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News, Articles & Resources

Category: Tax Planning & Compliance

Estate and Trust Income Tax Return Reporting Changes

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Authored by Michael Rios (summer law clerk) and Joseph T. Kenney, Esq.  On May 11, 2020, the United States Treasury published proposed regulations (“Prop. Regs.”)  (REG-113295-18) under the Tax Cuts and Jobs Act of 2017 (TCJA) related to the deductibility of certain expenses incurred by estates and non-grantor trusts. The Prop….

Long Awaited “Retail Glitch” Technical Correction

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The Tax Cuts and Jobs Act (“TCJA”) expanded the bonus depreciation provision in I.R.C. Section 168(k) from fifty (50%) percent to one hundred (100%) percent.  Unfortunately, Congress failed to assign qualified improvement property a fifteen (15) year recovery period when drafting the TCJA, rendering qualified improvement property ineligible for bonus…

Amending Partnership Returns

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The heading of this note is somewhat misleading, because as the result of changes made by the Bipartisan Budget Act of 2015, you can no longer amend a partnership return (but for a limited duration exception discussed below).  If a change needs to be made to a partnership return because…

IRS announces People First Initiative in response to COVID-19 Pandemic

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On March 25, 2020, the Internal Revenue Service announced the “People First Initiative” that will assist taxpayers by providing relief on a variety of tax collection and enforcement issues. Installment Agreements For taxpayers under an existing Installment Agreement with the IRS, payments due between April 1 and July 15, 2020…

COVID-19 Outbreak Tax Developments

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  Treasury and IRS Issue Guidance on Tax-Paying and Tax-Filing Due to COVID-19 Outbreak On March 13, 2020, President Trump issued an emergency declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic (“Emergency Declaration”). The Emergency Declaration…

Should the new “SECURE Act” changes encourage taxpayers to use a Charitable Remainder Trust (CRT) as recipient of IRA benefits?

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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

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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…

Secure Act: Major Changes for Retirement Planning

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On December 20, 2019, President Trump signed into law the Further Consolidated Appropriations Act, 2020 (H.R.1865 P.L. 116-94)(“Appropriations Act”).  Division O of the Appropriations Act (https://www.congress.gov/bill/116th-congress/house-bill/1865/text) included the Setting Every Community Up for Retirement Enhancement Act of 2019 (“Secure Act”) which provides the most expansive retirement plan legislation since the…

Final Clawback Regulations Released

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On November 22, 2019, the IRS issued final regulations under a concept known as “clawback” of estate tax exemption.  “Clawback” of estate tax exemption arises due to the manner in which the estate tax is calculated and occurs when an estate tax exemption amount decreases.  When the Tax Cut and…

Taxpayer Wins Major Gift Tax Valuation Case

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Mr. Jones established three trusts for his daughters in May 2009.  He gifted voting and non-voting stock of Seneca Sawmill Co. (“SSC”) and limited partnership interest of Seneca Jones Timber Co. (“SJTC”) to the trusts.  Together these entities operated a lumber and timber business.  Mr. Jones filed a gift tax…

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