Tax Articles

On September 18, the IRS and the Treasury Department released proposed regulations regarding the credit for qualified alternative fuel vehicle refueling property under IRC Section 30C.

In 2025, the Social Security wage base will rise to $176,100, increasing payroll tax obligations for employers with high earners. Employers and self-employed individuals will continue to pay FICA taxes at the same rates, with Social Security tax capped at the new wage base and no cap for Medicare. Businesses should plan for these changes and consult for compliance guidance.

A defined-value gift can help maximize the current federal gift and estate tax exemption by transferring hard-to-value assets, like business interests, at a specified dollar amount. This strategy, if structured with precise language and a formula clause, can reduce tax risks by aligning the gift’s value with IRS standards. Consulting with an advisor ensures proper documentation and minimizes potential IRS challenges.

On June 27, the California legislature enacted California Revenue and Taxation Code (CRTC) section 25128.9 under S.B. 167.

Maine has amended Title 36 of the Maine Revised Statutes pertaining to the sales tax treatment of lease and rental transactions in the state.

California has enacted two important pieces of legislation that may prove adverse to businesses and individuals.

Probate is the legal process of settling an estate and transferring assets to heirs, but it can expose personal details to the public and attract unwanted attention. While the process typically takes six to nine months, it can be avoided through a revocable living trust, which keeps asset distribution private and outside of probate court. Understanding the probate process and available alternatives is crucial for effective estate planning.

State and local tax (SALT) credits and incentives programs continue to be underutilized. Despite the substantial value they can add for businesses, BDO’s 2024 CFO Outlook Survey found that just 34% of CFOs plan to optimize costs by claiming tax credits in the next 12 months.

Manufacturers can reduce their 2024 tax liability by taking advantage of key provisions from the Tax Cuts and Jobs Act, including Section 179 expensing and bonus depreciation, as well as newer incentives from the Inflation Reduction Act and CHIPS Act. Implementing strategies such as purchasing eligible assets or leveraging tax credits for R&D and advanced manufacturing before year-end can result in significant tax savings. Acting quickly is essential to maximizing these opportunities.

On July 11, Pennsylvania Gov. Josh Shapiro signed into law the 2024-2025 budget (S.B. 654), which amends several important business and individual tax provisions.