Historically, individual taxpayers have been allowed an itemized income tax deduction for one hundred (100) percent of all state and local income taxes paid in a calendar year. The amounts paid were generally based on estimates and rarely matched the actual liabilities due to various nuances in the tax laws for each jurisdiction and fluid […]
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 […]
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 […]
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 […]
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 […]
Read Bob Grossman’s article, “Enterprise Valuation after the TCJA,” published in the December 2018 issue of Practical Tax Strategies.
One of the centerpiece provisions of the Tax Cuts and Jobs Act, enacted on December 22, 2017, was the doubling of the lifetime exclusion. Also sometimes referred to as the basic exclusion amount (BEA), this exclusion generally dictates the amount of cash, property (at fair market value) and other assets that a taxpayer may gift […]
Read Bob Grossman’s article, “The Tax Cuts and Jobs Act and ESOP Valuations,” published in the October/November 2018 issue of Financial Valuation and Litigation Expert.
As reported in a previous post, the House Ways and Means Committee released three tax bills, referred to as “Tax Reform 2.0,” in late August. All three bills were approved by the House at the end of September. The passage of these bills is the next step toward making additional substantial changes to the already […]
As we have posted previously, the Tax Cuts and Jobs Act (TCJA) made changes to the business expense deduction for meals and entertainment. The TCJA disallowed the deduction for expenses related to activities generally considered to be entertainment, amusement or recreation, that were incurred in years beginning after December 31, 2017. However, in most cases, taxpayers […]