COR24SS02. Uncertain Times: Provisions to Watch as TCJA Sunsets, presented by Capstan

The Tax Cuts and Jobs Act (TCJA) of 2017 marked the first comprehensive tax reform in three decades. It had an impact on every American taxpayer and industry and included several real estate friendly provisions. However, many tax-cutting measures are slated to expire at the end of 2025, and political uncertainty makes it difficult to predict if and how these will be addressed. In this session, we’ll highlight five key TCJA provisions scheduled to sunset or change, and discuss the legislation and the implications. We’ll also review features of the TCJA that are—unless something changes—seemingly here to stay.

Learning Objectives:

• Recognize the impact of the expiration of the Qualified Business Deduction under Sec. 199A, particularly on small businesses.
• Recognize that depreciable bonus rates will continue to decline without government intervention, but that there are mitigating strategies.
• Identify Sec. 174 costs impacted by mandatory amortization.
• Recognize the implication of using earnings before interest and taxes (EBIT)—instead of earnings before interest, taxes, depreciation, and amortization (EBITDA)—when calculating adjustable taxable income under Sec. 163 (j).
• Recall the relevant features of the Tax Cuts and Jobs Act (TCJA), including the corporate tax rate, which were seemingly made permanent, and the possible scenarios that taxpayers might need to consider moving forward.