Archive for April 2018
Georgia Issues Film Tax Credit Guidance Addressing Georgia Vendor Requirements
Production companies in Georgia who purchase or rent property from vendors located in Georgia may not be able to get film tax credits for the cost of obtaining that property if the vendor is really a conduit. By Tina M. Chunn, SALT senior manager The Georgia Film Credit was established to create economic growth by…
Read MoreIdaho Rules That Sale of LLC Interest Generates Apportionable Business Income
An Idaho tax commission decision explains when the sale of an LLC membership interest may give rise to apportionable business income. One of the most confusing aspects of state income taxation of business organizations is the distinction that many states make between business (or apportionable) income and nonbusiness (or allocable) income. Taxpayers often assume that…
Read MoreIndiana Relies on Federal Tax Rules to Recharacterize an Intercompany Loan as Equity
States have the authority to adjust federal taxable income (even if the IRS hasn’t) based on federal tax principles, as Indiana did in this case by recharacterizing debt as equity. When determining state taxable income, most states use federal taxable income as a starting point, thereby generally conforming to most Internal Revenue Code (“IRC”) provisions.…
Read MoreMassachusetts Rules that Credit Recapture Applies in a §338(h)(10) Transaction
When purchasing or selling a business, don’t ignore the potential state income tax impacts of a 338(h)(10) election. By Jess Johannesen, SALT manager In the context of business acquisitions, a corporation can purchase either the stock of another corporation (i.e., the target) or the assets of that corporation. From an income tax perspective, the buyer…
Read MoreMaryland Legislature Enacts Single Sales Factor Phase-In
On April 24, 2018, Maryland Governor Larry Hogan signed legislation HB1794 and SB1090 that will phase-in a single sales factor apportionment formula to be used by multistate corporations when calculating the portion of business income taxable in Maryland. The phase-in of the single sales factor will begin in the tax year 2018 and will be…
Read MoreDental Practice Lifecycle: Growth & Maintenance
After the start-up and acquisition phase is complete and you have a regular patient base established, you’ll find yourself in the growth and maintenance phase. At this point, you may be wondering how your practice compares to others in the industry or maybe you’re ambitious and curious about growing into a two-Practice owner (three-Practice, four-Practice…
Read MoreNew Form 5472 Filing Requirement for U.S. Disregarded Entities Owned by a Foreign Person
On December 13, 2016, the IRS issued new regulations (T.D. 9796) that requires U.S. disregarded entities owned by a foreign person to file the U.S. Federal Form 5472. The new Form 5472 filing requirement applies for tax years beginning after December 31, 2016, and ending on or after December 13, 2017. The Form 5472 is…
Read MoreThe IRS provides additional day to file and pay 2017 taxes following system issues
The IRS announced on Tuesday, April 17, 2018 that it was providing taxpayers with an additional day to file and pay their taxes after encountering system issues. Individuals and businesses that had a filing or payment due on April 17, 2018 now have until midnight on Wednesday, April 18, 2018 to make payment. The full…
Read MoreGeorgia Legislature Passes Several Tax Bills During Final Days of 2018 Session
By Jeff Glickman, SALT partner The Georgia General Assembly adjourned its 2018 legislative session on March 29, but not before passing several key pieces of tax legislation. Technical Correction for Treatment of Certain Foreign-Source Income A few weeks ago, we wrote an article on HB 918, the state’s IRC conformity bill and response to federal…
Read MoreNew Controlled Foreign Corporation Constructive Ownership Rule
The Tax Cuts and Jobs Act enacted in December 2017 changed a constructive ownership rule that determines whether a foreign corporation is a controlled foreign corporation (CFC) for US federal tax purposes. A CFC is any foreign corporation of which more than 50% of the vote or value is owned by US shareholders that own…
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