Schedule C: Doing business in CA as a single member LLC

Something you may need to beware of is the single member LLC (SMLLC) rules of California. Even if you have a net LOSS. Take note that if you are a single member LLC doing business in California, you may happen to fall into a small category of certain filing requirements. As a single member LLC, …

Keep Reading

AZ sues CA over “doing business” interpretation

In the latest battle over the position of the Franchise Tax Board on taxpayers doing business in California, the State of Arizona has decided to sue California. Arizona is alleging that California is imposing an unconstitutional tax against Arizona businesses and individuals who don’t conduct any business in California. California currently imposes the California $800 …

Keep Reading

California implements Wayfair sales tax threshold

Recently the U.S. Supreme Court issued a landmark ruling in South Dakota v. Wayfair. This ruling opens the door for states to impose sales tax on internet retailers who sell into a state even if they have no property or employees in that state. Not surprisingly, other states have taken notice and are starting to …

Keep Reading

Arizona county taxes on commercial leases

So, you lease commercial property to another party in Arizona and you thought it was enough to pay income tax to the IRS and Arizona every year. Well, not so fast … you are also responsible for paying county and city transaction privilege taxes (TPT) on the commercial lease. How do I do that, you …

Keep Reading

U.S. Savings Bonds interest income taxability

There are several forms of U.S. Savings Bonds and we will delve into the three different types as well as savings bonds interest income taxability. Series EE bonds These bonds reach maturity (double in value) in 20 years from issuance but continue to earn interest for another 10 years for a total of 30 years …

Keep Reading

AZ Electronic TPT filing and paying phase two

Arizona legislation House Bill 2280 (HB 2280) set the path for the Arizona Department of Revenue (ADOR) to require electronic filing and payments of transaction privilege tax (TPT) for businesses. This requirement is being phased in annually for various size businesses; the first wave was ushered in with a January 2018 electronic filing/paying requirement for …

Keep Reading

New AZ mini COBRA insurance law takes effect

With a new year comes new laws and 2019 is no exception. Small Arizona employers (1 to 20 employees) are now subject to a new law that requires “COBRA” coverage be offered to their qualifying employees. COBRA, of course, refers to the landmark federal law passed in 1986 that requires most group health plans to …

Keep Reading

Arizona tax reform conformity, ADOR issues announcement

On January 10, 2019, the Arizona Department of Revenue issued a news announcement about tax reform that said . . . a whole bunch of nothing. This is not the fault of the Arizona Department of Revenue (ADOR) – they can only do what the legislature gives them information to do. And so far, it …

Keep Reading

Tax time: gambling winnings and losses

With the current Mega Millions jackpot at $1.6 billion (you read that right, billion with a B) and the Powerball at $620 million, this massive windfall can pop up in your daydreams. However, not considering the tax consequences of these and all other gambling winnings could make those dreams a little less sweet. In addition, …

Keep Reading

New rules for claiming AZ state tax credits

Arizona recently released some new rules for claiming credits for contributions that will take effect for the 2018 tax year. The affected forms are: Arizona Form 322, Credit for Contributions Made or Fees Paid to Public Schools Form 321, Credit for Contributions to Qualifying Charitable Organizations (QCO) Form 352, Credit for Contributions to Qualifying Foster …

Keep Reading