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131 STAT. 2072 PUBLIC LAW 115–97—DEC. 22, 2017 ‘‘(I) the aggregate gross income or gain of such taxpayer for the taxable year which is attributable to such trades or businesses, plus ‘‘(II) $250,000 (200 percent of such amount in the case of a joint return). ‘‘(B) ADJUSTMENT FOR INFLATION.—In the case of any taxable year beginning after December 31, 2018, the $250,000 amount in subparagraph (A)(ii)(II) shall be increased by an amount equal to— ‘‘(i) such dollar amount, multiplied by ‘‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘2017’ for ‘2016’ in subparagraph (A)(ii) thereof. If any amount as increased under the preceding sen- tence is not a multiple of $1,000, such amount shall be rounded to the nearest multiple of $1,000. ‘‘(4) APPLICATION OF SUBSECTION IN CASE OF PARTNERSHIPS AND S CORPORATIONS.—In the case of a partnership or S cor- poration— ‘‘(A) this subsection shall be applied at the partner or shareholder level, and ‘‘(B) each partner’s or shareholder’s allocable share of the items of income, gain, deduction, or loss of the partnership or S corporation for any taxable year from trades or businesses attributable to the partnership or S corporation shall be taken into account by the partner or shareholder in applying this subsection to the taxable year of such partner or shareholder with or within which the taxable year of the partnership or S corporation ends. For purposes of this paragraph, in the case of an S corporation, an allocable share shall be the shareholder’s pro rata share of an item. ‘‘(5) ADDITIONAL REPORTING.—The Secretary shall prescribe such additional reporting requirements as the Secretary deter- mines necessary to carry out the purposes of this subsection. ‘‘(6) COORDINATION WITH SECTION 469.—This subsection shall be applied after the application of section 469.’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. PART III—TAX BENEFITS FOR FAMILIES AND INDIVIDUALS SEC. 11021. INCREASE IN STANDARD DEDUCTION. (a) IN GENERAL.—Subsection (c) of section 63 is amended by adding at the end the following new paragraph: ‘‘(7) SPECIAL RULES FOR TAXABLE YEARS 2018 THROUGH 2025.—In the case of a taxable year beginning after December 31, 2017, and before January 1, 2026— ‘‘(A) INCREASE IN STANDARD DEDUCTION.—Paragraph (2) shall be applied— ‘‘(i) by substituting ‘$18,000’ for ‘$4,400’ in subparagraph (B), and ‘‘(ii) by substituting ‘$12,000’ for ‘$3,000’ in subparagraph (C). ‘‘(B) ADJUSTMENT FOR INFLATION.— 26 USC 63. 26 USC 461 note. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00020 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS