Tax reform changes qualified moving expense reimbursements
Under the Tax Cuts and Jobs Act, employers must include moving expense reimbursements in employees’ taxable wages.
Generally, members of the U.S. Armed Forces can exclude qualified moving reimbursements if:
- They’re on active duty
- They move per a military order and incident to a permanent change of station
- The moving expenses would qualify as a deduction if they didn’t get reimbursement
Employers may exclude any 2018 reimbursements or payments on behalf of employees for a move that took place before January 1, 2018, and would have been deductible had they been paid before that date.
Tax reform affects employee achievement awards
The Tax Cuts and Jobs Act prohibits certain property as an employee achievement award.
The law allows employers to deduct the cost of certain awards and exclude them from employees’ income. But this doesn’t apply if the award is cash, gift cards and other nontangible personal property including:
- Tickets to theater or sporting events
- Stocks, bonds, and securities
- Other similar items
For more information visit IRS.gov.
Tax law creates new opportunity zone program
Recent changes in the tax law created qualified opportunity zones to encourage tax-favored investment in distressed communities throughout the country and U.S. territories. Under the new law, investors may be able to defer tax on almost all capital gains they invest after Dec. 31, 2017, through Dec. 31, 2026.
To qualify for deferral:
· capital gains must be invested in a qualified opportunity fund (QOF) within 180 days
· the fund must hold at least 90 percent of its assets in qualified opportunity zone property
· investment in the QOF must be an equity interest, not a debt interest
For a complete list of opportunity zones, see Notice 2018-48. More information is on the Tax Reform page of IRS.gov.