• Corporate Transparency Act

    Corporate Transparency Act

    What is the Corporate Transparency Act (“CTA”)? Starting January 1, 2024 each reporting company shall submit to FinCEN a report that identifies each beneficial owner of the applicable reporting company and each applicant with respect to that company. Existing companies have until January 1, 2025 to file its initial beneficial ownership information (“BOI”) report or 30 days for new reporting companies .If there is any change to the required information about your company or its beneficial owners in a BOI report that your company filed, your company must file an updated report no later than 30 days after the date of the…

    Read more: Corporate Transparency Act

  • Pass-Through Entity (PTE) Tax in Minnesota: Changes and Implications

    Minnesota’s Pass-Through Entity (“PTE”) tax enables an entity to electively pay taxes on behalf of its partners, members, or shareholders. This election is available for tax years starting after December 31, 2020. With the introduction of H.F. 1938, effective for tax years beginning after December 31, 2022, there are several modifications to the PTE tax. Notably, the definition of a “qualifying entity” now encompasses a limited liability company (“LLC”) that is taxed as a partnership or S corporation. Furthermore, a qualifying entity must have at least one “qualifying owner,” which has been expanded to include a disregarded entity with a…

    Read more: Pass-Through Entity (PTE) Tax in Minnesota: Changes and Implications

  • Hawaii Allows Pass-Through Entities to Elect Entity-Level Taxation

    Governor Josh Green, M.D. of Hawaii signed a bill on June 1, 2023, allowing partnerships and S corporations in the state to elect to pay income tax at the entity level. With this legislation, Hawaii aligns itself with the majority of states that already permit similar elections for pass-through entities. The law will be effective from January 1, 2024, and applicable to taxable years beginning after December 31, 2022. Starting from taxable years commencing after December 31, 2022, partnerships and S corporations can make an election to be taxed as an electing pass-through entity. Each taxable year requires a separate…

    Read more: Hawaii Allows Pass-Through Entities to Elect Entity-Level Taxation

  • Tennessee’s Depreciation Treatment for Assets Pre- and Post-2023

    Effective from January 1, 2023, Tennessee has adopted the provisions of IRC Section 168 as they were established by the 2017 tax reform legislation for assets purchased during that period. This means that bonus depreciation, previously not conforming with Tennessee tax laws, is now applicable. As a result, taxable income no longer requires a modification to account for the difference in depreciation expense with and without bonus. However, for assets purchased on or before December 31, 2022, Tennessee will continue to follow the depreciation treatment that was in place before the enactment of H.B. 323. This treatment is based on…

    Read more: Tennessee’s Depreciation Treatment for Assets Pre- and Post-2023

Latest Posts