The 2023 instructions for Form CT-34-SH, New York S Corporation Shareholders’ Information Schedule, include a significant change to the add-back rules for taxes on line 1a. The add-back rules apply to certain taxes that were deducted by the entity on its federal Form 1120S. In addition to the taxes that have been previously included, the list of taxes to be added back now also includes any o...
As discussed in our post on August 29, 2023, the tax rate increased for the metropolitan commuter transportation mobility tax (MCTMT) on payroll in the five boroughs of New York City (referred to as Zone 1), effective on July 1, 2024. The rate of tax on payroll in the other counties subject to the MCTMT remains unchanged. These counties include Dutchess, Nassau, Orange, Putnam, Rockland, Suffo...
Bonus depreciation for the 2023 tax year has been reduced to 80% of the cost of eligible property. (This is down from 100% bonus depreciation that applied in the 2022 tax year and in recent prior years.) Congress is currently considering a bill that could retroactively change the bonus depreciation rules for the 2023 tax year. While there is no guarantee that the bill will become a law, practi...
As discussed in several prior posts, most recently on November 7, 2023, the threshold for the e-file mandate for Forms W2 and 1099 has been lowered to 10, effective for forms to be filed for the 2023 tax year, beginning on or after January 1, 2024. An entity that is required to e-file Forms W-2 and 1099 can request an automatic waiver from the requirement for one year only, by filing Form 8508...
January 24, 2024 Update: The final instructions for Schedules K-2 and K-3 match the draft version of the instructions. The IRS has indicated that it will continue to apply the domestic filing exception for eligible passthrough entities to avoid having to file Schedules K-2 and K-3 for the 2023 tax year. These schedules report information about foreign activities. Even if an entity has no fo...
The Financial Crimes Enforcement Network (FinCEN) has launched the site to be used to file reports of beneficial owners required by the Corporate Transparency Act. The website link is: https://boiefiling.fincen.gov/boir/html. The site currently requires an image of an identifying document to be uploaded as part of the registration. If a beneficial owner does not have such a document, there ...
Update: See our March 19, 2024 post for an amendment to this law. On December 22, 2023, the Governor of New York signed New York’s LLC Transparency Act. The law requires limited liability companies (LLCs) to report their beneficial owners in a new website that will be administered by New York State, but has not yet been launched. Reporting is due 365 days after the enactment date, which i...
Beginning with the 2023 tax year, entities must report to their owners if the owner will be eligible for the small business modification on their personal New York income tax return in connection with the income reported to the owner by the entity. For owners to be eligible for the small business modification, an S corporation, partnership or LLC must employ at least one person and have gross ...
The IRS has released the 2024 standard mileage rate. For business travel, it is 67 cents per mile (up from 65.5 cents per mile in 2023). For medical-related travel, it is 21 cents per mile (down from 22 cents per mile in 2023). The rate for charitable use of an automobile is not subject to adjustment, and it remains 14 cents per mile. If you have not already enrolled or taken our semina...
As discussed in our post on January 3, 2023, the SECURE 2.0 Act was enacted on December 29, 2022, and it makes substantial changes to the rules for retirement accounts. We also have a video discussing some of the aspects of the new law. It is time to start planning for the new rules that will take effect in 2024. We will discuss the new rules, along with strategies, logistics and other c...
