PRICE WATERHOUSE EXPLAINS 'TAX CHANGES: WHAT'S IN STORE'
PRICE WATERHOUSE EXPLAINS 'TAX CHANGES: WHAT'S IN STORE' PHILADELPHIA, Sept. 2 /PRNewswire/ -- Congress returns to work on Sept. 8 -- with only one month left to complete action on the tax bill and other important legislation before it adjourns. Meanwhile, the presidential candidates are directing barbs at each other's tax proposals, but are being vague on exactly what tax changes they would push over the next four years. "Assuming Congress passes and President Bush signs tax legislation this year, here are some likely provisions of interest to individuals and businesses," offered John Stine, Price Waterhouse tax partner in Philadelphia. -- Estimated tax payment requirements would be tightened, forcing you to pay an even higher percentage of your tax liability on a current basis rather than catching up when you file your return. -- Moving expense deductions would be cut back, hurting both employers and employees. -- Club dues no longer would be deductible even of your use of the club is strictly for business. When an employer reimburses you for club dues, you would have to pay tax on the reimbursements even if the use of the club satisfied the current rules for deductions. -- On the favorable side, "first-time homebuyers" would get tax help in purchasing their home, individuals in the real estate business would obtain relief from the passive loss rules, losses on selling your home would be deductible against later home-sale gains, and pension funds would be encouraged to invest in real estate. -- The so-called "luxury taxes" on jewelry, furs, boats and airplanes would be repealed. The tax on expensive cars would remain, but be eased somewhat. -- The expired research credit -- needed to help U.S. businesses stay competitive -- would be restored and extended. Also likely to be extended: the health insurance deduction for self-employed persons, and tax-free education and group legal services provided by your employer. Much uncertainty still surrounds the pending tax bill. Here are some questions raised by the proposals before Congress: -- Will tax-favored IRAs and education savings bonds be made available to more individuals? -- Will businesses be allowed to write off purchased goodwill and other intangibles? -- Will individuals need more proof than a canceled check to claim charitable deductions? -- Will individuals who rent their vacation homes for less than two weeks have to pay tax on any profit they make? -- Will deductions be disallowed for spouses accompanying employees on business trips? -- Will tax withholding on gambling winnings go up? -- Will Congress give taxpayers some "simplification" as well as a strengthened "Taxpayer Bill of Rights?" "We do not expect to see across-the-board income tax rate cuts or capital gains tax cuts this year, except perhaps for investments in distressed 'enterprise zones,'" commented Stine. "You'll hear much talk from the presidential candidates about future tax cuts, incentives for investing, tax simplification, and health care reform, but less talk about ways to pay for the costs of such ideas." /delval/ -0- 9/2/92 /CONTACT: Molly Mark, 215-575-5878, or Jayne Dawkins, 215-575-5158, both of Price Waterhouse/ CO: Price Waterhouse ST: Pennsylvania IN: FIN SU: ECO
JS-MP -- PH025 -- 6024 09/02/92 15:24 EDT
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|Date:||Sep 2, 1992|
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