The House of Representatives today passed bills that would (1) make permanent a provision to allow individual taxpayers to elect to deduct state and local sales taxes and (2) repeal the federal estate tax.
The bills passed by the House are:
H.R. 622 (which passed the House, 272 to 152) would make permanent the ability to elect to take an itemized deduction for state and local general sales taxes in lieu of the itemized deduction for state and local income taxes.
A version of this provision was made part of the Code on a temporary basis in 2004 and has been the subject of a number of extensions since. Most recently, the provision was made applicable to taxable years beginning before January 1, 2015, as part of the Tax Increase Prevention Act of 2014.
The Death Tax Repeal Act of 2015 was passed by the House with a 240-176 vote. The bill would:
The lifetime exemption would remain at $5 million (as adjusted for inflation for years after 2011).
The bill would not change the current rules for determining tax basis of property received from a decedent or by gift; thus, the basis of property acquired from a decedent’s estate generally would continue to be stepped-up.
The U.S. Senate’s plans regarding these bills are unclear at this time.
The Obama Administration this week released Statements of Administrative Policy stating that the administration “strongly opposes” both bills.
On April 15, 2015, the House also passed, by a voice vote, the following other tax bills:
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.