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February 13, 2019

Tax Reform…. Not in California

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 Congress repealed this “tax” effective January 1, 2019.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…)

Categories: Tax Reform, The Musings of our Authors, Updates & Alerts

Tags: Abe Livchitz, California, Tax Cuts and Jobs Act, Tax Reform,

January 30, 2018

Will Tax Reform Help My Business?

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…)

Categories: Construction Corner, Tax Reform, Winter 2018

Tags: Abe Livchitz, C Corporations, Contractors, Tax Reform,

January 23, 2018

The New Tax Reform May Not Be Very Charitable to Nonprofits

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…)

Categories: Nonprofits, Winter 2018

Tags: Donations, Helena Bouron, Nonprofit Organizations, Tax Reform,

January 16, 2018

Tax Reform Webinar Series

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…)

Categories: Tax Reform, Updates & Alerts

Tags: International Tax Reform, San Jose CPA Firm, Tax Reform, Tax Reform Webinar Series,

February 27, 2017

More on Potential Tax Reform: A Primer From Congress’s Think Tank the Congressional Research Service

With Donald Trump firmly in office as the U.S. president and a Republican majority in Congress, it’s widely expected that 2017 will bring significant tax reform.

The Congressional Research Service (CRS) recently published a report highlighting several considerations that lawmakers may take into account in tax reform discussions.

Although tax reform often seems like a moving target, congressional Republicans and President Trump have each set out a number of ideas about how to modify the U.S. international corporate system.

Reports indicate that the President and congressional Republicans have begun tax reform discussions. However, what will ultimately be introduced as proposed laws remains to be seen. (more…)

Categories: International Business Issues

Tags: BEPS, Congressional Research Service, CRS, President, Tax Reform, Trump,

August 30, 2016

Speaker Ryan and House Republicans roll out a version of a 21st Century Tax System

On June 24^th, Ways and Committee Chairman Brady released a blueprint for tax reform labeled as “A Better Way for Tax Reform.” The agenda is a result of a committee formed to study and develop policy recommendations under Speaker Ryan’s direction to create new jobs, grow the economy, raise wages by reducing tax rates, and to make the code simpler and fairer.

The result is a blueprint of the current House’s view of tax reform. The intent of the blueprint is to be ready for legislative action in 2017. Key provisions of the reform blueprint include: (more…)

Categories: International Business Issues

Tags: 2017, 21st Century Tax System, Blueprint, House Republicans, Speaker Ryan, Tax Reform, Ways and Committee,