FOR BREAKING NEWS VISIT WWW.QNS.COM JUNE 22, 2017 • THE QUEENS COURIER 23
JOHN J.
CIAFONE, ESQ.
MILLION DOLLAR ADVOCATES FORUM
THE TOP TRIAL LAWYERS IN AMERICA TM
Your Partner
in the Struggle For Justice
Admitted in NY NJ
and Washington DC
Attorney At Law
25-59 Steinway Street
Astoria, NY 11103
718-278-3900
johnjciafone@yahoo.com
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BY JOHN SAVIGNANO
Personal Income Tax
Reduction in personal income tax
rates. For tax years 2018 through 2024
and after, adjustments will be made to
the personal income tax rates, including:
1) beginning in 2018, the 6.45% personal
income tax rate ($40,000-150,000
bracket) will be reduced by 0.12% each
year until it reaches 5.5% in 2025; and
2) beginning in 2018, the 6.65% personal
income tax rate $150,000-300,000
bracket) will be reduced by 0.08% until it
reaches 6% in 2025.
Millionaire tax extended. The budget
extends the top tax bracket of 8.82%
for two years (2018-2019), applicable to
unmarried individuals with an income
over $1 million, married persons and
surviving spouses with an income over
$2 million, and heads of the household
with an income over $1.5 million.
Charitable contribution deductions.
The budget sets forth an additional limitation
on charitable contribution deductions,
which will expire by the end of
2019. For individuals with New York
adjusted gross income (AGI) between $1
and $10 million, the deduction is limited
to 50%, and with individuals with New
York AGI over $10 million, the deduction
is limited to 25%.
Business Related Tax
Sale or transfer of a partnership interest
by nonresident partners. Generally,
for personal income tax purposes, the
sales of a partnership interest is treated
as a sale of an intangible asset, unless
the assets of such partnership include
New York real property and the value
of such property is 50% or more of the
total fair market value of all the partnership’s
assets on the date of sale. The budget
amends this provision by declaring
that the gain recognized from the sale
or transfer of a partnership interest by a
nonresident partner will be treated as the
sale of the underlying assets of the partnership,
and will generate New Yorksourced
income to the extent that the
assets associated are located in New York.
This provision is effective immediately.
Parent and disregarded entity single
taxpayer for tax credit purposes.
The New York Tax Appeals Tribunal
reversed New York’s longstanding policy,
ruling that a common parent and two
single-member limited liability companies
(SMLLCs) were to be treated as separate
entities in determining eligibility
for state tax credits based on the activities
of the SMLLCs. The act changes
the definition of SMLLCs, declaring that
they are single entities for purposes of
determining eligibility for New York tax
credits derived from their activities. This
provision applies retroactively to all tax
years in which the statute of limitation
is still open.
Sales and Use Tax
Transaction between related entities.
Effective immediately, the law amends
the term “retail sales” to include: 1) a
sale to a single member limited liability
company or subsidiaries that are disregarded
for federal income tax purposes,
for resale to a member or owner; 2)
sale to a partnership for resale to one or
more partners; and 3) sales to a trustee
for resale to a trust beneficiary.
Use tax imposed on nonresident businesses.
Effective immediately, the budget
act amends use tax for nonresident
businesses. Prior law allowed nonresident
businesses to bring property or services
into New York State for use without
incurring use tax; the act amends this by
stating that the use tax exemption will not
apply when a nonresident business has
not been doing business outside of New
York for more than six months prior to
the date of bringing the property or service
into New York. This does not, however,
apply to nonresident individuals.
Tax Credits
Investment tax credit reform. The bill
excludes tangible personal property and
other tangible property used by the taxpayer
in the production or distribution
of electricity, natural gas, steam, or water
delivered through pipes and mains from
the investment tax credit.
Workforce training credit. This is an
employee training incentive program
that provides a tax credit to New York
State employers that upgrade, retrain,
or improve the productivity of their
employees, as well as approved internship
programs that provide training in
advanced technologies.
Alternative fuels and electric vehicle
tax credit. This credit has been extended
for five years (through 2022).
John Savignano is a partner with
Savignano Accountants & Advisors
located at 47-46 Vernon Blvd., Second
Floor, in Long Island City. For questions,
dial 718-707-0955.
TAX TIPS
On April 10, 2017, Governor Andrew
Cuomo signed into law New York’s
2017/2018 Budget Bill, which contains
significant tax measures. This
article provides a summary of the key
legislative tax changes that affect
the state’s administration of its personal
income tax, business related
tax, sales and use tax, and tax credits.
