H2R CPA Blog
Tax Reform Resource Center
by Brett Fulesday, CVA
As part of H2R CPA’s Litigation Support practice, we provide expert consulting and testimony services to assist counsel and their clients going through divorce and marital disputes. Family-law attorneys often require these services on behalf of dependent and independent spouses in cases involving a variety of complex issues.
Beginning with this post, and on a continuing basis, we will highlight a specific Pennsylvania-based, family-law case and identify a few of the meaningful – and complex – topics at play.
Let’s start with Susan M. Berry v. Douglas R. Berry.
Filed on May 2, 2006, in Pennsylvania Superior Court, on appeal, Ms. Berry (the Mother) contended that the trial court erred in the following ways:
The Mother’s contentions revolved around the Father’s income, which gave rise to such issues as:
These are not random issues that have no practical application; rather, these are issues that we confront in nearly every divorce-related engagement. Understanding their meaning and application is essential. We acknowledge – and embrace – this reality, which helps to explain why family-law attorneys have turned to H2R CPA for assistance for more than 30 years.
Contact H2R CPA’s Litigation Support practice at 412-391-2920 or email@example.com to learn more about our family law expert consulting and testimony services. Our team would be pleased to provide a complimentary consultation.
by Nate DeFilippi, CPA, MBA
H2R CPA is pleased to provide a summary of the new rules regarding meals and entertainment tax deductions, signed into law with the Tax Cuts and Jobs Act of 2017. We recommend that businesses update general ledgers in accordance with these changes to plan for the 2018 tax year.
In general, the Act provides for stricter limits on the deductibility of business meals and entertainment expenses. Under the Act, entertainment expenses incurred or paid after December 31, 2017 are nondeductible unless they fall under specific exceptions. The primary exception includes employee-related events, including office holiday parties and summer picnics, which are still 100% deductible.
Business meals with clients that have substantial business discussion are still 50% deductible. Business meals provided for the convenience of the employer are now limited to 50% deductible whereas they qualified for full 100% deductibility before the new tax law. Barring further legislation, such business meals will be 100% non-deductible after 2025.
The following is a comparison of past and present law.
With an eye towards 2018, in order to maximize tax deductions and to save time on the preparation of 2018 business tax returns, we strongly recommend that businesses update their general ledgers with separate accounts for these new meals and entertainment provisions.
Our recommended break-out is as follows:
Contact H2R CPA at 412-391-2920 or firstname.lastname@example.org for additional details or interpretation related to the new meals and entertainment rules. Our tax team members would be pleased to assist you with your tax planning.
by Nate DeFilippi, CPA, MBA
In response to a request from the Pennsylvania Institute of Certified Public Accountants (PICPA), The Pennsylvania Department of Revenue (DOR) has agreed to delay the implementation of new 1099-MISC withholding requirements.
Act 43 of 2017 introduced a new and more complicated withholding requirement for Pennsylvania businesses. Beginning January 1, 2018, certain payors of Pennsylvania-source income and lessees of Pennsylvania real estate of at least $5,000 to non-resident individuals, as well as single-member LLCs that have a nonresident individual member, will now be obligated to withhold Pennsylvania personal income tax on these payments.
In response to this increased administrative burden and the additional costs to become compliant for Pennsylvania businesses, the Pennsylvania DOR has taken the following actions:
Contact H2R CPA at 412-391-2920 or email@example.com if you have questions regarding Pennsylvania’s agreement to delay 1099-MISC assessments. Our H2R CPA team would be happy to assist you.
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