Tax Archives - Wiss & Company, LLP

State and Local Income Tax Issues to Consider Before Making Your Next Tax Payment

Written on February 10, 2023. Posted in State & Local Tax Services.

State and local taxes represent a key and often material part of a business’s total tax liability. Many states are reporting budget surpluses, reducing tax rates and offering new credits and incentives, but states are also looking to expand taxation of the digital and internet economy. With the calendar year 2022 tax reporting and filing season upon us, and 2023 estimated tax payments in sight, now is the time for businesses to review and plan for their multistate reporting positions...

2022 Year-End Tax Planning for Individuals

Written on December 22, 2022. Posted in State & Local Tax Services, Tax, Tax Alerts.

By Nicole DeRosa With rising interest rates, inflation and continuing market volatility, tax planning is as essential as ever for taxpayers looking to manage cash flow while paying the least amount of taxes. As we approach year-end, now is the time for individuals, business owners and family offices to review their 2022 and 2023 tax situations and identify opportunities for reducing, deferring or accelerating their tax obligations. The information contained within this article is...

2022 Year-End Tax Planning for Businesses

Written on December 19, 2022. Posted in Tax.

By Nicole DeRosa U.S. businesses are facing pressure to drive revenue, manage costs and increase shareholder value, all while surrounded by economic and political uncertainties. Disruptions to supply chains brought about by the pandemic have continued into 2022. Inflation and rising interest rates have made the cost of debt, goods and services more expensive and cooled consumer spending. The stock market has declined sharply, and the prospect of a recession is on the rise. What’s...

Your Guide to 1099s

Written on November 29, 2022. Posted in General Business, Tax.

by Tania Vallarta, Megan Goldstein & Leonor DiStefano Introduction Every January, businesses must issue Form 1099-Misc or 1099-NEC to non-incorporated entities or individuals who they paid at least $600 by a method of payment other than credit card for performing a service to their business. Keep reading for best practices to help you stay in compliance! Form W-9 As soon as you engage a service provider and before you pay them, have them complete a form W-9. This provides you...

Tax Implications of the Inflation Reduction Act

Written on August 17, 2022. Posted in Tax.

By Nicole DeRosa, CPA, MAcc Just a mere four days following the House passage, President Joe Biden signed the Inflation Reduction Act (IRA) of 2022 into law on August 16, 2022, which is projected to raise more than $700 billion in revenue through federal policy changes impacting U.S. energy, environment, and tax sectors. Several noteworthy items that are not included in the final bill include: A provision to remove the itemized deduction cap for an individual’s state and local...

Is Your Company Effectively Managing Tax Risk?

Written on July 27, 2022. Posted in Tax.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager IS YOUR COMPANY EFFECTIVELY MANAGING TAX RISK? The concept of “tax risk” is an increasingly important and regular topic of discussion across organizations, and for good reason. Businesses that operate across state lines or internationally can in certain cases trigger tax liabilities in jurisdictions where they do not have a physical presence. In addition, many countries are adopting policies which require greater transparency in tax...

Remote Employment 101: Multistate Payroll Simplified

Written on April 5, 2022. Posted in Human Resources, Tax.

Navigating the minefield of payroll compliance for remote workers can make anyone pull their hair out. There has been a big spotlight over the past year on the accuracy of paying remote employees, with states looking to ensure that resident workers are being taxed appropriately. It’s not as simple as hiring a new employee who happens to be working offsite. Hiring a remote worker in a new state might trigger new obligations, and non-compliance can be costly for employers. Payroll...

What Does Biden’s Executive Order Mean for Crypto Reporting?

Written on March 10, 2022. Posted in State & Local Tax Services, Tax, Tax Alerts.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager To further add to the “Crypto Crackdown,” yesterday, President Joe Biden signed the “Executive Order on Ensuring Responsible Development of Digital Assets” which set out his administration’s strategy to explore greater regulatory oversight of the digital asset market and prioritize the assessment of a Central Bank Digital Currency. The devil is most certainly in the details; however, this is the most wide-reaching effort...

What did I do wrong? (Common traps small business owners can avoid)

Written on February 15, 2022. Posted in Early Stage, Small Business, Startups.

If you’re like most founders, when you first begin the process of starting a company, you’re focused on being compliant in every way. You aim to build a business people want to invest in. But even with the best of intentions, you could overlook some rules that have big implications. Taxes are an area in which new small business owners make frequent mistakes. It’s not intentional, they’re usually just unaware. Let’s talk about two specific tax-related errors many of our clients make...

How can I take advantage of Qualified Small Business Stock?

Written on February 8, 2022. Posted in Early Stage, Small Business, Startups, Tax.

In the early days of startup formation, it’s helpful to think years into the future — more than five years, to be exact. That’s the minimum term to which the Qualified Small Business Stock (QSBS) tax exemption applies. QSBS is a big incentive for structuring your U.S.-based business as a C corporation (or converting from an LLC) because it’s reasonable to assume your investors will someday want to exit. When they do, they could be looking to qualify for this huge tax break. What...

Incorporation 101: C-Corp vs. LLC

Written on January 5, 2022. Posted in Early Stage, General Business, State & Local Tax Services, Tax.

So you’ve decided to start a business. Once you get past the initial excitement of throwing ideas around with your co-founders, it’s time to make your first big decision: how you’ll structure your organization. Choosing a corporate entity type can feel overwhelming if you’ve never done it before. And even if you have, each industry and business has unique needs. In this article, we’ll break down some important details you need to know about the two most common types of entities:...

2021 Year-End Tax Planning for Businesses

Written on December 20, 2021. Posted in Tax, Tax Alerts.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager As the U.S. entered 2021, many assumed that newly elected President Joe Biden along with Democratic majorities in the House and Senate would swiftly enact tax increases on both corporations and individuals to pay for the cost of proposed new infrastructure and social spending plans, potentially using the budget reconciliation process to do so. Since then, various versions of tax and spending measures have been negotiated and...

Wiss Helps You Run Your Business With an Eye on the Future

Written on November 30, 2021. Posted in Real Estate, State & Local Tax Services, Tax.

By Eliezer Gross, CPA Wiss is a full‐service accounting firm that provides more than annual tax compliance or updates on the latest tax law changes. Our clients frequently seek guidance during every stage of their business: startup, growth phase, succession planning, and exit. Here’s how Wiss has solved some of the challenges our clients face in the real estate industry. The Challenge: Real Estate Acquisition Clients in the growth stage of their business who make real estate acquisitions...

Preparing for Tax Season

Written on November 16, 2021. Posted in State & Local Tax Services, Tax, Tax Alerts.

New for tax year 2021/tax season 2022: The IRS just released on November 8th their tips for getting ready for the upcoming filing season. Now is the time to start and make a list of the tax documents you are expecting and use that list to cross off the items as you receive them. Also keep in mind if you receive certain documents electronically or by mail so you can be on the lookout for these items. You can use your prior year tax returns and records as a guide for what to expect....

Third Time’s the Charm?

Written on November 16, 2021. Posted in State & Local Tax Services, Tax, Tax Alerts.

A third version of H.R. 5376 (the Build Back Better Act) was released on November 3, 2021 by the House Budget Committee. This draft increases the state and local tax deduction, brings back many of the retirement proposals from the original September 13 draft of the Build Back Better Act, and retains the surcharge on high-income individuals, estates and trusts from the October 28 version. Below is a summary of where things stand today. Income Tax State and Local Tax Deduction Individual...

R&D Tax Credits for the Technology & Software Industry

Written on November 9, 2021. Posted in State & Local Tax Services, Tax, Tax Alerts, Technology.

Generate cash from your past and future investments to develop or improve software. If your company has paid for software to be developed or improved in the U.S., you may be eligible for federal and state R&D tax credits equaling up to 25% of qualified spending. If your company is financing such activities outside of the U.S., the incentives may be even greater. These dollar–for–dollar offsets against regular income tax liability have enabled many startup and mature businesses...

R&D Tax Credits for the Healthcare Industry

Written on October 19, 2021. Posted in Healthcare, State & Local Tax Services, Tax, Tax Alerts.

Capitalizing on evolving patient care through past, present, and future innovation. R&D is likely to be a continued priority for the healthcare industry, as organizations in the space work to address the emerging needs of the aging population, respond to trends in telehealth and value-based care and fend off competition from new entrants, like Amazon, which has signaled that healthcare is a key priority for growth. If your organization has worked to develop a new or improved...

Winning a Gold Medal Can Be Taxing

Written on July 26, 2021. Posted in Tax.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager The price tag on victory is not cheap, at least for some. When an athlete wins a medal at the Olympics, that medal comes with significant prize money in addition to the value of the medal itself. Prize money awarded varies by medal type: $37,500 for a gold medal, $22,500 for a silver medal, and $15,000 for a bronze medal. Medals and prize money won by a team are split evenly amongst the team members. The term “gross income”...

Exempt Organizations and Sales Tax

Written on June 9, 2021. Posted in Not For Profit, Tax, Tax Alerts.

By Eitan Balloul, CPA, Tax Manager – Exempt Organizations & Fred Komarow, Tax Manager- SALT Many Tax-Exempt organizations are required to pay or to collect sales tax on certain transactions. Sales tax is governed and applied at the state and local level, which means that each state has its own rules and compliance requirements that will apply to an organization operating within a particular jurisdiction. Collecting and reporting sales tax is a requirement when selling tangible...

New Reporting Requirements for NY Tax-Exempt Organizations

Written on April 27, 2021. Posted in Not For Profit, Tax, Tax Alerts.

By Eitan Balloul, Tax Manager, Not-for-Profit Effective January 1, 2021, many Exempt organizations that file Form NY CHAR500 with the Attorney General must file the same information with the New York Department of State (“DOS”). There are 3 different potential reports for filing with the Department of State: 1. Annual Financial Disclosure Reports – Under Executive Law Section 172-b (1), (2) & (9) Charitable organizations that receive more than $250,000 in gross...

The Pass through Entity Tax (PTET) Now Applies to New York State – Here’s What You Need to Know.

Written on April 15, 2021. Posted in State & Local Tax Services, Tax, Tax Alerts.

Featuring Phil London, Partner Emeritus Legislative changes in the New York State budget have created the highest combined local tax rate in the country for some New York City residents. At the same time, a Pass Through Entity Tax (PTET) was enacted in New York State. Below, Philip London, member of the New York State Society of CPAs, and the New York, Multistate and Local Taxation committee, provides insight on the new law. Tell us about your involvement in the passing...

The IRS Does it Again – Another Retroactive 2020 Tax Change

Written on April 12, 2021. Posted in American Rescue Plan, Tax, Tax Alerts.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager First the unemployment compensation exclusion…now this. With less than a week until the original tax filing deadline, the IRS announced the suspension of the requirement to repay excess advance payments of the 2020 Premium Tax Credit (“PTC”) which was a provision rolled out with the American Rescue Plan Act of 2021 (“ARPA”). Unfortunately, being that the unemployment compensation exclusion was at the forefront of the ARPA,...

IRS OK’s SALT Cap Workarounds

Written on November 10, 2020. Posted in Tax.

By Azra Khan On Monday, the IRS announced that it will be issuing proposed regulations allowing partnerships and S corporations to deduct state and local income taxes in full. Under the Tax Cuts and Jobs Act, individual taxpayers are currently limited to a state tax deduction of $10,000, annually (otherwise known as the “SALT cap”). Some states, including New Jersey, Connecticut and several others have enacted a so-called “workaround” of the SALT Cap, either mandating or allowing...

What Federal Tax Policy Changes Can We Expect? Clues From the Campaign Trail

Written on October 28, 2020. Posted in Tax, Tax Alerts.

By Michael LaMotta By this time next week, the U.S. presidential election will be in the rearview mirror, and we’ll all have more questions than we have answers. One of those big questions will be: What is the new president-elect’s vision for the tax code? Neither of the candidates has laid out a formal, detailed plan for this, although they have left clues about some aspects of tax policy along the campaign trail. Tax policy is an underappreciated element of federal policy; considering...

Do You Qualify for the New Jersey PILOT Program?

Written on October 26, 2020. Posted in Real Estate.

By Alexander J. Narcise and Michael Kroll Under New Jersey’s Payment In Lieu of Taxes (“PILOT”) program (N.J.S.A. 40A:20-1), many distressed areas of the state are seeing a resurgence. The PILOT program allows municipalities to exempt developers from full property taxes for a set period of time when making improvements to existing buildings or creating new projects in areas in need of redevelopment, aiming to encourage commercial, residential, and industrial development. Developers...

IRS Backlog Causing Incorrect Late Payment Notices

Written on August 24, 2020. Posted in Tax.

By Mike Bodrato The Internal Revenue Service, in its most recent update on IRS Coronavirus Tax Relief webpage, has posted information regarding the handling of incorrect late payment notices. The IRS notes that they continue to process returns and issue refunds and are working hard to get through its correspondence backlog. However, the IRS states that it is experiencing delays in processing returns, due to limited staffing. The backlog of correspondence includes checks that have...

Get To Know Federal Tax Form 5471, and The Post-2017 Revisions

Written on August 7, 2020. Posted in State & Local Tax Services, Tax, Tax Alerts.

By Mary Vasilescu The IRS collects information about foreign corporations with substantial United States (U.S.) ownership interests using Federal Tax Form 5471, Information Return for U.S. Persons With Respect to Certain Foreign Corporations. Form 5471 is used by certain U.S. persons who are officers, directors, or shareholders of certain foreign corporations to satisfy the reporting required under the Internal Revenue Code (IRC) and the related Treasury Regulations. Beware Hefty...

Expenses Relating to PPP Forgiveness are Nondeductible

Written on May 4, 2020. Posted in Financial Planning, Tax, Tax Alerts.

By Evan Gernant On Thursday, April 30, the IRS issued Notice 2020-32 clarifying that to the extent a Paycheck Protection Program (PPP) loan is forgiven, the associated expenses will be nondeductible for federal tax purposes. The CARES Act made it clear that any amount of forgiveness of a PPP loan would be non-taxable. What was not addressed and left for interpretation was whether the associated expenses would be tax-deductible. Many were hopeful for a better ruling from the IRS...

IRS Releases Official Guidance After Treasury Secretary’s Announcement

Written on March 21, 2020. Posted in Tax, Tax Alerts.

by Evan Gernant Following Secretary Mnuchin’s earlier announcement, the Treasury Department released guidance on Friday, which supersedes and expands upon the guidance issued earlier this week that gave taxpayers extra time to pay their taxes but not to file. The new guidance provides for the following relief: The filing of 2019 federal income tax returns and the payment of 2019 federal income tax (including tax on self-employment income) due on April 15, 2020, is automatically...

U.S. Treasury Response to the Coronavirus

Written on March 18, 2020. Posted in Tax, Tax Alerts.

by Evan Gernant The Coronavirus has intruded into all facets of our lives. As we all try to grapple with the uncertainty this situation brings we still find ourselves in the midst of tax filing season, an already stressful time for business owners and other taxpayers. The Treasury Department issued guidance yesterday clarifying Secretary Mnuchin’s announcement on Tuesday that taxpayers can delay income tax payments due April 15, 2020. The guidance provides that for all taxpayers...

Rising to the Challenge: How Wiss Responded to Historic Tax Legislation

Written on January 7, 2020. Posted in Tax.

An interview with Michael LaMotta, Partner-in-Charge, Tax Services at Wiss & Co. LLP On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. It presented the most significant changes to the tax code in over thirty years, and its effects were wide-ranging. Everyone from individual taxpayers and business owners to accountants and financial advisers had to learn the ropes. Now, two years after the bill was passed, many are still playing catch-up. “When the tax reform...

The Tax Cuts and Jobs Act of 2017

Written on October 2, 2019. Posted in International Tax Services.

by Mary Vasilescu In December 2017 the U.S. passed a comprehensive tax reform package focused on supporting U.S. investments and the repatriation of foreign profits. The Tax Cuts and Jobs Act of 2017 (TCJA) lowered the corporate federal tax rate from 35 to 21 percent and made significant changes as to how foreign generated income would be taxed going forward. The TCJA enacted a “territorial” tax system and at the same time introduced provisions aimed to prevent U.S. companies from...

Here’s Why Your Tax Refund Might Not Be What it Once Was

Written on March 6, 2019. Posted in Tax.

Updated 7/30/2019. This 2018 U.S. federal tax filing season, the good news might actually be the smaller refunds seen by many Americans. However, you might be understandably hard to convince if you, your employees or family members fall into this category. At this point in the tax return season, many are dismayed to find their refunds are smaller than expected. Or non-existent, in the case of those shocked to find that they owe more. Spoiler alert: the culprit is most likely to be...

Retirement Savings and Tax Deduction Strategies for 2018 Filers

Written on January 15, 2019. Posted in Tax.

Whether you’re self-employed or working for someone else, tax filing season is a great excuse to start thinking about strategies to lower your taxable income and maximize your retirement savings. You still have time. You have until April 15 to make contributions to your retirement accounts and have it apply to the 2018 tax year. If you file for an extension, your deadline for doing this in 2019 is October 15. The following information will be especially useful if you discover or...

2018 New Jersey Tax Amnesty Program

Written on November 15, 2018. Posted in Tax.

Starting on November 15, 2018 and ending January 15, 2019, the State of New Jersey will hold a 60-day tax amnesty program aimed towards taxpayers who have delinquent taxes owed to the state. This will provide taxpayers an opportunity to file past tax returns and/or pay outstanding taxes due to the state, including a one-half reduction of the interest due as of November 1, 2018. The amnesty program only applies to outstanding filings and payments due for tax returns which were due...

Hardship Withdrawal Rule Changes from the New Tax Code

Written on October 23, 2018. Posted in Tax.

By Laura Zindel, CPA Details of the Trump Administration’s Tax Cuts and Jobs Act are so complex that it is easier for businesses to discuss the details and ramifications in smaller pieces. One specific section of the Tax Cuts and Jobs Act involves changes to rules affecting hardship withdrawals from your employees’ benefit plan account, most commonly 401(k) and 403(b) plans. The definition of a hardship withdrawal hasn’t changed. If a plan permits, a hardship is an early withdrawal...

Treasury Publishes Proposed Regulations on 20% QBI Deduction

Written on August 14, 2018. Posted in Tax.

On August 8 the U.S. Treasury and Internal Revenue Service (IRS) released highly anticipated proposed regulations providing rules and clarification regarding the 20% Qualified Business Income (QBI) deduction. Concurrently, the IRS also released a FAQ listing, which walks through the basics of the QBI deduction and Notice 2018-64, which provides guidance on ways in which taxpayers can compute “W-2 wages” with regard to the QBI deduction limitation. The regulations attempt to clarify...

Toss Your Paper Receipts for a Better Digital Solution

Written on July 10, 2018. Posted in General Business.

Is your wallet stuffed with business receipts that you just don’t have time to organize? Do you dread preparing expense reports? Does your bookkeeper spend an inordinate amount of time chasing down those tiny pieces of paper and explanations from salespeople in far-flung regions? How often do your employees feel cheated out of reimbursement because they lost proof of valid expenditures? In other words, is your business still being held hostage to the dreaded paper receipt? It needn’t...

Governor Murphy Signs State Budget

Written on July 2, 2018. Posted in Tax.

On July 1, 2018, Governor Murphy signed New Jersey’s 2019 budget. Here are a few highlights of which you should be aware. Main highlights: Increased income tax rate, effective for the 2018 tax year, to 10.75% for individual taxpayers whose incomes are at or above $5M A temporary corporate business tax surcharge of 2.5% for 2018 & 2019 and 1.5% for 2020 & 2021 Effective for the 2018 tax year, an increase in the state property tax deduction cap from $10,000 to $15,000 There...

ALERT: Supreme Court Expands States Ability To Collect Sales Tax

Written on June 22, 2018. Posted in Tax.

The Supreme Court cleared the way Thursday for state and local governments to collect new sales taxes from online retailers and others with substantial sales into a state. The ruling in the South Dakota v. Wayfair case opens the door for states to require out-of-state online retailers and other remote sellers to collect sales tax from their customers, overturning a prior court decision that states have fought for years and that the court upheld in 1992’s Quill case. In 1992,...

Finding Tax Advantages in Opportunity Zones

Written on June 19, 2018. Posted in Real Estate.

By Michael Kroll, CPA The Tax Cuts and Jobs Acts has been a popular topic this year where the focus has been mainly on tax cuts. However, there is a lot more to the new tax law than just tax cuts. There are new provisions providing significant tax benefits for investments in so-called Opportunity Zones and below are the details you need to know. Distressed Area Investment The idea behind the Opportunity Zones program is to create tax incentives for investments targeted at some...

New Jersey & New York Attempt Work-around on the SALT Deduction Limitation

Written on May 7, 2018. Posted in State & Local Tax Services.

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...

Potential 15% Increase in NJ Angel Investor Tax Credit Program

Written on March 20, 2018. Posted in Tax.

By Bill Beiermeister, CPA and Ryan Silva, CPA, CFE, CVA In January 2013, Governor Chris Christie signed legislation creating an angel investor tax credit program to spur job creation and growth in New Jersey’s current and next generation of high-skill, high-wage emerging technology industries. Under the current program New Jersey offers a 10% investor tax credit for an individual that invests in a New Jersey emerging technology company up to a maximum of $500,000 for the tax...

How Manhattan’s Commercial Rent Tax (CRT) Changes Might Benefit Your Bottom Line

Written on March 9, 2018. Posted in Tax.

If you rent commercial space for a company located in designated sections of Manhattan, you might soon qualify for significant tax relief. Your business could save thousands of dollars annually as a result of upcoming changes to New York City’s Commercial Rent Tax, or CRT. First, a little background. Manhattan’s CRT The CRT is currently paid by commercial tenants renting space below 96th Street and above Murray Street in Manhattan who pay at least $250,000 in annual rent. The effective...

Impact of the New Tax Law on Engineering Firms

Written on February 6, 2018. Posted in Engineering.

The “Tax Cuts and Jobs Act” signed by President Trump on December 22, 2017, contains numerous provisions that impact business that specialize in providing professional services in the field of engineering. Below is a summary of some of the key provisions: Corporate and Non-corporate: Limits on the Deduction of Business Interest – IRC Sec. 163(j) Generally, for tax years beginning after Dec. 31, 2017, every business, regardless of its form, will be subject to a...

Tax Reform Manifesto for the Real Estate Industry – Part 3

Written on February 5, 2018. Posted in Real Estate.

This posting is a part of a 3-part series. The full article will be available in the coming weeks. Click here to read Part 1. By Alexander J. Narcise, CPA and contributions from the entire real estate accounting services team: Michael Kroll, CPA Steve Warholak, CPA Michael Bodrato, CPA Kyle Pennacchia, CPA James Jenco, CPA Ken Trainor, CPA Phil London, CPA Chris Gati, CPA Charlie Komack, CPA The Internal Revenue Code has historically provided many planning opportunities for real...

QBI and Guaranteed Payments

Written on January 30, 2018. Posted in Tax Alerts.

While there is much to say about the complexity and application of the new Qualified Business Income (“QBI”) deduction provided under the recently enacted Tax Cuts and Jobs Act, I am going to focus on a narrow aspect of these rules that could have a significant impact on partners and partnerships. Under the new QBI deduction provisions, effective after January 1, 2018, an owner of a sole proprietorship, S corporation or partnership is entitled to a deduction equal to 20% of the “qualified...

Tax Reform Manifesto for the Real Estate Industry – Part 2

Written on January 29, 2018. Posted in Uncategorized.

This posting is a part of a 3-part series. The full article will be available in the coming weeks. Click here to read previous post. By Alexander J. Narcise, CPA and contributions from the entire Wiss and Company LLP Real Estate Team: Michael Kroll, CPA Steve Warholak, CPA Michael Bodrato, CPA Kyle Pennacchia, CPA James Jenco, CPA Ken Trainor, CPA Phil London, CPA Chris Gati, CPA Charlie Komack, CPA The Internal Revenue Code has historically provided many planning opportunities...

Tax Reform Manifesto for the Real Estate Industry

Written on January 18, 2018. Posted in Real Estate.

This posting is a part of a 3-part series. The full article will be available in thecoming weeks. By Alexander J. Narcise, CPA, with contributions from the entire Wiss Real Estate Team: Michael Kroll, CPA Steve Warholak, CPA Michael Bodrato, CPA Kyle Pennacchia, CPA James Jenco, CPA Ken Trainor, CPA Phil London, CPA Chris Gati, CPA Charlie Komack, CPA My take on this whole thing: The Internal Revenue Code has historically provided many planning opportunities for real estate investors...

IRS ISSUES NEW UPDATED WITHHOLDING TABLES

Written on January 16, 2018. Posted in Tax.

One of the most often heard Congressional talking points for the Tax Cuts and Jobs Act (TCJA) was that millions of workers would see an increase in their take home paychecks. To this end, on Thursday, the IRS issued new wage withholding guidelines. The guidelines are needed so employers can calculate how much tax to withhold from employees’ pay. Employees should begin seeing changes in their paychecks by February 15th (or sooner) since it normally takes about a month to update systems....

Upcoming Changes to New Jersey and New York Taxes

Written on December 19, 2017. Posted in State & Local Tax Services.

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. New Jersey The sales & use tax rate will continue decrease slightly. A two-phase...

Keep the Brews Flowing Without Affecting Cash Flow

Written on October 31, 2017. Posted in Food & Beverage.

Understanding the NJ Alcohol Tax By Paul Lembo You’ve perfected your batch. You’ve scouted your location. You’ve raised the capital. And now you are ready to venture into the wild, wonderful world of professional brewing. But before you make that first pour, make sure you understand the state tax laws that apply to your sales. In New Jersey, alcohol producers must pay not only state and federal taxes, but also an additional alcoholic beverage tax. These taxes can be significant,...

IRS Disaster Relief: Relief for Taxpayers Affected by Hurricanes Harvey & Irma

Written on September 20, 2017. Posted in Tax.

By: Evan Gernant The IRS has published various notices granting tax relief to “affected taxpayers” of hurricanes Harvey, impacting Texas beginning August 25, 2017, and Irma, impacting Puerto Rico, the U.S. Virgin Islands, Florida and Georgia just a few weeks later. Affected taxpayers are defined as: Individuals whose principal residence is located in a covered disaster area; Businesses whose principal place of business is located in a covered disaster area; Any relief worker affiliated...

End-of-Year Tax Planning: How to Lessen Year-End Stress

Written on August 22, 2017. Posted in Tax.

By Laura Melville We are more than halfway through 2017 – and that means the fourth quarter is already on the horizon. When those final three months of this year arrive, it’s time for your business to focus on planning for 2018 in earnest. Unfortunately, many businesses wait to begin year-end planning until then, as well. Your team will already have its hands full preparing budgets and mapping out your company’s strategies for the following year, and an end-of-year tax preparation-planning...

You Cannot Automate a Relationship

Written on August 8, 2017. Posted in General Business.

By Ruth Raftery “Hello! My name is Samantha and I am an automated voice recognition answering service. You can speak to me as you would with a live representative. Please tell me, what are you calling about today?” It seems many calls I make lately– whether to credit card companies or to other businesses – are answered by the type of technology that runs programs like “Samantha.” In my experience, these systems can never actually answer the types of questions...

Meals and Entertainment: How to Classify Business Expenses for Tax Purposes

Written on February 28, 2017. Posted in Tax.

By Louann Cassano Whether it’s drinks with a client or dinner during a work trip, meals and entertainment are generally tax-deductible business expenses. However, the size of the allowable write-off depends on the circumstances of the expenditure, including the purpose of the meal or entertainment, who the recipient is and where the expense takes place. If you don’t understand the IRS rules that govern these deductions, you may be tempted to lump all meals and entertainment into...

10K Plus in Your Foreign Account? File an FBAR to Avoid a Tax Penalty

Written on February 1, 2017. Posted in Tax.

If you maintain a foreign financial account, which could be a bank account, a mutual fund, a brokerage account, or any other sort of account, that contains a collective value of $10,000, you may be requested by the Bank Secrecy Act to report your account annually to the Department of Treasury through electronic filing. The Report of Foreign Bank and Financial Accounts, FBAR, is a form that must be recorded directly with the office of Financial Crimes Enforcement Network, or FinCEN. Those...

If You’re Self-Employed, You May Qualify for Insurance Deductions

Written on January 27, 2017. Posted in Tax.

By Wiss Associate For myriad professionals, becoming an entrepreneur can be a dream come true. Fortunately, health insurance deductions can make maintaining that dream much easier. The Self-Employed Health Insurance Tax Deduction within the Affordable Care Act can assist in lowering your adjust gross income by your payment quantity in premiums on dental, medical, and qualified long-term care insurance for you and your loved ones. For self-employers unable to access a partner’s insurance...

No Health Coverage? Be Prepared to Pay a Hefty Price

Written on January 25, 2017. Posted in Tax.

As of now, Obamacare’s individual mandate requests that you purchase health insurance. If you can afford the coverage and refuse to acquire it, a big fee could be headed your way. For the tax year of 2016, the Individual Shared Responsibility fine skyrocketed to 2.5 percent of an individual’s complete household adjusted gross income. However, for the new year and beyond, the amount will stay at 2.5 but the flat fee will be regulated for inflation. For each month you do not have coverage,...

Plug in Your Car and Receive a Tax Break

Written on January 16, 2017. Posted in Tax.

By Wiss Associate Have you recently purchased an electric or hybrid car? If so, you may be eligible for a significant tax credit. Consumers of these energy-friendly vehicles can benefit from a tax break of $2,500 to $7,500, contingent on two essential factors: a car’s battery size and the amount of income taxes you owe during a specific year. Contrariwise, vehicles that have 4 kWh batteries can be eligible for a $2,500 tax benefit. In order to stay informed on the complex rules of...

New Doors, Windows, or AC Unit? Get ready to receive a tax credit!

Written on January 11, 2017. Posted in Tax.

By Wiss Associate If you made your home a little more energy efficient last year, you may qualify for a tax credit on your federal income tax return. In previous years, to encourage clean energy conservation in residences of Americans everywhere, the Department of Energy and the EPA have worked collectively to develop Energy Star, a program designed to promote business and home energy efficiency by deeming appliances like solar panels, air conditioning and heating systems, and windows...

Trump & Republican Tax Proposal

Written on November 17, 2016. Posted in Tax.

By Evan Gernant With Donald Trump set to move into the United States Presidency in January of 2017 and Republicans retaining control of both houses of Congress, the chances of us seeing significant tax legislation in the near term are likely. During his campaign, president-elect Trump put forward various proposals for substantial changes to the United States tax code. Furthermore, in June of 2016, House Republicans issued their “blueprint” for tax reform. Many of the Trump and House...

With the Gas Tax Bill Comes the Elimination of the NJ Estate Tax

Written on October 14, 2016. Posted in Estate and Business Succession Planning.

By Ruth Raftery The much discussed bill raising the New Jersey gas tax by 23 cents per gallon was signed by Governor Christie on Friday October 14th. Although not as widely publicized, the new law provides for another major change – the complete elimination of the New Jersey state estate tax. Up to now, and for the remainder of 2016, New Jersey has the lowest estate tax exemption in the country, subjecting estates worth more than $675,000 to estate tax at the time of death. By way...

Christie Launches NJ Gas Spike to End Road Funding Crisis

Written on October 7, 2016. Posted in State & Local Tax Services.

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...

Why Business Owners Should Consider Estate and Gift Tax Saving Strategies Now

Written on September 7, 2016. Posted in Estate and Business Succession Planning.

By Leo Matarazzo Updated 7/30/2019. The Treasury Department recently issued proposed regulations targeting the use of discounts that reduce the value of a family-owned business and any other family controlled entity for estate and gift tax purposes, which lowers a taxpayer’s ultimate tax liability at death. Potentially millions of dollars of estate tax savings are at stake if these regulations are adopted so it is important to remain informed and proactive on the issue. The regulations...

Sales Tax Nexus – Comprehending your Business’ Sales Tax Obligations

Written on August 9, 2016. Posted in State & Local Tax Services.

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...

How to Avoid Tax Penalties on Complimentary Hotel Breakfasts

Written on June 28, 2016. Posted in State & Local Tax Services.

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....

How to Take Advantage of the Grow NJ Tax Credit

Written on June 26, 2016. Posted in State & Local Tax Services.

By Bill Beiermeister 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...

Manhattan taxpayers, be aware of the Commercial Rent Tax

Written on June 14, 2016. Posted in State & Local Tax Services.

By Kyle Pennacchia and Paul Ursich In New York City, the Commercial Rent Tax (CRT) is often overlooked, and many of those who miss it face penalites and interest for late or missed filings. Here’s a brief introduction to the tax, basic qualifications and links to more detailed information. Are you subject to the CRT? The CRT applies to Manhattan tenants who occupy or use property south of 96th Street for most trade, business, professional and commercial transactions. As with most...

How Exporters Can Take Advantage of IC-DISC Tax Benefits

Written on March 3, 2015. Posted in Tax.

By Chris Colyer It’s not often that you hear good news on the U.S. tax front, but if you have a small to medium-sized company that sells product into markets outside the United States, forming an Interest Charge – Domestic International Sales Corporation (IC-DISC) could offer tax advantages. The federal government established the IC-DISC classification many years ago, but many businesses eligible to take advantage of the tax incentives are failing to do so. That’s at least in part...

Protecting Your Personal Information During Tax Season

Written on January 15, 2015. Posted in Tax Alerts.

Protecting Your Personal Information During Tax Season By Wiss Associate As accountants, we understand that your identity is just as important as your financial well-being. With tax season just around the corner, scammers will use this opportunity to get access to personal information. Some common strategies include receiving calls from: A self-proclaimed “Governmental Agency” U.S. Treasury or IRS Sweepstake entry representative We’ve all heard stories of someone who have fallen...

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