New Jersey Governor Phil Murphy signed legislation this past Friday (May 4, 2018) which attempts to work-around the state and local tax deduction limitation imposed by the Tax Cuts and Jobs Act, which was enacted in December of 2017. Under that federal legislation, the aggregate state and local tax deduction (which includes state income, property and sales tax) an individual taxpayer may claim is limited to $10,000 per year. New York already has their version of a work-around...
By Evan Gernant
With tax reform legislation nearing enactment in Washington it’s easy to keep one’s focus on those headlines. There are, however, important changes in New Jersey and New York tax that have already been signed into law and will impact local taxpayers. Below is a summary of the more significant changes you will see affecting New Jersey and New York State taxpayers in 2018 and beyond.
The sales & use tax rate will continue decrease slightly. A two-phase...
By Tim Kennedy
Not all work performed on a property is created equal in the eyes of the tax collector. Some improvements fall into the realm of capital improvement, while others are considered repairs, and still others are maintenance services.
Because New Jersey sales tax rules differ based on the type of work performed, it is important to understand the classifications to avoid paying too much or too little in taxes. Here’s what you need to know.
What work is exempt from sales...
By Wiss Associate
“My company’s not in the business of research and development, so how could we qualify for R&D tax credits?”
If that’s what runs through your head when you think of this particular credit, it’s understandable – especially if you don’t have any scientists or many engineers on staff. Or a dedicated research and development department.
The truth is, you could earn lucrative federal, state and local tax credits with work that you don’t even think of in conventional...
By Wiss Employee
In order to boost the state’s revenues, Governor Christie withdrew from a decades old tax agreement with Pennsylvania back in September. It left many business owners and employees anxious about 2017 income taxes and filings. Read in our past blog post about the repercussions of withdrawing from the agreement.
On November 22, Gov. Christie announced that the reciprocal agreement with Pennsylvania will remain in place. New Jersey and Pennsylvania residents that...
By Christopher Colyer
After an extensive three-month long political and financial stalemate, New Jersey Governor, Chris Christie and Democratic leaders reached a deal to renew the Transportation Trust Fund, reviving dozens of construction plans that remained lifeless for months on end. By proposing to raise the gas tax by 23 cents a gallon to replenish the fund, which is recycled and applied to road, rail, and bridge improvements for the state, New Jersey’s transportation projects...
By Philip London
Do you cross the Delaware River on the way to work? By next year, your commute will be even more expensive. For the past 38 years, neighbor states Pennsylvania and New Jersey have preserved a reciprocity pact that allows taxing solely where workers reside, not where they work. Thus, NJ does not collect tax on PA residents working in New Jersey, and vice versa.
However, last week, Governor Christie withdrew from the tax agreement. Consequently, roughly a quarter-million...
By Wiss Employee
In simpler times, a New York-based industry sold its products or services within its state boundaries. As such, it was their responsibility to gather and remit sales tax to the taxing authority of The Big Apple. However, thanks to the rapid advancements in technology, today’s corporate atmosphere has become much more multifaceted.
As inter-state sales are becoming routine, the same New York-based company has many more consumers to choose from, amplifying their client...
By Mark Feldstein
When is a free meal not really free? When a New York State hotel is offering a complimentary breakfast to its guests.
While complimentary breakfasts are free – in a sense – to your guests, if your hotel is audited, you could get a tax bill. And the tax penalties for months – or years – of presumed “tax-free” food can add up.
New York sales tax and occupancy tax returns are, in most circumstances, subject to audit for up to three years, longer if fraud is suspected....
By Amanda Dominguez
The only bad thing about tax credits is the possibility of missing out on one.
To make sure that doesn’t happen to your business, here is some background on the Grow New Jersey tax incentive and how it could affect your company.
Per-employee credits add up
The Grow New Jersey Assistance Program is offered through the state’s Economic Development Authority (EDA) to encourage businesses in technology, manufacturing, warehousing, research and development and other...