California tax Tag

The Last Straw for Starbucks? Company Pledges to Ditch Plastic Straws by 2020  Starbucks announced on July 9 that it plans to phase out plastic straws from its 28,000 stores worldwide by 2020. This move follows the city of Seattle’s recent ban on plastic straws, where...

California Feed Supply Company Defends Captive Insurance Deductions Kings River Commodities, LLC, a livestock feed business, was denied $2.83 million in deductions for captive insurance expenses. In a U.S. Tax Court petition, dated May 11, 2017, the company argues that these expenses were necessary to...

On Friday, October 4, 2013, Governor Brown signed into law AB 1412, which reinstated the California tax break for Qualified Small Business Stock (QSBS) that had previously been ruled unconstitutional by the California Court of Appeals. The new legislation applies retroactively to the tax years...

The fiscal cliff deal extended the 100% qualified small business stock exemption for federal purposes. California tax authorities, however, have taken a restrictive and limiting view and have announced that the exemption will not be allowed for state income tax purposes. Under recently proposed SB...

The California Court of Appeal held on July 24, 2012 that California may not eliminate multistate taxpayers’ use of an equal-weighted apportionment formula for calculating income tax liability. Other jurisdictions may agree. However, on August 9, 2012 the California Court of Appeal stated that it...

Summary: California has overcharged multistate businesses on income tax bills for years, the California Court of Appeal, Fourth District, held on July 24, 2012. Multistate businesses that have paid California income taxes between tax years 2007 and today should contact Royse Law Firm, PC, to...

In June 2012 the IRS issued REG-134042-07, containing proposed regulations that would clarify the basis of indebtedness of S corporations to their shareholders. The proposed regulations would allow some taxpayers to take greater deductions on the losses of debt-financed S corporations. Background: When a shareholder loans money...

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