In this episode, Patrick Tamm, President and CEO of the Indiana Restaurant and Lodging Association, joins us again to discuss current regulatory issues that are affecting restaurant owners and operators.

Katz, Sapper & Miller’s John Estridge will speak at the IU Real Estate Winter Luncheon, hosted by the IU Center for Real Estate Studies and held at the Meridian Hills Country Club Feb. 15, 2019.

Mike North, partner in Katz, Sapper & Miller’s (KSM) Buy Here – Pay Here and Dealership Services Groups will speak at the 2019 National Vehicle Leasing Association (NVLA) Conference, “Drive the Future.” Taking place March 27-29 at One Ocean Resort in Atlantic Beach FL, the event will focus on issues that will shape the future of the vehicle leasing industry.

Just in time for the tax filing season, the IRS has released nearly 250 pages of final regulations regarding the §199A pass-through deduction. The IRS issued previous guidance on the §199A pass-through deduction in August 2018, however, even this final guidance has not answered all questions related to the new deduction. Even so, there are many significant updates in the IRS’s final regulations, which are explained below.

The Tax Cuts and Jobs Act of 2017 (TCJA), signed into law in late 2017, included significant changes to the tax environment in the United States. One of the largest changes was the addition of the qualified business income (QBI) deduction. The QBI deduction allows for a deduction of up to 20 percent of the qualified business income from partnerships, limited liability companies (LLCs), S corporations, trusts, estates, and sole proprietorships. Learn more about the QBI deduction.

In 2018, New Jersey Gov. Phil Murphy signed Assembly Bill No. 4202 into law. The bill included tax provisions that respond to the Tax Cuts and Jobs Act (TCJA). Most significantly, changes were made to the Corporation Business Tax. Later that year, Gov. Murphy signed Assembly Bill No. 4495, which then made technical corrections to Assembly Bill No. 4202 and clarified effective dates. In 2018, New Jersey Gov. Phil Murphy signed Assembly Bill No. 4202 into law. The bill included tax provisions that respond to the Tax Cuts and Jobs Act (TCJA). Most significantly, changes were made to the Corporation Business Tax. Later that year, Gov. Murphy signed Assembly Bill No. 4495, which then made technical corrections to Assembly Bill No. 4202 and clarified effective dates. As your business begins to plan for 2019, the following information will be important.

Indiana has recently issued an updated version of Sales Tax Information Bulletin #28S, changing its policy on the taxability of documentation fees, effective April 2, 2019. Historically, the Indiana Department of Revenue (IDOR) has treated these fees as if they were separate from the sale of the vehicle. It treated them as fees for helping a customer title and register a vehicle with the Indiana Bureau of Motor Vehicles (BMV). This is a nontaxable service in Indiana, so the documentation fees were not subject to sales tax. However, effective April 2, 2019, the IDOR will assume documentation fees are subject to sales tax if they are not “convenience fees,” a specific term that is defined in statute.

The Tax Cuts and Jobs Act (TCJA) provides that expenses for qualified transportation fringe benefits are nondeductible. The IRS recently released interim guidance via Notice 2018-99 clarifying that a portion of taxpayers’ “parking expenses” is considered nondeductible as qualified transportation fringes. Thus, Notice 2018-99 has significantly expanded the number of taxpayers that will need to calculate the nondeductible portion of their parking expenses. Now, all employers that own or lease a parking lot where their employees park will need to consider if an add-back to taxable income is required. This provision impacts the preparation of 2018 tax returns as it applies to expenses incurred or paid after Dec. 31, 2017.

Terry O’Neil, partner-in-charge of KSM’s Veterinary Services Group, will present at Veterinary Management Groups’ 2019 Congress, “Succeeding in a Changing Profession.” Hosted by Veterinary Study Groups, Inc. (VSG), the event will Taking place from Feb. 7-10 in Orlando, FL, the event will focus on the dynamics of the evolving veterinary industry and how veterinarians can prepare for the future.

KSM is expanding its footprint in southern Indiana/northern Kentucky with the opening of a new office in Louisville.