House passes tax bill

QTA Consultants, Ltd./Renata Bliumaite

On January 31, the House passed sweeping new tax legislation with bipartisan support.

Some highlights are—

• The Child Credit (CTC) would be expanded and adjusted for inflation in 2024 and 2025. • The business interest deduction limit would be modified to benefit businesses for tax years beginning after 2023.

• 100% first-year bonus depreciation would be restored for qualified property placed in service before 2025 (2027 for certain property).

• The Section 179 deduction would be increased to $1.29 million in 2024 with a phase-out threshold of $3.22 million (indexed for inflation in the future).

• The threshold for filing certain 1099s would be increased to $1,000 after 2023 (indexed for inflation in the future).

This bill faces an uphill battle in the Senate next week. Stay tuned.