January 08, 2021 Posted in Budget, Accounting

Going the extra mile for a client!

In 2020 NJ passed a new tax to skirt around the State & Local Tax (SALT) deduction limitations enacted in 2017 by Congress. It is called the NJ Business Alternative Income Tax (BAIT). The law creates a “corporate” type tax on NJ S Corporations & Partnerships that shareholders/partners can elect into. Why elect into the tax?

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December 16, 2020 Posted in Budget, Accounting

Covid19 and how it affects your taxes!

When the coronavirus pandemic began severely taking its toll last March, many employers switched to a work-from-home model. As a result, many employees were working in a state other than the one their office was located in. This raised the issue of determining which state is owed income taxes. In order to best understand the situation, one must first distinguish between domicile and residence.

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November 10, 2020 Posted in Budget, Accounting

3 Things Doctors Need to Know About Medical School Loans and Mortgage

Many doctors are in debt their first few years of work because of their medical school loans and the interest that the loans accrue. In addition, many doctors are paying mortgage interest on a house. While the interest deduction on student loan payments has limitations based on income, mortgage interest does not. As a result, it is usually beneficial for doctors to pay down their student loan debt before their mortgage.

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November 06, 2020 Posted in Budget, Accounting

Pass-Through Business Alternative Income Tax Act

On January 13th, 2020, New Jersey joined Connecticut, Louisiana, Oklahoma, Rhode Island, and Wisconsin in establishing a new tax for pass-through entities. This act, called the “Pass-Through Business Alternative Income Tax Act”, provides for a voluntary tax available to S Corporations, Partnerships, and LLCs taxed as partnerships.

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