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Final Regulations Under IRC Sec. 199A

February 12, 2019

Introduction On January 18, 2019, the Treasury Department finalized regulations that were issued in proposed form in August 2018 under Section 199A, which deals with the new 20% deduction for “Qualified Business Income” (QBI). They also issued Notice 2019-7, which contains a proposed revenue procedure providing a safe harbor for treating rental real estate enterprises as qualified businesses and issued new proposed regulations dealing with suspended losses, RICs, and certain trusts. Following is a question-and-answer discussion of the key provisions in the new guidance. 1. Specified Service Trade or Business (SSTB) Unless the taxpayer’s income is under the $157,500/$315,000 threshold, […]

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New York State’s Treatment of Certain Federal Tax Cuts and Jobs Act (TCJA) Provisions

February 4, 2019

The TCJA brought about many federal changes to both personal and business taxes. Many states starting point in determining taxable income is federal income which lead them to decouple from certain changes. New York State (NYS)  is one of them. With respect to personal income tax, the NYS Department of Taxation and Finance has put out guidance highlighting its tax treatment of various federal items of income, deductions and credits. Specifically, it issued TSB-M-18(6). Below are the highlights: Personal Tax Income Alimony or separate maintenance payments NYS opted not to follow changes made by the TCJA to the treatment of […]

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Meal Deductibility Under New IRS Guidance

October 4, 2018

The IRS has just issued long-awaited guidance regarding the deductibility of business meals under the Tax Cuts and Jobs Act of 2017. The Act fully eliminated the deductibility of entertainment expenses, while most business meals continue to be 50% deductible. However, it was not clear how this affected meals related to entertaining clients, referral sources, etc. IRS Notice 2018-76 provides that taxpayers may deduct 50% of an otherwise allowable business meal expense if: The expense is an ordinary and necessary expense under §162(a) paid or incurred during the taxable year in carrying on any trade or business; The expense is not […]

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New Proposed Regulations Under IRC SEC. 199A

August 16, 2018

On August 8, 2018 the Treasury Department issued long-awaited guidance in the form of proposed regulations under Section 199A, which deals with the new 20% deduction for “Qualified Business Income” (QBI). Following is a question-and-answer discussion of the key points in the regulations. 1. SPECIFIED SERVICE TRADE OR BUISNESS Income from a “specified service trade or business” (SSTB) does not qualify for the deduction unless the taxpayer’s taxable income is under $157,500/$315,000 threshold. The law lists various service-type businesses that are treated as SSTB’s, including consulting, financial services, brokerage, and any trade or business where “the principal asset is the […]

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State and Local Tax Update: New Jersey Budget Bill

August 15, 2018

In early July, Governor Murphy signed a compromise 2018/2019 New Jersey Budget Bill. Below is a summary of these changes which affect income, corporate, and sales tax. Personal Income Tax The top tax rate increases from 8.97% to 10.75% for NJ taxpayers with taxable income of $5 million and higher. Increase in the property tax deduction from $10,000 to $15,000. The Homestead Rebate Program has been reinstated. Effective for tax years beginning after 2017, a taxpayer who is allowed a Federal Child and Dependent Care Credit may also be permitted to claim a state tax credit. Corporation Business Tax A […]

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2017 Tax Cuts and Jobs Act: Major Provisions Affecting Real Estate

July 25, 2018
With its implementation, the 2017 Tax Cuts and Jobs Act provided for the most significant changes to the Internal Revenue Code in decades and will affect almost every taxpayer. Gettry Marcus has created an overview of the most significant topics affecting the Real Estate Industry. DOWNLOAD PDF More [+]

Wayfair-What Does This Mean?

July 5, 2018

On June 21, 2018, in a 5-4 decision, the U.S Supreme Court, in South Dakota v. Wayfair, Inc. overruled its 1992 Quill Corp. v. North Dakota decision in holding that an out of state seller can be required to collect sales tax without being physically present in a state.  South Dakota’s statute provides that there is nexus if a seller has more than $100,000 of sales into the state or more than 200 separate transactions. The statute also states it could not be applied retroactively. The Court acknowledged the changing times as to how businesses operate today.  In discussing Quill,  […]

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NYS 2018-2019 Budget Bill Highlights

April 23, 2018

On March 31, 2018, Governor Cuomo signed the New York State (“NYS”) Fiscal Year 2018-2019 Budget Bill (“Bill”). Some of the changes were in direct response to the Federal Tax Cuts and Jobs Act (“TCJA”) while others were not. Discussed below are the major highlights of the Bill. Federal TCJA Responses: Contributions to Charitable Trust Funds Beginning on or after January 1, 2019, individual taxpayers will be allowed an income tax credit equal to 85% of any donation made to certain state-operated charitable funds for the tax year following the year in which the donation is made. The charitable funds include the […]

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State and Local Tax Update February 2018

February 22, 2018

Below, please find a summary of recent Connecticut, New Jersey, New York and Pennsylvania law changes that include some new provisions, an extension of some old ones and reactions, if any, to the most recent federal tax law changes.  1. State of Connecticut Update Personal Income Tax The 100% tax exemption for Social Security benefits for single filers and married people filing separately with federal adjusted gross incomes (AGI) of less than $75,000 (currently $50,000) and joint filers and heads of household with federal AGIs of less than $100,000 (currently $60,000) has been delayed to taxable years beginning January 1, […]

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2017 Tax Legislation Q&A: Tax Cuts & Jobs Act

February 20, 2018
The 2017 Tax Cuts & Jobs Act provides for the most significant changes to  the Internal Revenue Code in decades that will affect almost every taxpayer. At the same time, it presents challenges in its interpretation and implementation, having been enacted only ten days before most of its changes took effect after a very short legislative process. While many of its provisions are straightforward, there are several areas that are marked by  ambiguity and which will require technical guidance from the Treasury Department. This guide is an overview of the most significant topics in question-and-answer format. As the aforementioned technical... More [+]
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