Important Updates for New York’s Pass-Through Entity Tax

We have been trying to keep up with all of the questions from clients and practitioners regarding New York’s Pass-Through Entity Tax (PTET) with the deadline for making the 2021 annual election looming on October 15. We published a handy list of FAQs in State Tax Notes, covering the nuts and bolts of the PTET, state credits and the federal deduction. We followed up with our blog post here after NYS published some PTET guidance in late August. But, of course, new questions keep arising. 

Based on discussions internally, with other SALT practitioners, and with NYS representatives who were actively involved in the PTET legislation and guidance, we wanted to add a few more FAQs to our list.

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New York Tax Rates Going Up, With a Twist

The day many expected has finally come: Governor Cuomo has officially proposed his 2021 Budget and, as expected, it includes higher personal income tax rates for high-income taxpayers. 

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Five Organizations File Amicus Briefs Urging the Supreme Court of the United States to Hear Taxpayers' Lawsuit

On June 24, Hodgson Russ LLP filed petitions for certiorari with the Supreme Court of the United States (“the Supreme Court”) in two cases involving the double taxation of taxpayers who lived in another state but were “statutory” residents of New York because they had a place to live in New York and were in New York 183 days or more. The cases are titled: Samuel Edelman and Louise Edelman, Petitioners v. New York State Department of Taxation and Finance, et al. (“Edelman”) and Richard Chamberlain and Martha Crum, Petitioners v. New York State Department of Taxation and Finance, et al. (“Chamberlain”).

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Quill Overturned!

Wow.

This morning the U.S. Supreme Court sent a shockwave through the Internet—and the SALT community—by issuing its long-awaited decision in the South Dakota v. Wayfair case and resoundingly overturning the Quill physical-presence nexus standard that had been the law of the land for sales tax purposes for the past several decades.

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Wasn’t the U.S. Constitution Written in Just 116 Days?

On March 7, 2018, the NY Tax Department issued its first income tax advisory opinion of the year. The content of the advisory opinion, a review of the rules governing the timing of the tax credits associated with the state’s Brownfield Cleanup Program, isn’t particularly noteworthy. What struck us here at Noonan’s Notes, and made the opinion blog-worthy, is the timing of the opinion. Though the Tax Department has many functions (e.g., return design and processing, enforcement/audit, tax collection, etc.), this opinion may illustrate that additional resources should be allocated to its interpretation and education functions.

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Better Late than Never? New York Issues Guidance on Hedge Fund Deferred Compensation

https://www.hodgsonruss.com/practices-employee-benefits.htmlFor years we’ve been following a ticking income tax time bomb of sorts, dealing with a big 2017 issue for hedge fund managers receiving deferred income. We first started talking about this in 2013 (click here for the article) and followed-up on it a few times later (including here), wondering how states would react to all this. But up until last week, we’ve heard nothing from the New York tax department on the issue.

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Not Fake News: Congress Shuts Down Pre-payment of 2018 State Income Taxes!

On Friday afternoon, we emailed many clients and friends regarding the possibility of a “last chance” to claim a disappearing federal income tax deduction by paying 2018 state income tax estimates at the end of 2017. Apparently some of you didn’t get the email until Sunday. Sad! More on that below.

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New York State Tax Department Releases 2018 Estimated Tax Vouchers

Due to the likely elimination of almost the entire SALT deduction in 2018, this could be the last opportunity for taxpayers to pay state and local taxes and still ensure a full federal tax deduction. Keep reading to learn more.

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The Federal Tax Reform Proposals and the Likelihood of a Disappearing SALT Deduction

Here's what you need to know about the likelihood of a disappearing SALT deduction.

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Corporate Tax Reform FAQs

Since the new corporate tax reform went into effect on January 1, 2015, the New York State Department of Taxation and Finance has been providing “general guidance” -- answers to frequently asked questions (FAQs) -- on topics of interest to taxpayers. Recently, the Tax Department clarified two administrative issues with combined filing under the new regime and issued an FAQ with respect to the proper completion of the apportionment schedule on the return.

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