San Jose State University

2-Year Anniversary of Tax Cuts and Jobs Act

By Annette Nellen

December 22, 2019

On December 22, 2017, the Tax Cuts and Jobs Act (P.L. 115-97) was signed into law with most of it starting to be effective just ten days later. Give the roughly 115 changes in the law, that was a lot of work for the IRS to issue guidance on which is likely to take many years (we are still waiting for some guidance on the Tax Reform Act of 1986). It’s also a lot for…

21st Century Taxation

50th Year of AMT – Past Time to Repeal It

By Annette Nellen

December 3, 2019

The alternative minimum tax (AMT) on individuals was created in 1969 – by the Tax Reform Act of 1969 (P.L. 91-172; 12/30/69). This problematic tax is about to reach its 50th anniversary at the end of the year. With the Tax Cuts and Jobs Act of 2017, the corporate AMT was repealed, it is time to repeal the individual AMT and deal with the reasons why it was enacted in a more equitable and logical…

21st Century Taxation

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,…

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San Jose State University Blogs

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2-Year Anniversary of Tax Cuts and Jobs Act

50th Year of AMT – Past Time to Repeal It

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

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