Archive for September 2018
Illinois Adopts Regulation on Trade Show Nexus
The Illinois Department of Revenue adopted a new regulation addressing a safe harbor rule with respect to nexus arising from trade show attendance. Trade shows can be an indispensable means for businesses to promote their products and services. However, depending on the states in which trade shows are held, businesses may end up creating nexus…
Read MoreMaine Denies Owner a Tax Credit for New Hampshire Taxes Paid by Business
When a non-resident individual owns and operates a pass-through entity in a state that imposes entity-level taxes, the owner’s resident state may not provide a personal income tax credit according to a recent Maine Supreme Judicial Court opinion. By Tina M. Chunn, SALT senior manager When a state recognizes S corporations, LLCs and partnerships as pass-through…
Read MoreOregon Court Rules That Banks with No Physical Presence Have Corporate Income Tax Nexus
The Oregon Supreme Court ruled that two banks without physical presence still have income tax nexus in Oregon, impacting the computation of the group’s unitary tax liability. By Jess Johannesen, SALT Manager In states that permit or require unitary (combined) income tax filings, the unitary group will compute one combined apportionment percentage based on the factors…
Read MoreNew Jersey Denies Resident S-Corporation Shareholder Full Credit for Tax Paid to Pennsylvania
A New Jersey Tax Court opinion demonstrates that although resident individuals receive a credit for taxes paid to other states, the calculation of the credit can be subject to limitations. Generally, states provide their residents an income tax credit for taxes paid to another state on income earned in that state. Typically, that credit is…
Read MoreWayfair and Sales Tax Nexus: The Aftermath Part 2
Eleven more states will begin enforcement of their economic nexus sales tax rules beginning on Oct. 1, 2018. In our July 2018 SALT Newsletter, we wrote about the flurry of state activity leading up to and immediately following the United States Supreme Court decision in South Dakota v. Wayfair.[1] Guidance continues to be published by…
Read MoreThe Interplay of Tax Reform’s IC-DISC & Pass-Through Deduction: What We Know So Far
A key tax benefit for companies that do exports was at risk of getting killed from President Donald J. Trump’s Tax Cuts and Jobs Act, but was saved by aggressive lobbying from pass-through companies, Forbes, Industry Week and others have reported. Although the IC-DISC benefit is somewhat diminished because of lower overall income tax rates, the…
Read MoreDo You Know the Laws Governing Unclaimed Property in Your State?
It is not uncommon for nonprofit organizations to have uncashed checks, such as refunds from clients or customers or payments to vendors. These are only just some of the most common examples of unclaimed properties that could occur. By definition, unclaimed properties are intangible or tangible property that has been abandoned or lost by its rightful owner…
Read MoreThe Capitalized Costs of Cannabis
In 1937, Congress ratified the Marijuana Tax Act which made it illegal under federal law to deal in the business of buying or selling cannabis. In recent years, states have passed legislation of their own that makes the dealing of cannabis legal for medical or recreational purposes. However, these states are still in violation of…
Read MoreNew Tax Reform Carried Interest Rules Could Put CRE Investors at Odds with Developers
It was somewhat of a surprise in the final legislation President Donald J. Trump signed into law in late 2017 when the carried interest rules, also known as “promote” in the real estate community, were left mostly intact. Earlier versions of Trump’s tax reform proposal called for taxing all carried interest at ordinary income rates,…
Read MoreTwo Methods for Valuing Your Construction Company
“What’s the market value of my company?” is a question business owners often wonder about. However, coming up with an answer is far from easy. To help you make a ballpark estimate of your company’s value, here are instructions any contractor can use. We’ll address two commonly used valuation methods: capitalization of earnings and adjusted…
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