Tax Warrior Chronicles

NJ Enacts New SALT Workaround with Entity-Level Tax Election

Posted on Thu, Jan 30, 2020

By: Dan Marques, CPA, MT

 

If at first you don’t succeed, try again.  That appears to be the moto of the NJ Legislature after passing the Pass-Through Business Alternative Income Tax Act (the Act), signed into law by Governor Murphy on January 13, 2020. This is the state’s second attempt to circumvent the $10,000 federal cap on state and local tax (SALT) deductions imposed by the Tax Cuts and Jobs Act (TCJA).

 

A trip down memory lane

Some may recall NJ’s first attempt to address the SALT cap in May 2018, which called for towns, counties and school districts to set up charitable funds for taxpayers to make contributions in exchange for property tax credits. Under this program, individuals

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Prepaying Property Taxes? Make Sure This One Condition is Met!

Posted on Thu, Dec 28, 2017

As taxpayers line up to prepay 2018 property taxes in 2017 to get the deduction, the IRS released an advisory with a conditional twist.  We’ve posted the IRS advisory, which contains examples, for you to read and share.

 

IR-2017-210

WASHINGTON - The Internal Revenue Service advised tax professionals and taxpayers today that pre-paying 2018 state and local real property taxes in 2017 may be tax deductible under certain circumstances.

 

The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on

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Year-End Tax Planning Moves in Light of Tax Reform

Posted on Thu, Dec 21, 2017

By: Chris Catarino, CPA, MT

 

With the House and Senate both approving the Tax Cuts and Jobs Act on December 20, 2017, The Tax Warriors® and the rest of the tax community are just digesting the comprehensive changes coming to our tax code. While it will take years for authorities to issue guidance and practitioners to understand the impact of the new laws, we’ve identified last-minute 2017 planning opportunities you can take advantage of before many of the new provisions are slated to take effect in 2018.

 

Pay State and Local Taxes Income Taxes Before 12/31/2017

Under the proposed law, the deduction for state and local income and property taxes will be limited to $10,000 beginning in

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Philadelphia Tax Update - Fall 2012

Posted on Mon, Dec 10, 2012

October was a busy month for City Council as Philadelphia lawmakers introduced a slew of proposed legislation, much of which aims to increase revenue collections for the city.  What this usually means for Philadelphians are rising business or property tax rates, expanded commercial licensing requirements, or a repeal of the most particularly useful credits.  However, the proposals this year are rather different. Focusing on delinquent taxpayers, the new legislation proposes to lower interest and penalty rates on unpaid taxes, along with other measures, to encourage payment of overdue tax bills.

 

Interest and Penalty Rate Decreases

Philadelphia’s current penalty and interest rates on

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Philadelphia Tax Update - Summer 2012

Posted on Fri, Aug 03, 2012

In the last several months, there have been a slew of tax changes affecting Philadelphia residents, business owners, and property owners.  In this blog post, we will examine some of the most recent tax legislation in the City of Philadelphia and how it may affect you.

 

Property Taxes: AVI Plan, Homestead Exemption, and Use & Occupancy Tax

The Mayor’s hotly debated Actual Value Initiative (AVI) plan, which intends to revalue all Philadelphia property at its market value, has officially been delayed until the 2014 tax year.  For 2013, the city will be using certified 2011 values, adjusted for any subsequent improvements, demolition and destruction. This means that most Philadelphia

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Philadelphia Homestead Exemption: Reduce Your Property Tax Burden

Posted on Mon, Jul 02, 2012

Philadelphia Homestead Exemption Update

For the upcoming Tax Year 2013, the City of Philadelphia will be using values certified for tax year 2011 to calculate tax bills, with adjustments for subsequent improvements, demolition and destruction. The tax rate has increased by 3.6% compared to last year to provide additional funding to the Philadelphia School District. This increase is not related to a change in assessed values.

 

The City of Philadelphia will be moving to property assessments based on Actual Values for Tax Year 2014. Along with the new values, the City will be introducing a new tax relief program for homeowners called the Homestead Exemption (see below for more details)

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