Tax law evolves every year. Here are the key changes for NJ small businesses and individuals.
NJ BAIT Updates
The BAIT continues with rates aligned to NJ individual brackets. The election is still made annually on the entity return.
Federal Bonus Depreciation Phase-Down
40% for 2025, 20% for 2026, 0% for 2027 unless extended. NJ doesn’t conform regardless.
NJ Minimum Wage Increases
Scheduled increases affect labor costs and payroll tax calculations.
IRS Enforcement Expansion
More audits, more collection activity, more scrutiny of pass-through entities. NJ businesses should ensure records are audit-ready.
What to Do
Review your tax situation with your CPA at least once during the year — not just at filing time.
Disclaimer: The information provided is for general educational purposes only and does not constitute tax, legal, or investment advice. This content is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Tax outcomes depend on your specific facts and circumstances. Viewing this material does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.
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