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SPIDELL Tax • Analysis • Education   The CDTFA has announced that effective April 1, 2019, it will begin to impose the sales and use tax economic nexus thresholds approved by the U.S. Supreme Court in Wayfair, Inc. v. South Dakota. The CDTFA is applying these standards to both state and district taxes. Retailers with no physical presence in the state or in a district during the cu...

By Daryl Petrick In the case of South Dakota vs. Wayfair, the United States Supreme Court may have opened a Pandora’s Box of tax compliance problems around the world as states seek to collect taxes they believe are due to them. South Dakota sought to force the online seller Wayfair to collect its 4.5% sales taxes on behalf of the state.  Brick-and-mortar merchants have long complained about...

Meal and entertainment (M&E) expense, a common business expense, has been affected by the new Tax Cuts and Jobs Act (TCJA). Before TCJA, M&E expenses were generally allowed if the taxpayer could establish that the expenses were “directly related to” or “associated with” the active conduct of a trade or business, and were limited to a 50% deduction.  Under TCJA, for amounts pai...

On December 22, 2017, President Trump signed into law the “Tax Cuts and Jobs Act” bringing about numerous changes to the current tax law. The Act dramatically changes many tax provisions for individual and business taxpayers, including reducing tax rates, reducing or eliminating some deductions, while increasing or adding others, and changes to various credits and the alternative minimum tax (...

On December 22, 2017, President Trump signed into law the “Tax Cuts and Jobs Act” bringing about numerous changes to the current tax law. The Act dramatically changes many tax provisions for individual and business taxpayers, including reducing tax rates, reducing or eliminating some deductions, while increasing or adding others, and changes to various credits and the alternative minimum tax (...

With the surprising election of Donald Trump, and Republicans in control of both the House and Senate, the prospects for a major U.S. tax overhaul took a giant step forward recently.  Or did they? An interesting procedural anomaly may slow the pace of the aggressive strategy endorsed by the new President.  Tax legislation starts in Congress, not with the President (who certainly has influence...

In an effort to assist individual taxpayers in getting timely information to help them prepare their tax returns, Congress has enacted legislation which accelerates the due dates of certain tax forms.  Starting this year, businesses which file Form 1099-MISC to report nonemployee compensation will need to send those 1099s to both the recipients AND the IRS by January 31, 2017.  Late filers could...

For businesses or investors that acquire, construct, or substantially improve depreciable real estate, cost segregation studies can provide significant financial benefits. These studies apply engineering and cost accounting principles to identify costs that can be reallocated to asset classes with shorter depreciable lives. A cost segregation study can also enhance the benefits of bonus depreciati...

When it comes to protecting your assets, real estate presents a significant challenge. Unlike other types of assets — such as stocks, bonds, and bank accounts — real estate can’t be moved to another jurisdiction. If you’re concerned about your real estate’s vulnerability to creditors’ claims, here are several strategies to consider. As you review these techniques, be mindful of frau...