The Servicengine Tax and Compliance Team has been monitoring the proposed changes to the tax code in the “Tax Cuts and Jobs Act“ released by the House Ways and Means committee on November 2nd. As presently constructed, the Act will cause increased taxable income that may have a financial impact on employee transfers. These changes include:
- Final Move expenditures to be taxable
- Household Goods expenditure to be Taxable.
- Interest on mortgage values over $500,000 no longer be deductible.
The Act is still being deliberated by Congress and there is high likelihood that provisions will change. For the time being, Servicengine is assuming these changes will be implemented and we are reviewing how they will be accommodated in our products.