How to Pay Taxes on a Lawsuit Settlement
Many individuals who settle a lawsuit do not stop to consider that they may need to set aside part of their settlement to pay the federal tax that may be due on it.
Opportunity Zones Offer Tax Deferrals to Real Estate Investors, But Benefits Should Be Weighed Against Like-Kind Exchanges
Real estate investors looking to shield their capital gains from tax are often curious about the Opportunity Zones that were created in the Bay Area following the adoption of the 2017 Tax Cut and Jobs Act to spur economic development in economically depressed areas. While these zones provide real estate investors with a wonderful opportunity […]
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 […]
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 […]
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 […]
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 […]
