Category: Businesses
Property Tax Exemptions in New Jersey for Nonprofits, Religious Institutions, and Schools
New Jersey law provides real estate tax exemptions to certain nonprofit organizations, including religious institutions, educational entities, and other charitable organizations (each referred to here as an “Eligible Entity”). To obtain such an exemption, an Eligible Entity must complete and submit an Initial Statement Claiming Property Tax Exemption (the “Application”)…
New Jersey GIT Adds IRC § 1202 Exclusion for QSBS Gains
New Jersey has aligned its Gross Income Tax with the federal exclusion of capital gains on Qualified Small Business Stock (QSBS) under Section 1202 of the federal Internal Revenue Code of 1986 (“IRC”). The New Jersey exclusion is effective for tax years beginning January 1, 2026. IRC § 1202 allows…
QSBS Tax Benefits Enhanced Under the OBBBA
Since its enactment as part of the Omnibus Budget Reconciliation Act of 1993, Section 1202 of the Internal Revenue Code has provided an exclusion for gain from the sale of qualified small business stock (QSBS) held for more than five years. To qualify as QSBS, the stock must be from…
New FinCEN Rule Exempts US Companies from Reporting Requirements
On March 21st, the Financial Crimes Enforcement Network (FinCEN), Treasury, issued interim final rules that eliminate the requirement of U.S. entities to report the Beneficial Ownership Information (BOI) reporting requirements as required by the Corporate Transparency Act (CTA). This represents the complete reversal of rules previously issued by FinCEN under…
New Annual Reporting Requirement for Pennsylvania Entities
Background On November 3, 2022, Governor Wolf signed Act 122 of 2022[1] (the “Act”) into law, implementing significant changes for domestic and foreign filing entities in the Commonwealth of Pennsylvania. Among the many changes made by this legislation, the Act created an annual reporting requirement for most domestic and foreign…
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…
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…
New Priority Guidance Plan Announced For Limited Partner Exception to SECA
NEW PRIORITY GUIDANCE PLAN ANNOUNCED FOR LIMITED PARTNER EXCEPTION TO SECA For a number of years there has been an ongoing challenge by the IRS of taxpayers claiming limited partner status and exemption from the Self-Employment Contributions Act (SECA) tax. The activity in this area has greatly increased in…
New Jersey’s WARN Act Finally Takes Effect with Recent Amendments
New Jersey’s WARN Act Finally Takes Effect with Recent Amendments On January 10, 2023, Governor Murphy signed into law amendments to the Millville Dallas Airmotive Plant Job Loss Notification Act, more commonly known as NJ WARN or “mini-WARN Act.” The law as amended recently went into effect on April 10,…
New Jersey Piggy-Backs Federal S Corporation Elections
New Jersey Piggy-Backs Federal S Corporation Elections. On December 22, 2022, Governor Murphy signed P.L.2022, c.133 (A4295/S2876) that eliminates the requirement to affirmatively make a New Jersey S corporation election; ends the New Jersey COVID-related extension for State tax assessments and refund interest and adapts New Jersey Partnership Audit Rules…