Posts from: Tax News
California—Personal Income Tax: Supplemental Documentation Did Not Substantiate Claimed Deduction Amounts.
Supplemental documentation provided by taxpayers regarding their claimed California personal income tax deductions for ordinary and necessary expenses paid or incurred in carrying on a trade or business was not sufficient to overcome the presumption that... (more...)
Corporate Income Tax: Nexus Established Due to Employee’s In-State Activities
The FTB advises a taxpayer that its corporate subsidiary, which had a single employee located in California, was doing business in the state during pre-2011 tax years and therefore was subject to corporation franchise and income taxes during those years... (more...)
California—Personal Income Tax: FTB Contacting Nonfilers
The California Franchise Tax Board (FTB) is contacting more than 1 million people who did not file a 2011 state income tax return. The deadline to file was October 15, 2012. The FTB compares its records of filed tax returns with the more than 400 million... (more...)
Rental real estate offers tremendous tax advantages
Rental real estate offers tremendous tax advantages and opportunity for tax planning. Taxpayers, such as you, can depreciate property far exceeding your actual investment, deduct interest on borrowed capital, exchange rather than sell properties to defer... (more...)
Tax-Free IRA Distributions
The American Taxpayer Relief Act of 2012 (2012 Taxpayer Relief Act) extends through 2013 the provision which allows individuals who are at least 70½ by the end of the year to exclude from gross income qualified charitable distributions up to $100,000... (more...)
2012 Resolves Many Uncertainties
2012 Resolves Many Uncertainties, Creates Others; Sets Stage For Future Tax Reform. Uncertainty during 2012 over what tax laws would govern in 2013 and beyond because of the expiring Bush-era tax cuts clearly was the most significant development of the... (more...)
3.8 Percent Medicare Tax on Investment Income
The health care reform package (the Patient Protection and Affordable Care Act and the Health Care and education Reconciliation Act of 2010) imposes a new 3.8 percent Medicare contribution tax on the investment income of higher-income individuals. Although... (more...)