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 […]

Cost Segregation Analysis After the Tax Cuts and Jobs Act

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Practitioners and taxpayers alike continue to try and assimilate the many changes to the Internal Revenue Code that were enacted into law under the Tax Cuts and Jobs Act (TCJA) in December 2017. Media coverage has included significant commentary about the major and direct changes included in that tax bill, including the significant lowering of […]

Internal Revenue Service Draws Ire of the New Jersey Attorney General

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In response to the Notice issued  by the Internal Revenue Service (IRS)  requiring taxpayers to adhere to federal tax law and its guiding concepts in deducting  property tax payments on their federal income tax returns, the New Jersey Attorney General has threatened to take the matter to Court, if necessary, to preserve state and local […]

Additional IRS Guidance Expected on the New Sec. 199A Qualified Business Income Deduction

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The Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017, included a new deduction for 20% of qualified business income passing through to equity owners from enterprises electing to be taxed as pass-through businesses (i.e., S corporations, partnerships and sole proprietorships). Under the new tax reform provisions, non-corporate taxpayers may deduct up to […]

Blended Corporate Income Tax Rate Applies to “Bridging” Tax Years

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The Internal Revenue Service recently released confirmation that Section 15 of the Internal Revenue Code will apply to fiscal year corporations whose tax year “bridges” January 1, 2018 (the day that the new lower corporate income tax rate enacted as part of the Tax Cuts and Jobs Act became effective). The information release IR-2018-99 was […]

IRS Releases Fact Sheet for New Depreciation and Expensing Rules  

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The Internal Revenue Service continues to provide additional guidance on the provisions included in the Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017. The Service recently released Fact Sheet 2018-9, which highlights the new depreciation and expensing rules. These rules generally favor capital investment and taxpayers and could play an important […]