Archive for October 2016
What is ‘Reasonable Security’?
Colorado Issues Guidance on Application of Factor Presence Nexus Rules
A taxpayer may have nexus in Colorado if more than $500,000 of its sales are sourced to the state, even if the taxpayer does not have a physical presence there. By Jess Johannesen, SALT manager Several states, including Colorado, have enacted laws in which out-of-state companies can establish income tax nexus without any physical presence…
Read MoreFlorida Concludes that Consolidated Group Ceases to Exist Upon Acquisition
Consolidated groups may be required to deconsolidate and file separate returns under certain circumstances, including transactions such as acquisitions and restructurings. By Alissa Graffius, SALT senior associate State may permit or require taxpayers to file using one or more of the following methodologies: separate returns, combined (unitary) returns, and/or consolidated returns. The rules for when…
Read MoreGeorgia Enacts New Tax Credit for Donations to Rural Hospitals
Georgia’s new Qualified Rural Hospital Organization Expense Tax Credit offers taxpayers a credit for up to 70 percent of their donation to an approved organization. A new, but limited-time, Georgia tax credit is available beginning next year for charity-minded individuals, corporations and fiduciaries. The Qualified Rural Hospital Organization Expense Tax Credit, or “QRH” Credit, provides…
Read MoreWashington Reminds Taxpayers that Transferring Equity Interests Can Result in Real Estate Transfer Tax
Some states apply real estate transfer tax to the sale of a controlling equity interest in an entity that owns real estate, as a recent Washington Tax Determination highlights. By Jeff Glickman, SALT partner States impose dozens of taxes, but in our practice or in our business, we mostly deal with the mainstream taxes such…
Read MoreThe Importance of Understanding § 467 Leases
Regardless of the work you do or industry you serve, there is a strong chance that rent makes up a significant portion of your company’s expenses and liabilities. And, that your lease agreement is longer than a single year. Is your firm correctly accounting for long-term lease liabilities if total rent payments are in excess of $250,000?…
Read MoreTreasury Issues Regulations that Discourage Tax Inversions
Controversial regulations restrict earnings stripping REGULATIONS DISTINGUISH BETWEEN DEBT AND EQUITY On Oct. 13, 2016, the U.S. Department of Treasury and the Internal Revenue Service (IRS) issued controversial final regulations to address earnings stripping. This action will further reduce the benefits of corporate tax inversions, level the playing field between U.S. and non-U.S. businesses and…
Read MoreHow Do I Account for Cloud Computing?
On April 15, 2015, the FASB issued ASU 2015-05 focusing on customer’s accounting for internal-use software especially fees paid in a Cloud Computing Arrangement (CCA). From time to time, lack of explicit guidance about fees paid in a CCA has caused unnecessary costs to organizations in extra accounting fees. The major changes in the update…
Read MoreWhat Is a Joint Activity?
A joint activity is the combination of fundraising and another function incorporated into a single activity. When accounting for joint activities, the criteria of purpose, audience and content must be met to allow for the fundraising and other programs to be accounted for separately. If these three criteria are not met, the entire joint activity…
Read MoreState & Local Tax (SALT) Newsletter October 2016
https://www.aprio.com/media/newsletters/SALTnews-10-16.html
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