2019 Connecticut Tax Changes
The Connecticut legislature passed a number of tax changes in it's 2019 session. Effective October 1, 2019, the sales tax on meals will increase from 6.35% to 7.35%, the rate on all alcoholic beverages other than beer will increase by 10%, and the tax on beer sold to-go at craft breweries will be reduced by 50%. Starting January 1, 2020, safety apparel, dry cleaning and laundry, and interior design services for individuals will become subject to sales tax.
For 2019, the pass-through entity tax credit has been reduced from 93.01% to 87.5%.
The income tax exemption for teacher's retirement payments will remain at 25% for two more years.
Starting October 1, 2019, facilitators of short-term home rentals will be required to collect and remit the room occupancy tax on behalf of the operators renting their homes.
In an effort to work around the federal limitation on deducting state and local taxes (SALT), the legislature has directed DRS to gather information to study whether the state should adopt a new payroll tax of five percent. The DRS is developing a form that all employers must complete and return by October 1, 2019. For more information on this proposed payroll tax, click HERE.
Connecticut Overhauls Trust Laws
The Connecticut legislature also passed new rules on trusts during its last session. Among the changes is the adoption of the Uniform Trust Code which was developed by the National Conference of Commissioners on Uniform State Laws in 2014. The new law permits the creation of self-settled domestic asset protection trusts, which can shield assets from the claims of most future creditors of the grantor. It will also be possible to create a "Dynasty Trust" that can last up to 800 years; previously the limit was 90 years. These changes are effective January 1, 2020 and bring new opportunities for estate planning.
Keep Your Personal Information Safe
We are pleased to be sponsoring the next Old Saybrook Chamber of Commerce shredding event. This is an opportunity to protect yourself from identity theft by having papers that contain your personal information shredded. All shredding will be done on site by a commercial company and supervised by CPAs from Lewitz, Balosie, Wollack, Rayner & Giroux, LLC. All proceeds will go to support the Chamber's activities.
Information on how long the IRS recommends you keep records can be found HERE.
A word of caution: this is a very brief summary and does not include all of the details that may impact your individual situation. Please contact us if you would like more information.
About Lewitz, Balosie, Wollack,
Rayner & Giroux, LLC
We provide accounting, tax, and financial services to individuals, businesses, nonprofit organizations, estates, and trusts. Our services include tax return preparation, software consulting, and compilations, reviews, and audits of financial statements. We have been located in the shoreline community of Old Saybrook, Connecticut for over 60 years. Feel free to contact us if we can be of service. We can be reached at 860-388-4451.
Our client's privacy is very important to us. We do not contract outside of our firm to have others work with client's information, nor do we send any client information outside of the United States.