The AICPA submitted a letter with comments on Monday, June 23, on the Senate Finance Committee reconciliation bill, recommending three changes it said would put most U.S. businesses and many family-owned businesses — known as passthrough entities (PTEs) — on more even tax footing when compared with corporations.
The three changes the AICPA recommended in the letter are:
- Retain full deductibility of state and local taxes (SALT) for all passthrough entities;
- Allow excess business loss carryforwards to offset business and nonbusiness income; and
- Repeal the personal casualty loss limitation.
The AICPA said in the letter that these recommendations would ensure the Senate committee’s version of the bill “would not needlessly disadvantage certain taxpayers, would enhance tax parity among and consistency to taxpayers, and would promote tax administrability.” Read more.