REDW | September 10, 2018
On December 22, President Trump signed the tax reform bill, “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018," into law, marking the largest change to U.S. tax policy since the 1980s.
With most of the provisions already in place, it is critical to understand the bill’s conference process and IRS regulations issued in 2018, as they will provide guidance on how to apply key provisions along with the intent of Congress in drafting the bill.
To help them navigate the key provisions affecting the real estate and construction industries, we’ve summarized the top considerations and industry implications below. Read more. Read More
Sandy Abalos | September 10, 2018
Ever since Congress enacted the Tax Cuts and Jobs Act in December, many business owners are reconsidering which business entity makes the most sense for their particular business. With the new, lower tax rate for C corporations, many pass-through entities, including S corporations, are reconsidering their structure to take advantage of the substantially reduced 21% corporate tax rate.
The Act also provided tax relief to S corporations (and other pass-through entities) in the form of a temporary business income deduction (with some limitations), so that’s what makes it complicated. It may not be worth switching after all. When it comes to choosing business entities, one thing hasn’t changed—it all depends on a number of factors. Read more. Read More
Christina Roderick | August 27, 2018
On Thursday, August 23, 2018, the IRS issued proposed regulations that would disallow the federal deduction for donations made to charitable organizations in which taxpayers receive a tax credit. The proposed regulation was needed to halt the many states that were putting in place credit programs to circumvent the recent tax law change limiting the deduction for state and local taxes to $10,000.
The proposed regulation impacts donations made after August 27, 2018. The regulation is not final and a comment period is required; however, to secure your Arizona state tax credits for 2018, we are recommending you make your contributions before August 28, 2018. Read more. Read More
James Ortiz | August 16, 2018
As part of the Tax Cuts and Jobs Act (the Act), the limitation imposed on the state and local tax (SALT) deduction as part of the Tax Cuts and Jobs Act (TCJA) has wreaked havoc in many states. In fact, four states – Connecticut, New Jersey, New York and Maryland – have determined that the limitation is unconstitutional. On July 17, they filed a lawsuit in federal court that seeks to make the law unenforceable. Read more. Read More
James Ortiz | July 10, 2018
In a 5-4 ruling on June 21, 2018, the U.S. Supreme Court overturned a 1992 precedent that barred states from requiring an out-of-state seller with no physical presence to collect sales tax on a sale to a resident of the state. Now, states stand to collect potentially billions of dollars in sales taxes from remote sellers who meet certain minimum standards. The Court remanded the case to South Dakota’s Supreme Court for a finding of whether other issues may block the tax. However, it is unlikely that any issues will surface.
In overturning Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Ill., the Court acknowledged that brick-and-mortar stores have been at a competitive disadvantage to out-of-state sellers. And as technology has become more involved in commerce year after year, it has created incentive for states to challenge the physical presence nexus rule. Read more. Read More
James Ortiz | June 21, 2018
The U.S. Supreme Court today handed down a decision on the highly anticipated South Dakota v. Wayfair case, which challenged South Dakota’s collection of sales tax from out-of-state businesses that do not have physical presence in the state but that sell and deliver into South Dakota tangible personal property, products transferred electronically, or services.
South Dakota passed a law in 2016 that set off a dramatic and market-altering shift in taxation of online sales, one that concluded with today’s Supreme Court’s 5-4 decision... read more. Read More