Donald Trump’s administration is moving to revoke a two-year-old Biden-era tax rule designed to crack down on a lucrative tax avoidance loophole. If successful, huge business partnerships won’t have to tell the IRS when they shift assets between their different corporate entities.
These transactions, known as “basis shifting,” have allowed businesses to dodge tens of billions of dollars in taxes, according to past allegations from the Treasury Department. Essentially, companies could depreciate the same asset multiple times, significantly reducing their tax burden. If this proposal goes through, it would remove a key reporting requirement that helped the government spot these maneuvers.
