Tax Update: October 2019

TRENDING IN TAX

Emerging issues for the family office
From taxation complexity to understanding cyberthreats, what are today’s top five concerns for family offices?
Family offices come in all shapes and sizes and the differences from one to another can be vast. It’s been said that if you’ve seen one family office, you’ve truly seen just one family office. From single-generation members focused on mutual goals to a multigenerational family with complex interests and diverging investment and philanthropic objectives, variations of the family office construct are endless.

State and local gross receipts taxes a new trend in state tax law
Recent activity among state and local gross receipts taxes may signify that a historic approach to taxation is ready to be a new trend.
As states continue to face the uncertain impact of federal tax reform on their budgets, a possible downturn in the economy, and several years of lackluster state and local tax collections, many state legislatures have been considering new (or bringing back old) methods of revenue generation. In addition to rolling back spending, increasing tax rates, and broadening sales tax bases, one trend that may be developing is state and local gross receipts taxes. Gross receipts taxes are generally levied on a company’s gross receipts instead of its net income and are imposed with a low tax rate on a broad tax base with fewer exemptions and deductions than an income tax.

 

State and local gross receipts taxes a new trend in state tax law

 

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/additional-tax-resources/tax-ideas-insights.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: September 2019

TRENDING IN TAX

Qualified opportunity funds: Estate and gift tax planning implications
Exploring ways to incorporate qualified opportunity fund (QOF) investments into your overall estate and gift tax plan. While it is certainly possible to do some effective wealth transfer planning with QOFs, these assets provide a narrower bandwidth for planning than many other types of assets. Here is an overview of the essential estate and gift tax planning aspects of QOFs.

Opportunity knocks, will investors answer the call?
The IRS and Treasury Department released the second round of Qualified Opportunity Zone (OZ) regulations that may spur taxpayer confidence and financial implications will drive investment and set the stage for capital deployment into these designated areas. The OZ program also offers a large incentive related to those investments held at least 10 years.

U.S. partners to determine their own GILTI inclusion
Final regulations issued in late June 2019 on GILTI inclusion could have a considerably differently impact on PE and VC fund structures. GILTI is a new anti-deferral provision of the U.S. tax law that results in current taxation of offshore earnings for U.S. shareholders of a controlled foreign corporation (CFC) regardless of whether the income is distributed or retained offshore.

 

Estate and gift tax planning implications exploring ways to incorporate qualified opportunity fund investments

 

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/additional-tax-resources/tax-ideas-insights.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: August 2019

TRENDING IN TAX

Cash balance plans may boost benefits for small business owners
Small business owners may be able to increase tax-beneficial retirement contributions with a combination 401(k) cash balance plan. While 401(k) plans are in wide use, cash balances plans and their potential for significant wealth accumulation for owners may be new to most people.

California enacts changes to recent remote seller provisions
California amends the effective date for district remote seller nexus requirements; offers penalty relief for certain marketplace sellers. California is offering a limited penalty abatement to retailers with “inventory nexus” for sales made between April 1, 2016 and March 31, 2019.

New tax transparency rules will have an impact on the auto industry
The work of the OECD regarding tax transparency has been substantial. The new rules will affect car manufacturers in particular, as they represent the industry with the largest volume of intercompany transactions.

10 success tips for the family business and its next generation
Get key tips for bringing the next generation into the family business. Here are some lessons learned and tips that, if addressed, are likely to improve the likelihood that your business can be one of those success stories where the next generation develops the right traits to propel the enterprise to greater heights.

 

Cash balance plans may boost benefits for small business owners

 

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
https://rsmus.com/what-we-do/services/tax/additional-tax-resources/tax-ideas-insights.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: July 2019

SUPREME COURT DECISION

U.S. Supreme Court finds in-state beneficiary inadequate for trust tax
The unanimous decision in the highly anticipated trust taxation case (North Carolina v. Kaestner) considers whether a state can tax a trust based on the residency of a beneficiary. In the wake of this decision, trustees, trust administrators and trust planners should consider broad-scope trust residency reconciliations to determine whether past residency decisions are still applicable going forward and whether refund claims are available.

TRENDING IN TAX

Don’t put your employee stock ownership plan on autopilot
Companies often need to review ESOPs as changes arise in the business, employee demographics and in the economic environment. Company leaders may not realize plan provisions can be changed (within some limits) or may not fully understand how changes may benefit the company or its employees.

IRS finalizes certain temporary foreign currency tax regulations
Treasury and the IRS finalize and withdraw certain provisions contained in previously issued temporary section 987 regulations. The final regulations were published in the Federal Register on May 13, 2019.

 

 

books, computer and phone on a desk for tax updates

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: June 2019

Trending in Tax

Are a dip in rates and an uptick in tax proposals a call to action?
Favorable estate planning rules in place to 2026 would be less so in 2021 under some Democrats’ proposals. The applicable federal rates used for intra-family loans, sales to defective trusts and other planning techniques also decreased a bit. Time to consider the what ifs?

Tax implications of hard forks and airdrops
Not all digital assets are received through an exchange; airdrops and hard forks create another layer of complexity for taxpayers. These new elements trigger a key question that every taxpayer who engages with the blockchain and digital asset marketplace should want answered.

10 mistakes business owners make when thinking about whether to exit
Alleviate the stress of your business sale or transition by addressing 10 key missteps many business owners make.

Health savings accounts: A tax-free way to pay for medical expenses
Health savings accounts are a valuable tool for saving money for medical expenses since they offer a triple tax benefit. These personal accounts also offer opportunities for individuals to accumulate funds for their retirement years.

 

Computer with phones and pens

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: May 2019

Trending in Tax

IRS offers further clarity in opportunity zone regulations
The new revenue guidance has cleared the way for businesses and investors to invest in opportunity zones and drive economic growth.

International tax considerations for the blockchain industry
Carefully consider international blockchain enterprise structuring in light of the Tax Cuts and Jobs Act.

The verdict is in: Weighing GILTI is key for multinational businesses
Understanding the impact GILTI will have on your multinational organization may maximize tax planning opportunities and minimize risk.

Exploring the undefined: Trade or business
The enactment of TJCA creates pressure on taxpayers to distinguish what qualifies as a trade or business for tax purposes.

Section 1202: Effects of capital contribution on closely held corps
Understanding the importance of section 1202 and consequences of capital contributions to closely held corporations.

Revisiting at-risk rules for partnerships
Proposed sec. 465 regulations provide significant guidance and detailed examples of the application of the at-risk rules for partnerships.

Qualified transportation fringe benefit under tax reform
Review the changes made to the qualified transportation fringe benefit and loss of deductions by the TCJA under tax reform.

Proposed regulations contain key foreign tax credit transition rules
Changes to the international tax system will require U.S. taxpayers to navigate important foreign tax credit transition rules.

 

person sitting by computer holding pencil

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: April 2019

Trending in Tax

Wayfair, sales tax, and economic presence laws
Economic sales and use tax nexus laws are gaining momentum as states make a direct challenge to traditional physical presence standards.

District Court decision uploads imposition of willful FBAR penalty
Court imposes substantial “willful” penalty for failure to file FBAR where taxpayer fails to consult tax advisor regarding foreign account.

Structuring deals in the era of TCJA and BEPS
Legislation relating to the Base Erosion and Profit Shifting (BEPS) Action Items has resulted in expanded tax due diligence engagements.

Top tax considerations for manufacturers in 2019
Tax planning in an evolving marketplace can be challenging. What are the top tax issues and new rules that manufacturers should focus on?

man point to a printed chart with computer and calendar out

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: March 2019

Trending in Tax

U.S. Supreme Court to hear Kaestner trust tax nexus case
High court to decide whether in-state beneficiary of nonresident trust is sufficient for the Due Process Clause. The U.S. Supreme Court will revisit state tax nexus for the second year in a row after granting North Carolina’s petition for certiorari in North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust.

Opportunity zone investors can’t forget about local tax incentives
To make opportunity zone projects financially viable, developers need to consider state and local tax credits beyond QOZ incentives. Numerous programs offer developers tax abatements, deferrals and incentives in the same economically distressed areas as QOZs. These extra incentives will make opportunity zone projects more attractive to investors and may bring new capital deeper into the areas that need it most.

New election may provide enhanced interest deduction to multinationals
Special election in new interest regulation may benefit CFCs. The Tax Cuts and Jobs Act (TCJA) enacted a limit on the deductibility of business interest expense (the section 163(j) limitation).

What US companies need to know about Making Tax Digital
US companies with VAT obligations in the United Kingdom should understand and prepare to comply with Making Tax Digital. The transition to Making Tax Digital represents one of the most fundamental changes to the United Kingdom (UK) tax system in a generation.

Supreme Court of the United States to hear Kaestner tax nexus case

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: February 2019

Tax Reform

Final regs highlight actions for taxpayers using 20 percent deduction
Critical action items taxpayers need to take.


Trending in Tax

Tax issues arise when employers pay employee business travel expenses
Business travel arrangements require employers to carefully analyze and determine proper tax treatment for employees.

Why we call it business transition planning
What is the secret to a successful business succession and transition for owners? It starts with a sound plan.

The gift tax exemption coast is clear. Time to go back into the water?
Knowing that there will be no loss of the benefit of using the higher exemption before 2026, we consider some ways and means of using it.

writing in note pad and calculator out

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Tax Update: January 2019

Tax Reform

New year, new law, new challenges
Complexity of the Tax Cuts and Jobs Act and technology delays at the IRS may force taxpayers to extend filings. At a minimum, taxpayers should be prepared to extend and file their returns later in the year, even if they have previously filed by the March or April 15 deadlines. Taxpayers should consult their tax adviser and make a plan to address the appropriate timing and additional steps necessary to file their 2018 returns.


Trending in Tax

Tax reform’s impact on business and professional services firms
Business and professional services firms face challenges due to tax reform, but there are opportunities to maximize the benefits, too.

Post-Wayfair misconceptions and technology companies
The Wayfair decision doesn’t just affect online retailers. Technology businesses must address resulting state sales taxes, too.

Tax deduction for pharmaceutical drug inventory
Enhanced tax deduction may be available for drug inventory contributions made to certain charitable organizations.

Nonqualified deferred compensation plan FAQs for employers
When setting up or managing nonqualified deferred compensation plans, employers should consider several key questions.

 

tax preparer typing on computer and using calculator

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.