Posts by Tax Department

US Supreme Court Rules on E-commerce & Sales Tax

Yesterday, June 21, 2018, The U.S. Supreme Court issued what is most likely the Court’s most significant decision on state taxation in the last 50 years. The Court’s widely anticipated 5-4 decision in South Dakota v. Wayfair, et al. No. 17-494 held that the physical presence requirement for state tax jurisdiction is incorrect and not…

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Nonprofits May Now Have Estimated Payment Requirements for 2018

Because of recent changes to the tax law, some nonprofit organizations will find themselves with taxable income this year, requiring them to make quarterly payment of estimated taxes. What changed? Nonprofit organizations have long been subject to tax on Unrelated Business Taxable Income (UBTI), but the tax reform package passed late in 2017 created a…

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Wynne-Related Interest Claims: The Tax Court Rules

The Maryland Tax Court has issued a taxpayer-friendly decision regarding interest on Wynne-related claims. Comptroller of the Treasury v. Brian Wynne, et ux. was a case decided by the U.S. Supreme Court in 2015 that concerned the credit Maryland taxpayers can take for taxes paid to other states. As a result of the Supreme Court’s…

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Greg Will, CPA, MST, CFE interviewed in the O&P Almanac

Greg Will, CPA, MST, CFE was featured in February 2018 issue of the O&P Almanac. Greg discusses the impact of the Tax Cuts & Job Act on O&P facilities and owners. Greg says “Overall, O&P facilities and owners will benefit from the recent changes to the tax laws by realizing greater after-tax incomes.”  Greg also…

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Maryland Registered Apprenticeship Tax Credit

The Maryland Apprenticeship Tax Credit is a tax credit given to Registered Apprenticeship Sponsors and/or employers who employ an eligible Registered Apprentice(s).  The credit is worth up to $1,000 per each eligible Registered Apprentice. As with any credit Maryland provides, there are always limitations. The credit may only be taken against the state income tax…

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IRS Updates Withholding Tables for Tax Reform

As part of its ongoing efforts to help implement the new tax legislation, the IRS has released an updated version of the tables used to calculate 2018 income-tax withholding for individuals. The new calculations reflect the changes to standard deductions and tax brackets, as well as the repeal of personal exemptions. The guidance released by…

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HSA Plans Endangered in Maryland

A new law passed in Maryland may endanger the future of HSA plans in the state. A Health Savings Account (HSA) provides significant tax benefits for saving toward healthcare expenses. Contributions can be deducted or excluded from taxable income and any earnings on the account are also tax free. The money in the account must…

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New deduction on pass-through income created by the recent Tax Act

The recent Tax Act creates a new deduction on pass-through income. It should provide a substantial tax benefit to individuals with “qualified business income” from a partnership, S corporation, LLC, or sole proprietorship. It is also one of the more complicated provisions in the new law. The deduction is 20% of your “qualified business income…

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IRS Weighs in on Deducting Prepaid Real Estate Taxes

Since the passing of the Tax Cuts and Jobs Act of 2017 taxpayers have been scrambling to take advantage of deductions that expire at the end of the year or are subject to limitation in 2018 and forward.  Much has been discussed in the tax community and on the internet about prepaying 2018 real estate…

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