Governor Newsom just signed into law Senate Bill 113 (“SB 113”), which includes several taxpayer-friendly changes to the California elective passthrough entity tax (PTET). As a reminder, the PTET is designed to allow owners of qualifying passthrough entities (entities taxed as a partnership or an S corporation) to deduct state taxes on their share of […]
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California Offers a Workaround to the Federal Limitation on Tax Deductions
This post has been updated to reflect changes made by California Senate Bill 113 (“SB 113”), which was signed into law on February 9, 2022. Such changes are indicated in red below. As most of you may recall, the 2017 Tax Cuts and Jobs Act (“TCJA”) included a provision that imposed a $10,000 cap on […]
Additional extension of COVID relief for Qualified Opportunity Zone Funds
Last month, the IRS issued Notice 2021-10, providing further extensions of relief regarding qualified opportunity zone funds (“QOFs”) in light of the ongoing pandemic. Relief for QOF Investors: 180-Day Investment Period Generally, taxpayers have 180 days from the date gain is realized from a sale or exchange to reinvest those gains into a QOF and […]
Paycheck Protection Program
From the time the Paycheck Protection Program was introduced with the enactment of the CARES Act on March 27, 2020, numerous clarifications, changes, and guidance have been issued by the Small Business Administration. This page consolidates all of our past communications to our clients on the topic and will continue to be updated as more […]
PPP & Tax Provisions in Latest Stimulus Bill
As you may already be aware, last week, the President signed the Consolidated Appropriations Act of 2021, a new stimulus package intended to further extend financial relief to both businesses and individuals. Following are some of the highlights: 1. Deductibility of PPP-Funded Expenses The legislation provides that expenses paid for with proceeds from a PPP […]
Additional COVID-19 Relief for Qualified Opportunity Funds and Investors
Last week, the IRS released guidance (via Notice 2020-39) providing for additional flexibility relating to Qualified Opportunity Zone investments in light of the current pandemic. For your reference, following are the highlights: 180-Day Investment Period Generally taxpayers must reinvest capital gain in a qualified opportunity fund (QOF) within 180 days after the gain is realized […]
Tax Provisions in the CARES Act
The following is a summary of the tax provisions included in the CARES Act that was signed into law on March 27, 2020. BUSINESS TAX PROVISIONS: EMPLOYEE RETENTION CREDIT FOR EMPLOYERS SUBJECT TO CLOSURE DUE TO COVID-19 (SECTION 2301) Eligible employers can claim a refundable payroll tax credit equal to 50% of qualified wages […]
Main Street Lending Program
Last week on April 9th, the Federal Reserve and Treasury announced two new lending facilities as part of the Main Street Lending Program: the Main Street New Loan Facility and the Main Street Expanded Loan Facility. These facilities are intended to provide additional lending assistance to small and medium-size businesses. They also released guidance setting […]
Update Regarding Our Services and Tax Filing Due Dates
This post was last updated on April 10, 2020 to reflect recent changes in the federal and state filing and payment due dates and will continue to be updated as new developments arise. Dear Clients, During these unprecedented times, we sincerely hope that you and your families are healthy and safe. While the situation […]
California Adopts New Test for Classifying Workers as Employees
If your business has workers that you are classifying as independent contractors or you are currently operating as an independent contractor, please be aware that recent legislation in California may require that such workers (or you) be reclassified as employees under California law. Read on for more details: What has changed? The major piece of […]