New York State and Local Tax Updates June 2019

New York unveils new rate for wealthy taxpayers for 2020 tax year

June 26, 2019

New York’s tax new rate for wealthy taxpayers for tax year 2020 is as follows: For resident married taxpayers with income over $2,155,350, the tax imposed in 2020 will be $145,177, plus 8.82% for any amount over $2,155,350. For resident heads of households with income over $1,616,450 in 2020, the tax will be $108,804, plus 8.82% for any income over that amount that year. For resident single individuals and resident married individuals filing separate returns, the 2020 tax for income over $1,077,550 is $72,345, plus 8.82% for any income over $1,077,550. These amounts increase in 2021 and through 2024. The new rates are part of tax law changes signed by the governor in April.


Did you know that voluntary compliance is an option for NYC nonfilers?

June 19, 2019

Taxpayers (individuals, corporations, partnerships) who owe taxes to NYC and haven’t filed the necessary returns may be eligible to partake in the Voluntary Disclosure and Compliance Program (VDCP). If a taxpayer is accepted into the VDCP, the Department of Finance will waive penalties and may limit the number of periods that the taxpayer is required to file. The taxpayer will then receive a written commitment to waive penalties and a list of the periods for which returns must be filed. Those who don’t come forward may face penalties, interest and possible criminal prosecution, in addition to owing the tax amount due.

 


New York’s so-called “mansion tax” now falls to the seller when the buyer fails to pay it

June 19, 2019

The state’s Department of Taxation and Finance has issued a technical memorandum on this and other recent changes to the state’s real estate transfer taxes (RETT). The mansion tax, currently at 1% of the sale price on properties selling for more than $1 million, had been paid by the buyer. The memorandum also discusses multiple transfers and grandfathered conveyances. Also covered are the additional base tax levied on some NYC real estate transfers and the supplemental tax on certain NYC residential real property.

Read about it at https://on.ny.gov/2wTrK0g, and contact us for filing assistance.

 


New York haunted attractions are subject to sales tax

June 12, 2019

Haunted attractions are subject to sales tax. The Tax Appeals Tribunal has affirmed an administrative law judge’s (ALJ’s) ruling that a taxpayer’s charges to enter its Halloween-season haunted attractions are subject to the tax. There are five haunted attractions that patrons are required to pay a fee to enter. Each has an entrance, an exit and walls. The tribunal agreed with the ALJ that the fees should be taxed, because the attractions are places of amusement and not amusement devices. Each attraction, while temporary, is more substantive and less easy to move than an amusement device, the tribunal said. (Dkt. No. 826909)


New York updates itemized deductions for leased vehicles

June 5, 2019

Do you lease a vehicle? The New York Department of Taxation and Finance has issued an alert that Form IT-196-I (Instructions for Form IT-196: New York Resident, Nonresident, and Part-Year Resident Itemized Deductions) has been updated regarding leased vehicles. The change refers to the proper amount to be reported on line 24b of the “unreimbursed employee business expenses worksheet.” Affected taxpayers who’ve already filed their 2018 return may have to file an amended return. That’s if the amount of tax owed is affected or a refund is due.


New York’s new sales tax collection requirements for marketplace providers are in place

June 5, 2019

New York’s new sales tax collection requirements for marketplace providers are in place. Providers are now required to register with the state at least 20 days before starting business in NY (if not already registered to collect tax here). Persons who have no physical presence in NY must collect and remit the applicable sales tax if, in the previous four sales tax quarters, 1) the cumulative total of the person’s gross receipts from sales made or facilitated of tangible personal property delivered into the state exceeded $300,000, and 2) such person made or facilitated more than 100 sales of tangible personal property delivered into the state

© 2019

Scroll Up