News & Resources
27.10.2011
News, Tax
In 2010 Congress introduced estate tax “portability” for estates of decedents who die in 2011 or 2012. For estates of decedents dying in 2011 or 2012 the estate can generally exclude up to $5 million from their taxable estate. If a married individual dies in 2011 or 2012 and they do not use their full $5 million exclusion the unused amount can be passed on to the surviving spouse. In other words, the exclusion is “portable”. This sounds simple enough right? Let’s take a closer look at the details. Read more
26.10.2011
News, Tax
The IRS has revamped the 2011 Schedule D for reporting capital gains and losses. As part of the change a new Form 8949 will have to be completed before completing Schedule D. Although still in draft form, the 8949 will require taxpayers to report the normal details of their capital transactions, such as the date of acquisition, date of sale, cost basis and sales price. A separate 8949 will have to be prepared for each different type of transaction and taxpayers will have to indicate if a 1099-B was received and if the 1099-B listed basis information. Read more
30.09.2011
Business, Matt, Tax
In an unusual move, the IRS recently issued Notice 2011-72 determining personal use of employer provided cell phones is not taxable to the employee. Additionally, no record-keeping of usage is required. This is in stark contrast to many other provisions of the Internal Revenue Code that have strict record-keeping and substantiation requirements. Read more
23.09.2011
Business, News, Tax
Earlier this year a foreign LLC lost an appeal before the California Board of Equalization because its sole member was a California resident and it was unable to prove that it did not conduct business within California (Appeal of Legend Plus Enterprises, LLC (February 22, 2011) Cal. St. Bd. of Equal. Case No 486026.) If you are a California resident and a member of an LLC formed in another state the LLC may be subject to the CA LLC annual tax even if there is no California source income. At first glance it may seem that the LLC is not subject to the tax since it is an out of state entity. However, the FTB presumes the entity is doing business in California if the LLC has a California member. It is up to the taxpayer to prove otherwise. Read more
12.08.2011
Business, Matt, Tax
The IRS has recently updated its audit technique guide for exams of independent consultants. With the explosive growth of the consulting industry over the past decade, especially here in Silicon Valley among tech companies, the IRS is now focusing its efforts more closely on these types of audits. Read more