Newsletters
IC-DISC: Reevaluating The Benefits After Tax Reform
Posted May 2019
The interest charge domestic international sales corporation (IC-DISC) is one of the few remaining tax incentives for U.S. exporters. It allows eligible businesses to convert a portion of their export income into lower-taxed dividends and to defer tax on this income until it’s distributed. But while the IC-DISC remains a viable option after the Tax Cuts and Jobs Act of 2017 (TCJA), the act may diminish its benefits. If you have an IC-DISC or are considering one, it’s important to assess whether the potential tax savings justify the cost.
IRS Releases Further Clarification on Opportunity Zones
Posted May 2019
The 2017 Tax Cuts and Jobs Act included a variety of tax code updates and additional provisions. Among these was the creation of a new type of community development program, dubbed “Opportunity Zones.” The IRS defines these areas as “economically-distressed [communities] where new investments, under certain conditions, may be eligible for preferential tax treatments.”
Oklahoma Pass-Through Entity Tax Equity Act of 2019
Posted May 2019
For all of you who saw their 2018 itemized deductions reduced because of the $10,000 cap on state and local taxes, there may be some relief beginning in 2019 if you are a member of a pass through entity (PTE). A pass-through entity is a general partnership, a limited partnership, a limited liability partnership, a limited liability limited partnership, a limited liability company, or an S corporation. Oklahoma passed a new law on April 29, 2019 that allows a PTE to file an election to pay Oklahoma income tax at the entity level. The PTE members then reduce their Oklahoma taxable income by their share of the PTE income that has already been taxed by the state. The effect is to reduce the individual state income tax that is being limited on the federal return.