Tax Reform Act of 1986


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Tax Reform Act of 1986

A 1986 law involving a major overhaul of the US tax code.

Tax Reform Act of 1986

Legislation in the United States dictating the reduced marginal tax rates, the number of tax brackets, and the deductions and tax shelters that individuals can have. It also increased corporate tax rates and equalized capital gains tax and income tax rates. It was designed to be revenue neutral; this was accomplished by reducing deductions to offset the lower tax rates. It also changed incentives; for example, it increased the home mortgage interest deduction to encourage home ownership. While proponents hail this Act as a major tax cut, critics maintain that it did little to accomplish its main goal of simplifying the tax code. See also: Economic Recovery Tax Act of 1981.

Tax Reform Act of 1986

Tax legislation that significantly reduced marginal income tax rates for individuals and corporations as well as curtailed many deductions and eliminated numerous preference items. The Act was designed to be revenue-neutral and, in general, it benefited high-income and low-income individuals and corporations that do not spend large amounts of money on long-lived equipment. Although an original goal had been to simplify the tax system, no simplification was evident in the final legislation.
References in periodicals archive ?
The Tax Reform Act of 1986, crippled the real estate industry.
Treasury and Congress set about eliminating deductions for borrowing on life insurance policies, and, with the Tax Reform Act of 1986, interest on aggregate loans in excess of $50,000 on any life insured by a policy owned by a business is not deductible.
By contrast, bank holdings of state and local government securities continued to decline as they have since the passage of the Tax Reform Act of 1986, which ended a tax advantage of holding such securities.
That technique was disallowed by the IRS as a result of the Tax Reform Act of 1986.
While stocks were beginning the most recent spurt in the remarkable 17-year bull market, muni bonds remained mired that year in the turmoil that's dogged them since the Tax Reform Act of 1986 reduced the incentives for tax-sheltered investments.
The deductibility of interest paid by individuals on tax deficiencies has been in dispute ever since the Tax Reform Act of 1986 banned deductions of consumer interest such as that charged on credit cards or auto loans.
His ability to keep his Democratic committee members in line and to strike deals with Republicans in Congress and the White House was critical to enactment of, among other laws, President Reagan's tax cuts in 1981, changes in the Social Security system in 1983, the mammoth Tax Reform Act of 1986 and deficit-reduction packages in 1990 and 1993.
Some of the ideas were incorporated into the Tax Reform Act of 1986.
The man behind the Outrageous Anecdotesthat led to the Tax Reform Act of 1986 is Robert McIntyre, a lawyer with Citizens for Tax Justice.
North Beach Place received the largest state and federal tax-credit allocation, $55 million, since the Tax Reform Act of 1986, the enabling legislation creating the program.
The Tax Reform Act of 1986, Section 1012, eliminated their tax exemption and provided that such organizations could take a stepped-up basis in their assets based on each asset's fair market value (FMV) on Jan.
She pointed to the extensive use of notices after the enactment of the Tax Reform Act of 1986 as a model that Treasury and the IRS may follow to provide timely answers to the myriad questions surrounding the complex provisions.