Tax Law Changes Under The Tax Cuts And Job Act

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On December 15th, the congressional conference committee charged with reaching a consensus on the competing versions of the Senate and House tax reform bills released its conference report containing the language of the final bill.  The final bill, titled Tax Cuts and Job Acts (TCJA), is expected to be approved by both chambers next week and signed into law by the end of the year.  The chart below highlights the key aspects of the final bill.  

We will provide regular updates on the tax reform bill and anticipate providing live seminars on the topic starting in January, so please stay tuned.
 

 
INDIVIDUAL
 
Topic Current Law Final Bill
Rates[1] - Single 10% -- $0 - $9,325
15% -- $9,326 - $37,950
25% -- $37,951 - $91,900
28% -- $91,901 - $191,650
33% -- $191,651 - $416,700
35% -- $416,701 - $418,400
39.6% -- over $418,400
10% -- $0 - $9,525
12% -- $9,526 - $38,700
22% -- $38,701 - $82,500
24% -- $82,501 – $157,500
32% -- $157,501 - $200,000
35% -- $200,001 - $500,000
37% -- over $500,000
Rates – Married Filing Jointly & Surviving Spouses 10% -- $0 - $18,650
15% -- $18,651 - $75,900
25% -- $75,901 - $153,100
28% -- $153,101 - $233,350
33% -- $233,351 - $416,700
35% -- $416,701 - $470,700
39.6% -- over $470,700
10% -- $0 - $19,050
12% -- $19,051 - $77,400
22% -- $77,401 - $165,000
24% -- $165,001 – $315,000
32% -- $315,001 - $400,000
35% -- $400,001 - $600,000
37% -- over $600,000
Rates – Married Filing Separately 10% -- $0 - $9,325
15% -- $9,326 - $37,950
25% -- $37,951 - $76,550
28% -- $76,551 - $116,675
33% -- $116,676 - $208,350
35% -- $208,351 - $235,350
39.6% -- over $235,350
10% -- $0 - $9,525
12% -- $9,526 - $38,700
22% -- $38,701 - $82,500
24% -- $82,501 – $157,500
32% -- $157,501 - $200,000
35% -- $200,001 - $300,000
37% -- over $300,000
Rates – Heads of Households 10% -- $0 - $13,350
15% -- $13,351 - $50,800
25% -- $50,801 - $131,200
28% -- $131,201 - $212,500
33% -- $212,501 - $416,700
35% -- $416,701 - $444,500
39.6% -- over $444,500
10% -- $0 - $13,600
12% -- $13,601 - $51,800
22% -- $51,801 - $82,500
24% -- $82,501 – $157,500
32% -- $157,501 - $200,000
35% -- $200,001 - $500,000
37% -- over $500,000
Capital Gains By holding assets for one year or less, any capital gain will be considered short-term and will be taxed at ordinary income tax rates.  By holding assets for one year or more, any capital gain will be considered long-term and is taxed at rates up to 20% No significant change, except the brackets will be adjusted
Standard Deduction[2] Single & Married Filing Separately - $6,350
Married Filing Jointly & Surviving Spouse - $12,700
Heads of Households - $9,350
Single and Married Filing Separately - $12,000
Married Filing Jointly & Surviving Spouse - $24,000
Heads of Households - $18,000
Personal Exemption $4,050 per person in each household Eliminated
Child Tax Credit[3] $1,000 per child with modified adjusted gross income phase outs at $75,000 for single and heads of households filers; $55,000 for married filing separately; and $110,000 for married filing jointly.  The credit is refundable for certain filers. $2,000 per child with modified adjusted gross income phase outs at $200,000 for single, and heads of households, and married filing separately filers and $400,000 for married filing jointly.  Up to $1,400 is refundable for certain filers.
Medical Expense Deduction[4] Medical expenses deductible in excess of 10% of adjusted gross income. Medical expenses deductible in excess of 7.5% of adjusted gross income.
State and Local Tax Deduction Individuals may deduct state and local property, income, and/or sales tax in excess of the standard deduction. Deductions for state and local taxes will be capped at $5,000 for single filers and married filing separately and $10,000 per year for married filing jointly.  Any 2018 taxes that are pre-paid during the 2017 tax year will be credited toward the $10,000 limit beginning on January 1, 2018.
Mortgage Interest Deduction Individuals may deduct mortgage interest on purchases of up to $1,000,000 for the primary residence plus one additional home;  individuals may also deduct up to $100,000 of equity debt The mortgage interest deduction will be capped at purchases of $750,000 for mortgages taken out after December 15, 2017; deductions for equity debt will be eliminated.
Casualty Losses Individuals may deduct casualty losses (including fire, theft, and other property loss) in excess of 10% of adjusted gross income, plus $100 per casualty event. Casualty losses will be allowed as a deduction only to the extent the casualty event is attributable to a federally-declared disaster.
Miscellaneous Itemized Deductions Certain miscellaneous deductions (including unreimbursed business expenses, tax preparation fees, and other expenses) are permitted in excess of 2% of adjusted gross income. Eliminated
Moving Expense Deduction Taxpayers may deduct moving expenses when moving due to new employment that is located at least 50 miles further than the taxpayer’s previous place of employment from the taxpayer’s residence. Eliminated
Alimony Deduction Alimony payments are deductible by the payor as an above-the-line deduction. Eliminated for divorce instruments executed on or after January 1, 2019 or modified after such date if the modification expressly states that this rule applies.
Alternative Minimum Tax (AMT) – Exemptions[5] Single filers - $54,300
Married filing jointly - $84,500
Married filing separately - $42,250
Heads of Households - $54,300
Single filers - $70,300
Married filing jointly - $109,400
Married filing separately - $54,700
Heads of Households - $70,300
Alternative Minimum Tax (AMT) – Phase-Outs[6] Single filers - $120,700
Married filing jointly - $160,900
Married filing separately - $80,450
Heads of Households - $120,700
Single filers - $500,000
Married filing jointly - $1,000,000
Married filing separately - $500,000
Heads of Households - $500,000
Individual Mandate under the ACA Taxpayers who do not have required minimum health coverage are required to pay a penalty or claim a waiver or exemption. Eliminated

 

[1] Note – Rates are current as of January 1, 2018.  All rates will be adjusted for inflation for tax years beginning January 1, 2019.
[2] Note - Rates are current as of January 1, 2018.  All rates will be adjusted for inflation for tax years beginning January 1, 2019.
[3] Note - Rates are current as of January 1, 2018.  The refundable portion of the Child Tax Credit will be adjusted for inflation for tax years beginning January 1, 2019.
[4] Note – Medical expense deduction rules are retroactive to tax years beginning January 1, 2017.
[5] Note – Exemptions listed under current law are 2017 rates; 2018 rates will continue to be adjusted for inflation.
[6] Note – Phase-outs listed under current law are 2017 rates; 2018 rates will continue to be adjusted for inflation.

 


ESTATE & GIFT
 
Topic Current Law Final Bill
Estate Tax $5.49 million per person lifetime gift/estate tax exemption.

Rate on contributions over exemption: 40%
Exemption Amount Doubled.
Gift Tax $5.49 million per person lifetime gift/estate tax exemption.

Rate on contributions over exemption: 40%
Exemption Amount Doubled.
Generation Skipping Tax $5.49 million per person GST tax exemption.

Rate on contributions over exemption: 40%
Exemption Amount Doubled.

CORPORATE
 
Topic Current Law Final Bill
Corporate Tax Rates C Corporations pay tax at graduated rates with a maximum rate of 35% of taxable income. Under the TCJA, C corporations would pay a maximum rate of 21% on their taxable income.  There would be no graduated rates.
Alternative Minimum Tax (“AMT”) The purpose of the AMT is to make sure that corporations pay a minimum amount of taxes. For taxable years beginning after December 31, 2017, the corporate AMT will be repealed.
Dividends Received Deduction
The dividends received deduction allows corporations to deduct a portion of the dividends such corporation receives from other corporations in which it has an ownership stake.  
The amount of the deduction depends on the receiving corporation’s ownership in the payor corporation.  If the two corporations are in the same affiliated group, the deduction is 100%.  If the receiving corporation owns more than 20% of the payor corporation then the deduction is 80%.  If the receiving corporation owns less than 20% of the payor corporation then the deduction is 70%.
The TCJA would lower the 80% deduction to 65% and the 70% deduction to 50%.
Section 179 Expensing A taxpayer may elect under Section 179 to deduct up to $500,000 of the cost of qualifying property placed in service in the taxable year. This $500,000 is reduced by the amount by which the cost of qualifying property placed in service during the taxable year exceeds $2 million.  Qualifying property is generally depreciable tangible personal property that is purchased for use in active conduct of a trade or business. The TCJA would increase the amount that a taxpayer may expense under Section 179 to $1 million and the phrase out threshold to $2.5 million.  These amounts would be indexed for inflation for tax years beginning after 2018.
Increased Expensing In 2017, taxpayers are allowed to claim first year onus deprecation equal to 50% of the adjusted basis of property acquired and placed in service in 2017. The TCJA increases the first year depreciation deduction to 100% for property placed in service in 2018 through 2022 (with lower percentages in years 2023-2027).
Research and Experimentation Tax Credit The research and experimentation (R&D) tax credit is a business credit allowed to companies who incur research and development costs The TCJA preserves the R&D tax credit however amounts paid or incurred in tax years beginning after December 31, 2021 will have to be deducted over time as opposed to being expensed immediately.
Limitation on Interest Expense Deduction Corporations can generally deduct interest paid or accrued. The TCJA would as a general rule limit the amount of interest that can be deducted to 30% of adjusted taxable income with any excess being carried forward indefinitely.  Taxpayers with average annual gross receipts for the three taxable year periods ending with the prior taxable year that do not exceed $25 million are exempt from the limitations.
Modification of Net Operating Loss Deduction Under current law, a taxpayer may carry back net operating losses (“NOLs”) for two years and carry them forward 20 years.   The TCJA would limit the NOL deduction to 80% of taxable income for taxable years beginning after December 31, 2017.  It also repeals the two-year carryback in certain situations.
Like Kind Exchanges A like kind exchange allows a taxpayer to exchange property for new property without incurring immediate tax liability.  Under current law, like-kind exchange treatment can apply to both personal and real property that is “held for the productive use in a trade or business or for investment.”    The TCJA limits like kind exchanges to those exchanges involving real property that is not held primarily for sale.        

PASS-THROUGH ENTITIES
 
Topic Current Law Final Bill

Deduction for Qualified Business Income
Pass-through entities such as partnerships, limited liability companies and subchapter S corporations file an annual information return, but they do not pay federal income tax.  Rather, these entities generally “pass-through” any income, gains, losses, deductions, and credits to the constituent owners who report their share of these items on their returns. Taxes are then payable at the constituent owner’s tax rate.
 
For taxpayers other than subchapter C corporations, the final bill generally allows for a deduction of up to 20% of qualified business income generated by pass-through trades or businesses.  The deduction is applied at the partner or shareholder level in the case of entities taxed as partnerships and subchapter S corporations, respectively.  

The availability of the deduction is limited for owners of “specified service trades or businesses,” which would generally be characterized as professional service firms such as law firms, accounting firms and consulting firms.   In such instances, the full deduction is only available to a partner or shareholder if such taxpayer’s taxable income (computed without regard to the deduction) is less than $315,000 for joint filers or $157,500 for single filers (hereinafter referred to as the  “Threshold Amount”). Engineering and architecture firms are expressly excluded from the definition of a “specified service trade or business,” and, therefore, the income generated from such firms that flow through to the owners thereof would not be subject to this deduction limitation.

Reasonable compensation and guaranteed payments are excluded from qualified business income.

For taxpayers with taxable income that exceeds the Threshold Amount, the deduction becomes limited to the lesser of (a) 20% of qualified business income, or (b) the greater of (i) 50% of “W-2 wages” with respect to a qualified trade or business or (ii) the sum of 25% of the “W-2 wages,” plus 2.5% of the taxpayer’s allocable share of the unadjusted basis of certain depreciable property acquired used in the business. “W-2 wages” are wages subject to federal withholding, elective deferrals and certain deferred compensation. In general, self-employment income would not be considered to be “W-2 wages.”  Therefore, if “W-2 wages” are zero, then the deduction would be zero for taxpayers earning more than the Threshold Amount or limited to 2.5% of their allocable share of the basis of certain depreciable property.

However, for taxpayers in a specified service trade or business (professional firm), the deduction begins being phased out completely at the first dollar above the Threshold Amount and is completely eliminated once taxable income equals the Threshold Amount, plus $50,000 ($100,000 in the case of joint filers).

The deduction is available for publicly traded partnerships, including master limited partnerships.
Carried Interest In general, a carried interest (also known as a profits interest) issued to a taxpayer in exchange for services is not treated as a taxable event if certain conditions are met.  The IRS has provided guidance indicating that this treatment does not apply, however, if (a) the profits interest relates to a substantially and predictable stream of income from partnership assets; (b) within 2 years of receipt, the partner disposes of the profits interest; or (c) the profits interest is a limited partnership interest in a publicly traded partnership.  Further, upon the transfer of a profits interest, the transferor is generally entitled to long-term capital gains treatment if such interest is held for at least one year. The final bill provides for a three-year holding period in order to receive long-term capital gains treatment.  The three year holding period would apply notwithstanding the rules of Section 83 or an election in
effect under Section 83(b).

TAX-EXEMPT ORGANIZATIONS
 
Topic Current Law Final Bill
Deductions for Charitable Contributions Individual taxpayers may deduct up to 50% of the taxpayer’s contribution base for donations made to public charities. Individual taxpayers may deduct up to 60% of taxpayer’s contribution base for cash contributions made to public charities.
Deductions for Amounts Paid for College Athletic Seating Rights Individuals may deduct up to 80% of amounts paid for the right to purchase tickets for seating at a college athletic event Eliminated
Executive Compensation Excise Tax [1] N/A Tax-exempt entity shall pay a 20% excise tax on compensation over $1,000,000 paid to its top 5 most highly compensated employees, including those employed by related organizations; this excise tax also applies to parachute payments.
Excise Tax on Investment Income of Private Colleges & Universities N/A A 1.4% tax is imposed on net investment income for certain institutions.
Unrelated Business Income Tax Many entities with more than one unrelated trade or business aggregate the lines of business to take advantage of net operating losses across multiple lines of business. For entities with for more than one unrelated trade or business, unrelated business taxable income, including for purposes of determining any net operating loss deductions, shall be computed separately with respect to each such trade or business; unrelated business taxable income is increased by the amount of certain fringe benefit expenses for which a deduction is disallowed
[1] Note - Compensation paid to licensed medical professionals, including veterinarians, is excluded from this rule.
 
 
TAX-ADVANTAGED ACCOUNTS AND EMPLOYEE BENEFITS
 
Topic Current Law Final Bill
529 Accounts[1] Funds contributed to 529 accounts may grow tax-free for beneficiaries if used for qualified tuition and other higher education expenses. Up to $10,000 per year may also be used for students in grades K-12 for tuition expenses, books, curriculum, online educational materials, tutoring, dual enrollment at institutions of higher education, and educational therapies for students with disabilities. Qualified expenses apply to public, private, or religious schools. 
Roth IRA Recharacterization Individuals are permitted to recharacterize Roth IRA contributions as traditional IRA contributions after a traditional to Roth conversion, within certain limits Eliminated
Entertainment Deductions Up to 50% of entertainment expenses may be deductible.     Eliminated
Qualified Transportation Fringe Employers may deduct certain qualified transportation fringe benefits provided to employees. Eliminated
Qualified Moving Expense Reimbursement Employee moving expense reimbursements are deductible by the employer. Eliminated, except for members of the armed forces on active duty who move pursuant to military orders.
Meals Provided At Convenience of Employer Employers may deduct meals provided to employees at the employer’s place of business and for the employer’s convenience. Eliminated but does not go into effect until January 1, 2026.

[1] Note – Contributions to 529 plans are not deductible for federal income tax purposes.  However, the following states permit deductions on state income taxes for 529 contributions (subject to certain limitations and rules in each state): Alabama, Arizona, Arkansas, Colorado, Connecticut, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, Washington, D.C., West Virginia, Wisconsin
 
 
INTERNATIONAL
 
Establishment of “Participation Exemption System” for Taxation of Foreign Income
Topic     Current Law Final Bill
100% Dividends Received Deduction for 10% U.S.-Owned Foreign Corporations
 
 
Provides a new 100% deduction for the foreign-source portion of dividends received from certain 10% owned foreign corporations by U.S. corporations.
Special Rules Relating to Sales or Transfers of 10% U.S.-Owned Foreign Stock Amount realized by U.S. shareholder on sale foreign subsidiary stock is treated as dividend income to the extent of foreign earnings and profits; remainder of amount realized is normally capital gain. For purposes of determining the amount of a loss on the sale of certain foreign stock by a U.S. shareholder, such shareholder’s basis in the foreign corporation stock is reduced by an amount equal to the portion of any dividend received with respect to the foreign stock that was not taxed in the U.S. as a result of the new 100% dividends received deduction described above.
Deemed Repatriation of Previously Deferred Foreign Income Foreign income generally not taxed until repatriated to the U.S., unless the anti-deferral rules of subpart F apply. - Modifies subpart F to provide for the inclusion of pre-effective date foreign earnings.
- A U.S. shareholder may deduct 71.4% of the foreign earnings and profits attributable to cash and 85.7% of the remainder of the foreign earnings and profits.
- The U.S. tax on the deemed repatriation may be paid in installments over eight (8) years.
Rules Related to Passive and Mobile Income
Deduction for Foreign-Derived Intangible Income (“FDII”) and Global Intangible Low-Taxed Income (“GILTI”)
 -
 
 
- For a U.S. corporation, creates a new deduction equal to sum of 37.5% of its FDII plus 50% of its GILTI
- This new deduction reduces the effective U.S. tax rate on FDII to 13.125% and on GILTI to 10.5% for taxable years beginning after December 31, 2017 and before January 1, 2026.
Foreign Tax Credit
Repeal Section 902 Indirect Foreign Tax Credit  
 -
 
 
 
In connection with the establishment of “participation exemption system”, the Section 902 deemed-paid credit with respect to dividends received by a U.S. corporation that owns 10% or more of the voting stock of a foreign corporation is repealed.
Source of Income from Sales of Inventory Income from the sale of property is generally sourced to the place of sale, which is determined by where title to the property passes. Gains, profits, and income from the sale or exchange of inventory produced partly in, and partly outside, the U.S. is allocated and apportioned on the basis of the location of production with respect to the property, even if title passage occurred elsewhere.
Separate Foreign Tax Credit Limitation Basket for Foreign Branch Income  -
 
- Foreign branch income is the business profits of a U.S. person that are attributable to one or more qualified business units.
- Foreign branch income to be allocated to a specific foreign tax credit basket.
Modification of Subpart F Provisions
Changes to Implement “Participation Exemption System”  
-
- Repeal current taxation of previously excluded subpart F income from qualified investments.
- Repeal foreign base company oil related income as subpart F income.
- Amend the ownership attribution rules so that certain stock of a foreign corporation owned by a foreign person is attributed to a related U.S. person for purposes of determining whether the related U.S. person is a U.S. shareholder of the foreign corporation and, therefore, whether the foreign corporation is a “controlled foreign corporation”.
- Expand the definition of U.S. shareholder to include any U.S. person who owns 10% or more of the total value of shares of all classes of stock of a foreign corporation.
- Eliminate the requirement that a corporation must be controlled for an uninterrupted 30-day period before subpart F inclusions apply.
- U.S. shareholder of any “controlled foreign corporation” must include in gross income for a taxable year its GILTI.
Prevention of Base Erosion
Base Erosion Minimum Tax  -
 
- An applicable taxpayer is required to pay a tax equal to the base erosion minimum tax amount for the taxable year.
- The base erosion minimum tax amount is the excess of 10% of the modified taxable income of the taxpayer for the taxable year over an amount equal to the regular tax liability of the taxpayer reduced by the excess of an amount equal to the credits allowed under Chapter 1 over the general business credits for the taxable year allocable to the research credit, plus the portion of the applicable general business credits not in excess of 80% of the lesser of the amount of such credits or the base erosion minimum tax amount.
Limitations on Income Shifting Through Intangible Property Transfer  
-
- Addresses recurring definitional and methodological issues that have arisen in controversies in transfers of intangible property for purposes of Section 367(d) and 482.
- Revises the definition of “intangible property” to include workforce in place, goodwill (both foreign and domestic), and going concern value.
- Clarifies the authority of the Treasury Secretary to specify the method to be used to determine the value of intangible property, both with respect to the outbound restructurings of U.S. operations and to intercompany price allocations.
Deduction Denied for “Disqualified Related Party Amount” Paid or Accrued to a Hybrid  -
 
A “disqualified related party amount” is any interest or royalty paid or accrued to a related party to the extent that: (1) there is no corresponding inclusion to the related party under the tax law of the country of the related party, or (2) such related party is allowed a deduction with respect to such amount under the tax law of such country.

TAX-EXEMPT BONDS & TAX CREDITS
 
Topic Current Law Final Bill
Private Activity Bonds (PABs) Tax-exempt PABs can be issued to finance a number of private and public/private endeavors, including multifamily housing projects, single family housing loan programs, airports, water and sewer facilities, solid waste facilities, toll roads, certain manufacturing facilities and non-profit projects, including healthcare facilities, educational facilities and senior living facilities. The House bill eliminated PABs, but the TCJA conference report retains current law.
Advance Refunding of Governmental Bonds and 501(c)(3) Bonds Governmental bonds and 501(c)(3) bonds are eligible for one advance refunding, i.e., a refunding in which the refunded bond is not callable within 90 days of issuance of the refunding bond and an escrow is funded to pay debt service on the refunded bond until the call date. TCJA eliminates advance refundings.
Qualified Tax Credit Bonds Holders of qualified tax credit bonds receive a tax credit instead of interest. Tax credit bonds can be issued to finance renewable and clean energy projects (clean renewable energy bonds and qualified energy conservation bonds and educational facilities (qualified zone academy bonds and qualified school construction bonds). TCJA eliminates qualified tax credit bonds.
Historic Rehabilitation Tax Credit 20% credit for qualified rehabilitation expenditures with respect to certified historic structures and 10% credit for qualified rehabilitation expenditures for buildings built before 1936. TCJA retains the 20% credit, but provides for the credit to be taken over 5 years rather than when the project is placed in service, which is current law. TCJA eliminates the 10% credit.
New Markets Tax Credit (NMTC) 39% credit for qualified investments in low-income communities. $3.5 billion of NMTC allocation for each of 2018 and 2019. The House bill eliminated NMTCs, but the TCJA conference report retains current law.
Renewable Energy Production Tax Credit (PTC) Tax credit for the projection of electricity from renewable energy sources, such as wind, biomass and hydropower. Taxpayers may elect to take the 30% ITC discussed below in lieu of the PTC. The House bill eliminated the inflation adjustment for the credit, but the TCJA conference report retains current law.
Renewable Energy Investment Tax Credit (ITC) 10% credit for certain renewable energy property, but such percentage is adjusted to 30% for solar energy property prior to 2020, with a phase down of the percentage thereafter. The House bill eliminated the permanent 10% credit, but the TCJA conference report retains current law.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit legal.hubspot.com/privacy-policy.
  • New Relic - For more information on New Relic cookies, please visit www.newrelic.com/privacy.
  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

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This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.