President Biden’s Tax Plan Could Raise Taxes on Corporations and the Wealthy
It was not the centerpiece of his campaign, but President Joe Biden took office in January touting a tax plan that he says will help the middle-class Americans by shifting some of their tax burden back to corporations and the wealthy. Among other things, Biden has proposed returning the top individual income tax rate to […]
The Federal Export Incentives Offered IC-DISCs Provide Businesses with Significant Tax Savings
Export incentives are assistance provided by governments to help businesses sell products in foreign markets. The only federal export incentive currently being offered in the U.S. provides tax savings to companies utilizing interest charge domestic international sales corporations (IC-DISCs). An IC-DISC is organized by the shareholders or partners of an exporting business that operates as […]
The Property Tax Government Foreclosure Process
Late Payment of Property Tax Bill Results in an Immediate Lien, but Owners have Five Years to Pay Before it is Sold at a Tax Sale When California property owners do not pay their property taxes–or fail to pay them on time–the overdue taxes are converted into a tax lien. Owners who fail to pay […]
The Tax Implications of Receiving a Windfall
If you had the opportunity to receive free money, what would you say? ‘Yes’ would be the rational answer. But an even smarter person would ask: What’s the catch? When it comes to windfalls, it’s important to know that there are always strings attached. And most of the time, they’re in the form of taxes. […]
New Subchapter 5 Bankruptcy Proceeding Makes It Easier For Small Businesses to Reorganize While Continuing Operations
They have received little publicity, but recent changes to the U.S. Bankruptcy Code have made it easier for small businesses to restructure under Chapter 11 and discharge their debts while continuing their operations. The first change was made by the Small Business Reorganization Act of 2019, which took effect on February 19, 2020, and added […]
The Insurance Mandate Isn’t Just About Penalties, California is also Helping Low- to Middle-Income Residents Buy Coverage
California’s new individual health insurance mandate went into effect in January 2020. Under the mandate, Californians who do not maintain the minimum essential coverage (MEC) for themselves and their dependents will be subject to a tax penalty unless they qualify for an exemption under the new law.
Bay Area Small Businesses Have A Variety Of Options For Financial Assistance To Weather The COVID-19 Crisis
With much of the media coverage focusing on the funding shortfalls faced by the federal Paycheck Protection Program (PPP), it is understandable how Bay Area small business owners could believe that program is the only available option to help them stay solvent during the COVID-19 pandemic. In fact, there are a number of other federal, […]
Pursuing Out-of-State Business Opportunities May Lead to Tax Complications
Whether you have invested in a partnership that is looking to invest in rental properties in another state or a software consultant thinking about taking on out-of-state clients, expanding operations beyond your home state is likely to raise complex tax issues. Those issues usually stem from the need to divide your earnings between states for […]
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 […]
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 […]
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 […]
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 […]
