Archive for February 2021
Employee Retention Credit Overview
Is Vendor-Hosted Software Taxable? A New Rhode Island Ruling Offers Clarity to Providers
For sales tax purposes, when classifying a transaction as taxable software or a nontaxable service, states will often apply the “true object” test, and if the software is actually providing the service, then the state is likely to characterize the entire transaction as taxable software. By: Kristen Mantilla, State & Local Tax Associate at Aprio…
Read MoreIntercompany Transactions: How Diligent Documentation Can Help You Avoid B&O Tax Liability
Although intercompany transactions will typically net out for income tax purposes, that isn’t necessarily the case for states that impose gross receipts taxes. Taxpayers should properly document their intercompany transactions in order to qualify for any applicable exemptions; otherwise, both the payor and payee could owe tax on the same revenues. By: Tina M. Chunn, CPA,…
Read MoreThe Liquidation Exception to Business Income: When It Does and Doesn’t Apply
Some states provide an exemption to business income for liquidations and will instead classify gains from such transactions as nonbusiness income. However, the specific requirements for claiming the liquidation exemption must be satisfied, and states are likely to apply a narrow interpretation to those requirements. By: Betsy Tuck, State and Local Tax Manager at Aprio…
Read MoreFunded R&D Project Documentation is Essential to Claim Credits
The R&D federal tax credit is a lucrative benefit for small and large businesses across industries. But if you don’t have the right documentation to support your claim, you could wind up missing out on your hard-earned dollars. Case in point: In a 2019 ruling, the IRS denied R&D tax credits to 12 individuals who…
Read MorePrivate Equity Firms: Get a Tax Credit Worth up to $19K Per Employee
The ERC is an immediate cash lucrative benefit that can help support portfolio companies of PE firms’ growth goals through 2021 and beyond and is a cash benefit increasing Return on Investment to your owners and shareholders. To find out if you are eligible, watch this short video featuring Aprio experts Michael Levy and John Santamour.…
Read MoreMaryland’s RELIEF Act Expands Pass-through Entity Tax Election to Apply to Nonresidents
On February 13, 2021, the Maryland legislature approved Governor Larry Hogan’s Recovery for the Economy, Livelihoods, Industries, Entrepreneurs and Families (RELIEF) Act (Senate Bill 496). The $1 billion emergency legislative package includes up to $300 million of direct support for small businesses, but the RELIEF Act also made a very important change to the pass-through…
Read MoreThe Newly Extended Solar Investment Tax Credit Can Brighten Your Business
Despite the news coverage, the Consolidated Appropriations Act, signed by President Trump on Sunday, December 27, 2020, contains more legislation than just the second round of individual stimulus checks. The massive omnibus bill covers everything from pandemic relief to foreign aid and includes significant wins for the renewable energy sector. Introducing the Energy Act of 2020…
Read MoreEIDL Advances No Longer Reduce PPP Loan Forgiveness
On January 8, 2021, the U.S. Small Business Administration (SBA) issued a Procedural Notice (the Notice) – Repeal of Economic Injury Disaster Loan (EIDL) Advance Deduction Requirement for SBA Loan Forgiveness Remittances to Paycheck Protection Program (PPP) Lenders. The Notice Section 1110(e)(6) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) required the SBA to deduct the…
Read MoreAprio Announces 2021 Promotions
Promotions reflect firm’s strategic growth objectives ATLANTA – February 22, 2021 – Aprio, LLP, a nationally recognized, top 50 CPA-led business advisory firm, announced today the addition of one new partner and the promotion of two executives and one director. Marc Rosenkoetter has been admitted into the Aprio partner group. Rosenkoetter joined the firm in…
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