Posted in Corporate Income Tax, Featured Content, Featured Post, Income and Franchise, Personal Income Tax, Property and Other State/Local Tax Issues, State & Local Strategies, The Bottom Line

Hurricane Ida Tax Relief – New Jersey Provides “Big Apple-like” Relief While New York State and City “Cherry Pick” Taxpayer Relief

As noted in our recent alert, IR-2021-179 {“Tax Relief”} as initially issued and updated, provides comprehensive relief to business and individual taxpayers affected by Hurricane Ida in the Tri-State area.

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Posted in Corporate Income Tax, Featured Content, Featured Post, Income and Franchise, Personal Income Tax, State & Local Strategies, The Bottom Line

Illinois Enacts Elective Pass-through Entity Tax and Enters the PTET Highway

On August 27, 2021, Illinois governor J.B. Pritzker signed P.A. 102-658 (S.B. 2531), Laws 2021 {“Bill”}, that establishes an elective Pass-through Entity Tax (PTET) for partnerships and S corporations. The Bill permits PTEs to pay an elective tax on income earned or received in the state.

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Posted in Corporate Income Tax, Featured Content, Featured Post, Income and Franchise, Personal Income Tax, State & Local Strategies, The Bottom Line

New York Pass-through Entity Tax Guidance – A Complex Roadmap for Those Considering Venturing Into New York’s PTET Highway

Just in time for Labor Day, on August 25, 2021, New York State (NYS) issued Technical Memorandum TSB-M-21(1)C, (1)I, {“TSB”). The TSB is New York’s initial guidance in addressing the myriad of technical and procedural issues since New York adopted its elective Pass-through Entity Tax (PTET). The TSB provides comprehensive guidance on…

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Posted in Corporate Income Tax, Featured Content, Featured Post, Personal Income Tax, State & Local Strategies, The Bottom Line

Owners of Pass-Through Entities Electing the NY PTE Tax – Your NY Personal Estimated Tax Payments Must Be Calculated Without a PTET Credit

New York State (NYS) second quarter Personal Income Tax Estimated Payments are due on June 15, 2021. This year, for owners, partners and shareholders of Pass-through Entities (PTE) that are considering electing to be subject to New York State’s Pass-through Entity Tax (PTET), there’s an important wrinkle in the calculation of these estimated payments.

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Posted in Corporate Income Tax, Featured Content, Featured Post, Income and Franchise, Personal Income Tax, State & Local Strategies, The Bottom Line

New York’s Pass-through Entity Tax – Potential Lower Federal Tax Benefits to S Corporation Shareholders

New York’s Pass-through Entity Tax (PTET) may result in significantly lower Federal tax benefits for certain electing S corporations. The potential Federal tax benefits of the New York State (NYS) PTET for resident shareholders of S corporations with low NYS Business Apportionment Percentages (BAP) may be significantly lower than initially expected. Why? The PTET provisions’…

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Posted in Corporate Income Tax, Featured Content, Featured Post, Income and Franchise, Personal Income Tax, Property and Other State/Local Tax Issues, State & Local Strategies, The Bottom Line

New York’s Budget Decouples From Federal Opportunity Zone Tax Benefits – Is It a Big Swing and Miss for New York Taxpayers?

As detailed in our previous post, Governor Cuomo signed the 2021-22 New York State (NYS) Budget (The Budget) last month with little fanfare. The Budget contains numerous tax provisions that have broad implications to New York taxpayers. However, one of The Budget’s potentially unfavorable tax provisions, as set forth in Section DDD of…

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Posted in Corporate Income Tax, Featured Content, Featured Post, Personal Income Tax, State & Local Strategies, The Bottom Line

Batter up – The NYS 2021-22 Budget – Is It a Home Run or Strike Out for New York State Taxpayers and Businesses?

Spring has officially arrived – flowers are blooming, baseball has begun, and Governor Cuomo signed the 2021-22 New York State (NYS) Budget on April 19, 2021. This year, Albany has been quite engaged in its attempt to enhance New York State’s “field of taxes.”

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Posted in Corporate Income Tax, Featured Post, Personal Income Tax, Property and Other State/Local Tax Issues, State & Local Strategies, The Bottom Line

Decoupling from the CARES Act New York City Style – The Sequel

Late last Wednesday, Governor Cuomo signed legislation, A10519/S08411, that decoupled additional provisions from the CARES Act for New York City Business Taxes.  The legislation may have personal income tax considerations because the legislation has provisions that apply to New York City pass-through entity level taxes. The legislation…

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Posted in Corporate Income Tax, Featured Post, Income and Franchise, Personal Income Tax, Property and Other State/Local Tax Issues, State & Local Strategies, The Bottom Line

NYS Decoupling from CARES Act – Section 163(j) Limitation – How to Make Complicated More Complicated

In our two previous posts on the New York State Budget’s Decoupling {“Decoupling”}, we discussed the myriad of implications arising from the Decoupling that focused on the Personal Income Tax as well as Pass Through Entity (PTE) ramifications to the extent the Decoupling’s affects would be required to be reflected by PTEs for…

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Posted in Corporate Income Tax, Featured Post, Income and Franchise, Personal Income Tax, Property and Other State/Local Tax Issues, State & Local Strategies, The Bottom Line

NYS Budget Decouples from Beneficial CARES Act Tax Provisions

With little fanfare, New York State adopted and Governor Andrew M. Cuomo signed the New York 2020-2021 Budget {“The Budget”} in April that contains significant New York State tax ramifications, especially for those New York taxpayers for which the CARES Act provides potential federal tax benefits.

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Posted in Corporate Income Tax, Featured Post, Income and Franchise, Nexus, Personal Income Tax, Property and Other State/Local Tax Issues, Sales and Use Tax, State & Local Strategies, The Bottom Line

No Time for Wayfair Complacency

According to a recent survey of 1,150 accounting professionals, business owners are becoming increasingly more comfortable with the ramifications of Wayfair on their businesses compared to the first half of the year. However, they should not get complacent just yet. Even though the Wayfair ruling was made over a year ago, its continued effects on…

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Posted in Corporate Income Tax, Featured Post, Income and Franchise, Nexus, Personal Income Tax, Property and Other State/Local Tax Issues, Sales and Use Tax, State & Local Strategies, The Bottom Line

Some SALTy Thoughts As We Get Ready For Thanksgiving Day Celebration With Family and Friends

As we approach the 2019 Holiday Season with Thanksgiving Day celebrations next week, the ever thoughtful and provocative tax experts at the Tax Foundation were considerate enough to release their 2020 State Business Tax Climate Index for all to consider. A quick read of the 2020 State…

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Posted in Corporate Income Tax, Featured Post, Income and Franchise, Nexus, Personal Income Tax, Property and Other State/Local Tax Issues, State & Local Strategies

New York Employers: Is the Employer Compensation Expense Tax A Trick or Treat?

In April of this year, New York Governor Cuomo signed the 2018-2019 Fiscal Year budget. The Budget adopted the Employer Compensation Expense Tax (ECET) in an attempt to offset the Tax Cuts and Jobs Act (TCJA) $10,000 state and local tax (SALT) deduction limitation and its potential negative effect on individual…

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Posted in Corporate Income Tax, Featured Post, Income and Franchise, Nexus, Personal Income Tax, Property and Other State/Local Tax Issues, Sales and Use Tax, State & Local Strategies, The Bottom Line

New York State Budget Tax Provisions’ Response to Federal Tax Cuts and Jobs Act

On April 12th Governor Cuomo signed the 2018-2019 Fiscal Year budget (Budget). The Budget contains numerous provisions that address the New York tax ramifications arising from the Tax Cuts and Jobs Act (TCJA) passed by the United States Congress late last year. The Budget’s tax provisions pose significant complexities as well…

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Posted in Corporate Income Tax, Nexus, Property and Other State/Local Tax Issues, State & Local Strategies

Market Based Sourcing – No Time To Hibernate

It is always fascinating to watch trends develop and revisit whether the prognosticators were correct – we even enlist Punxsutawney Phil at this time of year – more on him later. One trend we’ve been watching has been the state tax authorities’ modifications in the sourcing of revenue in order to increase the receipts from…

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Posted in Corporate Income Tax, State & Local Strategies

Nevada’s New Commerce Tax – If $ Happens In Vegas, It (May) Stay In Vegas

If you have Gross Receipts from Nevada sources, the new Commerce Tax may keep a portion of those Gross Receipts in the state. Last June, Nevada Governor signed into law Senate Bill No. 483 to introduce the Commerce Tax. Effectively July 1, 2015, Nevada joins Texas, Ohio and Washington in imposing tax based on the total gross revenue,…

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Posted in Corporate Income Tax, Property and Other State/Local Tax Issues, State & Local Strategies

Got Unpaid State and Local Tax Liabilities? Voluntary Disclosure May Be Your “Get out of Jail Free” Card

by: Richard L. Feldman, CPA, Senior Manager Voluntary disclosure is not exactly a “get out of jail free” card when it comes to unpaid taxes, but it may be the next best thing. Voluntary disclosure programs allow taxpayers with unreported tax liabilities to come forward and settle their tax liabilities, usually under very favorable terms…

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Posted in Corporate Income Tax, Income and Franchise, Property and Other State/Local Tax Issues, Sales and Use Tax, State & Local Strategies

Fall Clean Up – SALT Considerations When Merging or Liquidating Entities – Beware of Hidden State Tax Dangers in Those Leaves

Wow, October is almost gone! One of my favorite but perhaps most frustrating chores this month is raking the leaves. There are several huge Pin Oaks around my home that provide great shade in the summer and a blanket of leaves in the fall. I always rake the leaves into one or two huge piles…

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Posted in Corporate Income Tax, State & Local Strategies

State Tax Incentives – Dig Deep to Make Sure the Benefit is Worth the Effort

by: Richard L. Feldman, CPA, Senior Manager States are trying to outdo each other these days in trumpeting tax incentives to boost economic development in their areas. Although the benefits can potentially be vast, the hidden costs to applying for, and then complying with these incentives, can (and should) make business owners question whether the…

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Posted in Corporate Income Tax, Nexus, State & Local Strategies

Fall Clean Up – SALT Considerations When Merging or Liquidating Entities – Take Time To Step Back To See The Potential

Here in the Northeast, this Fall season has been filled with tranquil weather that invites us to get out for that last round of golf, long bike ride or outdoor exercise without being concerned about bundling up. However, Northeasterners know that this Fall’s tranquility should not lull anyone into complacency about how demanding the…

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Posted in Corporate Income Tax, Personal Income Tax, Sales and Use Tax, State & Local Strategies

Connecticut Law Boosts Tax Revenue from Multistate Corporations

Connecticut is known as the “Nutmeg State” because its early settlers were considered ingenious and shrewd for recognizing the value of nutmeg and selling it to travelers. Early this summer, the state lived up to its shrewd reputation when its General Assembly passed a budget bill containing provisions that would (among other provisions) increase…

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Posted in Corporate Income Tax, Personal Income Tax, Property and Other State/Local Tax Issues, State & Local Strategies

Is the U.S. Supreme Court Wynne Decision A Winner For You – Not Just For Maryland Residents?

In a recent decision, the U.S. Supreme Court held that Maryland’s failure to allow a credit against the local portion of Maryland personal income tax for taxes paid to another state was unconstitutional. The decision, Comptroller of the Treasury of Maryland v. Wynne, May 18, 2015, lay the groundwork for potential refund opportunities…

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Posted in Corporate Income Tax, State & Local Strategies

NYC Corporate Tax Reform – Mayor and Governor Seem To Be In Sync

Last month, New York City Mayor de Blasio announced his proposal for “a major reform” of the city’s corporate tax regime.   Considering that the mayor and New York State Governor Cuomo do not always see eye to eye (they held separate press conferences throughout  blizzard Juno, for example), the mayor’s proposal appears to closely parallel one already signed…

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Posted in Corporate Income Tax, Nexus, State & Local Strategies

2014 Multistate Tax Road Trip – New Jersey Budget May Create Tax Traffic Headaches for Multistate Taxpayers

New Jersey’s Fiscal 2015 Budget, signed by Governor Chris Christie on June 30, 2014, includes Assembly Bill 3486 which contains tax provisions that may increase multistate taxpayers’ New Jersey income taxes.  In addition, the bill includes “click-through” nexus provisions that may impose New Jersey sales tax nexus upon non-New Jersey…

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