Since Governor-Elect Murphy is set to take office later this month, we thought it would be instructive to offer up a brief primer and some additional thoughts on the new administration’s corporate tax plan for the Garden State.  To be more specific, the Murphy team has repeatedly called for closing a “loophole” in the Corporation Business Tax (“CBT”) by adopting something called combined reporting.

Continue Reading Combined Reporting Coming to New Jersey-The Good, The Bad and Other Policy Issues

Businesses that purchase or sell software, cloud computing resources or digital information services face a host of challenges when it comes to sales/use tax compliance.  The potential for unforeseen tax liability will only increase over time as software products and services become even more intricate and prevalent in the business world.

Vendors and providers of consumer products and services know the basic rules for sales tax but in the case of software and related services, the rules can be trickier.

Continue Reading A Taste of SALT for Software and Data Providers

On November 28, the New Jersey Tax Court issued an opinion in Infosys Limited of India, Inc. v. Director, Division of Taxation, Dck. No. 012060-2016, that denied the Division of Taxation’s attempt to tax foreign income subject to an income tax treaty between India and the U.S. and thus, not taxable for federal income tax purposes.  In granting summary judgment and a significant refund in favor of the taxpayer, the Tax Court addressed New Jersey’s position on what is included in a taxpayer’s entire net income subject to the Corporation Business Tax (“CBT”).  Entire net income with state-specific adjustments is the tax base for CBT purposes.

Continue Reading New Jersey Tax Court Says No to Taxing Foreign-Source Income

After years of tax policy and planning discussions, and following debates within committee during the last few months, the U.S. House of Representatives’ Ways and Means Committee yesterday released the first draft of the “Tax Cuts & Jobs Act” or H.R. 1 of the 115th Congress. The tax proposals have implications for those in the real estate industry.

Continue Reading Industry News -Tax Reform Update