Archive for December 2020
The Top 10 PPP changes in the Bipartisan Emergency COVID Relief Act of 2020
On December 21, 2020, Congress passed the Emergency Coronavirus Relief Act (the Act), a component of the Consolidated Appropriations Act, 2021, which includes significant updates to the Paycheck Protection Program (PPP). The Act will make $284.45 billion of additional funds available for the PPP and $13.5 billion for Economic Injury Disaster Loans also overseen by…
Read MoreFinal Regulations have been Issued for Section 1031 Like-kind exchanges
At a glance Main takeaway: The Treasury Department and IRS released final regulations on Section 1031, Like-Kind Exchanges. Qualifying taxpayers must complete Form 8824, Like-Kind Exchanges with their tax return for the year they transfer the property as part of a like-kind exchange. Impact on your business: In 2017, the enactment of the Tax Cuts…
Read MoreTennessee Issues Ruling on Survival of Net Operating Losses After Merger
When engaging in corporate mergers and acquisitions, including internal reorganizations, it is important for companies with state tax benefits, such as net operating losses, to be mindful of their treatment for state income tax purposes since not all states will permit those benefits to be used by the successor taxpayer. By: Tina M. Chunn, SALT…
Read MoreNew York Rules that Fees for Access to an Online Course Library are Not Subject to Sales Tax
With the rise in online learning, businesses offering these products and services need to be aware that the features offered and the manner in which they are provided can impact the state sales tax treatment. By: Kristen Mantilla, SALT Associate Through technological advancements, and perhaps more recently for health reasons, online learning has become more…
Read MoreOhio Court Holds that Taxpayer’s Receipts from Sale of Ohio-Based Contracts are Not Ohio Receipts
State revenue sourcing rules for services and intangibles often don’t provide clear answers. It’s important to analyze your transactions carefully to ensure that you are not overstating your state apportionment percentage. By: Jess Johannesen, SALT Senior Manager The Ohio Supreme Court recently ruled that a taxpayer’s receipts from the sale of Ohio-based customers’ security service…
Read MoreNew York Ruling Addresses Sales Tax on Single Charge for Software and Services
When a business provides multiple products/services, each one must be separately analyzed to determine taxability for sales tax purposes. If any one of those products/services are taxable, bundling them into one charge with the nontaxable services could make the entire amount taxable. By: Jess Johannesen, SALT Senior Manager For sales tax purposes, states vary in…
Read MoreDo You Know Where Your Employees Are?
Do you need a payroll tax review? As if complying with payroll-related taxes isn’t difficult enough, with telecommuting becoming the new normal due to COVID-19, do you know where your employees are actually working and are you withholding payroll taxes in the correct state? By: Jeff Glickman, SALT Partner Hello 2021, it’s great to see you.…
Read MoreIRS Approves Deduction for Entity-Level Income Tax Payment Made by Pass-Through Entities
In response to the $10,000 SALT deduction limitation under the Tax Cuts and Jobs Act, several states enacted pass-through entity-level income taxes as a workaround. Due to a recent Internal Revenue Service notice approving the workaround, expect more states to follow suit and find out what that may mean for you. By: Betsy Tuck, SALT…
Read MorePartner is Subject to California $800 LLC Fee Based on Flow-Through of Partnership Factors
When determining if a limited liability company is doing business in California and owes the $800 LLC Tax, it must take into account its share of any California property, payroll, and sales from a pass-through entity of which it is a member. By: Betsy Tuck, SALT Manager We have previously addressed whether a limited liability…
Read MoreHow the Biden Presidency Could Impact the Real Estate Industry
Aprio’s Partner-in-Charge of Real Estate and Construction Alan Vaughan shares the top five areas to keep an eye on in this 6-minute clip from a recent Real Estate webinar. He recommends having conversations and preparing for scenarios where changes happen to like-kind exchanges, capital gains tax and opportunity zones to name a few.
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