Engineered Tax Services CEO, Julio Gonzalez, Meets with Senator John Thune's Tax Policy Counsel

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Engineered Tax Services
Tax Reform
Julio Gonzalez


Washington - District of Columbia - US

Joint Ventures

WASHINGTON - June 8, 2017 - PRLog -- Julio Gonzalez, tax reform expert and CEO of Gonzalez Family Office, Engineered Venture Services, EFO, and Engineered Tax Services (ETS), met with Senator John Thune's Tax Policy Counsel, Mark Warren, in Washington, D.C., at the Senate Dirksen Office Building this week. Mark is the writer of the Senator's expensing Bill, entitled, "the INVEST Act", which was introduced two weeks ago. Julio also met with Senator Ben Cardin's (D-Maryland) Tax Counsel, Beth Bell, at the Senate Hart Office Building this week to discuss tax reform.

Highlights of Senator Thune's Bill:

·        The Senator wants this Bill to be included in the final comprehensive tax reform package (as a replacement to the immediate expensing provision)

·         He supports individual and corporate tax cuts and a new pass-through tax rate

·         Overall, his Bill allows businesses to recover costs faster for investments in property, equipment, and inventory.

·         Key tenants:

o   Start-up Costs:

-let new businesses expense more start-up and organizational expenses by increasing the deductible to $50,000

-allow additional costs to be deducted over 10 years instead of the current 15 years

o   Simplified Accounting:

-corporations with average gross receipts of $15 million or less over last three years could use the cash method of accounting;

-allows inventory to be deducted immediately;

-businesses with inventories would not be disqualified if they can otherwise use the cash method of accounting;

-allows more small construction companies to use the simplified completed-contract method of accounting

o   Expensing and Cost Recovery:

-increases the Sec. 179 expensing limit to two million dollars and starts phasing out the benefit for investments over three million dollars;

-expensing would apply to more property and equipment, including roofs, HVAC units, and property used in rental real estate;

-when Sec. 179 does not apply, makes the 50 percent depreciation deduction permanent for the first year that the qualifying property is placed in service;

-reduces the depreciation period for farm machinery and equipment from seven years to five years for farms and ranches that can't otherwise expense it;

-increases the amount a company can deduct for a passenger vehicle to $50,000 over six years, instead of current limit of $16,935;

-lets businesses claim the full 50 percent expensing in the first year, up to $25,000;

-allows businesses that acquire intangible property (patents, customer lists, etc.) to recover the investment over 10 years, instead of current 15 years

Julio agrees with Mark Warren that "the INVEST Act" is an excellent revision of the Ryan Blueprint in terms of expensing capital purchases and will help limit the unintended consequences in the Ryan Blueprint for Real Estate investors which make up 70% of the GDP.

Julio is a nationally renowned tax reform expert who works weekly in Washington, D.C., with Congress, the Senate and the Administration on tax reform. Julio indicated in a recent speech that, "Tax Reform is difficult. With tax reform you are taking money from one group and giving that money to another group and the group that is losing will fight hard to save it. It is much more difficult that tax rates cuts which are lowering tax rates. The meetings today will be a good forum for us to talk about these concerns so that we are helping with a tax reform approach that is good for all Americans."

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Tags:Engineered Tax Services, Tax Reform, Julio Gonzalez
Location:Washington - District of Columbia - United States
Subject:Joint Ventures
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Page Updated Last on: Jun 09, 2017

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