San Jose State University

Guest Post – Will Bitcoin Ever Be Regulated?

By Annette Nellen

November 2, 2019

This post is provided by Albaron Ventures and raises a question relevant to application of laws, reporting requirements, and more, to virtual currency, aka cryptocurrency. Many laws such as those dealing with taxation, banking, and credit card usage and liability are based on a third party handling most transactions such as to resolve problems that may occur between a merchant and customer regarding a credit card charge. How can such rules work in a decentralized…

21st Century Taxation

Repeal the Kiddie Tax

By Annette Nellen

October 23, 2019

The TCJA changed the tax calculation for the kiddie tax which results in the child possibly having a higher marginal tax rate than the parents. This was highlighted by survivors of deceased members of the military in that a pension a child received was subject to more tax in 2018 than in prior years. A report on Military.com, “This Year’s Tax Cut Cost Some Gold Star Families Dearly,” 4/23/19, included an example of a child…

21st Century Taxation

Gig Worker Compliance Challenges Including AB 5

By Annette Nellen

October 2, 2019

On 10/1/19, the Franchise Tax Board (FTB) held a meeting, chaired by State Controller Betty Yee, focused on compliance for gig workers. You can see by the agenda that many topics were covered including background data on understanding the gig economy which for the meeting meant those finding income opportunities from web platforms such as Uber, Postmates, TaskRabbit or hundreds of other similar sites.I was honored to participate on a panel on…

21st Century Taxation

60th Anniversary of P.L. 86-272

By Annette Nellen

September 14, 2019

State Tax Notes, 9/5/19 Today, September 14, 2019 marks the 60th anniversary of the enactment of P.L. 86-272 dealing with nexus for net income tax purposes for a limited category of sellers (those selling tangible personal property). This legislation was intended to be temporary while Congress studied numerous state/multistate tax issues that went beyond the initial reach of P.L. 86-272. Despite lots of study and a 1,000+ detailed report with recommendations issued in the early…

21st Century Taxation

Two States Using Wayfair Economic Nexus Standard More Broadly

By Annette Nellen

September 2, 2019

As we know, the June 2018 U.S. Supreme Court decision in South Dakota v. Wayfair, Inc., et al, allows for an economic nexus threshold for all types of taxes. Many states already had an economic nexus threshold for income taxes. Many states have adopted the South Dakota threshold for nexus. This standard generally starts use tax obligations when a vendor has over $100,000 of sales in the prior calendar year or the current year…

21st Century Taxation

Does TCJA Make C Corps Better?

By Annette Nellen

August 9, 2019

Does TCJA Make C Corps Better? Generally no when you factor in double taxation of C corporations. I’ve got an article looking at this question but only looking at domestic tax rules. Certainly, lots of international activity might make the C corporation look better. Here is the article, published this week in the Wealth Strategies Journal – https://wealthstrategiesjournal.com/2019/08/08/is-a-c-corporation-preferred-after-tax-reform/ What do you think?…

21st Century Taxation

Two New Sales Tax Exemptions in California “makes the system more complex, less equitable”

By Annette Nellen

August 3, 2019

California SB 92 (Chapter 34, 6/27/19) adds two new sales tax exemptions starting 1/1/20 and ending 12/31/21: “diapers designed, manufactured, processed, fabricated, or packaged for use by infants, toddlers, and children” [R&T 6363.9] “menstrual hygiene products” shall only include the following: (1) Tampons. (2) Sanitary napkins primarily designed and labeled for menstrual hygiene use. (3) Menstrual sponges. (4) Menstrual cups.” [R&T 6363.10] For these new temporary sales tax exemptions, the legislature applies R&T §41 dealing…

21st Century Taxation

Moving Backwards – New Form 1040-SR for 2019

By Annette Nellen

July 29, 2019

You’re online reading this blog post so you know that technology can do a lot, usually making our lives easier. For example, can you imagine filing a complex tax return without the aid of tax prep software? Well, IRS statistics show that for fiscal year 2018, about 12% of individual federal tax returns were filed on paper (but some of this could have been prepared using software). The balance were prepared by a paid preparer,…

21st Century Taxation

Fixing the SALT $10,000 Cap

By Annette Nellen

July 4, 2019

Source: JCX-35-19 (6/24/19) for the House Ways and Means Committee hearing on problems with the SALT cap. On June 25, 2019, the House Ways and Means Committee held a hearing on the SALT cap with the majority’s views on it clear from the title of this hearing: How Recent Limitations to the SALT Deduction Harm Communities, Schools, First Responders, and Housing Values. Testimony was provided by some state and local elected officials and the…

21st Century Taxation

Latest Guidance on SALT Cap and Donations + Notice 2019-12 Safe Harbor

By Annette Nellen

June 16, 2019

The $10,000 cap on itemized deductions of state and local taxes led a few states to add new “workarounds” such as offering a credit that would reduce state taxes (where the deduction is limited) and converting it to a federal charitable contribution (which is not limited (well it is, but only when donations exceeds about half of your income)). For example, since 2014, California’s College Access Fund takes donations for which the donor gets a…

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Guest Post – Will Bitcoin Ever Be Regulated?

Repeal the Kiddie Tax

Gig Worker Compliance Challenges Including AB 5

60th Anniversary of P.L. 86-272

Two States Using Wayfair Economic Nexus Standard More Broadly

Does TCJA Make C Corps Better?

Two New Sales Tax Exemptions in California “makes the system more complex, less equitable”

Moving Backwards – New Form 1040-SR for 2019

Fixing the SALT $10,000 Cap

Latest Guidance on SALT Cap and Donations + Notice 2019-12 Safe Harbor

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