This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Incometax often seems to grab most of the headlines, but salestax can make for a hefty crime – and punishment – too. A famous case recently examined in the TaxConnex podcast It Depends episode, “SalesTax Crimes - Pt. States are watching For Kozlowski, the salestax matter was a $3.2
There’s always something changing in the world of tax, especially salestax. The five-letter acronym stands for the states without a statewide salestax – New Hampshire, Oregon, Montana, Alaska and Delaware – and two of those states might be leaving the group sooner than later. NOMAD news.
When selling business assets, understanding the tax implications is crucial. One area to focus on is Section 1231 of the Internal Revenue Code, which governs the treatment of gains and losses from the sale or exchange of certain business property.
This can lead to auditors assuming transactions are taxable, or making historical projections or arbitrary assessments of taxable sales. SalesTax Accruals Ensure that salestax is stated in your general ledger as a separate GL account number. Invoices Keep both sales and purchase invoices well-organized.
When you sell across multiple states – or even within various localities in a single state – one striking observation emerges: the consistent inconsistency of salestax rates. The federal incometax has just seven brackets to cover the whole span of what somebody can make. Why do salestax rates have to be so complex?
Wayfair created enormous changes for businesses making remote sales into the states related to salestax. Could Wayfair have also impacted the way you manage your state incometax obligations? SalesTax Perspective. Salestax nexus can be physical or economic – or both. Wayfair, Inc.
S Corporations: Tax Preparation, Tax Planning, and the Benefits of Professional Tax Help S Corporations , often referred to as S Corps, are a popular business structure in the United States, particularly among small to medium-sized businesses. However, navigating the tax landscape for S Corps can be complex.
A lot of times regarding salestax, the answer to any question is, “It depends.” Covid created unique conditions for companies that must collect and remit salestax, including many temporary breaks regarding worker locations. has long included employees working in tax jurisdictions different from your office locations.
It’s that time of year again when everyone suddenly thinks about preparing their incometaxes. But does tax preparation incur salestaxes – and if it does, where and how? For some 90 years, states have levied salestax on goods (West Virginia was the first to do so , in 1921). Sourcing is huge.
A ccording to TaxConnex’s recent market survey of 100 top finance professionals, this could be the year to outsource salestax. Three of these execs’ biggest in-house deficiencies to managing salestax in 2022: bandwidth, internal knowledge and the right partner or solution. Seems like something needs to change.
October 15 th ended the last major incometax due dates in 2023. Most CPAs use the fourth quarter of the year for audit and tax planning for clients, strategic planning for the firm and of course, CPE. Both of these changes can directly impact your clients’ salestax responsibilities.
There’s always something changing in the world of tax, especially salestax. There are currently five states with no state-level salestax. Alaska has long heard rumblings of a statewide salestax. Tennessee has become yet another state to beat expected tax revenues. Developing updates.
The state’s SSUT has taken in more than $309 million overall during the current fiscal year – almost double the tax generated during all of fiscal 2018-19. Under the SSUT formula, 50 percent of all revenues from online sales from companies participating in the program go to the state. Salestaxes were up 8.2
There’s always something changing in the world of tax, especially salestax. Inflation and other spiraling prices have driven states’ lawmakers to consider relief via sales and other taxes. and nearly halve the state salestax on groceries, to 3.5%. Give us a break. Additional Updates.
You may have heard that Nevada LLC taxes are favorable to business owners. This is true if you plan to do business there, but keep in mind it’s rarely advantageous for out-of-state businesses to incorporate somewhere other than their home state; taxes accrue where you do business, not where you incorporate.
Federal IncomeTax Day, April 18 th , looms large in everybody’s mind right now. Too bad salestax doesn’t come with a deadline that simple. State salestax filing obligations come in a dizzying number of deadlines for you to follow (potentially with bad consequences if you don’t).
There’s always something changing in the world of tax, especially salestax. The fee will apply when at least one item is subject to sales or use tax and the delivery is mailed, shipped or delivered by motor vehicle. Wholesale sales or sales of exempt goods are not subject to the fee.
This time of year, everybody’s mind is on incometax preparation. The fact is, when it comes to many companies’ federal and state incometax returns, they don’t rely on an automated incometax return. Why should salestax be any different? Managing a tax calendar. They turn to experts.
You may expect to pay Uncle Sam the standard 15% or 20% federal incometax rate that usually applies to long-term capital gains from assets held for more than one year. However, some real estate gains can be taxed at higher rates due to depreciation deductions.
Soon after you start dealing with states’ salestax, you’re going to also run into another term: excise tax. What is excise tax? And is it different from salestax? A different kind of tax pie. Federal, state, and local governments can all impose excise taxes. Calculating and Charging.
If you sell into the handful of states that don’t have nexus or don’t have a general salestax, you might think you’re home free when it comes to obligations to remit salestax. Forty-five states and the District of Columbia have a statewide salestax. No salestax but…. Maybe, and maybe not.
One such phrase is “sales and use tax.”. We sure know what “sales” tax is. What about Use Tax? Use tax is defined ?as as a tax on the storage, use or consumption of a taxable item or service on which no salestax has been paid. Use tax or salestax is due on a sale, but not both.
If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets From a tax standpoint, a transaction can basically be structured in two ways: 1. Stock (or ownership interest) sale. Reasons: The corporation.
But while you’re thinking about how many square feet you’ll need in a retirement home, don’t forget to factor in state and local taxes. Establishing residency for state tax purposes may be more complicated than it initially appears to be. What are all applicable taxes?
Believe it or not, there are ways to collect tax-free income and gains. Here are some of the best opportunities to put money in your pocket without current federal incometax implications: Roth IRAs offer tax-free income accumulation and withdrawals. A large amount of profit from a home sale is tax-free.
As year-end approaches, consider making some moves to make the best tax use of paper losses and actual losses from your stock market investments. Tax rates on sales Individuals are subject to tax at a rate as high as 37% on short-term capital gains and ordinary income. net investment incometax.
Be aware of the tax implications if you’re selling your home or you sold one in 2023. You may owe capital gains tax and net investment incometax (NIIT). Here are the Tax Rules appeared first on Roger Rossmeisl, CPA. The post Selling Your Home for a Big Profit?
Nonprofits are often thought to be exempt from salestaxes, but is that correct? Other stats say more than 2 million charities exist that are tax-exempt according to Internal Revenue Service rules. Are non-profits exempt from salestax obligations? These same organizations are not necessarily exempt from salestax.
Of the 50 states, 45 (plus DC) charge a state-wide salestax. Two of those states that have a state-wide salestax, Missouri and Florida, have yet to adopt economic nexus standards set by the 2018 South Dakota v. 15 , which is reportedly projected to bring in about $1 billion a year in salestaxes and.
salestax post- Wayfair is confusing enough. You’ve heard it before that US sales & use tax laws are some of the most confusing, but how are things done with our neighbor to the north? The tax rates. Collectively, jurisdictions in Canada do impose less diverse salestax obligations than U.S.
Wouldn’t it be amazing if your online business had to deal with just a single salestax rate? Any business that sells into America knows that salestax is still a complex web of different rates and requirements. What is the latest word on uniform salestaxes globally? 25-Fair Tax Act of 2023.
In addition to state and local taxes, your business may also be subject to various federal and state regulatory obligations. Most taxes are administered by the state Departments of Revenue (DOR) and local jurisdictions. The remainder of this blog will discuss the various tax requirements for a telecom company. to 7 percent.
Operating your small business as a Qualified Small Business Corporation (QSBC) could be a tax-wise idea. That translates into a 0% federal incometax rate on QSBC stock sale profits! The post Tax-Favored Qualified Small Business Corporation Status Could Help Your Thrive appeared first on Roger Rossmeisl, CPA.
50 (AB-50) established the California Main Street Small Business Tax Credit II, which will provide COVID-19 financial relief to qualified small business employers. Small Business Tax Credit. Qualified small businesses will be able to offset either their incometaxes or their sales and use taxes with the credit when filing their.
When it comes to tax season, many people are faced with the decision of whether to prepare their own taxes or use an incometax preparation service. While it may seem like an added expense, there are many benefits to using a professional tax preparation service that make it well worth the cost.
Enrolled Agent: Comprehensive Tax Services for Individuals and Businesses When it comes to managing your taxes, finding a qualified and reliable tax professional is crucial. An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and is empowered by the U.S.
There’s always something changing in the world of tax, especially salestax. Midyear salestax. Among highlights: In some cases, local salestaxes exceed state rates. Among highlights: In some cases, local salestaxes exceed state rates. Tax breaks galore. Income we trust.
Be aware of the tax implications if you’re selling your home or you sold one in 2021. You may owe capital gains tax and net investment incometax (NIIT). Gain exclusion If you’re selling your principal residence, and meet certain requirements, you can exclude from tax up to $250,000 ($500,000 for joint filers) of gain.
All hail salestax! Taxing certain goods dates back as far as 4,000 years. Ancient Egypt taxed cooking oil, for instance. The tax was levied on a product people had to buy and were forbidden to reuse (coincidentally, the Pharaoh had a monopoly on production). Later, Caesar Augustus boosted the rate to 4%.
Mike Dunleavy is reportedly preparing to introduce a salestax as part of a long-term budget plan for the state. Five states don’t have a statewide salestax: New Hampshire, Oregon, Montana, Alaska and Delaware (aka the “NOMAD” states). Vermont was the last state to adopt a salestax, in 1969.
Salestax is broadly defined to mean any tax that is charged to the end-user customer by the retailer of property or services. Though this definition is correct, it does not always provide a complete picture of a business’s transactions tax liabilities. Missouri has local license taxes in most cities.
In our blog last week, we looked at how sales and use tax advisory services might be a good new field for CPAs and accounting firms. Another cost-effective approach to adding sales and use tax advisory services: partnering with sales and use tax experts. Review the salestax payable account.
If you have clients with businesses in multiple states, product or service sales in different states, or employees in other states, they need to know a thing or two about nexus.
New sources of tax revenue, old ones robust but sputtering in spots, tax holidays as political tools amid inflation: It’s been a year of new trends in salestax. Almost three out of four respondents reported that online sales as a percentage of revenue had increased since 2019 – no doubt fueled by pandemic eCommerce.
We organize all of the trending information in your field so you don't have to. Join 237,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content