Posts Tagged ‘taxes’

By: Jess Johannesen, Senior Manager, State & Local Tax Services At a Glance: The Main Takeaway: The New York State Tax Appeals Tribunal recently ruled that a New Jersey couple were statutory residents of the state on the basis that their vacation home constituted a “permanent place of abode.” Impact on You: This could have major implications…

By: Jeff Glickman, partner-in-charge of Aprio’s SALT practice At a Glance: The Main Takeaway: The Texas Comptroller of Public Accountants has adopted final amendments to its franchise tax apportionment regulation. Impact on Your Business: These updates may require businesses to revise the way in which they source their gross receipts. Next Steps: Below, we provide a brief…

By: Tina M. Chunn, CPA, State and Local Tax Senior Manager at Aprio At a Glance: The Main Takeaway: Two advisory opinions out of New York address the application of sales tax exemptions when purchasing equipment, which can often differ depending on how and what your business sells. Impact on Your Business: In this article, we break…

By: Betsy Tuck, State and Local Tax Manager at Aprio At a Glance: The Main Takeaway: In today’s growing, tech-fueled economy, it can be hard to distinguish a “service” from “software,” especially when it comes to assessing sales tax. Impact on Your Business: A recent letter ruling out of Tennessee looks at this issue and applies the…

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…

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,…

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…