Archive for January 2021
Oregon Rules That Dividends and Gains From the Sale of Subsidiaries Are Not Taxable
Although income from an intangible asset may meet the state’s definition of apportionable “business income,” the asset from which such income is derived must still satisfy the Constitutional requirement for apportionment by serving an operational function within the business. By: Jess Johannesen, CPA, State and Local Tax Senior Manager at Aprio The Oregon Tax Court…
Read MoreArkansas Legal Opinion Highlights the Treatment of Services Provided with the Sale of Property
When a seller of goods also provides services in connection with its product sales, those services may be subject to sales tax even if such services would not be taxable when sold on a stand-alone basis. In addition, how the seller invoices for those goods and services may impact taxability. By: Kristen Mantilla, State and…
Read MoreDoes Participation at a Trade Show (Post-COVID) Create Sales Tax Nexus?
Hopefully, in a post-COVID world, in-person trade shows will give businesses an opportunity to market and display their goods and services, but participants must be aware of the potential sales tax nexus consequences. By: Tina M. Chunn, CPA, State and Local Tax Senior Manager at Aprio At Aprio, we field many questions from clients around state…
Read MoreNew International Tax Reporting Required with Partnership and S Corporation Tax Returns
In recent years, the IRS has continued to emphasize U.S. international tax reporting as a high enforcement priority. U.S. taxpayers with outbound activities in other countries are subject to strict U.S. international tax reporting requirements that require certain disclosures to the IRS. Substantial penalties apply for noncompliance. Many of the international tax reporting forms are…
Read MoreS Corporation Acquisitions with Foreign Target Corporations
There are a couple of different structuring options for the acquisition of an S corporation. A buyer that is a corporation will consider making an election that will recharacterize a sale of S corporation stock as a sale of assets. This election creates a fiction of an asset sale that can provide a substantial tax benefit…
Read MoreU.S. Government Contractors and Foreign Branch Reporting on Form 8858
Beginning with the tax year 2018, the IRS now requires US taxpayers to file the US federal Form 8858 to report foreign branch activity. The Form 8858 is filed by attaching it to the US taxpayer’s US federal income tax return. The filing due date of the Form 8858 is the same as the due date…
Read MoreThe Pulse – What’s happening in the Economy and the Capital Markets : 1/18/21 – 1/22/21
Executive Summary The economy and the markets are continuing their healthy start to the year — recent government data shows that the residential housing market continues to rebound, and high-frequency data also shows recovery. At the same time, the markets are shifting toward technology, which is a beneficiary of the slower-than-expected pace of global vaccinations.…
Read MoreMaryland’s Pass-through Entity Tax Election: Is There a Benefit for Restaurants, Hotels, Distributors and Retailers?
Recent IRS and Maryland publications have provided additional guidance and clarification on Maryland’s pass-through entity (PTE) tax election. The election is a response to the Tax Cuts and Jobs Act (TCJA) of 2017 limiting the state and local tax (SALT) deduction to $10,000 and decreasing many taxpayers’ total itemized deductions. After dispelling some of the…
Read MoreThe Key Reporting Changes Provider Relief Fund Recipients Should Know for 2021
The Key Reporting Changes Provider Relief Fund Recipients Should Know for 2021 Healthcare providers that received Provider Relief Fund (PRF) payments exceeding $10,000 in aggregate should take note: the U.S. Department of Health and Human Services (HHS) announced on January 15, 2021, a delay in the opening of the PRF Reporting Portal and applicable reporting…
Read MoreExamining PPP Updates for Your Dental Practice Webinar January 15, 2021
Learn how the latest stimulus bill can affect your dental practice The Consolidated Appropriations Act, 2021 (the Act) was passed by Congress on December 21 and includes some significant changes to the Paycheck Protection Program (PPP). The Act not only provides for a second draw for certain borrowers, but it includes a flurry of changes…
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