The new tax plan, good or bad for "passive" investors

3 Replies

@Aubrey P. I am not sure on the longevity. I am guessing that it will be that way until another POTUS decides to shake things up. Thanks for the links, I will check them out.

Here's the latest information I've found:

https://www.nytimes.com/interactive/2017/12/08/us/...

The two versions differ on how to tax “pass-through” business income that is currently taxed at the individual rate of the business’s owners. The House bill sets a lower top rate with an exception for professional service businesses like in law or accounting. The Senate bill creates a new deduction for pass-through income. 

Pass through in the Senate version(most likely): 23% deduction, phasing out for professional service income beginning at $250,000. Expires after 2025.

It's a shame the House's version didn't pass with a 25% pass through tax rate.

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