We all know how important the well-being of the Great Lakes are to Michiganders. Currently, there is a potential threat of an oil spill that could destroy hundreds of miles of shorelines and damage lakes due to 65 year old twin crude oil pipes that are located at the bottom of the straits of Mackinac.
On Dec. 12, 2018, The Michigan Legislature made a significant change to the Michigan Construction Lien Act, which will take immediate effect, to allow for design professionals, defined as architects, professional engineers, servers, and their subcontractors, to now record liens for design services performed prior to the first physical improvement made to a property.
Tax year 2018 has wrapped up, and tax return filing season has begun. This is the first year the new tax laws put into place in December 2017 took effect. There are several items that could affect construction contractors.
On Oct. 4, 2018, New Jersey adopted several changes to the New Jersey Corporation Business Tax including requiring combined reporting for tax years ending on and after July 31, 2019. This requires companies that have common ownership and are engaged in a unitary business to file a combined New Jersey return if at least one of the entities is subject to New Jersey Corporation Business Tax.
The Tax Cuts and Jobs Act allows for a potential 20 percent tax deduction for qualified business income generated from pass-through entities for tax years beginning after Dec. 31, 2017 (IRC Sec. 199A). The deduction is only applicable to pass-through entities that conduct a trade or business. Therefore, under the original law, it was uncertain if rental real estate entities leasing to third parties would qualify for this deduction.
Before contemplating the path of a transaction, be sure to get your “house” in order. It’s never too early to start thinking about a liquidation or acquisition event (e.g., buy, sell, tuck-in, bolt-on, reorganization, etc.). Be sure to thoughtfully think about the necessary work-streams and the team that will be required to support the transaction.
Warren Zafrin, Managing Director, was recently quoted in CA North America. To view the article, " Cyberthreats: it’s coming from inside!"
Qualified Opportunity Zones were established as part of tax reform, and they allow investors to defer or minimize tax on a capital gain by investing in a fund or zone investment. Assuming a taxpayer sells a stock and recognizes a $200,000 gain, investing that gain in a qualified investment within 180 days, coupled with a tax return election, will allow for deferral of the payment of tax until the earlier of the date the zone investment is sold or December 31, 2026.
Connecticut governor Ned Lamont proposed a two year $43.1 billion budget last week with the goal of modernizing the Sales Tax Base and bringing Connecticut's tax code into the 21st century - and make it fairer - by capturing a growing share of the digital economy and expenditures on consumer-oriented services. The end result is to have goods and services to be taxed equally.
The Tax Cuts and Jobs Act greatly simplified the Kiddie Tax. The original Kiddie Tax required children under the age of 18, or under age 24 if they are a full time student, to pay taxes on their unearned income (interest, dividends, capital gains, rents, etc.) over $2,100 at their parents’ highest tax rate. It also required a separate form and some complicated computations, as well as requiring parents to share their tax information with their children.