Senate Passes Military Tax Bill

On November 3, 2003, for the second time this year, the Senate has passed a military tax relief bill. This time the Senate substituted the language of the bill that it first passed on March 27, 2003 for the language sent to it by the House in the Fallen Patriots Tax Relief bill (HR 3365), and then amended the bill before passage to include the two provisions of the House-passed version of the bill, unanimously approved by the House on October 29, 2003. The provisions in the Senate bill include an exemption from taxation for certain military death gratuities and benefits from Department of Defense Homeowners Assistance programs, easing restrictions on the capital gain exclusion for military personnel on the sale of a residence, and an above-the-line deduction for travel expenses of National Guard and reserve members. The provisions common to the House and Senate bills are an increase in the death gratuity benefit to $12,000 and an increase in the tax-free treatment of the benefit to $12,000. Senate bill is more costly than the House bill, but also include a group of revenue offsets not included in the House-passed legislation. Veterans organizations have been exerting pressure on Congress to stop fighting over differing versions of the bill and get relief legislation passed this year.

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

All stories by: Wolters Kluwer Tax and Accounting