The votes have been tallied & we were announced as the BEST ACCOUNTING FIRM in Oklahoma City!
Thank you to everyone that voted for us!
The Oklahoma Legislature passed a new law to establish a revenue-neutral mechanism for a fairer and more simplified taxation of pass-through entities (PTEs) and their owners. The new law is intended to provide a work-around of the federal state and local tax (SALT) deduction limit for individual taxpayers that was created by the Tax Cuts and Jobs Act of 2017.
The Pass-Through Entity Tax Equity Act of 2019 (the Act) allows certain PTEs – those required to file either an Oklahoma partnership income tax return or an Oklahoma S corporation income tax return – to elect to pay income tax at the entity level, starting with tax year 2019. The Oklahoma source income or losses that the electing PTE includes in computing its tax will not be allocated to the PTE’s interest holders. Because the PTE itself – rather than its owners – will pay Oklahoma income tax on their distributive share of the PTE’s Oklahoma income, the federal $10,000 SALT deduction limit ($5,000 for single taxpayers and married couples filing separate return) will not apply.
Here’s how the tax levied on each electing PTE is calculated. First, the PTE owner’s Oklahoma distributive share of income for the tax year is multiplied by five percent (5%), if the owner is an individual, trust or estate, or by six percent (6%), if the owner is a corporation, another pass-through entity or a financial institution. Then, the amounts calculated with respect to all owners are combined to arrive at the pass-through entity tax for that year. The pass-through entity tax is due on the date of the filing of the electing PTE’s Oklahoma income tax return, and estimated tax payments will be required starting with tax year 2020.
The election to become an electing PTE revokes any election to file a composite Oklahoma partnership return or the requirement of an S corporation to report and pay tax on behalf of a nonresident shareholder for the same tax year. Furthermore, with the election in place, a nonresident individual who is an electing PTE’s owner is not required to file an Oklahoma income tax return if for that year (1) the individual’s only Oklahoma source income is from the electing PTE and (2) the electing PTE files its tax return and pays the pass-through entity tax due.
The election is binding until revoked by the electing PTE. The Oklahoma Tax Commission may also revoke the election if the pass-through entity tax is not paid when due. Each electing PTE will receive an OTC letter acknowledging the election, a copy of which must be attached to the electing PTE’s Oklahoma income tax return. In addition, the electing PTE must furnish a copy of the OTC acknowledgement letter to its owners and advise them of the requirement to attach it to their Oklahoma income tax returns.
For tax year 2019, the election to pay tax at the entity level must be filed by June 28, 2019. We will be reviewing your specific business circumstances to determine whether this election is beneficial to you and whether we recommend making this election for 2019.
The 2018 tax year has brought some of the most challenging tax law changes we have seen in a long time. Our firm has spent many hours in continuing education to learn the new tax law and how it affects various taxpayers. Unfortunately, the IRS has yet to address many unresolved issues. In addition, some of the tax forms have preliminary revisions available, but many are still a work in process. The IRS, tax software companies, and CPAs are all working to bring it all together in time for the 2019 filing deadlines. But with all the change and uncertainty, we expect delays to the start of the 2019 filing season.
Our priority is to complete accurate returns within the scope of the IRS rules and regulations. If we believe we cannot deliver that type of product due to a lack of guidance or available information, we will recommend that your tax return be extended.
Ever wonder how long you should keep your tax returns? Or maybe employee records? Below we have listed several items and the recommended amount of time they should be kept (electronic format or paper).
|Bank Statements and Canceled Checks||4 years|
|Canceled Checks for Key Transactions (taxes, purchases of property, etc.)||Permanent|
|Contracts and Leases||4 years|
|Stock and Bond Records||Permanent Until Sold|
|Deeds, Mortgages, and Bills of Sale||Permanent|
|Employee Records||3 years|
|Employment Applications||3 years|
|Business General Ledgers||Permanent|
|Insurance Policies (Expired)||6 years|
|Invoices from Vendors||3 years|
|Real Estate and Improvement Records||Permanent|
|Tax Returns and Related Documents||3 years|
|Financial Statements and Work Papers||Permanent|
The first thing that comes to your mind when you hear the word Respect. Go! .... It's the Aretha Franklin song, right?! I think most of us begin humming, or, start quietly singing the words to this song in our heads. But do we really LISTEN to the lyrics? One one hand, it's an energetic, catchy pop song. On the other hand, there was a huge political movement on the rise when she released the song in 1967. The literal interpretation of the song was: the voice of a strong, african american women demanding respect and showing her power during a time when such a person of those traits had very little of it.
We all want respect - so how do we get it? "When you look at people and consider their worth as human beings, it enourages you to treat them with deceny and dignity" - Character Core magazine. We all desire dignity, but in order to receive it we must dish it out as well (as the ol' golden rule goes 'treat others the way YOU would like to be treated). These are all choices we have to make as inviduals or we will never grow together! Here's more choices we should make to exemply the word RESPECT (via Character Core).
1. LOOK BEYOND APPEARANCES
Recognize each person's uniqueness and worth as a human being.
How does it make you feel when someone thinks (or you feel like someone thinks) they're better than you?
Who are some people in your life who are "more than they appear"?
2. RESPECT DIFFERENCES
Diversity in background, culture, ethnicity, etc., allows team members to see opportunities others might overlook.
How can having a diverse team helps you to identify new ways of doing things? And, in what ways would trying new things help you personally and professionally?
3. SHOW YOUR APPRECIATION
Show kindness because you care about others, not because you want something in return.
How can kindness help build relationships?
How can a culture of unkindness or rudeness impact the atmosphere at work and how you get along with others on your team or in your organization?
The information above was provided by Strata Leadership. Visit their website to learn more about their development program for businesses used for building teamwork, improving communication, and developing leaders.