SS Social Media Tax Update 2/9/24
As we are entering the 2024 tax season, the following are some changes that may
impact the filing of Federal, DE, PA or NJ returns this year and beyond.
Pennsylvania
• For tax years beginning on or after January 1, 2023 for PA Personal Income tax
purposes:
o Pennsylvania has increased the Section 179 expensing limit from $25,000 to
$1,160,000
o Pennsylvania will conform to the Federal IRC Section 1031 Like-kind exchange
treatment
• For tax years beginning on or after January 1, 2025:
o Pennsylvania will conform to the Federal Grantor Trust treatment, allowing the
grantor or owner of the trust to report the annual activity
New Jersey
• For tax years beginning on or after January 1, 2023:
o Single Factor Sales Apportionment will be utilized for Gross Income Tax
(GIT) and NJ Business Alternative Income Tax (BAIT) purposes
• Effective for taxable years beginning after December 22, 2022:
o New Jersey will recognize the Federal “S” Election for new Corporations, a
separate NJ “S” Election will no longer be necessary for new corps
Federal and State Underpayment Rates continue to increase as interest
rates increase
• As of January 2024 Underpayment penalties will be calculated using the following
annual rates:
Federal Delaware Pennsylvania New Jersey
8.0% 6.0% 8.0% 11.5%
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