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.