News : DCUC Insights

House Republicans release 297-page tax bill that includes fixes to last year's legislation

Thursday, November 29, 2018  
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Here is what we know on the New Tax Bill being introduced by outgoing-Chairman Kevin Brady (R-TX):


The 21% excise tax on executive compensation packages is NOT dealt with in this legislation. However, there are two mortgage-related provisions in this new tax bill that will be of interest to credit unions.

The first pertains the discharge of mortgage debt; it makes clear that it is not treated as income for tax purposes.

The second exempts mortgage interest premiums that were made retroactively for tax year 2018.

Here is the actual bill language:


15 SEC. 140. EXCLUSION FROM GROSS INCOME OF DISCHARGE
16 OF QUALIFIED PRINCIPAL RESIDENCE IN
17 DEBTEDNESS.
18 (a) IN GENERAL.—Section 108(a)(1)(E) is amended
19 by striking ‘‘January 1, 2018’’ each place it appears and
20 inserting ‘‘January 1, 2019’’.
21 (b) EFFECTIVE DATE.—The amendment made by
22 this section shall apply to discharges of indebtedness after
23 December 31, 2017.
__________________

1 SEC. 141.
2 TREATMENT OF MORTGAGE INSURANCE PREMIUMS AS QUALIFIED RESIDENCE INTEREST.
3 (a) IN GENERAL.—Section 163(h)(3)(E)(iv)(I) is
4 amended by striking ‘‘December 31, 2017’’ and inserting
5 ‘‘December 31, 2018’’.
6 (b) EFFECTIVE DATE.—The amendment made by
7 this section shall apply to taxable years beginning after
8 December 31, 2017.


We do not know how this language will be received by the Democrats in the House, or the Senate. We will keep monitoring its progress.


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