The 2017 Tax Act made life harder on individuals living in high tax states (such as New York, New Jersey, and California) by limiting the deduction for state and local taxes (“SALT”) to $10,000. In an attempt to circumvent this restriction, several states have adopted a new pass-through entity tax imposed on partnerships, LLCs, and
Income Tax
New Jersey is Planning to Raise $390 Million in Fiscal Year 2021 through Tax Hikes on Millionaires
Posted in Income Tax, Tax
New Jersey Governor Phil Murphy and State Democratic leaders announced yesterday a revised fiscal year 2021 budget that raises the State’s gross income tax rate on income for families now earning between $1 million and $5 million.
Currently, the State’s top tax rate for income earned in excess of $1 million through $5 million pay…
Nelson: IRS Prevails in Defined Value Provision Case
By Steven M. Saraisky & David J. Choyne on
On June 10, 2020, in Nelson v. Commissioner, T.C. Memo 2020-81, the Tax Court ruled in favor of the IRS and against a taxpayer who attempted to use a defined value provision to value a transfer of assets.
The taxpayer’s primary business was in heavy equipment relating to the oil and gas industry. The…
The CARES Act and Effects on Charitable Contributions
The coronavirus outbreak, the subsequent passage of the CARES Act by the federal government, and current low interest rates have changed the landscape of charitable contributions and planning in 2020.
Charitable Contributions
The CARES Act changes the limitations on charitable giving to encourage individuals and corporations to make cash contributions to public charities.
- Above-the-line deduction
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Treasury Extends BOTH Deadline to Pay Income Taxes and Deadline to File Income Taxes by 90 Days
Posted in Income Tax
Today, the Treasury announced that it will also be pushing back the April 15th deadline to file 2019 income tax returns. As a result, taxpayers will not need to pay income taxes owed for 2019 and will not need to file 2019 income tax returns until July 15, 2020. Neither New Jersey nor New…