The Reporting and Tax Implications of Accepting Foreign Funding for Your Business
When it comes to raising money to grow their business an increasing number of Bay Area entrepreneurs are considering bringing in foreign stakeholders to help meet their funding needs. Foreign investors can be a great source of ready cash, but before accepting their help businesses need to recognize that doing so usually means additional reporting […]
Governor Eases California’s 60-Day Notice Requirement for Layoffs Under State’s WARN Act Due to COVID-19 Outbreak
California Governor Gavin Newsom has aided Bay Area businesses struggling to cope with the novel coronavirus (COVID-19) pandemic by easing the notice requirements for layoffs and terminations under the state’s WARN Act. Employers are no longer required to give 60 days’ notice prior to layoffs ore terminations of 50 or more employees under the March […]
California Businesses Need to Review Classification of Independent Contractors to Ensure Compliance with New Gig Worker Law
Beginning January 1 of this year, California businesses must comply with new legislation making it significantly more difficult for them to use the independent contractor designation to avoid the expenses involved in providing employee benefits. The law, California Assembly Bill 5 (AB 5), will require many businesses to reclassify their California-based independent contractors as employees. […]
California’s WARN Act is Unclear on Whether Bay Area Employers Must Give 60 Days Notice of Layoffs Related to COVID-19 Outbreak
The recently issued shelter-in-place orders issued by most Bay Area counties as part of their efforts to stem the spread of the novel coronavirus (COVID-19) has left numerous local businesses without access to either employees or customers. Unfortunately for those businesses, it is unclear as to whether they can lay off employees without giving 60 […]
How Should Bay Area Property Owners Shield Parent-Child Real Estate Transfers from Increased Tax Assessments?
In 1986 California amended its constitution to allow parents to pass real estate on to their children without subjecting their children to the spike in property taxes that accompanies changes in ownership in areas where real estate values have increased. This is often a significant issue for Bay Area residents who are seeking to pass […]
Payments for Attorneys and Non-Employee Services Must be Reported on New Form 1099-NEC Beginning in 2020
For the 2020 tax year, the IRS has implemented a new rule requiring that nonemployee compensation of more than $600 paid by a business, including payments to attorneys, over the course of a year must be made on a Form 1099-NEC. Those payments had previously been reported on the Form 1099-MISC. The payments that must […]
How Do You Avoid the Capital Gains Tax on the Profits from a Home Sale?
If you live in the Bay Area and sold your home in the last year there is a good chance you sold it for considerably more than you paid for it. Traditionally, you would need to pay the capital gains tax on those profits. Luckily, the federal government provides a home sale exclusion allowing you […]
Answers to Employer Questions about CalSavers Compliance
After numerous studies showed that workers weren’t saving enough for retirement, California was one of 10 states to have implemented a mandatory state retirement plan. The California plan, known as CalSavers, requires that employers with no retirement plan and five or more employees register by the time it is fully phased-in on June 30, 2022. […]
The Tax Implications of Foreign Income if You Are a U.S. Green Card Holder
If you have been issued a U.S. green card you are currently a tax resident of the U.S. beginning the year you were issued the card. That means you are required to report all of your income to the IRS, regardless of whether it was earned in the U.S. or abroad. The good news for […]
Nine Steps Small Businesses Should Take to Build Business Credit
Most small businesses get their initial funding either through a cash infusion from the savings of an owner, or through a personal loan taken out by an owner, but once the business is up and running it should establish a separate credit history. A separate credit history will allow a business to secure a loan […]
A Case Study On Functionize
About Functionize Functionize was founded in 2015 by Tamas Cser as the first truly intelligent, cloud-based software testing solution. Now testers and developers can experience the true value of a cloud-first approach, expediting testing and speeding up the entire development cycle. Quality assurance has long been in need of a smarter solution that can keep […]
Amazon’s Use of Common Federal Tax Breaks to Eliminate its Federal Tax Bill
The fact that Amazon paid no federal tax in 2018 made national news last year, but one aspect of the story that has been little noticed here in the Bay Area is how the federal tax breaks the company used to wipe out its federal tax bill likely benefited our local economy. The company has […]
How are Capital Gains Recognized and Taxed?
The Federal long-term capital gains tax is a tax imposed on a taxpayer’s profits from the sale of assets that were purchased as an investment or for personal use and have been held for more than one year. A taxpayer only becomes liable for paying the capital gains tax when an asset is sold, therefore […]
What Businesses Qualify for the R&D Tax Credit and Which Expenses are Eligible?
The federal research and development tax credit (R&D credit) is one of the U.S. government’s primary means for rewarding businesses that invest money in research. It was initially implemented as a temporary measure in 1981, but was made permanent and expanded in 2015 through the Tax Cuts and Jobs Act. In addition to the federal […]
How Are Bitcoin and Other Virtual Currencies Taxed?
Bitcoin and other virtual currencies are no longer a novelty, but many individuals and companies are unaware of the federal and state tax ramifications of using them in transactions. It might seem hard to believe, but bitcoin has been around for a decade and the IRS laid out the rules for reporting and taxing the […]
The Future is CODEaccounting
The ability to crunch numbers in a variety of approaches and attain valuable information to better understand the current position and move accordingly in an attempt to gain a better stance can now happen in a blink of an eye. Accounting that is now paired with continuous auditing and reporting has been around for a […]
Surviving an Audit
Bookkeeping – This will be advice from our firm on how to pass an IRS audit. It should go over your options for setting up payment plans, exactly what documents the IRS will Request, and how businesses can prepare themselves for each of those requests. It should then offer Code Accounting’s services as a solution […]
REPORTING PAYMENTS TO VENDORS
You’ll need to do it, so make sure to do it right. All businesses make payments to vendors. But are you required to report these payments to the IRS? It depends on who you are making payments to and the amount being paid during the year. Various types of Forms 1099 must be provided to […]
Recent Changes in Tax Law: Restructuring of the Board of Equalization, New Tax Laws of 2017 Filing Seasons, and What to be Aware of in 2018
Introduction This guide will: Update you on the recent change in the State Board of Equalization Let you know how you or your business will be affected Outline some key changes to tax law during the 2017 filing season Make you aware of upcoming changes in the 2018 filing season Code Accounting Business Solutions If […]
Keeping your Gains
In the financial world, capital refers to the things you own that have value. When you sell those things, you either make more than the original cost, sell for less than the original cost, and in rare instances, break even. This is a painfully simple explanation of the concept of a “capital gain” and a […]
