Tax Reform 2.0 on the Way?

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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 […]

Deductibility of Business Meals after the Tax Cuts and Jobs Act

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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 […]

IRS Releases Draft Instructions for 2018 Form 1040

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With simplicity seemingly in the eyes of the beholder, the Internal Revenue Service (IRS) released the 100+ pages of Draft Instructions for the 2018 Form 1040, U.S. Individual Income Tax Return. The IRS released a draft of the 2018 Form 1040 and six accompanying schedules in June. The instructions note that the IRS generally does not […]

IRS Postpones Changes to Form W-4

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The Tax Cuts and Jobs Act (TCJA) made significant changes to the manner in which individual income taxes are calculated. To accommodate and plan for the many changes included in the TCJA, taxpayers would be wise to consider their income tax withholdings on their salaries and wages to ensure that the amounts being withheld in […]

Long-Awaited “Tax Reform 2.0” Unveiled by House Republicans

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On September 10, 2018, House Republicans unveiled their “Tax Reform 2.0” legislative package, which has been anticipated following the enactment of the Tax Cuts and Jobs Act (TCJA) on December 22, 2017. The House Ways and Means Committee held its markup of the measure on September 13, 2018, and the legislation is expected to be ready for a […]

IRS vs. NJ Battle Continues

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IRS Reiterates Its “Prepaid Property Tax” Position for NJ Under the Tax Cuts and Jobs Act (TCJA), enacted on December 22, 2017, a taxpayer’s itemized deduction for state and local taxes for the tax years 2018-2025 is limited to $10,000 ($5,000 for married filing separately) per year. This new limitation was particularly burdensome for taxpayers […]

Pennsylvania Restores Bonus Depreciation Deduction

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One of the more complex matters facing state budgets is how best to deal with the largess of the federal government’s business incentives included in federal tax legislation. There is probably no area of the federal tax law where this issue is more costly for states than the capital expenditure initiatives included in several recent […]