The Five Seat Majority

The Republicans won a five seat majority in the House and a similar majority in the Senate. The battle lines are being drawn as both sides begin their legislative agenda.

The SALT Limitation

The limitation of only being able to deduct $10K in State and Local Taxes (SALT) on Schedule A is receiving a lot of press. House Republicans from primarily Blue States like New York, New Jersey, and California where larger property tax bills are the norm, are seizing the opportunity to make political gains.

If they’re able to reverse the limitation, their political futures would almost be guaranteed.

And Rep. Mike Lawler (R. NY) is leading the charge. As a Republican from a New York Suburb, who has his eyes on the Governor’s Job, he and other GOP House Members joined the President Elect at Mar-A-Lago last weekend to discuss ending the limitation.

No news was reported on the discussions. But all agree that ending this ridiculous limitation, where we’re required to pay a tax on a tax, should end ASAP.

Of course, there’s no news on this front from any Illinois Lawmakers.

Democratic Senatorial Moderates To The Rescue

A group of eleven Moderate Democrats in the Senate have sent a letter to Republican Leadership saying that they’re willing to cut spending, protect family-oriented tax policies, and “provide competitive rates on businesses”.

This group of Senators is also saying that they can provide enough votes to overcome a filibuster without having to resort to reconciliation. Worried that Republicans would simply add the cost of extending the Tax Cuts And Jobs Act onto the deficit, they seem to be willing to work with the other side to have some control over the ultimate price tag.

We’ll see.

GOP Divisions

Republican Lawmakers are deeply divided on how to move forward with the tax package and the budget in general. Proposals are coming from every possible front, with little or no leadership leading the charge.

With only a week left before the inauguration, we can only hope that someone in Washington will rally the troops and get something done.

Let me leave you with this…

We’ve been told that the final, updated version of our tax software for this season won’t be completed until the first week of February. That means that we should be able to begin processing the S Corp and Partnership Returns somewhere near the 10th of the month.

Please get your work into us today. If your final answers to our year end questions are not received by March 1st, we cannot guarantee that the returns will be completed and in your possession before the March 15th deadline.

Also, please remember that your fourth quarter estimated tax deposits for your 1040’s are due by Wednesday the 15th of January. Let’s get those paid timely to eliminate any unnecessary penalties.

We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,

Sincerely yours,

Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300

www.SalarySolutions.net

www.AccountingSolutionsLtd.com

Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.