Posts Tagged ‘Tax Reform’
The Inflation Reduction Act – What US Companies and Individual Taxpayers Need to Know
At a glance The main takeaway: On August 16, 2022, President Biden signed the Inflation Reduction Act into law. The $750 billion bill, passed through the Budget Reconciliation Process, contains a number of provisions that address healthcare, climate change and energy efficiency. Impact on your business: The act includes several tax increase provisions largely aimed at…
Read MoreNew CHIPS Tax Credit Provides Opportunities and Complexity for Companies and Investors in Superconductor Manufacturing
At a glance The main takeaway: The recently passed CHIPS Act creates a new Advanced Manufacturing Tax Credit to provide incentives for US companies to invest in domestic semiconductor manufacturing. The Act allows a credit of up to 25% of qualified investment amounts in facilities or equipment used to manufacture semiconductors in the US. There are…
Read MoreWashington Rules that Sales Tax Applies to Online Account Access Services
By: Tina Chunn, SALT Senior Manager At a glance The main takeaway: A taxpayer’s services provided through an online banking platform were classified as digital automated services by the state of Washington and thus deemed taxable. Assess the impact: Accurately classifying services provided via online platforms for sales tax purposes can be complicated due to…
Read MoreLegislative Tax Updates that New York and Georgia Taxpayers Should Know
By: Jeff Glickman, SALT Partner At a glance The main takeaway: The latest legislation in New York provides pass-through entities with one last chance to make a pass-through entity tax election for 2022, and the Georgia legislature enacted several notable tax bills. Assess the impact: If you’re a pass-through entity in New York, you now…
Read MoreCalifornia Court Upholds Taxpayers’ $12 Million Assessment for San Francisco Transfer Taxes
By: Jess Johannesen, SALT Senior Manager At a glance The situation: A recent California Appellate Court opinion sheds light on how local taxes can trigger high tax assessments and create costly consequences for certain business transactions where real estate is involved. Impact on your business: The case in question serves as an important reminder that…
Read MoreCalifornia Issues New Ruling on Sourcing Service Revenue, Revokes Prior Guidance
By: Aspen Fairchild, SALT Senior Associate At a glance: Key takeaway: In March, the California Franchise Tax Board issued a legal ruling that revises its interpretation for sourcing service revenue for California apportionment and revokes prior guidance. Impact on your business: The ruling impacts prior apportionment positions as well as nexus, since California imposes an…
Read MoreU.S. Tax Planning Opportunities for Bona Fide Residents of Puerto Rico
At a glance: The main takeaway: There are several lucrative tax benefits and incentives available to certain U.S. taxpayers who relocate to Puerto Rico. Impact on taxpayers: Before relocating, it’s important for taxpayers to ensure and document that all U.S. and Puerto Rican requirements are met in preparation of any audit. Next steps: Consult with international tax specialists…
Read MoreGeorgia Election to Pay Tax at the Pass-Through Entity Level
At a glance The main takeaway: Effective beginning the 2022 tax year, Georgia has joined many other states in allowing pass-through entities (PTEs), namely S corporations, partnerships and LLCs taxed as partnerships, to pay Georgia state income tax at the entity level. This legislation is intended to lessen the impact on individuals of the deduction limitation…
Read MoreThe OECD’s Two-Pillar Solution Poses Big Tax Changes for International Businesses. Will You Be Affected?
At a glance The main takeaway: The Organisation for Economic Cooperation and Development’s (OECD) Two-Pillar Solution is intended to address tax challenges presented by increased digitalization in the global marketplace. Impact on your business: Many multinational businesses will be affected by the Pillar Two Model Rules, specifically the Global Anti-Base Erosion (GLoBE) rules, which impose…
Read MoreDigital Asset Staking: Your Top Tax Questions, Answered
At a glance The main takeaway: A U.S. District Court case out of Tennessee calls into question the taxability of staking rewards — specifically, whether those rewards generate taxable income. Impact on your business: Taxpayers who engage in staking, mining or similar activities currently operate in a tax “limbo,” but that may change with the development of…
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