Governor Northam Signs Virginia Tax Conformity Legislation
Friday, Governor Ralph Northam signed legislation that conforms Virginia’s tax laws to the federal Tax Cuts and Jobs Act and lets the Virginia Department of Taxation begin processing individual income tax returns. “I am proud that we were able to work together to give Virginians the clarity they deserve during tax season,” said Governor Northam. “Now, because of this important compromise, Virginia taxpayers can properly prepare and file their taxes and our state personnel can start processing tax returns.” “We are now preparing our systems to begin processing those 2018 returns,” said Tax Commissioner Craig M. Burns. “We do process them. Read More.
Beware of Scammers This Tax Season
Tax season offers hackers and scammers another chance to request your personal or financial information through several channels of communication. With more personal information available on the internet, scammers can easily craft emails posing as the IRS or a tax filing agency and even include particular information about you in the email. All to lure you into the opening emails, opening attachments or clicking on links. We want to remind you that the IRS does not initially contact individuals or businesses through email, social media, or text; you will always receive a letter in the mail first. If you do receive. Read More.
Are Qualified Opportunity Funds or 1031 Exchanges Right for Me?
Qualified Opportunity Funds (“QOFs”), created as part of the Tax Cuts and Jobs Act, can create significant benefits to investors. But, are OQFs a better investment opportunity than a comparable 1031 exchange? There are important differences to consider before choosing the right investment method for your situation. You should consider your frequency of investing, what your main goals are, how much investment you have in real estate versus other assets and whether you are willing to invest for the long term. Consider the following benefits and implications of both QOFs and 1031 exchanges to further understand your options. Qualified Opportunity. Read More.
Opportunity Zone Updates
New Date for Internal Revenue Service (“IRS”) Hearing on Opportunity Zone Regulations The IRS will hold a public hearing on February 14, 2019, at 10 a.m. ET, on proposed regulations concerning investments in qualified opportunity funds. The original hearing, scheduled for January 10, was postponed due to the federal government shutdown. For further details on the hearing click here . Letter from Congress Urging Treasury to Address Key Opportunity Zone Issues Seven Senate members and nine House original co-sponsors of the Investing in Opportunity Act, on which the Tax Cuts and Jobs Act provision was based, signed a letter to Congress addressing. Read More.
Draft Proposed Rules for Massachusetts Paid Family and Medical Leave
Beginning July 1, 2019, employers with employees working in Massachusetts will begin to collect payroll taxes from employees to fund the statewide Paid Family and Medical Leave benefits that will begin January 1, 2021. The Massachusetts Executive Office of Labor and Workforce Development released a draft of proposed regulations to inform employers of the paid leave benefit. Read the recent publication from Cherry Bekaert Benefits Consulting for more information on what benefits are available and how they are determined. For more information, contact your Cherry Bekaert professional.
Section 199A Final Regulations and Other Guidance Released
On Friday, January 18, the Treasury and the IRS released final regulations regarding the new deduction permitting many owners of pass-through entities to deduct up to 20 percent of qualified business income (“QBI”), more commonly known as the Section 199A deduction. Additional guidance released concurrently with the final regulations included: Notice 2019-07 , providing a safe harbor for rental real estate enterprises to be treated as a trade or business, Revenue Procedure 2019-11 , which provides guidance on the available methods for calculating W-2 wages, and Proposed regulations ( REG-134652-18 ) regarding the treatment of previously suspended losses and interests in regulated investment companies, charitable remainder trusts, and split-interest. Read More.
France Upholds GDPR with Fine to Google
The General Data Protection Regulation (“GDPR”), which went into effect in May 2018, is a regulation related to data protection and privacy for all individuals within the European Union (“EU”). It also addresses the export of personal data outside the EU, including the U.S., which therefore requires compliance for many U.S. companies storing, processing or transmitting EU citizen data. GDPR promised potential fines for those not in compliance. Well, news broke this week that they have kept their promise. France’s data protection watchdog, Commission Nationale de l’Informatique et des Libertés (“CNIL”), has fined Google a record $57 million for failing to provide users with transparent and understandable information on its. Read More.