New Tax Incentive for Employers Providing Paid Family Medical Leave
The Department of the Treasury (the “Treasury”) and the Internal Revenue Service (the “IRS”) recently released Notice 2018-71 (the “Notice”) which provided guidance on the Family and Medical Leave (“FML”) credit and announced the intention of the Treasury and the IRS to publish proposed regulations under Section 45S. This guidance follows earlier guidance provided by …
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Things to Consider When Analyzing Tax Deferred Exchanges and Cost Segregation Studies After 2017
The TCJA modified Internal Revenue Code (“IRC”) Section 1031 to provide that, for transactions entered into after January 1, 2018, only the exchange of real property held for productive use in a trade or business or for investment will qualify for tax deferred treatment. This is a substantial change in the law, as prior to …
“Investments in U.S. Property by Controlled Foreign Corporations” after TCJA 2017
On October 31, 2018, the United States Department of the Treasury and the Internal Revenue Service released proposed regulations relating to one type of “deemed distribution” from a controlled foreign corporation (“CFC”). These proposed regulations explain how domestic C-Corporations that are “U.S. Shareholders” of a CFC can reduce their deemed income inclusions from the CFC’s …
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Do You Have a “GILTI” Tax for 2018, and What Are You Doing About It?
Congress introduced the GILTI tax with the TCJA at the end of 2017. The tax applies to tax years beginning after December 31, 2017. GILTI is defined as the income of a “Controlled Foreign Corporation” (CFC) that exceeds the CFC’s “net deemed tangible income return.” The latter is defined as a 10% return on the …
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Deferring Gain by Investing in Qualified Opportunity Zone Funds
One of the many changes in the Tax Cuts and Jobs Act of 2017 (the “TCJA”) is the creation of a new economic tool: the Qualified Opportunity Zone Fund. This tool allows taxpayers to defer tax on capital gains from the sale of property to an unrelated party by investing in a Qualified Opportunity Zone …
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The Government Clarifies the Deductibility of Expenses Incurred or Paid for Food and Beverages During the 2018 Tax Year
On December 22, 2017, the President signed into law the legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “TCJA” or “Act”)[1]. The Act cut the top corporate tax rate from 35% to 21% and the top individual rate from 39.6% to 37%. In addition, the Act modified various provisions …
Executive Compensation in Tax-Exempt Organizations – Now Is a Good Time to Review the Amount and Form of Compensation Paid to Your Senior Executives
Being market competitive for leadership talent is important across every type of business. FGMK has previously highlighted how the Tax Cuts and Jobs Act of 2017 (the “TCJA” or “Act”) has impacted executive compensation in public and private for-profit companies. We now turn to the Act’s potential impact on executive compensation in certain tax‐exempt organizations. …
FGMK TAX ALERT: The Newly Issued Proposed Regulations and Their Impact on the new Section 965 “Transition Tax”
On August 1, 2018, the United States Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) released proposed regulations providing clarification to Section 965, the “transition tax”, which was enacted as part of the Tax Cuts and Jobs Act of 2017[1], as the United States tax system moves to a modified territorial tax …
FGMK TAX GUIDANCE: Changes to the Meals and Entertainment Deduction under the Tax Cuts and Jobs Act of 2017
On December 22, 2017, the President signed into law the legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “TCJA” or “Act”)[1]. The Act cut the top corporate tax rate from 35% to 21% and the top individual rate from 39.6% to 37%. In addition, the Act modified various provisions …
FGMK TAX ALERT: The Newly Issued Proposed Regulations and Their Impact on Section 168(k) Bonus Depreciation
On August 3, 2018, the government issued proposed regulations (REG-104397-18) (the “Proposed Regulations”) providing clarification to Section 168(k) of the Internal Revenue Code[1] (the “Code”), as modified by the Tax Cuts and Jobs Act of 2017 (the “Act”). Section 168(k) provides for the immediate expensing of a percentage of the cost of qualified property in …