In the case of Soltani-Amadi v. Commissioner (Tax Court Summary Opinion 2019-19), the Tax Court (the Court) has found that an early 401(k) distribution used for a first-time home purchase is subject to the 10% additional tax that is charged to early retirement account distributions. The Court found that the exception to the 10% additional tax for first-time home purchases applies to distributions from IRAs, not other qualified plans such as 401(k) accounts.

Read more: 401(k) Distribution for First-Time Home Purchase Subject to 10% Additional Tax

Author: Cathy Bryant

In anticipation of the extension of the off-payroll rules to the private sector in April 2020, the Government has published its draft legislation together with explanatory notes, policy paper and a fact sheet.  You can access these documents here. The content of the draft legislation had been well-trailed during the consultations on the subject and there are no surprises in the publication.

For readers who are unfamiliar with the off-payroll rules, the effect is to shift the taxing point for the deduction of income tax and national insurance contributions from the personal services company of the individual who provides the services, to the organisation to which the services are provided.  This result only comes about where an individual is delivering services in such a way that if the contractual arrangements are disregarded, the individual would be deemed to be an employee of the organisation receiving those services.

Read more: Off-Payroll Rules for the Private Sector – Draft UK Legislation Published

As many in California already know, the State does not conform automatically to new Federal tax legislation, including the Tax Cuts and Jobs Act enacted on December 22, 2017 (“TCJA”). Instead, any conforming changes must be enacted by the California legislature. On July 1, 2019, California Governor Gavin Newsom (D) signed Assembly Bill 91 “Loophole Closure and Small Business and Working Families Tax Relief Act of 2019” (“AB 91”). That legislation selectively conforms to some of the provisions of the TCJA.

Read more: California Enacts its Version of Limitation on Business Losses for Non-Corporate Taxpayers

Author: Asel Lindsey

Among the many benefits of investing in a qualified opportunity fund (QOF) is the deferral of tax on current capital gains. Specifically, if an amount equivalent to a current capital gain is invested in a QOF within 180 days of the realization event, the tax generally will not come due until the earlier of the year in which the QOF investment is disposed of or 2026. As an added benefit, there may be a reduction in the amount of the capital gain subject to tax (up to 15 percent) when the tax bill comes due.

Read more: Do You Know What the Capital Gains Rate Will Be in 2026?

Authors: Rod Jones, Partner and Donna Benge, Partner

AFCA is the new authority for dealing with complaints about Financial Firms and applies to complaints submitted from 1 November 2018.

The scheme is governed by Scheme Rules, Operational Guidelines to the Rules and a Transitional Superannuation Guide. These are extensive documents and this article is only intended to provide a very brief introduction to them.

Read more: A new dawn for superannuation complaints - Australian Financial Complaints Authority (AFCA)