Category: State & Local Taxes
New Jersey State and Local Tax (SALT) Deduction Planning Opportunity
In January 2020, New Jersey Governor Phil Murphy signed legislation creating the Business Alternative Income Tax (BAIT). Effective for income tax years beginning on or after January 1, 2020, the legislation allows New Jersey pass-through entities (PTEs) to pay and deduct income tax at the entity level. The legislation provides…
New Jersey Budget Passage Includes Additional Income Taxes on Individuals with Taxable Income over $1 Million
On September 29, 2020, Gov. Phil Murphy signed a budget for revised fiscal year 2021. The budget includes $32.7 billion in state funds and appropriation of 13.8 billion in federal funds. The revised fiscal year begins October 1, 2020, due to the extension of fiscal year 2020 during the coronavirus…
New Jersey Supreme Court tackles issue of real estate taxation of private businesses on public properties
Gourmet Dining, LLC, is a “for-profit” business entity that had entered into a management agreement with Kean University to operate a “high-end” restaurant called “Ursino” on Kean University property. The Gourmet Dining business is on University property and, as a state school, it is operated on property owned by the…
Governor Murphy’s Revised Fiscal Year 2021 Budget Proposal Includes Tax Increases
On August 25, 2020, Governor Murphy released his revised budget proposal for Fiscal Year 2021 (FY 2021). The proposal includes tax policy changes estimated to yield just over a billion dollars for the nine-month FY 2021 period, including: Imposing the millionaire’s tax on all income above $1 million; Permanently incorporating…
New Jersey Sales Tax and Surcharges for COVID-19
The New Jersey Division of Taxation issued a notice on the taxation of surcharges for COVID-19 precaution and prevention costs. Some sellers are imposing additional fees on customer invoices for COVID-19 related cost. These additional charges may be termed a COVID-19 Fee, Coronavirus Fee, PPE Fee, Sanitation Fee, Cleaning Fee…
Paying your Taxes in the Time of COVID
The IRS recently issued Fact Sheet 2020-10 to remind taxpayers that they “have a variety of options to consider when paying federal taxes.” Due to the COVID-19 pandemic, the filing deadline and tax payment due date was extended from April 15, 2020, to July 15, 2020. Taxpayers filing Form 1040…
New Jersey Extends Certain Tax Filings due April 15, 2020.
On April 14, 2019, Governor Murphy signed P.L.2020, c.___ (A3918) extending to July 15, 2020 the deadline for Gross Income Tax (GIT) and Corporation Business Tax (CBT) filings and payment ordinarily due April 15, 2020. The new law aligns New Jersey with the new federal deadline announced late last month….
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…