NEW JERSEY ELIMINATES SALES TAX EXEMPTION FOR ZERO EMISSION VEHICLES AND ANNUAL SCHOOL SUPPLY TAX HOLIDAY
New Jersey Sales Tax Exemption for Zero Emission Vehicles to be Phased Out. P.L. 2024, c. 19 phases out the New Jersey Sales and Use Tax exemption on sales of zero emission vehicles (ZEVs). The phaseout begins October 1, 2024 by imposing sales tax at the rate of 3.3125%, one-half…
K&D Shareholder, Kristin L. Schmid elected to 1st Vice President of EFPCSJ
Kulzer & DiPadova, P.A. is pleased to announce that shareholder, Kristin L. Schmid has been elected 1st Vice President of the EFPCSJ (Estate and Financial Planning Council of Southern New Jersey). The EFPCSJ is a professional association of estate and financial planning practitioners in southern NJ. Ms. Schmid earned her…
Employee Retention Credit Update
Employee Retention Credit Update On June 20th, the IRS provided an update (IR-2024-169) on its processing of employee retention credit (ERC) claims. Below is a high-level summary of the IRS update. First, the IRS has completed its review of the roughly 1 million ERC claims filed last year and divided…
Unseen Tax Consequences for Fraud Victims
Thieves and fraudsters have always been taxed on their ill-gotten gains. Now, their victims may also be taxed on the losses suffered at the hands of the scammers. As reported by the Majority Staff of the Senate Special Committee on Aging, fraud victims must pay income taxes on funds that…
Corporate Transparency Act Now In Effect
CORPORATE TRANSPARENCY ACT NOW IN EFFECT On January 1, 2024, a new federal anti-money laundering law, the Corporate Transparency Act (“CTA”), took effect. The new law will directly affect many of our clients who own interests in corporations, LLCs, limited partnerships, or other similar entities or who serve as senior…
Employee Retention Credit Update
Employee Retention Credit Update Moratorium Status. Last September, the IRS announced a moratorium on processing new ERC claims. At that time, the IRS was still working through a backlog of claims totaling around 700,000. Initial hopes were that the IRS would clear this backlog in a matter of months. Unfortunately,…
NJ Real Property Tax Assessment Appeals
Many New Jersey property owners believe their property tax assessments cannot be challenged. They can be. Property assessments hinge on the tax assessor’s calculation of the market value of a property, and often such calculations may not be accurate or reflective of current market value. Tax assessors are in control…
Tax Court reminder – IRS levies on IRA accounts are taxable
The United States Tax Court recently issued a Memorandum opinion reminding taxpayers that when the Internal Revenue Service (IRS) seizes an Individual Retirement Account (IRA), the seized IRA needs to be included as taxable income. Lonnie Wayne Hubbard v. Commissioner of Internal Revenue (T.C. Memo. 2024-16). In 2017, disgraced…
IRS ISSUES CONSEQUENTIAL RULING ON TRUST MODIFICATIONS
Chief Counsel Advice (“CCA”) 202352018, an internal legal advice memo from the IRS National Office to field agents, released December 29, 2023, addressed the gift tax consequences to the beneficiaries of modifying an irrevocable trust that is a “grantor trust” under the tax code provisions of Internal Revenue Code (“I.R.C.”…
U.S. Supreme Court Agrees to Decide Valuation Dispute Involving “Buy-Sell” Agreements
Shareholder “Buy-Sell” Agreements (or similar terms contained in the Operating Agreement of an LLC or Partnership Agreement) are a common key element of the business plan for owners of closely held entities. These agreements generally restrict transfer of interest outside of a close group and are often used as part…