Archive for March 2019
Guidance Issued on Calculating and Reporting the QBI Deduction for Tax-Exempt Trusts
The IRS has issued guidance to tax-exempt trusts with unrelated business income, which claim the §199A Qualified Business Income (QBI) deduction. The guidance explains where trusts filing Form 990-T with unrelated business income are to report the QBI deduction and states that QBI does not include items of income, gain, deduction, and loss from any…
Read MoreVirginia is for Lovers—and Internet Sales Tax
Virginia became the latest jurisdiction to implement an economic nexus standard for sales and use tax, which will require many out-of-state retailers to collect Virginia sales tax. The legislation, SB 1083, which became law on March 26, 2019, will take effect on July 1, 2019. This gives Virginia retailers a few months to determine the…
Read MoreIndiana Rules on Employee/Contractor Status for Unemployment Insurance Tax
Worker classification issues don’t just impact federal taxes, and businesses that misclassify workers can be held liable for state unemployment and other payroll-related taxes. Businesses frequently rely on the performance of services by others, whether employees or contractors, to conduct their activities. To the extent an employer-employee relationship exists, the employer is conferred with significant…
Read MoreSeveral States Address Rules on the Proper Use of Resale Certificates
The rules regarding when it is appropriate to provide a resale certificate are not always clear, and businesses that issue resale certificates incorrectly can be subject to sales tax liabilities. By Tina M. Chunn, SALT Senior Manager Resale certificates are used by retailers to purchase goods for resale in its present form or as a component…
Read MoreWashington Enacts New Economic Nexus Rules for B&O and Sales Taxes
Recent legislation in Washington will expand Business & Occupation Tax nexus to capture more businesses and imposes certain reporting requirements on marketplace facilitators. By Jeff Glickman, SALT Partner On March 14, 2019, Washington Governor Inslee signed into legislation Substitute Senate Bill 5581, which made changes to certain economic nexus provisions under the states Business & Occupation…
Read MoreMaine Supreme Court Upholds Reduction of Taxpayer’s Credit for Taxes Paid to Norwegian County
When claiming resident tax credits for taxes paid to other jurisdictions (even ones outside the U.S.), the taxpayer must recalculate the amount of income subject to tax in the other jurisdiction as determined under the resident state’s rules. By Jess Johannesen, SALT Manager As an individual earning income in multiple states throughout the year, you’re paying…
Read MoreIs This Your Situation: Managing Restricted Funds for a Nonprofit Organization?
At a glance Main takeaway: Nonprofits often receive substantial donations with specific requirements on how the donor would like their financial gift to be used. For nonprofits, this type of donation is categorized as restricted funds. Impact on your business: While it’s a common practice, nonprofits need to learn how to manage restricted funds properly…
Read MoreAccepting Cryptocurrency Donations for Not-for-Profits
At a glance Main takeaway: Accepting cryptocurrency may appeal to your donor base, introduce new funding streams and lead to more and larger donations. However, the risks and safeguards must be considered and addressed. Impact on your business: What began with Bitcoin has grown to include more than 20,000 cryptocurrencies. Their widespread use and popularity…
Read MoreDid You Know that Your Nonprofit Organization is Exempt from Paying Property Taxes?
At a glance Main takeaway: Did you know that nonprofit organizations, by law, can also be exempt from paying property taxes? In the State of California, the Welfare Exemption provides just that for both real and business personal property if used exclusively for purposes directly related to the nonprofit. Impact on your business: California is…
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