Employee Benefits Blog

Posts tagged Tax deductions

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One-Time Deemed Dividend Repatriation Tax on Deferred Foreign Earnings

The recently passed tax act uses the mechanics of subpart F to impose a one-time “toll tax” on the undistributed, non-previously taxed, post -1986 foreign earnings and profits (E&P) of certain U.S.-owned corporations as part of the transition to a new partial territorial tax regime.

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Tax Deductibility of Meals and Entertainment Expenses

A Practical Guide to the 2018 Tax Cuts and Jobs Act Changes

The Tax Cuts and Jobs Act of 2017 (the Act) made some very significant changes to the deductibility of meals and entertainment expenses. The purposes of this article are to summarize those changes and to provide businesses with some guidelines for grouping 2018 (and beyond) meals and entertainment expenses based on whether they are 100%, 50%, or 0% deductible (or, in the case of certain transportation workers, 80% deductible) under the new rules. This discussion assumes that the expense in question is an ordinary and necessary business expense, and is not lavish or extravagant; if either of these criteria are not met, then the expense is automatically nondeductible.

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A New 20% Deduction for Qualified Business Income of Flow-thru Entities

(The Tax Cuts and Jobs Act’s Addition of Section 199A)

As part of the Tax Cuts and Jobs Act, Congress created Code Section 199A, providing owners of flow-through businesses and sole proprietors with a potential deduction, thereby allowing them to be more competitive with C Corporations, which under the Act saw tax rates reduced from 35% to 21%.

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Mortgage Interest: What’s Deductible Now and Should I Refinance?

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Happy New Year, happy new tax law! On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (“TCJA”) into law. The final bill is very lengthy, and contains numerous changes affecting individuals. Among these changes are new limits on certain itemized deductions, such as state and local taxes and home mortgage interest. This article focuses on the changes to the mortgage interest deduction.

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International Tax Provisions of the Tax Cuts and Jobs Act

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The Tax Cuts and Jobs Act (“TCJA”) recently passed by Congress and the President represents a true game changer for U.S. corporations, foreign corporations doing business in the U.S., and individuals and pass through entities with international investments and transactions. This article highlights international tax implications of the new law.

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Massachusetts Wellness Tax Credit Incentive

Employer-sponsored wellness programs have gotten a lot of attention over the last couple of years as employers try to promote healthy lifestyles amongst their employees.  Massachusetts Senate Bill 2400, signed by Governor Deval Patrick on August 6, 2012, included a tax credit for qualifying small businesses that create wellness programs.  In January 2013, the Massachusetts Department of Public Health (DPH) issued regulations establishing the criteria the wellness program must meet in order to qualify for the credit.

Tax Credit Provisions

Below are a few key provisions of the tax credit as outlined in TIR 12-10:

  • The credit is equal to 25% of the implementation costs of a “certified wellness program”
  • The maximum credit is $10,000 in any tax year
  • The credit is effective for tax years beginning on or after January 1, 2013 and is set to expire on December 31, 2017.

Posted Under: Tax deductions