domestic corporations. I mean, domestic flow-through businesses who are exporters,
00:40:35
Speaker
ah eight sixty three b um So again, not my area of expertise and probably not something you want me to talk too much about. but No. And I would say just to everyone out there, you don't have to be an expert in this, but if you don't know enough about this stuff, make sure you talk to someone in your organization that is an expert. Or if you don't have anybody, reach out to someone that is an expert because I tell you where this comes in handy.
00:40:57
Speaker
Besides, the compliance in international is key. especially when you have your entities, you know let's say it's an S-Corp partnership and they own a controlled foreign corporation and there's reporting requirements that you've had to deal with, that hasn't changed.
00:41:09
Speaker
But the idea of the guilty tax that potentially has to be attributable to yeah i make income in another country and all that flows back into the US s through the S-Corp, how does that affect people?
00:41:22
Speaker
And I think understanding what has changed there is going to be key and making sure you reach out to the network of people that can help you is my advice to you right now. And one of the things that was, I think, potentially very scary for a number of and larger um businesses was the 899 retaliatory taxes, which were very commonly referred to as a revenge tax, which ultimately got pulled from the bill because of an announcement that the G7 countries made relating to a change in
00:41:59
Speaker
how we're going to tax the income of U.S. corporations. Essentially moving to what they're calling a side-by-side system and under the premise that, and it doesn't have a lot of detail, right, but just generally that they are going to support a side-by-side system, particularly as particularly as it relates to U.S. companies because u s companies are already subject to a minimum tax inside the U.S. And so I think that the The proposal of any inclusion.
00:42:31
Speaker
of the quote, you know, revenge tax in the bill ah certainly helped that deal come together. and we'll see, you know, devils in the details and we'll see what that looks like when we get more information. But that was something that was worrying a lot of, you know, large multinational corporations and and was a general concern for some policymakers that it was going to dampen foreign investment in the United States.
00:42:56
Speaker
um So that thankfully got dropped, I think, Again, there were tons of concerns across the board. and So one less thing to deal with on international there.
00:43:08
Speaker
um But, you know, sort of back to individuals, there were there was an extension of the standard deduction, but with a little bump. There was an extension of the 2000, you know, the child tax credit used to be a thousand dollars. It's almost hard to remember that. And that's been two thousand dollars for a while.
00:43:24
Speaker
A little bump to twenty two hundred dollars. so um And the bumps are effective in 2025. And that's intentional because people file their 2025 tax returns generally in the spring of 2026.
00:43:38
Speaker
And the elections are in the fall of 2026, right? So if that were if these were to take effect in 2026, taxpayers wouldn't necessarily feel that extra income.
00:43:49
Speaker
And that's something Republicans were really excited about was you know making a lot of these things. um And we'll get to some of the temporary ones in a minute, but making a lot of them um so retroactive to the beginning of the year.
00:44:02
Speaker
and So we talked about child tax credit. AMT is very interesting. AMT is preserved at that you know sort of higher thresholds, higher exemption phase out. But the million dollar phase out has grown.
00:44:16
Speaker
You know, it's grown for inflation and it will continue to grow for inflation. But now it's like one point two five, maybe million. That is going to be reset to one million. So it's still 1 million, which is way better than, you know, whatever the, you know, tens of thousands it was for TCJA, a ah but it's being reset. And so people who just missed AMT in prior years so might find themselves subject to AMT.
00:44:42
Speaker
We're also going to see... And by the way, SALT, we got a SALT cap, which you know we'll talk about in a second. That was a hard battle. We got increase to the SALT cap. That's an AMT ad back. And then we also have a little bit of a ah limitation on itemized deductions.
00:44:58
Speaker
If you're in that 37% bracket, right, and you take a deduction, generally, you'd get 37% of it. If I give a dollar to charity, I'll get 37 cents back.
00:45:10
Speaker
um they're limiting that. They're taking sort of 2% off limiting the the deduction to you'll get a 35% benefit instead of 37. So it's a small, it's a little bit easier, I think, um than the PEAS limitation that we had pre-TCJA, but that's in there.
00:45:24
Speaker
um Bump to the child dependent care tax credit. You know, that's actually a a pretty significant bump for those people who, Uh, it's going to, you'll be able to have more income and still be in a 35% range. People with lower income are going to be in a 50% range. I mean, that will really, i think, help some people with cost of daycare, which is wild, just wild sometimes.
00:45:49
Speaker
um Charitable contribution that, you know, remember then in ah COVID times, we got that little above the line deduction. That's back. And it's like really boosted. One year we had like 300 and 150, you know, married and single.
00:46:02
Speaker
And then the next year we had 600 and 300. This is 2,000 1,000. and So it's a meaningful number for those people who don't itemize. Little change for those people who do itemize. You have to hit a floor first, a 0.5% floor ah before you're able to start deducting.
00:46:20
Speaker
And so that may change, you know, do I or do I not want to itemize? Where do I want to put this? There'll be some decisions to make for some taxpayers. um Really interesting. I've seen a few people get very excited about the scholarship grant, and scholarship granting organizations.
00:46:35
Speaker
That'll be interesting for not-for-profits, right? To stand up. They're creating these new scholarship granting organizations. And they are going to taxpayers will be able to give $1,700 of it's effectively like a contribution, but instead of a charitable contribution deduction, which we said is capped at, you know, a maximum 35% benefit on itemized, you'll be able to get credit for it. so if I give seventeen hundred dollars i'm going to get a seventeen hundred dollars credit um changes to 529 accounts, changes to ABLE accounts, changes, a continuation of that employer, you know, $5,250 that they can help with education expenses.
00:47:12
Speaker
Just again, mostly taxpayer favorable provisions here, more continuations. Something that's really interesting that I found is wagering losses.
Temporary Tax Provisions & Planning
00:47:22
Speaker
So, you know, in the past you could take wagering losses to the extent of your wagering income.
00:47:28
Speaker
So you could say like, oh, I made ah thousand dollars, um you know, ah in Vegas, this, you know, or I'm a professional gambler. I netted a thousand dollars or I bet online because now it's online all the time. So many people, you know, like I'll be at, I'll be, we'll be watching a college football game and half of my friends are, you know, on an app, you know, putting 10 bucks on the game.
00:47:49
Speaker
So ah that, has changed. You'll only be able to deduct 90%, which doesn't seem terrible, right? Oh, I made $1,000. I lost $1,000. I can only deduct 900. When you think about it like that, doesn't feel terrible, but it is for high volume gamblers, it is going to be very difficult because they may net $200,000 year, they made 7 million and lost 6.8%.
00:48:15
Speaker
but they made seven million and they lost you know and they lost six point eight um So for some subset and again, for for those taxpayers, for those people might, you know, friends gambling, just betting on the Olympics or whatever it is, um if they lose more than they make, they're still going taxable income.
00:48:37
Speaker
And so we're all we actually we already see um ah bipartisan proposal in the House addressing that to restore the 100 percent, um you know, being able to deduct up to your ah winnings, not more than your winnings. you can't have a loss from gambling, but up to your winnings. So we'll see what happens with that, because there's getting there's a subset of.
00:48:58
Speaker
um of taxpayers who are very upset about this provision. And I mean, think about it is I feel like gambling has become prolific with the acceptance of online gambling and in a lot of states.
00:49:10
Speaker
Absolutely. Yeah. So I thought that was interesting. But to sort of like the big individual show, salt cap, right? Salt cap has been increased to $40,000 for five years.
00:49:22
Speaker
And you get a 1% inflate. It's not indexed for inflation. It's 1% bump each. bump each um each year. So for 2025, so this is a change for 2025, there's $40,000 if you make up to $500,000 married.
00:49:40
Speaker
and The phase out's pretty quick. It's 30% thereafter, right? So once you go over that income threshold, you come down pretty quickly. You don't come down below the current the or the previous $10,000. You can't be reduced below $10,000.
00:49:55
Speaker
But anybody who's making more than half a million dollars a year is going to come out of that benefit pretty quickly. and And then it snaps back to $10,000 after 2029. And for some of these provisions, including the ones we'll talk about, the temporary ones, sort of the Trump campaign promises that we'll talk about next, and we're we're just setting ourselves up for a new cliff. Now, it's not at all like the TCJA cliff, right? It's not going to affect that many taxpayers, that's and but it's a new cliff.
00:50:24
Speaker
for 2028, 2029, depending on the provisions. um So we also got these temporary um ah changes to tax law to include this no tax on tips, no tax on overtime, deductions for seniors, which has been misreported many, many times. And I think this is really important. Misreported so many times as social security not being subject to tax.
00:50:54
Speaker
you cannot change social security in a reconciliation bill, which is why they moved to this senior deduction. So maybe let's jump jump into that one first.
00:51:05
Speaker
Seniors get up to a $6,000 deduction per taxpayer, right? So if you're married, 12,000. The average social security check is $23,000, right? right so it's It's not half, you know, it's not even a third of the average Social Security check.
00:51:22
Speaker
and So there is a special deduction and it is structured this way because you could not touch Social Security inside a reconciliation bill.
00:51:33
Speaker
That is just one of the rules um from the the Budget Act.
00:51:39
Speaker
But it is only a $6,000 deduction. And I think there is a big misconception out in the marketplace I've seen several publications that say that social security is not subject to tax. And I think that's gonna be hard for some taxpayers who are now making that assumption when they go to do their tax returns. This also phases out, right? Like it phases out once a senior has over $75,000 of income single, $150,000 of income married. And so it's it's not a deduction for everybody.
00:52:11
Speaker
and And even for those for which is for whom it is a deduction, it's not even half of social security, right? so but So that's um that's something I think we need to be aware of and that we're gonna have to talk to taxpayers about and and make sure that we're sending them accurate information when we see that.
00:52:33
Speaker
and No tax on tips. That one came with a limit of $25,000 year. then no tax overtime came limit of $12,500 per year taxpayer, which, you know, so you're married, $25,000. you can't, twelve thousand five hundred dollars per year per taxpayer which you know so if you're married twenty five thousand dollars and so like you can't You can't eliminate all of your income, right?
00:52:54
Speaker
It is limited to a certain amount. But for some of those taxpayers, that that'll make a difference. and though A lot of those, if you were working, say you're in college and you're working as a waitress or you're in high school, you're working you know in in one of these industries that typically receives tips, you may not have even made enough money to pay income tax.
00:53:16
Speaker
So it for some people, it won't be a huge benefit benefit, but for those who are making more money in terms of, you know, like they're great restaurants or there are other professions. I mean, I know, I don't know if Uber drivers, this is some of the information we need, right? Are Uber drivers going to be in there? Are DoorDash drivers?
00:53:32
Speaker
Some people drive Uber for a living and they make a good living. um So all of this depends. We're just going to wait on, we have to wait for the guidance on this to find out what these, it's limited to industries that are, you know, customarily,
00:53:46
Speaker
Include tipped
Future Considerations & Conclusion
00:53:47
Speaker
income. And so we have to wait to see what the definitions are around that. And then no tax and overtime. Either way, this is a nightmare for employers, right? And so employers haven't had to separately track overtime, but overtime is now potentially exempt up to $12,500 for taxpayer retroactive to the beginning of 2025.
00:54:11
Speaker
So there's some work to do here for some employers who haven't necessarily pulled out or don't have you know separately stated what is and is not overtime income.
00:54:22
Speaker
um And then we're going to have to see how they get gets reported out, I assume, on the W-2 and then how... Obviously, we'll see how it it gets. um There'll be a deduction line on the 1040. But there there's a lot to find out here. And this those provisions are not like the tip and the overtime. Those are going to affect employers, too.
00:54:37
Speaker
um There are going to be some system changes that they're going to have to make in order to provide that information to their employees. Great. Great. No, it's great great information. And I think there's just a lot there that, again, like you said, some of it is a continuation of TCGA provisions. Some of it is continuation with some new twists, but there also is a lot of new things and understanding those provisions is going to be key.
00:54:59
Speaker
So let me ask you, like the ink's drying on the bill from the president's desk. So if I'm thinking 60 to 90 days, what should we be looking at um or should be on people's radars that are really following what's going to happen with this?
00:55:14
Speaker
but Right. So I think obviously we talked about guidance. Everyone needs to watch out for guidance um from the IRS. And i will say like there are many new services that will provide great analysis and, you know, up to date information.
00:55:29
Speaker
But every time the IRS drops guidance, they will email you if you sign up for it, if you sign up for those alerts. So if you haven't, I would go sign up on irs.gov. for alerts so you know as soon as guidance drops. um And sometimes you get things you don't want, right? Like that are not important, like the rate changes, that's okay, you know, the AFRs for this month.
00:55:48
Speaker
um And you can just delete those. but But that's that's where you're going to get information for notices, revprox, regs, comment periods, all of that. and And they do a great job with it. So I would sign up for that. And then ultimately,
00:56:03
Speaker
It's going to take some time for everybody to digest and figure out how is this going to impact my clients. But I think it's really important to talk to your clients in advance of a lot of this going into effect. So if there are retroactive provisions, provisions, right? And so for a bonus depreciation, that 100%, that's effective for property, place, and service from January twentieth on or Or 174, which you can go back to 2025 and you can do this sort of, you know, speed up the remaining unamortized.
00:56:33
Speaker
Those are decisions that you want to talk about now. We want to make them now. We're in the tax year to which they apply now. So if they want to make other changes in their business or other decisions, you know, because they have an opportunity to accelerate income or you know, accelerate deductions or whatever is best for them.
00:56:51
Speaker
The more time they have to make those decisions to understand what it means and adjust accordingly, the better. um So I would say looking at those is is probably important. Talking to your clients is important. So digesting it, comparing what has changed to your clients' profiles and bringing them there is is where I would be spending the rest of 2025.
00:57:13
Speaker
That's awesome. That's awesome. So let me ask you a quick question. So what is one provision that you wish would still be repealed or revisited from this entire thing? If you would. I mean, I think that gambling thing is bananas.
00:57:27
Speaker
Yeah. It's become such an industry, right? And there's broad participation again with the online gambling platforms. I think that is going to smack so many uns unsuspecting taxpayers across the face when they go to file their tax return. It is going to be wild and people are going to be upset um because, you know,
00:57:48
Speaker
I can tell my friends at the, you know, next college football game we're watching where they're gambling, but most people are not going to know. It's not widely advertised. Not a lot of people are, you know, front page tax news, um the general public. And so i I think that's going to hit a lot of unsuspecting people. So I would say yeah I think that one is. Is ah not.
00:58:08
Speaker
I don't know that it's worth the revenue it brought in. Probably not. And scoring. So let me ask you, if you weren't in tax, you weren't dealing with tax legislation and policy, and you weren't focused on any of this stuff in your life, and you had to have a whole different career, what would you be doing?
00:58:25
Speaker
So I love my career, right? I love tax. I love tax policy. i love the people I work with. don't ever I don't often entertain other careers. And I can't imagine like another professional career I would be in, but I will tell you when it gets stressful,
00:58:38
Speaker
Um, my best friend and I, she has a dentist. We talk all the time about, we are just going to go work at target overnight and we're going to stock the shelves and we're going to make it all beautiful. we're going to listen to our books and we're going to our steps in and we're, saying you know, we're going be working out, we're lifting things, putting them on the shelves.
00:58:52
Speaker
Everything's going to be beautiful. And then we leave and go to sleep. And so that's sort of our, uh, backup dream job when life is just, when things are just coming at you. That's awesome. and why I mean, it's not ah at all another profession that I think you would expect a CPA to and consider.
00:59:11
Speaker
But man, it just sounds great just making things look pretty and then going home. Exactly. Whole different lifestyle, right? Yeah. Yeah. Yeah. got to work at night. that's So good. So good. Well, yeah.
00:59:22
Speaker
then you have your days. Mm-hmm. But Casey, thank you for your insight and for reminding us that with the right lens, we can turn legislative mazes into clear strategies. So thank you so much for joining us today. Thank you for having me.
00:59:35
Speaker
Bet. And to our listeners, the bill is now law, whether it you're dealing with the SALT cap, you're dealing with PTAT, QBI, Section 174, 163J, now's the time to recalibrate your models and start to really identify those clients that you need to be talking and planning with.
00:59:54
Speaker
um Make sure you subscribe to Tax News Now. Also follow Jerry Becker Advisory for Casey's updates and watch for the AICPA and IRS guidance alerts. um Reminder, if you're a Becker Prime CPA subscriber, this episode counts.
01:00:07
Speaker
Just log in record your credit and keep learning. If you're not a subscriber, and now's the time to join for unlimited CPA and exclusive tax rights. I'm Mark Galagos. And until next time, keep planning, keep learning, keep laughing.
01:00:18
Speaker
Because in tax, as in life, a little little humor goes a long way. So thank you.