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Senate tax writers on Capitol Hill continue to discuss bipartisan retirement savings bills as the House gears up for a vote on a related tax measure.


President Donald Trump and Democratic congressional leaders have agreed to develop a $2 trillion infrastructure plan, according to Senate Minority Leader Chuck Schumer, D-N.Y.


Highly anticipated proposed regulations have been issued on the withholding required with respect to the disposition of certain partnership interests. The proposed regulations affect certain foreign persons that recognize gain or loss on the disposition of an interest in a partnership that is engaged in a trade or business in the United States, and persons that acquire those interests. Also affected are partnerships that directly or indirectly have foreign partners.


Proposed regulations provide rules on the attribution of ownership of stock or other interests for determining whether a person is a related person with respect to a controlled foreign corporation (CFC) under the foreign base company sales income rules.


Final regulations have been issued on transactions of U.S. taxpayers that have qualified business units (QBUs) with functional currency other than the U.S. dollar.


Medicaid waiver payments were earned income, even though IRS Notice 2014-7 treated them as “difficulty of care” foster care payments that were excluded from gross income. The Tax Court held that excluding the payments from earned income would improperly deny the taxpayers’ earned income credit and the additional child tax credit.


Employees can elect to make voluntary contributions from their salary to certain retirement plans. The type of plan may depend on your employer. Many employers maintain cash or deferred arrangements -- 401(k) plans -- as part of their defined contribution retirement plan. State and local governments can maintain "457" eligible deferred compensation plans. Nonprofit organizations can provide a 403(b) tax-sheltered annuity. And, of course, taxpayers can contribute to an individual retirement account (IRA).

The first-time homebuyer tax credit has proven to be one of the most popular tax incentives in recent years. Until recently, the credit was generally limited to "first-time homebuyers." Although the full ($8,000) is still limited to "first-time" homebuyers, "long-time" homeowners of the same principal residence may be eligible for a reduced credit of $6,500. This new provision can give a boost to younger homeowners looking to trade up, or simply move on from their current home, as well as seniors looking to downsize.

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