A tax geek to my core, I did not attend one show or put even one quarter in a slot machine. I skipped no classes.
While some of the sessions were better than others, the overall quality of the speakers’ presentations and materials was outstanding. Much fodder for future blog posts!
Before the memories fade, here are my 5 takeaways:
1. No Comprehensive Tax Reform Likely in 2013
We’ve all heard that Dave Camp (House Ways and Means Committee Chair) and Max Baucus (Senate Finance Committee Chair) – that’s them in the photo above – are committed to passing tax reform. Check out this joint Wall Street Journal op ed. Max Baucus even announced his retirement to lend urgency to the quest. But the reality is the likelihood for passing comprehensive tax reform in 2013 is grim.
To learn about what’s being proposed (and what should be), check out my recent series of posts on tax reform for small business:
2. Tax Planning Will Be Tough Due to Expiring Tax Provisions (Again)
Remember how impossible it was to do tax planning last fall when so many tax provisions were expiring? Well it’s happening again, and the speakers in the know at the Conference see another last minute deal on the horizon. Another fall of uncertainty for us and our clients.
Some examples of expiring tax provisions December 31, 2103: 50% bonus depreciation, expanded §179 limits, 15 year depreciation for qualified leasehold improvement, retail, and restaurant property, and the R&D tax credit.
3. “Permanent” is a Myth
The recently enacted lower estate and gift tax rates and exemption amounts were supposedly made permanent by the Tax Reform Act of 2012 signed January 3, 2013. So much for that. The Obama Administration’s budget proposal would hike rates again and roll back the estate and gift tax exemption to pre-2010 levels.
4. Inflation is the Enemy of Taxpayers (Again)
Remember how not indexing the AMT exemption resulted in more and more middle income taxpayers caught in its net every year? The constant flurry of last minute patches required to “fix” it? Well apparently Congress has a short memory: the new 3.8% tax on net investment income has thresholds not indexed for inflation.
Not sure how the new §1411 works? Check out this blog post to get up to speed fast.
5. Tax Rates are Not Going Down for High Income Taxpayers
Do you have clients hoping the recent tax increases will be repealed? In the words of my fellow New Jerseyians, fuggetaboutit! If anything, further increases on the “wealthy” are likely in the form of the “Buffet rule” and the Obama Administration’s pledge not to raise taxes on individuals making less than $200,000 and families making less than $250,000.
What’s the message for tax practitioners? Don’t fear, we will still have jobs! Tax planning will be paramount. One thing all the speakers agreed on is that whatever tax legislation is passed, there will be “winners and losers”. It’s up to us to make sure our clients aren’t blindsided by the changes.
Have you attended CPE recently? Share your key tax planning takeaways in the comments below.
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