Many of you might be asking yourself what cryptocurrency even is, in short – it is the new virtual way of currency. Cryptocurrency is a digital or virtual currency designed to work as a medium of exchange, unit of account, and/or a store of value. Encryption techniques are used to regulate unit generation and verify transactions. Many cryptocurrencies are decentralized and operate independently of a central bank.
Have you ever gone online shopping and realized you were never charged sales tax on the items you purchased? To this day states make it so unclear whether or not an online company has a requirement to collect and remit sales tax. However, a recent Supreme Court case has changed online shopping as we know it.
We released Part One covering New York State's Reponse to Federal Tax Reform at the end of May. You can find that post here. In this post we are digging deeper into New York State's thoughts on decoupling from the Federal Tax Code to protect New York State Taxpayers from Tax increases.
NY’s income tax system conforms to the federal system in multiple ways. The numerous changes to the federal tax law will have significant flow-through effects on NY. The budget proposes multiple steps to disengage from the federal law. See the following for reforms related to this:
In Notice 2018-61, the IRS and Treasury Department stated that they intend to issue Regulations clarifying which items estates and non-grantor trusts will still be able to deduct. Under the Tax Cuts & Jobs Act "TCJA," miscellaneous itemized deductions subject to the 2% of adjusted gross income floor have been suspended and can no longer be deducted in individual income tax returns.
Merger and acquisition activity in the first half of 2018 in the United States was the highest it has ever been according to data from Thomson Reuters as reported by Axios in this article. Although there are a number of factors that contributed to this M&A boom, the impact of the TCJA has provided an acquisition-friendly tax landscape for businesses to operate. On top of the highly publicized drop in the corporate tax rate to 21%, subtle changes to the bonus depreciation rules could be an even bigger driver of merger and acquisition activity.