• New Jersey Tax Update

    By:
    Chaim Kofinas, CPA
    |
    Mar 1, 2019

    On July 2, 2018, the New Jersey Legislature passed—and Governor Phil Murphy signed—his first budget. This budget was designed to move New Jersey in a new direction as envisioned by the new Governor. The budget bill contains tax increases, tax breaks, and a host of other provisions.

  • Structuring a Transaction: Ways to Minimize Income Tax Implications for Sellers

    By:
    Lisa M. Cribben, CPA/ABV, ASA, CMA and Crystal Christenson, CPA, MST
    |
    Mar 1, 2019

    Most taxable sale transactions are typically structured in one of three ways: asset sale, stock sale, or stock sale with a Sec. 338(h)(10) election. Each of these structures provides certain advantages to the buyer or seller. Below we’ll discuss the nuances of each structure and the importance of the allocation of the sales price. 

  • IRS Issues New Guidance on Section 199A Qualified Business Income Deduction

    By:
    Ed Morris, CPA
    |
    Feb 1, 2019
    On January 18, 2019, in response to many comments regarding last summer’s proposed regulations, the IRS issued final and new proposed regulations concerning the Code Section 199A pass-through deduction. At the same time, the IRS issued a revenue procedure dealing with the calculation of W-2 wages and a welcome proposed revenue procedure providing a safe harbor for rental real estate activities.
  • Practical Sales Tax Considerations for Vendors in the Wake of Wayfair (Part II)

    By:
    Mark Klein, JD and Joe Endres, JD
    |
    Feb 1, 2019
    In last month’s installment, we provided a brief review of the U.S. Supreme Court case South Dakota v. Wayfair, and included a state-by-state review of the new laws and rules governing sales tax administration that the case has engendered. News in this area is exploding on almost a daily basis.  
  • Connecticut’s Response to the Tax Cuts and Jobs Act of 2017 (Part I)

    By:
    Louis B. Schatz, Esq.
    |
    Feb 1, 2019
    The Tax Cuts and Jobs Act of 2017 (TCJA) was signed into law on December 22, 2017. Most of the provisions of the New Federal Tax Act were effective January 1, 2018 (although some provisions went into effect in 2017). The adoption of the New Federal Tax Act had a significant impact on state taxation, especially in states like Connecticut, where the base for the Personal Income Tax starts with federal adjusted gross income. 
  • Looking Under the Hood of Mutual Funds and ETFs

    By:
    David J. Perrotto
    |
    Feb 1, 2019
    Did you know that according to Leichtman Research Group’s annual on-demand study, 54% of U.S. adults said they have Netflix in their household? Why do I mention this? Because it’s the same number of Americans that own individual stock, a stock mutual fund, or participate in a self-directed 401(k) or IRA, and roughly half those assets are outside IRAs. 
  • Fiduciary Income Tax Planning: Income Taxation of Trusts Under the New Tax Act

    By:
    Carl C. Fiore, JD, LLM
    |
    Jan 1, 2019

    The Tax Cuts and Jobs Act of 2017 (TCJA) represents a broad-based change to the U.S. tax code, touching on virtually every area of taxation, including of course fiduciary income tax. While some aspects of the new tax law impact trusts directly, the effect of the TCJA on individuals may have even greater implications for trust planning. 

  • Medtronic v. Commissioner: New Direction for Transfer Pricing Cases?

    By:
    Rita Chung, CPA
    |
    Jan 1, 2019
    For tax years 2005 and 2006, the IRS proposed a transfer pricing adjustment resulting in a tax deficiency of over $1.35 billion.  Medtronic filed a lawsuit in the U.S. Tax Court, and in June of 2016, the Tax Court issued its decision disagreeing with the IRS’s allocation of income.  
  • The Wayfair Decision and its Effect on Income Tax Nexus

    By:
    Brian Gordon, CPA
    |
    Jan 1, 2019
    Nexus is a connection to a state or taxing jurisdiction that is sufficient for a business to be subject to their tax laws. The U.S. Constitution does not define nexus, but gives guidance under two separate clauses. The Due Process clause states that more than a minimal connection is required. 
  • Practical Sales Tax Considerations for Vendors in the Wake of Wayfair (Part I)

    By:
    Mark S. Klein and Joseph N. Endres, JD
    |
    Jan 1, 2019
    By now we’re sure you have all heard about the U.S. Supreme Court case South Dakota v. Wayfair, Inc. This case reversed over 50 years of precedent and completely changed the way states can administer their sales tax laws with respect to out-of-state vendors. 
  • 2018 Year-End Tax Planning

    By:
    David M. Barral, CPA/PFS, CFP
    |
    Dec 1, 2018
    Tax planning is a year-round analysis. However, year-end tax planning is an especially important time for taxpayers, along with their advisors, to take advantage of any opportunities before the year closes. This year is particularly important since the December 2017 tax overhaul created by P.L. 115-97, also known as the Tax Cuts and Jobs Act, (“TCJA”) has shaken up some aspects of traditional tax planning. 
  • Deconstructing Sales Tax for Contractors in New York

    By:
    Joseph N. Endres, JD, and Joshua K. Lawrence, JD
    |
    Dec 1, 2018
    When it comes to sales tax compliance in New York, few industries have it tougher than the construction industry. Navigating the nuts and bolts of sales tax rules applicable to construction contractors can be confounding for both contractors and those who hire them. 
  • The Story of Lisa: Three Different Approaches to State Fiduciary Income Taxation

    By:
    Peter Desmond Hopkins, CPA, MS
    |
    Dec 1, 2018

    In this article, we will consider the story of Lisa and how various states tax the trust created for her benefit. (The story of Lisa is purely fictional. Any resemblance to persons living or otherwise or to actual situations is purely coincidental.)

  • Opportunities and Pitfalls of Advanced Life Insurance Planning Techniques

    By:
    Matthew E. Rappaport, Esq., LLM and Edward W. Gordon
    |
    Dec 1, 2018

    Life insurance seems simple on the surface, but is probably the most complicated financial product available on the retail market. Since licensing standards are not rigorous and do not require prior education or apprenticeship, and since training typically covers only the introductory topics necessary to make a sale, most life insurance professionals do not know the intricate details of how life insurance products work.

  • Comprehensive Business Planning to Maximize Benefits Under Section 199A

    By:
    Ben Lederman, CPA
    |
    Nov 1, 2018
    The Tax Cuts and Jobs Act introduced many changes to the tax law, including new deductions, but few captured the attention of both tax preparers and taxpayers like the new deduction on pass-through business income under Section 199A.
  • Common Client Planning Issues: Post-2017 Act Solutions

    By:
    Martin M. Shenkman, CPA, MBA, AEP, PFS, JD
    |
    Nov 1, 2018
    The 2017 Tax Cuts and Jobs Act dramatically changed all aspects of income and estate tax planning and ancillary financial and insurance planning. Most articles have focused on explaining the new laws, which is natural as the first step must be knowing what has occurred. The 2017 tax act brings a myriad of nuances and subtle, as well as dramatic, changes. 
  • Changing Residency: The Most Effective SALT Deduction Workaround?

    By:
    Timothy P. Noonan, JD
    |
    Nov 1, 2018
    2018 has been an amazing year for tax practitioners. Since the passage of the 2017 Tax Cuts and Jobs Act, practitioners have been scrambling to understand the implications of the federal tax overhaul and to begin implementing new strategies for clients.
  • A Primer on How to Provide for your Bitcoin in your Estate Planning and the Taxation Thereof

    By:
    Anthony J. Enea, Esq.
    |
    Nov 1, 2018
    The ownership of a digital currency, whether it be bitcoin or any other cryptocurrency, has by its very nature significant complexities. As part of its inherent complexities, the issue of its taxation and how one can legally dispose of the cryptocurrency upon one’s demise needs to be properly addressed.
  • S-Banks’ Entire Income Should Qualify for Tax Reform’s 20 Percent Pass-through Deduction

    By:
    Curtis Dubay
    |
    Oct 1, 2018
    When the Treasury Department released proposed regulations in early August of this year for Sec. 199A, created by the Tax Cuts and Jobs Act (TCJA), some of the tax press seemed surprised that banks organized as S-corporations (S-banks) qualified for the 20 percent deduction that Sec. 199A grants certain pass-through businesses.
  • Is Leaving New York More Taxing Than It’s Worth?

    By:
    Daniel P. Kelly and Mark S. Klein
    |
    Oct 1, 2018
    As state and local tax attorneys, the 2017 Tax Cuts and Jobs Act has mixed up our lives. The end of the year used to see a flurry of activity around taxpayers settling audits, making estimated payments, and otherwise ensuring they maximized the federal tax benefits of their obligation to pay different state and local taxes.  

 
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