News of Interest
March 23, 2023 – California Storms Extension
The IRS has issued four different disaster relief notices for storms in California. In brief, taxpayers who live in (or business taxpayers whose principal place of business is located in) any county in California except Lassen, Modoc, or Shasta, generally have until October 16, 2023, to file their federal income tax returns and pay any tax owed for the 2022 tax year. Additionally, first, second, and third quarter 2023 estimates can all be paid on October 16, 2023, without incurring late-payment penalties. Download PDF file.December 21, 2021 – 2022 Standard Mileage Rates
Businesses generally can deduct the entire cost of operating a vehicle for business purposes.Alternatively, they can use the business standard mileage rate, subject to some exceptions. Download PDF file.
November 30, 2021 – 2021 Important Tax Changes
Build Back Better Bill; Stimulus payments: The American Rescue Plan Act; Advanced child tax credits; Online IRS account; Identity theft measures. Download PDF file.February 10, 2021 – Standard Mileage Rates
Businesses generally can deduct the entire cost of operating a vehicle for business purposes. Alternatively, they can use the business standard mileage rate, subject to some exceptions. The deduction is calculated by multiplying the standard mileage rate by the number of business miles traveled. Download PDF file.January 9, 2021 – California Proposition 19
Proposition 19 was passed by California voters on November 3, 2020, and increases property taxes for transfers of California real property between parents and children. Ownership transfers of California real property generally result in a reassessment for property tax purposes with certain exceptions. Download PDF file.March 27, 2020 – CARES Act
As COVID-19 continues to upend nearly every aspect of life in the United States, Congress has been working to relieve suffering Americans. Having passed the Families First Coronavirus Response Act on March 18 in an effort to limit the spread of the pandemic and support relief efforts, Congress turned to stabilizing the economy. After days of furious negotiations between Republicans and Democrats on the Hill and Trump Administration officials, the Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. With $2.2 trillion price tag, the Act is the most expensive piece of legislation ever passed. Download PDF file.January 18, 2020 – California Assembly Bill 5
In 2019, the California Governor signed AB 5. Under AB 5, most workers are presumed to be employees for purposes of the Labor Code, the Unemployment Insurance Code, and for most wage orders of the Industrial Welfare Commission unless a hiring entity satisfies a three-factor test, referred to as the ABC test. This means that many workers previously classified as independent contractors are now employees under California law and you must withhold California income and payroll taxes, and meet California´s minimum wage and overtime requirements starting January 1, 2020. Now is the time to evaluate your business and independent contractor relationships... Download PDF file.January 9, 2020 – IRS Releases Mileage Rates for 2020
Beginning on January 1, 2020, the standard mileage rates for the use of a car (including vans and pickups or panel trucks) will be:
- 57.5 cents per mile driven for business use, down one-half cent from the rate for 2019;
- 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019;
- 14 cents per mile driven in service of charitable organizations, unchanged from 2019. (IR-2019-215).
January 16, 2019 – IRS Provides Waiver for 2018 Estimated Tax Shortfalls
The IRS will waive underpayment of estimated tax penalties for the 2018 tax year... Download PDF file.December 19, 2018 – 2019 Standard Mileage Rates
The IRS has announced the 2019 standard mileage rates for business, charitable or medical purposes. Download PDF file.December 1, 2018 – Major changes for 2019
Year-end 2018 sees the end of the first year of the Tax Cuts and Jobs Act (TCJA), the most significant tax legislation in the Unites States in more than 30 years. While one of the claimed benefits of tax reform was the simplification of filing and the lowering of income tax rates, keep in mind that California only conforms to limited TCJA provisions. This non-conformity adds yet another layer of complexity to the 2018 tax filing year. With careful planning there are still many steps that individuals can take that can lower their tax bills. Here are some points to consider. Download PDF file.January 6, 2018 – Tax Cuts & Jobs Act
The President has signed the biggest tax reform law in over 30 years. When you file your 2018 tax returns - about a year from now - your tax return will look very different. And because most changes don't happen until then, we have some time to learn about the changes and plan for next year. Here are a few of the biggest changes that may affect you. Download PDF file.January 24, 2017 – Important 2016 Fourth Quarter Federal Tax Developments
During the fourth quarter of 2016, there were many important federal tax developments: Tax legislation, mileage rates, per diems, inflation adjustments, repair regs, mediation, gaming, and several more topics. Download PDF file.December 19, 2016 – Standard Mileage Rates
The IRS has issued the 2017 standard mileage rates for business, charitable, medical or moving purposes. Beginning on January 1, 2017, the standard mileage rates for the use of a car (also a van, pickup, or panel truck) will be: - 53.5 cents per mile for business miles driven, down from 54 cents for 2016 - 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016, and - 14 cents per mile driven in service of charitable organizations. The charitable rate is set by statute and remains unchanged. California conforms to these amounts.November 28, 2016 – Post Election Update
Any change in Presidential Administration brings the possibility, indeed the likelihood, of tax law changes and the election of Donald Trump as the 45th President of the United States is no exception. During the campaign, President-elect Trump outlined a number of tax proposals for individuals and businesses. This letter highlights some of the President-elect’s tax proposals. Keep in mind that a candidate’s proposals can, and often do, change over the course of a campaign and also after taking office. This letter is based on general tax proposals made by the President-elect during the campaign and is intended to give a broad-brush snapshot of those proposals.At the same time, the end of the year may bring some tax law changes before President Obama leaves office. This letter also highlights some of those possible changes with an eye on how late tax legislation could impact your year-end tax planning. Download PDF file.
November 3, 2016 – Year-End Tax Planning for 2016
As the tax law grows more complex, year-end becomes an increasingly important time to take inventory of your tax situation and, then, take action. Income and deductions for the entire year usually become more clear as we move ever closer to the end of the year. The final months of the year provide a valuable “last chance” to change the course of your tax year before it closes for good. Launching some traditional year-end techniques designed to accelerate deductions and delay income (or vice versa, depending upon prospects for next year) may help to maximize your tax savings and minimize your tax liability for 2016. Download PDF file.October 27, 2016 – Important 2016 Third Quarter Federal Tax Developments
During the third quarter of 2016, there were many important federal tax developments, including Tax legislation, Affordable Care Act, Partnerships, Foreign Account Tax Compliance Act (FATCA), and others. Download PDF file.September 22, 2016 – Fraudulent IRS CP2000 Notices
The IRS is warning the public of a new scam that uses fraudulent CP2000 notices to solicit money from taxpayers. The fraudulent forms look convincing, and show balances due that are small enough that taxpayers just might pay rather than arguing the point. Download PDF file.July 22, 2016 – Important 2016 Second Quarter Federal Tax Developments
During the latest quarter of 2016, there were many important federal tax developments. Topics include Tax Legislation, Partnerships, Business deductions, Retirement plans, Identity theft, and several others. Download PDF file.May 18, 2016 – Important 2016 First Quarter Federal Tax Developments
During the first quarter of 2016, there were many important federal tax developments. Topics include Tax Legislation, Affordable Care Act, Partnerships, Depreciation, Fair Market Value Amounts, and several others. Download PDF file.February 5, 2016 – IRA Investing in a Limited Partnership
If you have an IRA or other retirement account that is invested in one or more limited partnerships, there are special rules to be aware of. This income is not reportable on your Form 1040 because it is inside the IRA. However, the income in these investment vehicles is often considered under the Internal Revenue Code to be “unrelated business income,“ or UBI, to a qualified retirement plan. Download PDF file.January 21, 2016 – Important 2015 Fourth Quarter Federal Tax Developments
During the fourth quarter of 2015, there were many important federal tax developments concerning new tax legislation, the Affordable Care Act, 2016 mileage rates, inflation adjustments, employment taxes, and several other topics. Download PDF file.January 14, 2016 – Year-End Tax Legislation for 2015
In mid-December, Congress passed and President Obama signed two new laws: the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) and the Consolidated Appropriations Act, 2015 (known as the fiscal year (FY) 2016 omnibus). The tax provisions in the new laws impact all types of taxpayers. This letter presents a high level overview of the tax provisions in the new law. Keep in mind that every taxpayer´s situation is unique. Some taxpayers may benefit more from certain changes in the new laws than others. That´s why it is important to carefully study the changes made to the tax laws by the PATH Act and the FY 2016 omnibus. Download PDF file.January 5, 2016 – IRS Increases de minimis Safe Harbor
On November 25, 2015, the IRS increased the de minimis safe harbor expense limitation under the repair regulations from $500 to $2,500 per item. Under the regulations, a taxpayer may elect to expense items of tangible personal property that the taxpayer acquires or produces during the taxable year if certain requirements are met. The change is effective for costs incurred during taxable years beginning on or after January 1, 2016. However, the IRS will not audit the issue of whether a taxpayer without an applicable financial statement can utilize the $2,500 limitation for taxable years beginning before January 1, 2016. (For taxpayers with an applicable financial statement, the limitation remains at $5,000).On December 23, 2015 the Franchise Tax Board stated that California will follow the increase in the repair regulations for taxable years beginning on or after January 1, 2016. However, the FTB will not follow the “audit protection“ expressed by the IRS for pre-2016 taxable years.