Posts by Jess Johannesen
New York Concludes that Loss on Liquidation of Partnership is Not New York Source Income
New York has a unique rule for nonresident individuals regarding the sourcing of gain/loss on the sale of equity interest in certain entities that own real estate located in the state, and this advisory opinion highlights a potential opportunity to avoid New York tax on the sale of that equity interest. By: Jess Johannesen, SALT…
Read MoreOhio Finds that Auto Finance Company’s Receipts are Not “Gross Receipts” Under the Commercial Activity Tax
Ohio’s gross receipts-based Commercial Activity Tax (CAT) excludes from the tax certain categories of receipts, including those from certain financial transactions, so it is important for taxpayers to be aware of the nature of their transactions in order to not overpay their CAT liabilities. By Jess Johannesen, SALT Manager Ohio’s Commercial Activity Tax (“CAT”) is a…
Read MoreMassachusetts Explains Application of Multiple Points of Use Exemption for Software Transactions
For businesses that purchase software that will be used concurrently by users in multiple states, sales tax rules may allow the purchaser to provide the seller documentation that certifies the percentage of usage in each state, which could minimize the purchaser’s sales and use tax liability. By Jess Johannesen, SALT Manager State tax laws have always…
Read MoreWyoming Rules That Sale of Business Assets Was Subject to Sales Tax
While most states provide a sales tax exemption for sales of business assets, the specific language of these exemptions differs among jurisdictions, and taxpayers that do not structure their transactions properly may find themselves on the wrong end of a sales tax dispute. By Jess Johannesen, SALT Manager When engaged in a transaction to buy/sell a…
Read MoreMassachusetts Will Allow Residents to Claim Tax Credit for the Connecticut Pass-Through Entity Tax
Massachusetts issued a draft directive that will permit resident members of pass-through entities that pay the new Connecticut Pass-Through Entity Tax to claim a tax credit for their share of the tax paid. By Jess Johannesen, SALT Manager In our May 2018 SALT Newsletter, we wrote about the Connecticut Pass-Through Entity Tax (“PTE Tax”) that had…
Read MoreNew York Court Holds that Competitive Price Audits Constitute Taxable Information Services
In applying the “personal and individual” exclusion to otherwise taxable information services, New York’s high court looked to the nature of the information as opposed to the manner in which the service was customized to the purchaser’s specifications. By Jess Johannesen, SALT Manager New York is one of a number of states that imposes sales tax…
Read MoreTexas Rules That Taxpayer is Providing Taxable Data Processing Services
Whether a particular service should be classified for sales tax purposes as an exempt information service or a taxable data processing service is not always clear, and choosing incorrectly can result in unexpected sales tax exposures. By Jess Johannesen, SALT Manager As technology continues to evolve and reshape the way that businesses operate, state tax laws…
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 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 MoreLocal Louisiana Jurisdiction Rules That Walmart.com is Required to Collect Sales Tax on Third-Party Sales
In this Louisiana court decision, one local parish argued successfully that Walmart.com was responsible for collecting and remitting local sales tax on sales made by third-party retailers on its website, potentially exposing marketplace facilitators to a myriad of complex local sale tax compliance obligations. By Jess Johannesen, SALT Manager In Aprio’s October 2018 SALT Newsletter, we…
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