Archive for February 2019
Virginia Amends Residency Definition for Estates and Trusts
On February 15, Virginia amended its estate/trust residency statute by removing one of the definitions used to determine whether an estate or trust is a resident, and therefore subject to Virginia taxation. Prior to the amendment, under § 58.1-302 of the Code of Virginia, a Virginia “resident estate or trust” was defined as: Effective July…
Read MoreTax Saving Strategy: Hire Your Kids
One often overlooked tax saving strategy is to hire your children to work for your business, assuming they can legally work (e.g., age, permits, etc.). This can be a great opportunity to save money. Not only are your children’s wages deductible as a business expense, but there are also opportunities to save money on income…
Read MoreGeorgia Adopts Partnership Audit Procedure Regulations Similar to the New IRS Rules
Georgia has adopted regulations to provide further guidance on last year’s legislation establishing partnership audit rules similar to those enacted by the IRS. Starting with tax years that begin in 2018, the IRS adopted a new approach for managing audits of partnerships and their partners. Under the new rules, partnership-level adjustments are made at the…
Read MoreTaxpayer’s Invoicing Methodology Leads to Alabama Sales Tax Exposure
In cases where a business is selling both taxable goods and non-taxable services, sales tax may be due on the entire charge unless the business maintains appropriate documentation showing the separate prices for each. When determining how to invoice sales for both goods and services, there may be times that, for business reasons, a seller…
Read MoreNew Jersey Enacts Significant Corporation Business Tax Changes
New Jersey enacted major changes to its corporate business tax that will take effect in 2019, such as post-allocation net operating loss calculations as well as the adoption of market-bases sourcing for services and mandatory combined reporting. By Jeff Glickman, SALT Partner Major tax legislation enacted in New Jersey during 2018 made significant changes to the…
Read MoreNew York City Rules That Tax Gain from Sale of Partnership Interest is Subject to Corporate Tax
When a taxpayer sells an equity interest in a business, the gain from that sale may be taxable in the jurisdictions where the business is being conducted as opposed to the principal place of business of the taxpayer. By Jess Johannesen, SALT Manager Many of us are familiar with the general rule that as individuals, when…
Read MoreWashington Advises on Tax Treatment of Alarm Monitoring Services
As changes in technology intersect with changing sales tax rules, businesses may find themselves subject to new or different sales tax compliance obligations. By Tina M. Chunn, SALT Senior Manager As technological progress continues at its rapid pace, two trends are occurring that impact sales tax. First, many services are becoming more automated and require less…
Read MoreState & Local Tax (SALT) Newsletter February 2019
https://www.aprio.com/media/newsletters/SALTnews-2-19.html
Read MoreKey Items to Remember About Startup Funding Term Sheets
The phrase “term sheet” is often bandied about in the startup world. To the uninitiated, it may seem mystical. It isn’t. In the context of startup funding, a term sheet is a document that maps out the parameters of a funding deal between a startup and investors. As such, it can be simple or complex.…
Read More3 Ways to Use Retail to Diversify Your Restaurant Business
The public is spending more money at restaurants than ever — but it’s not always on dining. A milestone was reached in 2015 when the U.S. Census Bureau reported that restaurant industry sales (15 percent of all retail purchases) topped grocer sales (14 percent) for the first time ever. The USDA also reported an unprecedented shift…
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