Tax Reform Resource Center
In the most sweeping overhaul of the U.S. tax code in more than three decades, tax reform has been passed by both houses of Congress and has been signed into law. These significant changes will require businesses and individuals to reassess their long-term tax strategies, making sure they understand the new law and how they can make the most of the opportunity.
Insights
- Blog QOZs and Multi-Asset Funds: Tread Carefully September 17, 2019The many investors already leveraging the recently created Qualified Opportunity Zone program are continually asking whether a Qualified Opportunity Fund (QOF) should hold a single asset or, in the interest of diversification and economies, multiple assets. With the benefits of a single capital rais...
- Blog Final GILTI Regulations Provide Some Relief to Taxpayers September 4, 2019The Tax Cuts and Jobs Act of 2017 added a new anti-deferral rule known as Global Intangible Low-Taxed Income (GILTI). The GILTI provisions impact taxpayers that own an interest in certain foreign corporations that are classified as controlled foreign corporations (CFC). Below is a brief background o...
- Blog Opportunity Zones: Changing the Course of Real Estate Investment July 26, 2019The economic divide in large cities continues to expand. Despite a financial resurgence following the 2007-2009 recession, the system wasn’t fixing itself. Enter Qualified Opportunity Zones (QOZ), a program included in the Tax Cuts and Jobs Act of 2017 designed to boost development in economically d...
- Blog A Qualified Opportunity Zone Trap for the Unwary June 7, 2019When depreciable and real property (usually buildings and equipment) used in a trade or business and held for more than one year is sold, the result is typically something called “Section 1231 gain.” Absent recapture rules, this gain is treated as capital gain, but it must first be netted against an...
- Blog Determining the Category of Filer for Form 5471 With Respect to Ownership of Foreign Corporations May 29, 2019The Tax Cuts and Jobs Act (“TCJA”) that was passed at the end of 2017 was meant to simplify the tax code. However, in the international tax realm, the complexity has only increased. This is certainly true of the revised form and instructions for Form 5471, Information Return of U.S. Persons With Res...
- Blog IRS Sheds Brighter Light on Opportunity Zones April 23, 2019The IRS has issued a much-anticipated second round of proposed regulations better outlining the framework of the Qualified Opportunity Zone (QOZ) program. Operating businesses that have been waiting on the QOZ sidelines should now have enough clarity to begin to tap into the program’s benefits.
- Blog Replicating Success: How Opportunity Zones Are Reshaping the Investment Landscape March 21, 2019The economic divide in large cities continues to expand. Despite a financial resurgence following the recession that occurred between 2007 and 2009, the system wasn’t fixing itself. Enter the Qualified Opportunity Zone (QOZ) program, a creation of policy think tank Economic Innovation Group (EIG) de...
- Blog How a Per Diem Program Can Help Drivers and Carriers Save in Taxes March 14, 2019The Tax Reform and Jobs Act (TCJA) was the most comprehensive overhaul of the tax code in our lifetime, if not ever. We are just weeks away from the first tax filing deadline for returns that are fully impacted by these law changes. One change that could drastically impact truck drivers is the inabi...
- Blog IRS Releases Final Regulations on the 20 Percent Pass-Through Deduction February 1, 2019Just in time for the tax filing season, the IRS has released nearly 250 pages of final regulations regarding the §199A pass-through deduction. The IRS issued previous guidance on the §199A pass-through deduction in August 2018, however, even this final guidance has not answered all questions related...
- Blog The Increased Importance of Income Sourcing in a Post-Tax Reform World January 29, 2019The Tax Cuts and Jobs Act of 2017 (TCJA), signed into law in late 2017, included significant changes to the tax environment in the United States. One of the largest changes was the addition of the qualified business income (QBI) deduction. The QBI deduction allows for a deduction of up to 20 percent...
- Blog Tax Reform: Nondeductible Parking Expenses and Their Impact on Your Business January 23, 2019The Tax Cuts and Jobs Act (TCJA) provides that expenses for qualified transportation fringe benefits are nondeductible. The IRS recently released interim guidance via Notice 2018-99 clarifying that a portion of taxpayers’ “parking expenses” is considered nondeductible as qualified transportation fri...
- Blog IRS Issues Interim Guidance on Parking Expenses for Not-for-Profit Organizations December 20, 2018When the Tax Cuts and Jobs Act (TCJA) made qualified transportation fringe benefits (QTFs) nondeductible, it changed how parking expenses are treated. Recently, the IRS released interim guidance (Notice 2018-99) on how not-for-profit organizations can determine the amount of these expenses that must...
- Blog Tax Reform and Year-End Considerations: What You Need to Know December 6, 2018The Tax Cuts and Jobs Act (TCJA) was the most sweeping overhaul of the U.S. tax code in more than three decades, and its changes will impact nearly every 2018 federal income tax return. As the year draws to a close, now is the time to consider year-end tax planning strategies to help you maximize de...
- Blog New GILTI Rules Target U.S. Shareholders of Controlled Foreign Corporations November 8, 2018As a general rule, the earnings of a foreign corporation are not subject to U.S. taxation until such earnings are distributed as dividends. The Subpart F rules have long been in place to subject the earnings of a controlled foreign corporation (CFC) to U.S. taxation whether or not such earnings are ...
- Blog Additional Ways Tax Reform Will Impact the Transportation Industry October 11, 2018When the Tax Cuts and Jobs Act (TCJA) was signed into law on Dec. 22, 2017, companies in all industries braced themselves for impending changes. The key take away of the TCJA is lower tax rates for both businesses and individuals. However, the impacts of this new tax law are extensive and have left ...
- Blog The 20 Percent Pass-Through Deduction: Proposed Guidance and Its Impact on Trucking September 6, 2018When the Tax Cuts and Jobs Act (TCJA) became law on Dec. 22, 2017 there was interpretation of the law, but little guidance on how taxpayers would implement the qualified business income (QBI) 20 percent pass-through deduction. After more than eight months, the IRS has finally issued proposed regulat...
- Blog IRS Issues Proposed Regulations on Charitable Contributions and State and Local Tax Credits August 27, 2018Prior to the Tax Cuts and Jobs Act (TCJA), signed into law in December 2017, taxpayers were allowed an itemized deduction for state and local taxes paid without any limit on the amount of such deduction. The TCJA limited the state and local tax deduction, for individuals, to a maximum of $10,000. As...
- Blog IRS Issues Guidance on 20 Percent Pass-Through Deduction August 16, 2018It took a little over eight months, but the IRS has issued much-anticipated proposed regulations regarding the 20 percent pass-through deduction provided under Section 199A. The 184 pages of proposed regulations provide answers to some, but not all, of the questions considered since the Tax Cuts and...
- Blog New Investment Vehicle Created by the Tax Cuts and Jobs Act July 27, 2018In an effort to boost development in economically distressed communities, many federal incentive programs have been created over the years, such as the New Markets Tax Credit, Empowerment Zones, Renewal Communities, and more. The Tax Cuts and Jobs Act (TCJA) of 2017 has created yet another incentive...
- Blog Healthcare and Tax Reform: What We Know Now July 25, 2018Since the Tax Cuts and Jobs Act (TCJA) was signed into law seven months ago, many healthcare professionals have been wondering how the new law will impact the industry and what steps they should take now to prepare. Though the Internal Revenue Service (IRS) is still issuing guidance on the new law, ...
- Blog 10 Ways Tax Reform Is Impacting Financial Services April 19, 2018The effects of tax reform are wide-reaching, but for financial services professionals – including alternative investors, broker-dealers, registered investment advisors, and wealth managers – the impact will be keenly felt not only in the financial services industry itself but also in the industries ...
- Blog New Guidance for Complying with Code Section 965 – Deemed Repatriation March 19, 2018The IRS has released guidance related to Code Section 965 which was added by the Tax Cuts and Jobs Act of 2017 (TCJA). Code Section 965 imposes a transition tax that calendar year taxpayers must pay with their 2017 tax returns if they have investments in certain specified foreign corporations. The g...
- Blog What Tax Reform Means for Family Offices March 14, 2018The structure and dynamics of family offices are often as varied as families themselves. Because of that, the new tax law will impact each family office differently. While there are a number of new tax provisions that should be considered, the following is a summary of the ones that are most likely ...
- Blog Financial Reporting for Tax Reform February 28, 2018The enactment of the Tax Cuts and Jobs Act of 2017 (TCJA) has received a lot of attention over the last several months from individuals and companies, with the primary focus on how the new legislation will impact tax payments and future tax rates.
- Blog Tax Reform’s Impact on the Buy Here - Pay Here World February 26, 2018Like it or not, tax reform is here, and its impact is far-reaching. President Trump signed the Tax Cuts and Jobs Act (TCJA) into law on Dec. 22, 2017. The Act includes various provisions that Buy Here - Pay Here (BHPH) dealers should know. As we study and digest these changes, there are numerous que...
- Blog Tax Reform: The New Overall Loss Limitation February 20, 2018With the many significant changes made by the Tax Cuts and Jobs Act of 2017, one provision that may have gone relatively unnoticed is the new limitation on excess trade or business losses imposed on individual taxpayers.
- Blog Tax Reform: Major Changes to Meal and Entertainment Expenses February 9, 2018The Tax Cuts and Jobs Act (TCJA) largely eliminates the deduction for entertainment expenses. While there are a few unanswered questions (specifically how this provision affects meals), its effect is immediate. As a result, businesses should incorporate this change without delay.
- Blog Tax Reform’s Sprawling Impact on Real Estate Companies February 8, 2018Whether owners, developers, or contractors, real estate companies of all varieties are asking the same question: What does the Tax Cuts and Jobs Act (TCJA) mean for us? Despite tax advisors’ best efforts, it is impossible to come up with a concise response, but this is for good reason. The TCJA has ...
- Blog Tax Reform Offers New Employer Credit for Paid Family and Medical Leave February 6, 2018The Tax Cuts and Jobs Act introduced a new general business credit for employers that pay employee wages during time away from work under the Family and Medical Leave Act (FMLA). The paid family and medical leave credit can be used to reduce a taxpayer’s alternative minimum tax. However, the new cre...
- Blog Tax Reform’s Impact on the Manufacturing Industry February 2, 2018The Tax Cuts and Jobs Act of 2017 (TCJA) was signed into law by President Trump Dec. 22, 2017. The TCJA is the largest shake-up to the Internal Revenue Code in more than 30 years and includes a multitude of changes that will directly impact the manufacturing sector. From substantial changes in depre...
- Blog Tax Reform Impact on Tax-Exempt Organizations January 25, 2018When designing its tax reform bill, Congress did not overlook tax-exempt organizations. The Tax Cuts and Jobs Act of 2017 (TCJA) includes provisions relating to unrelated business taxable income, executive compensation, and investment income. Beyond the impact the new law has on tax-exempt organizat...
- Blog Tax Reform’s Impact on Tech Companies: The Good, the Bad, and the Ugly January 25, 2018Like it or not, tax reform is here, and its impact is far-reaching. Technology companies in particular should pay close attention as they could be affected more than others. The following is a summary of key provisions in the new law and their implications for tech companies.
- Blog Top Three Things to Know About How Tax Reform Impacts Your Trucking Company January 22, 2018With the ELD mandate enforcement date behind us, owners of trucking companies can now focus on the next sweeping change to impact their business; implementation of the Tax Cuts and Jobs Act that was signed into law by President Trump on Dec. 22, 2017.
- Blog What Businesses Should Know About New Tax Law January 16, 2018The Tax Cuts and Jobs Act of 2017 (TCJA) will have a profound impact on business owners, investors, and professionals alike. Defining the impact is another issue altogether.
- Blog 2017 Tax Reform: Key International Tax Provisions December 21, 2017The tax reform bill (“Tax Cuts and Jobs Act”) has now been passed by both houses of Congress and is expected to be signed into law by President Trump in the coming days. Below is a look at the final provisions relating to concepts of international taxation, including a summary of the most significan...
- Blog Tax Reform Is Here: Key Provisions Explained December 20, 2017In the most sweeping overhaul of the U.S. tax code in more than three decades, the tax reform bill has now been passed by both houses of Congress and was signed into law by President Trump this afternoon. These significant changes will require businesses and individuals to reassess their long-term t...
State Responses to Tax Reform
- Blog State & Local Tax Update: California Selectively Conforms to Federal Tax Reform August 13, 2019California Gov. Gavin Newsom recently signed Assembly Bill 91 into law, selectively conforming to provisions of the federal Tax Cuts and Jobs Act, also known as tax reform. As part of this response to tax reform, California left its static conformity date as Jan. 1, 2015, but the state identified sp...
- Blog New Jersey Corporate Tax Overhaul: 2019 Planning Considerations January 29, 2019In 2018, New Jersey Gov. Phil Murphy signed Assembly Bill No. 4202 into law. The bill included tax provisions that respond to the Tax Cuts and Jobs Act (TCJA). Most significantly, changes were made to the Corporation Business Tax. Later that year, Gov. Murphy signed Assembly Bill No. 4495, which the...
- New York State & Local Tax Update: October 2018 October 31, 2018New York lawmakers enacted a program to potentially circumvent the Tax Cuts and Jobs Act (TCJA), which imposes a $10,000 cap on the state and local tax (SALT) deduction for individuals who itemize their deductions. This Employer Compensation Expense Program (ECEP) created an elective Employer Compen...
- Blog State & Local Tax Update: New York’s Response to Tax Reform June 14, 2018The 2018 New York State legislative session is well underway. The New York State Assembly’s biggest accomplishment thus far is the March 30 passage of the state’s 2018-19 budget bill (S07509C), which was then signed into law April 12, 2018, by Gov. Cuomo. While this budget bill provides some guidanc...
- Blog State & Local Tax Update: Kentucky's Response to Tax Reform May 25, 2018The Kentucky legislature recently passed significant tax law changes with House Bill 366* and House Bill 487**, including an overhaul to much of Kentucky’s corporate tax system and addressing the state’s conformity to the Tax Cuts and Jobs Act. These bills broaden Kentucky’s tax base through various...
- Blog State & Local Tax Update: Connecticut’s Response to Tax Reform June 26, 2018The Connecticut General Assembly recently passed legislation which made changes to the state’s taxing system effective for tax years beginning on or after Jan. 1, 2018. Most significant is the imposition of tax on pass-through entities that are doing business in Connecticut. Pass-through entities ...
Resources
- Whitepaper Tax Reform: Summary of Key Provisions in the Tax Cuts and Jobs Act February 16, 2018Keeping Current With U.S. Tax Reform In the most sweeping overhaul of the U.S. tax code in more than three decades, tax reform has been passed by both houses of Congress and has been signed into law. This handout provides an overview comparison between previous law and new changes enacted by the pas...
- Whitepaper Tax Treatment of Business Meals and Entertainment Expenses February 16, 2018The tax treatment of business meals and entertainment expenses has changed significantly in recent years. It is important for businesses to analyze and record these expenses to accurately capture the allowable deductions associated with them. Please reference the chart below to determine the proper ...
- On-Demand Webinar On-Demand Webinar: Tax Reform February 28, 2018In the most sweeping overhaul of the U.S. tax code in more than three decades, the Tax Cuts and Jobs Act of 2017 will have a profound impact on businesses and their owners. Join us as KSM's tax professionals discuss what we know now about the new tax law, how key components should be interpreted, and more.
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