Employee Benefits Blog

Read More

New Guidance on Tax Reform’s Impact on Parking: A Summary for Tax-Exempt Employers

The Tax Cuts and Jobs Act of 2017 (the Act) made very significant changes to the taxation of employers on qualified transportation fringes (QTFs) that they offer to their employees. QTFs, which are not taxable to the employee, include “qualified parking,” which is defined as parking on or near the business premises of the employer or on or near a location from which the employee commutes to work. Qualified parking does not include any parking on or near the employee’s residence.

Read More

New Guidance on Tax Reform’s Impact on Parking: A Summary for Taxable Employers

The Tax Cuts and Jobs Act of 2017 (the Act) made very significant changes to the taxation of employers on qualified transportation fringes (QTFs) that they offer to their employees. QTFs, which are not taxable to the employee, include “qualified parking,” which is defined as parking on or near the business premises of the employer or on or near a location from which the employee commutes to work. Qualified parking does not include any parking on or near the employee’s residence.

Read More

GILTI as Charged

(A new tax on foreign earnings – explained in plain English)

Earlier this year, we provided a summary article entitled International Tax Provisions of the Tax Cuts and Jobs Act. As its name implies, it provides an overview of a number of the features in the December 2017’s Tax Cuts and Jobs Act (the “Act”) that affected foreign activity. We followed that with a more detailed article addressing the most urgent international tax aspect in the Act: The One-time Deemed Dividend Repatriation Tax on Deferred Foreign Earnings that was due (in part) in April 2018.

Read More

Deferring or Reducing Tax Using Qualified Opportunity Zones

Subchapter Z of the Internal Revenue Code, created by the Tax Cuts and Job Act of 2017, provides taxpayers with incentives for investing in “Qualified Opportunity Zones.” These are specifically designated areas in need of economic development that are nominated by states and certified by the Secretary of the U.S. Treasury. Taxpayers who invest certain kinds of capital gains into these Qualified Opportunity Zones (QOZs) may be able to defer, and in some cases even permanently exclude, these gains from their taxable income. We described these benefits very generally in an earlier article. The article you are reading goes into greater detail regarding the qualifications and benefits, and incorporates some recent guidance provided by the IRS.

Read More

IRS Clarifies: Deductibility of Administration Expenses for Estates and Non-Grantor Trust

On July 13, 2018, the IRS announced in Notice 2018-61 that the Service will issue regulations confirming that estates and non-grantor trusts will continue to be allowed to deduct expenses that are unique to the administration of an estate or non-grantor trust. The Tax Cuts and Jobs Act (TCJA) of 2017 had created confusion over whether such expenses would be deductible given the changes the Act made to the deductibility of certain expenses by individuals.

Read More

TCJA Impact on Post Term QPRT Planning

Qualified Personal Residence Trusts (QPRT) have been a staple of sophisticated estate planning for some time. They are relatively simple to establish, they are well defined in IRS regulations, and can be structured with minimal initial tax consequences. Particularly for taxpayers living in areas with high property values, the QPRT was a popular choice to help minimize estate tax consequences.