12.21.17 | Churches & Denominations, Higher Education, Nonprofit Organizations, Nonprofit Tax | Email Alerts
IT’S OFFICIAL – Tax Bill Passes
The House and Senate have passed the Tax Cuts and Jobs Act (H.R. 1), and President Trump is expected to sign it this week.print
We reported the key elements of the Act in our December 19 Email Alert. Two items we covered were eliminated from the final text of the Act to meet Senate rules:
- A modification of the definition of “educational expenses” in Section 529 educational plans to include certain expenses incurred for a home school was taken out.
- The requirement that the students counted for purposes of the new 1.4% excise tax on the net investment income of private colleges and universities with at least 500 students and having 50% of students located in the U.S. be tuition-paying students was removed. Under the final text, all students, regardless of whether they pay tuition or not, must be counted toward the 500-student limit.
An updated summary of the tax bill is available here.
Please do not hesitate to contact us with questions.