By: Bill Nemer, CRP, GMS-T
President, Relocation Services
You’ve probably heard that the U.S. tax reform proposal introduced last week in the U.S. House could have significant impacts on your U.S. mobility program. In essence, the bill as introduced would eliminate the tax deductibility of several expense categories associated with relocation.
The bill is likely to change before it’s passed and signed into law, assuming that it is passed. However, we’re paying very close attention to this issue, including working with our tax and consulting experts and staying in touch with the professional trade organization, Worldwide ERC®, which issued this statement on the proposed deductibility changes.
What should you do?
We would counsel you to be cautious while also being prepared. We’re here to help. Graebel account managers are available to talk through any possible and practical budget- and program-related implications based on what is in the initial proposed bill. In addition, we encourage global mobility professionals to advise their internal stakeholders, such as payroll, tax and finance teams, about the bill and its proposed relocation-related expense changes.
Graebel Companies, Inc. and its affiliated entities are not tax or legal advisors. This information is provided for informational purposes and doesn’t constitute tax or legal advice. Individual tax circumstances may vary. You should consult with your tax advisors to discuss specific tax situations and how any proposed tax law changes may affect your organization.
We’ll continue to monitor the bill’s progress and any amendments, and of course keep our clients abreast of the situation.