Attention Executors: Basis Reporting Requirement for Estate Tax Returns Filed After July 31, 2015 —New Revised Extension Date!

New Revised Extension Date! Alert updated July 28, 2016 If you are an executor or beneficiary of an estate, you may be responsible for filing an additional tax form due to recent rule changes. As a result of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (“The Act”), a new basis consistency standard has been imposed for assets distributed by certain estates. This standard generally requires that the basis of inherited property in the hands of an heir equals the value used for estate tax reporting purposes. The Act also introduced a new reporting requirement that. Read More.

Internet Tax Freedom Act Made Permanent – What It Really Means

On February 24, 2016, President Obama signed into law the Trade Facilitation and Trade Enforcement Act of 2015 (“the Act”), which permanently continues the ban on taxes for accessing the Internet. This law also makes it illegal for states to pass discriminatory taxes on transactions that occur online, and establishes an ending date of June 30, 2020, for taxes and fees imposed by the seven states that had previously enacted taxes on Internet access charges. However, the Act does not end local taxation of sales of goods and services through the Internet unless such taxes are discriminatory in comparison to. Read More.

Decanting: Not Just For Wine Anymore

When used in the context of trusts, decanting refers to the use of trust assets by the trustee of an irrevocable trust to fund a separate trust that has terms that honor the original intent and goals of the trust’s settlor, but is better suited to achieve these goals. Assets can be decanted to either a new trust or an already existing trust, provided that the trust agreement allows the trustee to exercise discretion over the trust principal. If decanting is allowed based on a trusts’ governing law and terms, this underused technique can prove extremely useful in resolving issues.. Read More.

GASB’s Leases Proposal

In February, the Governmental Accounting Standards Board (“GASB”) issued an Exposure Draft on Project No. 3-24E, Leases. Following the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board, the GASB Exposure Draft would move most leases onto the balance sheets of governmental entities. Unlike the FASB, the GASB proposed a single lease model. The proposal does include an exception for short-term leases. The proposed effective date is for reporting periods beginning after December 15, 2018;  earlier application would be permitted. Scope The proposal does not apply to lease contracts for intangible assets (including lease contracts for exploration of natural. Read More.

Proposed Changes to EEO-1 Reporting Will Require Pay Data

On February 1st, the Equal Employment Opportunity Commission (“EEOC”) issued proposed rulemaking that revises the Employer Information Report (EEO-1) data collection requirements to now include pay data. The EEOC proposes using the additional pay information to address workplace pay disparity issues. Details on the EEOC’s proposal can be found in the February edition of Cherry Bekaert Benefits Consulting ’s Compensations & Human Capital Update .

North Carolina Sales & Use Tax Update

If you live or conduct business in North Carolina, you may be affected by recent updates to the sales and use tax code. The law has been amended to subject sales of repair, maintenance and installation services occurring on or after March 1, 2016, to sales and use tax. Activities newly subject to the tax include, but are not limited to, preventative maintenance, calibration, restoration, troubleshooting and installation related to tangible personal property or motor vehicles, including separately stated installation charges that were previously exempt under North Carolina statutes. However, tangible personal property installed by a real property contractor pursuant. Read More.

ACA Market Reforms & Other ACA Provisions

Notice 2015-87, Further Guidance on the Application of the Group Health Plan Market Reform Provisions of the Affordable Care Act to Employer-Provided Health Coverage and on Certain Other Affordable Care Act Provisions, addresses a variety of issues and Affordable Care Act (ACA) applications. Read More

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