Guidance on federal tax laws

The federal Tax Cuts and Jobs Act (TCJA) became law on December 22, 2017.  These Advisory Notices provide guidance on how certain TCJA provisions are treated for Philadelphia business and personal tax purposes.

Note: CARES Act amendment to business interest expense limitation will be posted on COVID-19 tax guidance webpage. 

 

Name Description Released Format
Advisory notice update (CLARIFICATION): Net Interest Expense Limitation [IRC Sec. 163(j)] PDF This note serves to clarify the May 29, 2019 Advisory notice about the treatment of Federal Interest Expense Limitation, for the purposes of filing Philadelphia's BIRT. July 26, 2019
Advisory notice update: Net Interest Expense Limitation [IRC Sec. 163(j)] PDF This text serves to notify taxpayers of the City’s treatment of the limitation on deductions for business interest under the new federal law, for the purposes of filing Philadelphia's BIRT. May 29, 2019
Advisory notice update: GILTI and FDII provisions PDF This text serves to notify taxpayers of the City’s treatment of Global Low Intangible Low-Taxed Income (“GILTI”) and Foreign-Derived Intangible Income Deduction (“FDII”) provisions for filing Philadelphia’s BIRT. February 15, 2019
Advisory notice update: Repatriation Transition Tax treatment PDF This text serves to notify taxpayers about the City of Philadelphia’s treatment of the federal Repatriation Transition Tax provision for the purposes of filing BIRT. February 1, 2019
IRC Section 199A deduction: Frequently Asked Questions PDF This text covers some of the most common questions about how the federal change to IRC Section 199A impacts Philadelphia business and income tax filings. January 17, 2019
Advisory notice update: Deducting employee business expenses PDF This text serves to notify taxpayers about the City of Philadelphia’s position on deducting employee business expenses and moving expenses January 16, 2019
Advisory notice update: Bonus depreciation position PDF This text serves to notify taxpayers about the City of Philadelphia’s position on bonus depreciation for BIRT and NPT purposes. August 1, 2018

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