26 THE QUEENS COURIER • MAY 2, 2019 FOR BREAKING NEWS VISIT WWW.QNS.COM
TAX TIPS
Changes Affecting
Connecticut Personal
Income Taxes Call Now & End Your Tax Nightmare!
BY JOHN SAVIGNANO, CPA
The Tax Cuts and Jobs Act of 2017 made significant
revisions to federal personal income taxation. In
response, the Connecticut General Assembly enacted
legislative changes that effect the Connecticut personal
income tax calculation.
Modification of IRC Section 168(k) Bonus Depreciation
For taxable years beginning on or after January 1, 2017,
a taxpayer who deducts Internal Revenue Code (IRC)
section 168(k) bonus depreciation on his federal income
tax return for property placed in service after September
27, 2017, must add back such deduction when computing
Connecticut adjusted gross income.
Modification of IRC Section 179 Deduction
For taxable years beginning on or after January 1, 2018,
taxpayers must add back 80% of the IRC section 179
deduction taken for federal income tax purposes.
Subtraction Modification of Bioscience Investment
Income
Beginning on or after January 1, 2018, a general partner
of a qualified venture capital fund (as defined in the Code
of Federal Regulations) can, in calculating Connecticut
adjusted gross income, subtract the income generated by
investments in eligible Connecticut bioscience businesses
that was included in federal adjusted gross income.
Payment by Pass-Through Entities on Behalf of
Nonresident Partners and Shareholders
Beginning on or after January 1, 2018, partnerships and
S corporations doing business in Connecticut or with
Connecticut-sourced income are no longer required to
pay Connecticut income tax on behalf of their non
partners or shareholders.
Penalty for Failure to Disclose Reportable Transactions
After January 1, 2018, audits of returns where there is a
failure to disclose a reportable transaction (as defined in
the IRC section 6707A) that is also required to be
disclosed for federal purposes will be subject to a 75%
penalty.
More Changes to Come
Because Connecticut is facing a large budget deficit,
additional tax changes are expected for the 2019
legislative session. Most recently, Connecticut’s new
governor proposed massive sales and use tax changes that
effect most industries, including a proposal for sales tax
on professional accounting services.
John Savignano is a partner with Savignano Accountants
& Advisors located at 47-46 Vernon Blvd., Second Floor, in
Long Island City. If you have any questions or require
additional information, please call John at 718-707-0955.
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Co-Author of the
best selling book
“Breaking the Tax Code”
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Salvatore P. Candela, EA, ATA, ABA
Enrolled Agent - Tax Advisor
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