Interpreting the GOP Tax Reform Plan -- Part 4

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On Thursday, the House passed its own version of the tax reform bill, and the Senate will now take up the vote on its version of the bill, which differs in some ways with the House's package.

In the third article of this five-part series, we began discussing the individual provisions of the Ways and Means Committee Tax Reform Bill. In this article, we will conclude that discussion.

SEC. 1203. REFORMS TO DISCHARGE OF CERTAIN STUDENT LOAN INDEBTEDNESS

Any income resulting from the discharge of student debt on account of death or total disability of the student would be excluded from taxable income. The provision would exclude from income repayment of a taxpayer’s loans pursuant to the Indian Health Service Loan Repayment Program. The provision would be effective for discharges of indebtedness received after 2017 and amounts received in taxable years beginning after 2017.

SEC. 1204. REPEAL OF OTHER PROVISIONS RELATING TO EDUCATION

  • The deduction for interest on educational loans and the deduction for qualified tuition and related expenses would be repealed.
  • The exclusion for interest on United States savings bonds used to pay qualified higher education expenses ends.
  • Exclusion for qualified tuition reduction programs are terminated.
  • Exclusion for employer-provided education assistance programs would also be repealed.

SUBTITLE D – SIMPLIFICATION AND REFORM OF DEDUCTIONS

The specific provisions for which JCT reports aggregate revenue effect are as follows:

  • Repeal of overall limitation on itemized deductions
  • Mortgage interest
  • Repeal of deduction for taxes not paid or accrued in a trade or business
  • Repeal of deduction for personal casualty losses

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About Craig W. Smalley, EA

Craig Smalley

Craig W. Smalley, MST, EA, has been in practice for almost 23 years. He has been admitted to practice before the IRS as an enrolled agent and has a master's in taxation. He is well-versed in US tax law and US Tax Court cases. He specializes in taxation, entity structuring and restructuring, corporations, partnerships, and individual taxation, as well as representation before the IRS regarding negotiations, audits, and appeals. In his many years of practice, he has been exposed to a variety of businesses and has an excellent knowledge of most industries. He is the CEO and co-founder of CWSEAPA PLLC and Tax Crisis Center LLC; both business have locations in Florida, Delaware, and Nevada. Craig is the current Google small business accounting advisor for the Google Small Business Community. He is a contributor to AccountingWEB and Accounting Today, and has had 12 books published on various topics in taxation. His articles have also been featured in the Chicago Tribune, New York Times, Yahoo Finance, Nasdaq, and several other newspapers, periodicals, and magazines. He has been interviewed and been a featured guest on many radio shows and podcasts. Finally, he is the co-host of Tax Avoidance is Legal, which is a nationally broadcast weekly Internet radio show.

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