Update on states moving ahead with PTETs
States continue to move ahead with implementing new passthrough entity taxes as a workaround to the $10,000 cap on the federal deduction of state and local taxes.
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States continue to move ahead with implementing new passthrough entity taxes as a workaround to the $10,000 cap on the federal deduction of state and local taxes.
This item identifies key state and local tax considerations financial institutions should timely review to be compliant and avoid traps for the unwary.
Although the MTC’s revised interpretation will greatly restrict protections from state income taxes for some taxpayers, it could also present them with planning opportunities.
This item focuses on how states classify certain business taxes for these other-state tax credit purposes, using recent California developments to illustrate how states may analyze this issue.
taxpayers and practitioners face uncertainty regarding the timing of the deduction provided for in Notice 2020-75.
Businesses must increasingly depend on big data, sampling, and artificial intelligence tools to anticipate and prepare for audits from cash-strapped state and local governments.
This item reviews the most significant provisions of the TCJA and CARES Act affecting state corporate tax regimes and discusses state conformity issues that should be addressed by corporate taxpayers.
Complications of teleworking continue to arise, with each state making its own tax rules.
This item highlights a few issues taxpayers should consider in income taxation, sales taxation, and unclaimed property/escheat reporting.
The Multistate Tax Commission’s recent revision of its interpretation of P.L. 86-272 and corresponding state positions require remote sellers to reexamine their income tax nexus.
Tax practitioners should be aware of the The California Franchise Tax Board’s two-step approach to transactions involving Sec. 751 gain.
Merchandise held by Amazon in a Pennsylvania warehouse under a fulfillment program does not create Pennsylvania nexus for a nonresident retailer.
Many questions remain with respect to the deductibility at the federal level of state income tax payments made by passthrough entities under new state tax regimes enacted to ameliorate the effect of the cap for individuals on the deduction of state and local taxes.
Twenty-nine states have enacted a passthrough entity tax as a possible workaround to the federal state and local tax deduction cap.
Practitioners may face a difficult analysis in helping their clients understand their possible PTE election opportunities.
Small business owners describe scrambling to comply with varying sales tax compliance rules across a welter of jurisdictions.
An insufficient understanding of the rules can be dangerous to taxpayers when determining which entity has a filing responsibility in Tennessee.
This item focuses on income classification and revenue-sourcing issues, with California law used to illustrate how states may address such issues.
This item discusses how owners selling partnership interests should address which states may attempt to tax the entire gain, how taxation of the gain may be divided among the states where the partnership does business, compliance considerations, and technical developments and trends that may affect the transaction.
The $10,000 limitation on deducting state and local taxes stands after the Supreme Court refused to review a long-running lawsuit by New York and three other states.
DEDUCTIONS
Business meal deductions after the TCJA
This article discusses the history of the deduction of business meal expenses and the new rules under the TCJA and the regulations and provides a framework for documenting and substantiating the deduction.
TAX RELIEF
Quirks spurred by COVID-19 tax relief
This article discusses some procedural and administrative quirks that have emerged with the new tax legislative, regulatory, and procedural guidance related to COVID-19.