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On February 7, 2017, Steve Moyer, Tax Director here at Canon Capital, was invited to attend the Bloomberg BNA 2017 Outlook on Tax Reform in Washington, DC. The keynote speaker at the conference was Kevin Brady, US Congressman and Chairman of the House Ways and Means Committee, the main tax-writing arm of the US Government. Congressman Brady spoke about the House plan, “A Better Way,” for tax reform and highlighted the key aspects of the plan, along with the proposed timing for this new Bill.

This new tax bill would be the most sweeping tax reform we have seen in the last thirty years. The last major tax reform legislation of this magnitude was the Tax Reform Act of 1986, signed into law by President Ronald Reagan. Some of the same motivations to reform the tax code thirty years ago are again at the forefront of tax reform today: the desire to simplify the Code, make it fairer, and to flatten the tax brackets. Congressman Brady spoke on the vision for making the code simpler and fairer, lowering the tax rates for both individuals and businesses, and creating a new IRS that would put taxpayers first.

Read More “Tax Reform Outlook for 2017”

We first wrote about TPR — “Tangible Property Regulations” — last year, sharing how this change in for-profit tax law created unique and unprecedented challenges during the January-April 2015 tax season. In fact, despite it being called it the “most dramatic change to for-profit tax law since the 1986 overhaul” nearly two-thirds of tax preparers didn’t even know about it.

TPR affects the three main areas of business operation: Materials and Supplies, Repairs and Maintenance, and Capitalized Expenditures. These changes are very favorable to the taxpayer, adopting a much more liberal definition of “repair” and a stricter definition of “capital assets.” This allows many more items to be expensed immediately as repairs or maintenance vs. the previous requirement that they be capitalized and written off (depreciated) over a number of years.

Learn more about TPR and how it affects your business on Wednesday, February 1, 2017, when Canon Capital’s Brent Thompson will present on the topic at the Indian Valley Chamber of Commerce’s Business Builder Breakfast, held at the Franconia Heritage Banquet and Conference Center. Breakfast is served at 7:30 a.m. with the seminar following 8:00 a.m. – 9:00 a.m. Cost is $30.00 per person for Indian Valley Chamber of Commerce members; $45 for non-members. Register online.

As always, if you have questions about how TPR affects your business, we are happy to help. Contact us or call 215-723-4881.

It’s that time of year! The Generations of Indian Valley Annual Reindeer Run hits the streets of Souderton Saturday, December 3 at 8 am. We will be there outside our Souderton location with water for the runners, many of whom will once again be wearing their reindeer antlers and favorite ugly Christmas sweater. Our own Vicki Freed will be participating in the 1K Fun Walk portion of the event. The Reindeer Run benefits the programs of Generations of Indian Valley, including their Meals on Wheels service.

This day before Thanksgiving brings new developments regarding anticipated changes in payroll rules and regulations.

The Overtime Rule

We recently shared the news that new payroll regulations going into effect December 1, 2016, would raise the salary threshold for overtime pay. Yesterday, a federal judge in the U.S. District Court for the Eastern District of Texas halted this new overtime rule while proceedings continue in a lawsuit filed against it. Until a final decision is reached, employers may continue to follow the existing overtime rule. The Society for Human Resource Management has the complete report here.

Pennsylvania/New Jersey Payroll Tax Change Reversal

Governor Chris Christie has reversed his decision to end the reciprocal payroll tax agreement between New Jersey and Pennsylvania on December 31, 2016. The new arrangement would have made Pennsylvania residents working in New Jersey subject to New Jersey income tax and New Jersey residents working in Pennsylvania subject to the Pennsylvania income tax.

With this reversal, the 40-year-old reciprocal agreement, which allows commuters to pay income tax to the state where they live instead of the state where they work, will remain intact.

If you have any questions about these new developments or other payroll concerns, please contact us. We are here to be your guide.

New Jersey Employers of Pennsylvania Residents

We are always here to answer any questions or address concerns. Contact us or call 215-723-4881.

Our fourth Financial Literacy Seminar — Best Year-End Tax Strategies and Tips — begins in just over one hour, at 3:00 pm, and we’d like to invite you to join us via Webinar.

It’s as simple as clicking this link from your computer, tablet, or smartphone.

You can also access the seminar via phone: 646-749-3112. Access Code: 633-504-845.

This seminar is geared toward individuals who wish to learn about and make use of tax savings strategies for the current year.

You’ll learn:

• Strategies to minimize taxes for the 2016 calendar year
• Tax law changes affecting 2016 returns
• Possible changes based on political party taxation policies

We hope you’ll find this informative and helpful as the close of another year approaches.