NEW TAX RELIEF BILLS HAVE BEEN SIGNED INTO ACTION BY THE GOVERNOR! In addition to granting tax refunds of $700 to qualifying taxpayers with California AGI up to $250,000 ($500,000 HOH), this bill also authorizes up to $1,050 for MFJ taxpayers who have California AMI over $500,000. The only downside is the payments will not arrive until the end of October (at the earliest). www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/middle-class-tax-refund.html#receive There are many things this … Read more
TAX MANAGEMENT IN THE VIRTUAL WORLD Recently we have seen how cryptocurrency investments can be very unpredictable. In November 2021, the cryptocurrency market peaked at about $3 trillion. Two months later, the cryptocurrency market plummeted over 40%, wiping out more than $1.2 trillion in a matter of months. This can be daunting to navigate, but just like any bear or bull cycle in the stock market, it can present opportunities to use … Read more
HOLDING PROPERTY IN A CORPORATION POTENTIAL ISSUES Holding property in an entity provides asset protection from creditors, but the type of entity holding the property will have a big tax impact; for example, partnerships have an edge over C or S corporations when it comes to getting the property back out of the entity. Weighing the pros and cons of different entities, whether real estate will be held in the … Read more
EMPLOYEE RETENTION TAX CREDIT As we approach tax season, the Employee Retention Credit (ERC) may be an important credit for businesses. The ERC is a fully refundable IRS payroll tax credit (not a loan) available to employers with the potential of up to $26,000 per employee in federal payroll taxes. Businesses that received round one and/or two of Paycheck Protection Program (PPP1 and PPP2) loans also qualify for the ERC. Benefits The … Read more
THE LOGISTICS: PAYING THE SALT WORKAROUND TAX We previously sent you information about the details of the SALT cap work around, or Pass-Through Entity (PTET) on November 8, 2021. Here is a brief recap and a link to the full article: The Franchise Tax Board has now published the PTE Elective Tax Payment Voucher (FTB 3893) on November 1, 2021. The voucher may be used by S corporations and partnerships to … Read more
STATE TAX DEDUCTION WORKAROUND This year California passed AB 150, which enacts an elective passthrough entity tax (PTET). The idea behind the PTET is to work around the $10,000 SALT deduction limit to an individual’s itemized deductions that came into effect back in 2018. Simply, qualified passthrough entities may pay tax on a consenting owner’s behalf based on the owner’s distributive share of income. The entity may then include that … Read more
EARLY RETIREMENT? 10 STEPS TO GET YOU THERE! When it comes to retirement, there is always a thought in the back of your mind saying, “how can I get there earlier?” Though some plan for traditional retirement, there is a vast majority that would love nothing more than to retire early to fully enjoy their golden years. With the right planning, that goal is achievable. There are 10 steps you … Read more
ADVANCE CHILD TAX CREDIT INFORMATION: WHAT YOU NEED TO KNOW Advance Child Tax Credit: The IRS created a Child Tax Credit Update Portal, it is a password-protected tool available to everyone with internet access from any device. You may check on your eligibility, payment status, or unenroll from this benefit. If you have an existing IRS account, you may use the same login credentials. For 2021 only, taxpayers can claim half … Read more
Proposed Tax Relief Bills: California’s Governor is expected to sign several tax-related and stimulus bills that the California General Assembly sent to him.
SB 139 will authorize a second Golden State Stimulus payment up to $1,100 per California taxpayer with an AGI of $75,000 or less. How much qualifying taxpayers will receive is dependent on their income, immigration status, and if they have dependents.
