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Entries by Stephen Schnelker

Further Consolidated Appropriations Act, 2020: Tax Changes and Retirement Planning Implications

Posted 5:30 PM by
In December 2019, President Trump signed into law the Further Consolidated Appropriations Act, 2020, a sweeping year-end spending bill that funds federal government agencies in a discretionary portion of the federal budget through September 2020. In addition to addressing government funding, the Act also extends many tax provisions that previously expired, alters other long-standing tax provisions – many of which affect retirement-planning efforts for both individuals and plan sponsors – and more.
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Unique Tax Deferral Opportunity With an ESOP Sale

Posted 3:00 PM by
Under a specific set of facts, a C corporation sale to an ESOP may be able to utilize the tax provision benefits of combining Section 1202 of the Internal Revenue Code of 1986, as amended (the “Code”) and Code Section 1042. If those facts are present, a seller of stock in a leveraged ESOP transaction may be able to receive some proceeds tax-free while deferring the remaining tax on the sale.
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IRS Issues Proposed Regulations on Charitable Contributions and State and Local Tax Credits

Posted 5:58 PM by
Prior to the Tax Cuts and Jobs Act (TCJA), signed into law in December 2017, taxpayers were allowed an itemized deduction for state and local taxes paid without any limit on the amount of such deduction. The TCJA limited the state and local tax deduction, for individuals, to a maximum of $10,000. As a result, some states contemplated the creation of new state charitable funds, the donations to which would qualify for a state tax credit. Since charitable contributions are only limited by a taxpayer’s adjusted gross income, taxpayers that contributed to the state charitable funds, in lieu of paying state income tax, would generally receive a greater federal itemized tax deduction.
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New Investment Vehicle Created by the Tax Cuts and Jobs Act

Posted 2:30 PM by
In an effort to boost development in economically distressed communities, many federal incentive programs have been created over the years, such as the New Markets Tax Credit, Empowerment Zones, Renewal Communities, and more. The Tax Cuts and Jobs Act (TCJA) of 2017 has created yet another incentive to invest in these areas, and the potential tax benefits are significant.
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Tax Reform Offers New Employer Credit for Paid Family and Medical Leave

Posted 5:00 AM by
The Tax Cuts and Jobs Act introduced a new general business credit for employers that pay employee wages during time away from work under the Family and Medical Leave Act (FMLA). The paid family and medical leave credit can be used to reduce a taxpayer’s alternative minimum tax. However, the new credit will not apply to wages paid in tax years beginning after Dec. 31, 2019.
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American Health Care Act Passes House, How Might It Impact You?

Posted 12:16 PM by
On May 4, 2017 the House of Representatives passed the American Health Care Act (AHCA) which effectively repealed the Affordable Care Act (ACA). The final legislation, however, faces an uncertain outlook.
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21st Century Cures Act: Small Employer HRAs Not Subject to Penalties

Posted 12:00 PM by
On Dec. 13, 2016, President Obama signed the 21st Century Cures Act, which exempts small employer health reimbursement arrangements (HRAs) from the group health plan requirements. Prior to the 21st Century Cures Act, an HRA not integrated with another employer group plan was subject to a penalty of $100 per day, per employee.
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How Early-Stage Companies Can Get Immediate Tax Savings

Posted 5:00 AM by
Congress, with the passage of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), enables small businesses to use research and development credits (R&D credits) to offset payroll tax liabilities and Alternative Minimum Tax (AMT) liabilities.
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New Reporting Requirements for Employers Under the PPACA

Posted 12:00 PM by
The Patient Protection and Affordable Care Act (PPACA) imposes new reporting requirements on those that provide – and those that are required to provide – minimum essential coverage for the upcoming filing season. Minimum essential coverage is the type of health insurance that individuals are required to have in order to avoid paying a tax penalty.
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