a new tax record keeping nightmare on the horizon?

Cap value of tax exclusion for retirement benefits The value of itemized tax deductions and employee contributions to retirement plans and IRAs would be capped at 28% for taxpayers in higher tax brackets. There would be an adjustment in basis if a taxpayer's deduction or exclusion for retirement contributions were limited. The provision has appeared in other proposals from the administration and has received attention from some lawmakers.

How will we keep track of such "adjustment in basis"? If home property taxes are limited, the basis of the home is adjusted upwards? By how much? By the amount taxpayer's marginal tax rate exceeds 28%? Will this also include the lost deductions as currently experienced due to the phase out of deductions?

Ditto for home interest not deducted due to the cap?

Retirement plans and IRAs would now more likely be hybrids, containing before tax and after tax contributions?

What else?

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Pico Rico
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