UPDATED JULY 18, 2019: At Last…Partial Conformity…
In December 2017, Congress passed the Tax Cuts and Jobs Act (TCJA) which was the most significant tax reform legislation enacted since the 1980s. In July 2019, 18 months later, the California legislature acted and the governor signed Assembly Bill 91 that contained a select number of conformity provisions. These provisions will simplify tax compliance for California taxpayers as differing federal and California tax reporting for certain transactions will no longer be required. Unfortunately, California has yet to conform to most of the changes enacted by the TCJA.
The conformity changes included in AB 91 are highlighted below.
However, in an act of “reverse conformity,” the legislature passed Senate Bill 78. Originally, the federal Affordable Care Act imposed a “penalty tax” on taxpayers who did not have qualifying health insurance coverage. Congress repealed this “tax” effective January 1, 2019. But due to an act of reverse conformity, a “penalty tax” will once again be imposed on California taxpayers that do not have qualifying health insurance, effective January 1, 2020. (more…)
With all of the changes to the meals and entertainment deduction under the new tax law, we thought we would summarize the rules in this handy table. Please reach out to us if you have questions. (more…)
By Wei Wei, Tax Senior
As you have been made aware from our series of webinars, e-mail updates and blog posts, President Trump signed the Tax Cuts and Jobs Act just in time for the new year and the Act includes new rules for the taxation of “qualified equity grants”. Internal Revenue Code Section 83(i) allows “eligible employees” to elect to defer taxation on the exercise of certain stock options or the settlement of restricted stock units for up to 5 years. Employees must make the election no later than 30 days after the employee’s rights in “qualified stock” are transferrable or vested. The election only defers income tax, the stock-based compensation received by the employee is still subject to employee and employer payroll taxes when vested. (more…)
By Julie Malekhedayat, CPA, Principal
ASL Family Wealth & Individual Tax Planning Group
The most comprehensive tax law change in decades, commonly known as the Tax Cuts and Jobs Act, was signed into law on December 22, 2017. Although the corporate tax cut provisions were a highly publicized aspect of the bill, the numerous and dramatic changes to individual income tax rules will change the landscape for most taxpayers, beginning with the 2018 tax year. For some, the estate tax changes will have a material impact as well. However, as widespread as these changes are, almost all are set to last only seven years, through 2025, unless Congress acts to extend or revamp the laws before then. (more…)
By Abe Livchitz, CPA, Senior Tax Manager
ASL Construction Group
In December, the Republican led Congress enacted the most wide ranging tax reform legislation since 1986. Provisions will impact both personal and business tax liabilities beginning in 2018. The legislation contains changes that can both help and hurt a contractor’s bottom line. Significant provisions include: (more…)
By Helena Bouron, CPA, Senior Audit Manager
ASL Nonprofit Group
When change occurs, there are always winners and losers. With the new tax reform signed into law recently, many articles have been written about the anticipated impact these changes will have on individuals and businesses. However, the impact tax reform may have on nonprofit organizations has received limited media focus. Reform may directly impact the charitable contributions of millions of taxpayers. With tax incentives to donate most likely diminished, nonprofits may struggle to find alternative ways to replace financial support. Let’s look at these major changes that could discourage charitable giving: (more…)
President Trump’s campaign promise of major tax reform was fulfilled on Dec 22nd when he signed H.R. 1 that had been quickly pushed through Congress. This legislation is the most widespread change to our tax system since 1986. It will have a significant impact on individuals, business entities, choice of corporate structures and multi-national businesses. The implementation of some of the changes is subject to varying interpretations so we are anxiously awaiting further guidance from the IRS. (more…)
For the first time in over 30 years, Congress has approved and the President has signed into law a massive tax reform package not seen since 1986. The enactment of the law officially known as “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” (which we will simply call the new Tax Act), has far-reaching consequences to almost every taxpaying individual and business entity.
Our goal here at Abbott Stringham and Lynch is to provide our clients and friends with the tools and information you need to successfully navigate the “simplified” tax laws so that you can operate your business and organize your personal affairs in order to pay the least amount of tax required by law. To that end, we have organized a series of tax webinars to discuss tax reform legislation and provide observations on key provisions of the Act as they relate to individuals, estates, corporations and pass-through entities (S corporations and partnerships). (more…)
The new tax reform law, commonly called the “Tax Cuts and Jobs Act” (TCJA), is the biggest federal tax law overhaul in 31 years, and it has both good and bad news for taxpayers.
Below are highlights of some of the most significant changes affecting individual and business taxpayers. Except where noted, these changes are effective for tax years beginning after December 31, 2017. (more…)