Be at the center of Talent SOLUTIONS - Singapore Mobility Summit 26 March
On April 29, 2019, Oklahoma’s governor signed into law H.B. 2665, http://webserver1.lsb.state.ok.us/cf_pdf/2019-20%20ENR/hB/HB2665%20ENR.PDF, which creates a method for pass-through businesses to avoid the $10,000 limit on individual deductions for state and local taxes.
The new law establishes an optional entity-level 5% tax beginning in tax year 2019, with an offsetting income tax exclusion for the entity’s members. The result is that a fully deductible state tax will be paid at the entity level, with a corresponding reduction in state tax at the individual member level. Entities such as partnerships, LLCs, or S corporations can take advantage of the provision.
The program is modeled after similar programs enacted in Connecticut and Wisconsin in 2018.
Although the Internal Revenue Service has moved to disallow workarounds that rely on providing a state tax credit for individuals who make contributions to state-sponsored or created charities, it has been silent on the types of programs enacted by Connecticut and Wisconsin, and the weight of professional opinion is that those programs are effective to avoid the $10,000 deduction limit.
How This Impacts Mobility
Worldwide ERC® members organized as pass-through entities in states adopting these programs could save gross-up dollars for transferees in those states.
California’s changes to their 593 reporting and income tax withholding requirements will affect the majority of reloc...
The trade agreement between the U.S. and China eases the trade dispute and provides U.S. companies manufacturing and...
Federally mandated regulations required states to pass legislation on the registration of appraisal management compan...
Sign up and receive the latest mobility news, articles, education and more as soon as it’s published.
Mobility is Worldwide ERC®’s monthly magazine, delivering industry and business news and updates, as well as insights on global talent mobility programs, tips and trends.
The Worldwide ERC community is the largest and most engaged group of mobility experts on the planet.