Tag Archive: "California"
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FinCEN Takes Action to Combat Money Laundering in Real Estate
The Financial Crimes Enforcement Network (FinCEN) has announced the renewal of its Geographic Targeting Orders (GTOs) which require U.S. title insurance companies to identify the natural persons behind shell companies used in non-financed purchases of residential real estate. FinCEN issued a notice of proposed anti-money laundering regulation in the residential real estate sector in February […]
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Reporting Like-Kind Exchanges to California
The State of California generally conforms to Internal Revenue Code Section 1031, as revised by the Tax Cuts and Jobs Act of 2017.1 Like-kind exchanges are reported on California Form 3840 when there is an exchange of one or more California real properties for one or more real properties located outside of California; and if […]
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Tax Basis Capital Account Reporting Now Required by California
Beginning with the 2023 tax year, and for every taxable year thereafter, the California Franchise Tax Board (FTB) will require taxpayers who file Form 565 or Form 568 to report its partners’ or members’ capital accounts on the Schedule K-1 using the tax basis method as determined under California law. The FTB instructs taxpayers to […]
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A Nice Surprise for California Taxpayers and Practitioners on October 16th
Today, the Internal Revenue Service (IRS) further postponed tax deadlines for most California taxpayers (55 of California’s 58 counties, all except Lassen, Modoc and Shasta counties, qualify) from October 16, 2023 to November 16, 2023. While the State of California generally conforms to disaster relief extensions announced by the IRS, final confirmation from the Franchise […]
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Tax Deadlines Extended for Disaster Area Taxpayers in California, Alabama and Georgia
In late February, the Internal Revenue Service (IRS) announced that taxpayers in most of California (all but seven counties) and for parts of Alabama and Georgia would have until October 16, 2023 to file their individual and business tax returns and to make certain tax payments. The previous tax deadlines were already postponed to May […]
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California Franchise Tax Board Defers Capital Account Analysis Methodology (Again) for the 2022 Tax Year
On Monday, the California Franchise Tax Board (FTB) released Notice 2023-1, permitting taxpayers who file Form 565 or Form 568 to report its partners’ or members’ capital accounts on Schedule K-1 (565) or Schedule K-1 (568) using the tax basis method as determined under federal law, as reported on Schedule K-1 (Form 1065) or by […]
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IRS Provides Relief for Those Affected by California Weather
In response to the severe flooding that has affected many California residents beginning January 8, 2023, the IRS has announced an extension for tax filings and payments for those affected by the disaster. The disaster area covers the counties of Colusa, El Dorado, Glenn, Humboldt, Los Angeles, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, Orange, Placer, […]
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California SB 113 Expands Pass-Through Entity Elective Tax Benefits
Since the passing of the Tax Cuts and Jobs Act (TCJA) in late 2017, numerous states have enacted a workaround to the state and local tax (SALT) deduction cap of $10,000 by allowing pass-through entities to elect to be taxed at the entity level. On July 16, 2021 California Governor Newsom signed Assembly Bill (AB) […]
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Reminder of Recent California Tax Law Change
A significant change to the California Revenue and Taxation Code was made as part of California Assembly Bill (AB) 85. California law imposes an annual minimum franchise tax of $800 on every corporation and an annual tax of $800 on every Limited Liability Company (LLC), Limited Liability Partnership (LLP), and Limited Partnership (LP). Under AB […]
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Nexus in California
Investing in the fifth largest GDP in the world is usually a sound investment strategy. But dodging one of the most aggressive taxing authorities is probably not. The State of California’s Office of Tax Appeals recently published their decision on whether certain appellants established nexus in California under Revenue & Taxation Code (R&TC) section 23101 […]