IRS Tax Experts Blog

  individual to do the job, despite their whereabouts. However, in the case of businesses that are not situated in California, a distant worker residing in the Golden State may be one of the untold taxes. How a single member of the team can form a nexus, and make your business file and pay taxes to the California Franchise Tax Board (FTB). This rule is important to understand so as not to be caught in unwanted liabilities, fines, and complicated administrative overhead. To learn about the sales tax audit process , find a tax professional who can help you. What are the Triggers for Tax Obligations? A sufficient connection between a state and a business is termed as nexus, whereby the business is required to collect and remit taxes in such a state. In the past, this has been founded on a physical presence, i.e., an office, a warehouse, or a storefront. The rules in the current digital world are extended to a huge extent. Understand the Remote Work Nexus Neither of the two...

One of the most effective tools that real estate investors have is a 1031 exchange that enables you to avoid the capital gains taxes on your hands by investing the proceeds of a sale into a similar-purpose property. Although it is a federal provision, it is a race against time that has no room for error, and the deadlines are strict. Any wrong move will potentially trigger a huge tax bill, transforming a brilliant investment plan into a nightmare. Always prefer contacting tax professionals for sales tax audit representation and similar work. Dates You Shouldn’t Forget There are two strict time limits stipulated by the IRS that are never compromised. Cold feet, cold markets, and colds do not have extensions. a)      The 45-Day Identification Period You must actually designate the potential replacement property or properties in writing within 45 calendar days beginning on the day you close the sale of your original property (the "relinquished property): Wee...

Business partnerships start with high hopes, shared risks, and often real friendship. Yet reality hits hard. Around 70% of them fail eventually, according to multiple studies and expert analyses tracked over the years. That number stings because it means most owners face the same tough question : fight through the mess or call it quits? The answer changes everything—money, time, even personal health hang in the balance. Some fights pay off. Others drain the tank for nothing. Spotting the difference early saves ailing partnerships from becoming salvageable ones, matters more than most admit.   What Usually Breaks Them in the First Place? Partnerships crack for predictable reasons. Misaligned visions top the list. One partner eyes slow local growth while the other dreams of national scale. Small gaps grow into canyons fast. Uneven effort follows close. When one carries the load—nights, weekends, decisions—the resentment builds quiet but steady. Money fights fuel the fire, too...

  Income tax and sales tax are the first two things that come to your mind when you consider California taxes. However, to business proprietors, investors, and even wealthy, multi-layered holders lurks a more hidden and more influential system underneath: the unitary tax principle and its counterpart, the mandatory apportionment. This complicated structure has the potential to change the tax amount of a company by a very significant margin in a wholly unexpected way. In its essence, the unitary tax principle does not take note of the legal core of corporations. California not only taxes a company based on the income earned by the company, but it also considers the whole unitary business as one. This is to the extent that you have a controlling interest in more than one related business that are functionally-integrated (i. e. they are controlled by one management, operate together, or share resources ). California can include its income on a single report. Find a professional ta...

Deductions of the home office can be useful to taxpayers who use a small section of their home to conduct business activities. However, strict rules are used to state what is eligible by the IRS. Some of the questions that are commonly raised regarding this topic are discussed below. What Does The IRS Mean By A “Home Office”? A home work area is that area in your home that you utilize and where you solely use it during your trade, business, or profession. It does not necessarily need to be a whole room; it can be a portion of a room, but kept apart and utilized only when needed in business. One can take the help of the tax attorney services , and they can solve the matters for the home office. Does The Space Need To Be Used Exclusively For Business? Yes. One of the most serious IRS requirements is exclusive use. When the business uses a shared space that you use yourself, it will not be regarded as qualifying. As an example, one will not pass the exclusivity test by working at ...

  The notice contained in the California Franchise Tax Board can be frightening to any taxpayer. Even after you have endured a federal IRS audit , California can spring a piggyback audit, acting upon the IRS auditor. It simply implies the state sees through your taxes on the basis of the federal audit. Knowing about this process is crucial to Californians who have already faced the IRS, since it can help them anticipate any scrutiny at the state level and handle it in a manner that helps them avoid any complications and penalties. Find the best tax attorney in San Francisco who can help. What is a Piggyback Audit? Piggyback audit. The piggyback audit arises where the California FTB piggybacks off an IRS audit. The two agencies are interconnected by data exchange, and hence any federal revisions, such as deductions that are disallowed, reclassification of income, or added tax, are stressed and transmitted to California. Since state tax liability is generally related to fed...