SALT TALK: The COVID-19 Pandemic’s Impact on Residency and Taxes (VIDEO)

Posted by Wayne K. Berkowitz CPA, J.D., LL.M. on Apr 20, 2020 11:44:47 AM

Wayne Berkowitz and colleague Richard Goldstein examine the impact of the COVID-19 crisis on state residency issues and an employer’s state tax obligations.Click here to view the videos.

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TAX TALK: More COVID-19 Relief From the IRS

Posted by Hal Zemel, CPA, J.D., LL.M. on Apr 20, 2020 9:20:00 AM

In the midst of the coronavirus (COVID-19) pandemic, Americans are focusing on their health and financial well-being. To help with the impact facing many people, the government has provided a range of relief. Here are some new announcements made by the IRS.

More Deadlines Extended

As you probably know, the IRS postponed the due dates for certain federal income tax payments — but not all of them. New guidance now expands on the filing and payment relief for individuals, estates, corporations and others.

Under IRS Notice 2020-23, nearly all tax payments and filings that would otherwise be due between April 1 and July 15, 2020, are now postponed to July 15, 2020. Most importantly, this would include any fiscal year tax returns due between those dates and any estimated tax payments due between those dates, such as the June 15 estimated tax payment deadline for individual taxpayers.

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Topics: TAX TALK

T&E TALK: Estate Planning and Intellectual Property

Posted by Scott T. Ditman, CPA/PFS on Apr 20, 2020 7:00:00 AM

If you’ve invented something during your lifetime and had it patented, your estate includes intellectual property (IP). The same goes for any copyrighted works. These assets can hold substantial value, and, thus, must be addressed by your estate plan. However, bear in mind that these assets are generally treated differently than other types of property.

Four Categories of IP

IP generally falls into one of four categories: patents, copyrights, trademarks, and trade secrets. Let’s focus on only patents and copyrights, which are protected by federal law in order to promote scientific and creative endeavors by providing inventors and artists with exclusive rights to benefit economically from their work for a certain period.

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Topics: T&E TALK

TAX TALK: CARES Act Adjusts Retirement Plan and Charitable Contribution Rules

Posted by Hal Zemel, CPA, J.D., LL.M. on Apr 13, 2020 9:20:00 AM

The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains a variety of relief, notably the “economic impact payments” that will be made to people under a certain income threshold. But the law also makes some changes to retirement plan rules and provides a new tax break for some people who contribute to charity.

Waiver of 10% Early Distribution Penalty

IRAs and employer sponsored retirement plans are established to be long-term retirement planning accounts. As such, the IRS imposes a penalty tax of an additional 10% if funds are distributed before reaching age 59½. (However, there are some exceptions to this rule.)

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Topics: TAX TALK

T&E TALK: Gift Tax Filing And Payment Deadlines Now July 15

Posted by Scott T. Ditman, CPA/PFS on Apr 13, 2020 7:00:00 AM

You may have heard that the federal income tax filing and payment deadline has been extended from April 15, 2020, to July 15, 2020, to provide relief for taxpayers adversely affected by the coronavirus (COVID-19) pandemic.

What you may have missed is that the U.S. Treasury Department also extended the April 15, 2020, federal gift tax filing and payment deadline to July 15, 2020.

Filing Gift Tax Returns

Generally, filing Form 709 — “United States Gift (and Generation-Skipping Transfer) Tax Return” is required if you make gifts to or for someone during the year (with certain exceptions, such as gifts to U.S. citizen spouses) that exceed the annual gift tax exclusion ($15,000 for 2019 and 2020). There’s a separate exclusion for gifts to a noncitizen spouse ($155,000 for 2019 and $157,000 for 2020).

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Topics: T&E TALK

SALT TALK: Update on New Jersey Income Tax Extensions

Posted by Wayne K. Berkowitz CPA, J.D., LL.M. on Apr 6, 2020 11:40:00 AM

For some insights on the Garden State’s plans to postpone the state Individual Gross Income Tax filing and payment deadline and the Corporation Business Tax filing and payment deadline, click here.

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TAX TALK: COVID-19 Law - More Relief for Businesses

Posted by Hal Zemel, CPA, J.D., LL.M. on Apr 6, 2020 9:48:35 AM

On March 27, President Trump signed into law another coronavirus (COVID-19) law, which provides extensive relief for businesses and employers. Here are some of the tax-related provisions in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). 

Employee Retention Credit

The new law provides a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the COVID-19 crisis.

Employer Eligibility. The credit is available to employers with operations that have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings. The credit is also provided to employers that have experienced a greater than 50% reduction in quarterly receipts, measured on a year-over-year basis.

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Topics: TAX TALK

T&E TALK: Will Your Estate Plan Benefit From a Trust Protector?

Posted by Scott T. Ditman, CPA/PFS on Apr 6, 2020 7:00:00 AM

You may have several different types of trusts in your estate plan. In general, to achieve the greatest tax savings, these trusts must be irrevocable, thus requiring you to give up control over the trust assets.

Even though you appoint a trustee to oversee distribution of the trust’s assets, you can go a step further by appointing a trust protector. This person will serve as an overseer of the trustee’s actions. Taking this step can also provide you peace of mind because the trust protector has the power to alter the trust in light of changing family situations or tax laws.

Powers Available

Essentially, a trust protector is to a trustee what a corporate board of directors is to a CEO. A trustee manages the trust on a day-to-day basis. The protector oversees the trustee and weighs in on critical decisions, such as the sale of closely held business interests or investment transactions involving large dollar amounts.

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Topics: T&E TALK

SALT TALK: COVID-19 State Tax Pronouncements – Many and Varied

Posted by Wayne K. Berkowitz CPA, J.D., LL.M. on Mar 30, 2020 2:52:21 PM

As states continue to scramble to provide tax guidance during the COVID-19 crisis, decisions are coming in fast. Here is a roundup for the tri-state area and around the nation which we will continue to revise as the updates are released.

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TAX TALK: Individuals Get COVID-19 Tax and Other Relief

Posted by Hal Zemel, CPA, J.D., LL.M. on Mar 30, 2020 9:20:00 AM

Taxpayers now have more time to file their tax returns and pay any tax owed because of the coronavirus (COVID-19) pandemic. The Treasury Department and IRS announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer making federal income tax payments, which are due on April 15, 2020, until July 15, 2020, without penalties and interest, regardless of the amount they owe. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. They can also defer their initial quarterly estimated federal income tax payments for the 2020 tax year (including any self-employment tax) from the normal April 15 deadline until July 15.

No Forms to File

Taxpayers don’t need to file any additional forms to qualify for the automatic federal tax filing and payment relief to July 15. However, individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868. Businesses who need additional time must file Form 7004. Contact us if you need assistance filing these forms.

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Topics: TAX TALK

About Berdon Blogs

Our experts examine the latest trends, economics, business conditions and industry issues to provide timely information you need to maximize your tax advantages and meet your financial goals.

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T&E TALK: Gain insights into how changes in tax laws, shifts in the financial markets, and regulatory concerns will impact assets and affect preserving and transferring wealth.

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