Archive for the ‘Kentucky’ Category

The Real Impact of the Wynne Decision

Tuesday, May 19th, 2015

Yesterday’s decision in Comptroller of the Treasury of Maryland v Wynne Et Ux generated some reporting in print media. Yet much of what I saw was incorrect in part or in whole.

New York does give full tax credits for individuals with out-of-state income; I do not believe they will be impacted. However, many states do not give credits for local taxes. Joe Kristan highlighted Iowa today; Kentucky is another state that does not currently offer such tax credits. Under Wynne I believe they’ll be required to offer such credits. (I only know about Kentucky because I had a client impacted by this.) Joe noted that Tax Analysts saw that North Carolina and Wisconsin (along with a host of local governments) also don’t offer such credits. That’s where I think the real impact will be.

A Bipartisan Tax Bill? I’ll Drink to That!

Wednesday, February 11th, 2015

There hasn’t been much bipartisanship on Capitol Hill recently. But there is a piece of legislation that is being proposed by both Democrats and Republicans. It’s to end age discrimination against bourbon and whiskey.

You didn’t know that there was such discrimination? Well, it’s not at the liquor store; rather, it’s in the Tax Code. One of the fundamentals of accounting is to match expenses against revenue. The problem for bourbon and whiskey is that it must age, so the expenses must wait until the product is sold. As this article from the Louisville Courier-Journal notes, a bipartisan group of Kentucky and Tennessee Congressmen would like to change that. They would like bourbon and whiskey producers to be able to take their expenses as incurred.

We’ll have to wait and see if this measure gains any traction in Congress. If it does, bourbon producers will certainly be drinking up for the success.