New Proposal to Tax Unrealized Capital Gains

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An occasionally-discussed income tax concept relating to capital gains is being revived by the top-ranking Democrat on the Senate Finance Committee, Oregon Senator Ron Wyden. Wyden is proposing that certain wealthy taxpayers ante up each year for the value growth in their investment accounts rather than waiting for those investment assets to be liquidated and/or […]

IRS Reform Package Offered by Bipartisan Members of the House Ways and Means Committee

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This week a bipartisan measure was passed by House Ways and Means Committee members.  The bill includes  measures designed to protect taxpayers from unfair practices and improve Internal Revenue Service (IRS) operations. The bill, HR 1957, is intended to redesign the operational structure of the IRS with the intent of making the agency more efficient […]

Joint Committee on Taxation Addresses the QBI Deduction

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One of the most discussed provisions of the Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017, is the addition of the Qualified Business Income (QBI) deduction available under new Internal Revenue Code §199A. This provision allows equity owners of qualifying pass-through entities to deduct up to 20% of the qualifying business […]

Substantiation Rules for Charitable Contributions Continue to Baffle

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As April 15th (the annual D-Day for U.S. taxpayers) is rapidly approaching, confusion still exists as to how to properly substantiate a donation or charitable contribution to a qualifying tax-exempt organization. The lack of clarity relates mostly to a seemingly endless series of technical changes to the substantiation requirements by the Internal Revenue Service. Obtaining […]

State and Local Tax Refunds & the Tax Benefit Rule

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In years prior to 2019, and the enactment of the Tax Cuts and Jobs Act (TCJA), taxpayers were accorded an “unlimited” federal income tax deduction for all state and local income taxes as well as real estate taxes, if they were able to itemize deductions. In those instances when the state and local income taxes […]

No Tax Increases Proposed in Governor’s Budget

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Pennsylvania Governor Tom Wolf recently proposed a 2019 – 2020 state budget.  The good news, initially, is that the Governor did not include any call for increased state income and sales taxes and, in fact, contains proposals to reduce the corporate state income tax as a means of making the Commonwealth more competitive in drawing […]

Analyzing the TCJA’s Impact on States

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Not subject to as much media attention as federal income tax legislation, the state impacts resulting from the enactment of federal legislation always poses budgetary challenges for leadership in those jurisdictions. Oftentimes, federal income tax incentives, such as accelerated and bonus depreciation, can prove unduly costly for states whose income tax regimes are predicated upon […]

IRS Issues Guidance Aimed at Nonprofits’ Parking Expenses

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One of the more controversial provisions of the Tax Cuts and Jobs Act (TCJA) enacted in December, 2017, is the provision affecting the disallowance of certain fringe benefits deductions.  Importantly, the provision also includes a related  requirement that negatively affects many nonprofit organizations. The TCJA added rules to preclude for-profit employers from deducting qualified transportation […]

Final “Corrected” Treasury Regulations Released on QBI Deduction

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The Internal Revenue Service (IRS)  has released corrected final regulations on the new Qualified Business Income (QBI) deduction under Internal Revenue Code (IRC) section 199A. Included in these revised regulations are various corrections to the definition and computation of excess IRC section 743(b) basis adjustments, a correction to the description of a disregarded entity for […]

PA Adopts Economic Nexus Standard for Sales Tax Collection

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Sales Tax Background Most states have historically looked to nexus as a condition relevant to their capability to levy sales taxes. For decades, states have been bound by the United States Supreme Court National Bella Hess and Quill decisions in defining the required nexus standard for levying taxes in those states. The most relevant determinant of nexus […]