IRS Releases Proposed Regulations on Qualified Opportunity Funds
As part of the Tax Cuts and Jobs Act (“TCJA”) signed into law on December 22, 2017, new tax incentives were created under Sections 1400Z-2 of the Internal Revenue Code (“IRC”), which allows you to elect to defer certain gains until as late as December 31, 2026, if those gains are reinvested in a Qualified Opportunity Fund (“QOF”) within 180 days. QOFs are required to invest in one or more businesses or property located in a Qualified Opportunity Zone (“QOZ”). To the extent an investment in a QOF is held for at least 5 (or 7) years, a taxpayer can. Read More.
Data Security Considerations for Manufacturing Companies
Data and cybersecurity is becoming an increased focus in business, especially in manufacturing. Your company needs to take steps to secure against hackers and other potential threats to ensure your product and people are safeguarded. Are you aware of what threats exist and how your company can defend against them? As technology and AI become increasingly refined and advanced, you need to stay abreast in offensive tactics to protect your people and company. As your field is ever-changing, so are the tactics of hackers. Data Security and Manufacturing Risks Many manufacturing companies are increasingly using automation and AI to perform. Read More.
How Employers and Employees Can Give Disaster Assistance – and the Tax Breaks that Go with It
After any major disaster, either natural or man-made, it’s hard to stand by and watch. When you see people whose homes have been destroyed and whose lives have been uprooted, it’s a natural response to want to help. As an employer, you may feel an urge to help your employees get back on their feet faster. Not only is it a nice thing to do – the sooner your employees get resettled after a disaster, the sooner they can shift their attention back to work. Whatever your motivation, when you give assistance to your employees, there can be tax benefits to you and. Read More.
2018 Estate Tax Planning: A Window of Opportunity
The Tax Cuts and Jobs Act (“TCJA”) impacts individual taxpayers, regardless of your level of income and net worth. If you are a U.S. citizen or resident with a net worth between $5 and $10 million, the increase in the estate tax exclusion amount from $5.49 million (indexed) in 2017 to $11.18 million (indexed) in 2018 means you may have moved from a taxable estate to a non-taxable estate. If your net worth is in excess of $10 million, the increase in the amount of your non-taxable estate is dramatic with the nearly doubling of the estate and gift tax. Read More.
Reminder: FBAR Deadline – October 15, 2018
The due date for filing Form 114, Report of Foreign Bank and Financial Accounts (“FBAR”) for accounts maintained during calendar year 2017, was April 17, 2018. Filers who did not file their 2017 FBARs by April 17, 2018, received an automatic extension to Monday, October 15, 2018. The April 17 due date was two days later than the original April 15 due date, as that was a weekend day and a District of Columbia legal holiday, which provided FBAR filers additional time to timely file Forms 114. Although the original due date was postponed by two days, the automatic six-month. Read More.
Proposed Regulations on Charitable Contribution Deductions
The Department of Treasury and IRS have released proposed regulations under Section 170, which gives guidance on charitable contributions. The proposed regulations detail whether you may receive a full deduction on your federal tax return for your charitable contributions when you are expected to receive a corresponding state or local tax (“SALT”) credit for those contributions. Section 170 generally allows itemized tax deductions for charitable contributions each tax year. The new proposed guidance states that if you make a charitable contribution and receive a SALT credit in return, you must reduce your charitable deduction by the amount of any SALT. Read More.
Section 965 Transition Tax Basis Election Deadline Deferred
The IRS recently announced in Notice 2018-78 that the due date for the section 965 basis election will be extended to 90 days after publication of the final 965 regulations. What Is The Basis Election? The proposed section 965 regulations clarify that a U.S. shareholder generally may not adjust stock basis to take into account a reduction to a U.S. shareholder’s pro rata share of the section 965 earnings under the reduction rules. However, a U.S. shareholder may elect to make the relevant basis adjustments to account for a reduction. Original 965 Basis Election Deadline. According to the proposed section. Read More.