Last year, the Connecticut General Assembly enacted the pass-through entity tax at the flat rate of 6.99% on most pass-through entities, including partnerships, S corporations and limited liability companies that are treated as partnerships or S corporations for federal income tax purposes. Initially, each individual owner of a pass-through entity was entitled to a refundable
Earlier this year, the Connecticut legislature repealed the biannual business entity tax (“BET”) of $250 for years commencing on or after January 1, 2020. The BET applied to each limited liability company, limited liability partnership, limited partnership and S corporation formed under the laws of Connecticut or registered to do business in Connecticut.
Since the
On June 25, 2019, Governor Lamont signed into law “An Act Concerning Paid Family and Medical Leave,” (“PFMLA”) enacting what is reported to be the most generous family leave law in the country. The law provides employees with up to 12 weeks of paid leave (14 weeks for those incapacitated by pregnancy) in a 12-month
During the recently concluded 2019 legislative session, the Connecticut General Assembly passed an amendment of Connecticut General Statutes § 12-391(e)(2)(B) that is of critical importance to nonresidents who own real or tangible personal property located in Connecticut.
Prior to this amendment, some nonresidents formed business entities and transferred ownership of their Connecticut real or tangible
On July 1, 2019, President Trump signed into law the Taxpayer First Act of 2019 which, among other things, expands the types of tax-exempt organizations that must file their annual returns electronically.
Currently, a tax-exempt organization is required to e-file its annual Form 990-series return (990, 990-EZ, 990-N, 990-T or 990-PF) only if the tax-exempt
In our May 20 blog post, we noted we were following two bills – HB 7071 and SB 563 – pending in the Connecticut legislature that would have provided some welcome tax savings for Connecticut taxpayers facing substantial expenses for the home health care of their loved ones, and/or who may be purchasing long-term
On June 26, 2019, Governor Ned Lamont signed a $43.4 billion budget for the 2020 and 2021 fiscal years. The biennial budget addresses the projected $3.7 billion budget deficit for the period, but still increases spending by 1.7% in the 2020 fiscal year, and by 3.4% in the 2021 fiscal year. Although a letter dated
There has been some new significant activity relating to Connecticut’s Pass-Through Entity Tax.
First, the Connecticut Senate and House have adopted and sent to the Governor for signature a 2019 Budget Bill. One of the provisions in the Budget Bill would reduce the amount of the personal income tax credit that is currently available to
Connecticut is one of many states that imposes a corporate income tax on the unrelated business taxable income of tax-exempt organizations. Tax-exempt organizations subject to this tax include charitable organizations, social welfare organizations, business leagues, trade associations, and social clubs. Unrelated business taxable income is income from a regularly-carried on trade or business activity of
Shipman & Goodwin tax attorneys David Bigger and Robert Day III will be presenting the session “2019 Connecticut Tax Developments” at the Connecticut Tax Conference hosted by the Connecticut Business & Industry Association (CBIA).
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