In October, the IRS released its proposed regulations interpreting Section 965, the provision in the Tax Cuts and Jobs Act (TCJA) that imposes a one-time “transition tax” to U.S. shareholders on the accumulated earnings and profits of certain U.S. owned foreign corporations. The transition tax is effected through a deemed repatriation mechanism. Not surprisingly, Section 965 continues to be a hot topic.
Topics: Tax Cuts and Jobs Act, TCJA, Barret Pinto, Section 965, cfc, transition tax
The new leasing standard under ASC Topic 842, Leases, brings changes to key terminology and accounting for leases for both lessees and lessors. Under the core principle of ASC Topic 842, a lessee will recognize right-of-use assets and related lease liabilities on the balance sheet for all leases, except for short-term leases for which the recognition exemption is elected. Public companies must adopt for fiscal years beginning after Dec. 15, 2018 (generally the 2019 calendar year). All other entities will adopt for fiscal years beginning after Dec. 15, 2019 (generally the 2020 calendar year).
Topics: lease accounting changes, Leasing, leasing standard, asc topic 842, Leases, Thomas McGauley
The IRS and the Social Security Administration have released 2019 inflation-adjusted figures for more than 50 tax provisions. In addition to a 2.8 percent cost-of-living adjustment (COLA) for Social Security beneficiaries, details about adjustments to tax rate schedules, exemptions, and various thresholds for deductions and credits were announced. The tax year 2019 adjustments generally are used on tax returns filed in 2020.
Topics: tax planning, year-end tax planning, IRS, Inflation-Adjusted, Tax Cuts and Jobs Act, TCJA, Social Security, 2019 tax planning, Joanna Powell
The term “tax planning” holds more weight in 2018 thanks to the Tax Cuts and Jobs Act (TCJA). The tax reform bill was passed at the end of last year, and most of its modifications became effective in 2018. These changes present a unique opportunity for you to look at your taxes in a new light, explore new benefits, and with any luck, pay fewer taxes. Below highlights some key areas of impact that may require a change in your tax planning and strategies.
Topics: David Bussius, tax planning, year-end tax planning, Tax Reform, Tax Cuts and Jobs Act, TCJA, 2019 tax planning
In June, the Supreme Court ruled that a taxpayer’s economic activity could be used as the standard for whether a taxpayer owes state and local taxes. The decision in Wayfair v. South Dakota opened the door for states to collect sales taxes on remote retailers with substantial in-state activity. Prior to the decision, states followed the physical presence standard to determine whether a taxpayer would be subject to state and local taxes.
Topics: Tarra Curran, economic nexus, Sales Tax, The Massachusetts Department of Revenue, sales and use tax, tax nexus, new england state and local tax, Wayfair, South Dakota vs Wayfair, Rhode Island Department of Revenue
Recently, the IRS made several changes to the rules related to hardship withdrawals. The changes may be adopted by plan sponsors as early as Jan. 1, 2019 or, if later, the first day of the plan year beginning after Dec. 31, 2018.
Topics: retirement plans, Diane Caron, hardship withdrawals, QNECs, QMACs