Tax Articles

23 12, 2020

Proposition 19 Client Alert

2020-12-23T00:30:11+00:00December 23rd, 2020|Tax Articles|

California voters recently approved Proposition 19, which may significantly increase property taxes when real property is transferred between a parent and child. This Client Alert explains the changes to current law and what to consider in deciding whether to take action before the new law takes effect on February 16, 2021.

Current Law Regarding Parent-Child Transfers

Under current law, a parent can transfer Continue Reading

18 12, 2020

California Small Business Hiring Tax Credit Application Period Underway

2020-12-18T23:06:56+00:00December 18th, 2020|Tax Articles|

On September 9, 2020, Senate Bill 1447 was signed into law and created a new tax credit aimed at providing relief to struggling small businesses. SB 1447 provides certain small businesses with a $1,000 tax credit for each net increase to full-time employees. Applications are allocated on a first-come, first-served basis, and are being accepted from December 1, 2020, through January Continue Reading

14 12, 2020

The CARES Act and Qualified Improvement Property

2020-12-14T21:14:06+00:00December 14th, 2020|Tax Articles|

A provision of the Coronavirus Aid, Relief and Economic Security (CARES) Act has provided a much-anticipated technical amendment regarding “qualified improvement property” (QIP). This provision corrected a flaw in the Tax Cuts and Jobs Act (TCJA) of 2017, and has made QIP eligible for bonus depreciation of 100%, applied retroactively to tax years beginning after December 31, 2017.

Before the passage of Continue Reading

13 12, 2020

Section 199A, SSTBs and Related Parties

2021-01-09T00:42:11+00:00December 13th, 2020|Tax Articles|

Introduction. The Tax Cuts and Jobs Act of 2017 (the “Act”) added Section 199A to the Internal Revenue Code (the “Code”). Section 199A provides a deduction that reduces the effective tax rate on qualified business income (“QBI”) for owners of businesses taxed as sole proprietorships, partnerships, limited partnerships, limited liability companies, S corporations and similar pass-through entities (each hereinafter, a “pass-through Continue Reading

12 12, 2020

The Long Arm of California’s Franchise Tax Board

2021-01-09T00:42:40+00:00December 12th, 2020|Tax Articles|

In two recent decisions, both of which will be precedential, the California Office of Tax Appeals (OTA) ruled against taxpayers and in favor of the California Franchise Tax Board (FTB), as the FTB demonstrated its long reach when it comes to collecting taxes.

In its opinion in The Matter of the Appeal of Aroya Investments I, LLC, issued on July 7, 2020, Continue Reading