Category: State & Local Taxes
Should the new “SECURE Act” changes encourage taxpayers to use a Charitable Remainder Trust (CRT) as recipient of IRA benefits?
In two recent Kulzer & DiPadova newsletters, we addressed a significant change to the law made by the Further Consolidated Appropriations Act, 2020 (H.R. 1865, P.L. 116-94), the yearend funding measure signed by President Trump on December 20, 2019. The first article, dated December 30, 2019, summarized the SECURE Act,…
New Jersey Enacts Salt Work-Around Pass-Through Entity Tax
On January 13, 2020, Governor Murphy signed into law P.L.2019, c.320 (S3246/A4807) the “Pass-Through Business Alternative Income Tax Act.” The new law establishes an elective entity-level alternative income tax (AIT) to be paid by pass-through entities (PTEs). Pass-through income remains taxable to owners, but the new law grants a refundable…
Penalty Relief for CBT Taxpayers
The New Jersey Division of Taxation has announced penalty relief for taxpayers who made timely requests for an extended filing date for their 2018 New Jersey Corporation Business Tax Returns. Originally, the extended filing date for a 2018 calendar year corporation was October 15, 2019, the same due date as…
New Jersey Passes Wage Theft Act: What Employers Need to Know
On August 6, 2019, New Jersey Acting Governor Sheila Oliver signed into law the New Jersey Wage Theft Act (the “Act”), P.L. 2019, c.212, modifying New Jersey’s existing wage and hour laws. Except for certain provisions dealing with criminal offenses, the Act took effect immediately upon enactment. The Act provides…
WHEN CAN STATES TAX TRUST INCOME? THE U.S. SUPREME COURT PROVIDES LIMITED GUIDANCE
U.S. Supreme Court provides guidance (although minimal) on the interstate income taxation of Trusts. North Carolina Department of Revenue vs. Kimberly Rice Kaestner 1992 Family Trust, 139 S. Ct. 2213, 588 U.S. (June 21, 2019). When an individual owns several homes and travels between them, spending time in…
New Jersey Employers Required to Offer Mandatory Pre-Tax Transportation Fringe Benefits
On March 1, 2019, Governor Phil Murphy signed into law Senate Bill No. 1567, “An Act concerning pre-tax transportation fringe benefits” (“Act”), which requires New Jersey employers with at least 20 employees to offer pre-tax transportation fringe benefits to its employees. Transportation fringe benefits include employees’ costs incurred for alternative…
New Jersey Earned Sick Leave Law goes into effect October 29, 2018: Are You Prepared?
Under New Jersey’s Earned Sick Leave Law, N.J.S.A. § 34:11D-1 et seq. (the “Act”), effective October 29, 2018, all employers in New Jersey must now provide their employees working in New Jersey with paid sick leave each “benefit year”. The Labor and Workforce Development Division of Wage and Hour Compliance…
Credit Where Credit Is Due
In Doherty v. Director, Div. of Taxation, the New Jersey Tax Court explained how to compute the resident tax credit. The taxpayers, New Jersey residents, were shareholders in an S corporation doing business in New Jersey and Pennsylvania. The shareholders were subject to tax in both states on the S…
IRS Issues Notice Regarding SALT Workaround
Earlier this month Governor Murphy signed a bill (S1893) allowing municipalities, counties, and school districts to set up charitable funds to pay for public services. Residents who donate to the funds can receive a credit for up to 90% of the amount paid toward their property tax bills and the…
How the New Qualified Business Income Tax Deduction Affects Attorneys
The New Law The Tax Cut and Jobs Act (the “Act”) was signed into law by President Trump December 22, 2017. One of the main objectives of the Act was to reduce the taxation of business income. The qualified business income deduction can provide significant tax savings for some attorneys…