Any payments individuals received from 2020-2025 for wildfires which occurred after 2014 are not subject to federal income tax. Taxpayers are allowed to amend returns for a year after the date of enactment (which was December 12, 2024) even if the statute of...
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New Laws
Federal Bill S.5158 Pending; Aims to “Define Solicitation of Orders”
Public Law 86-272 has long been used to protect out-of-state businesses from being taxed on net income earned in other states if the only business activity of the company within the other states consists of the solicitation of orders for sales of tangible personal...
Lawyers Benefit from Minimum Wage Hike
Thanks to the complexity of our labor laws, attorneys and accountants stand to benefit from Assembly Bill 1228 which went into effect April 1st. (link to AB1228 - https://legiscan.com/CA/text/AB1228/id/2843232) Nothing is ever as straightforward as it seems when it...
PROPOSED RULES TO STOP MONEY LAUNDERING IN REAL ESTATE TRANSACTIONS
The Financial Crimes Enforcement Network (FinCEN) has proposed new rules to deter money laundering in residential real estate transactions in the United States. The rule would require certain real estate professionals who handle closing transactions and settlements to...
The California Court of Appeals Rules that Proposition 22 is Mostly Constitutional
In November 2020, the voters approved Proposition 22, the Protect App-Based Drivers and Services Act (Bus. & Prof. Code, §§ 7448–7467). This meant app-based drivers such as Uber, Uber Eats, Lyft, and GrubHub, could be classified as independent contractors by the...
How to Hire Independent Contractors and Survive in Post-AB 5 California
Many of our new business clients ask, “How can I engage independent contractors after the passage of AB 5?” While Assembly Bill No. 5 (2019) (“AB 5”), and its successor, Assembly Bill No. 2257 (2020) (“AB 2257”), have certainly made it more difficult for businesses to...
Clarification for Out-of-State Entities Doing Business in California on Property Ownership Threshold
In a Pending Precedential Opinion by the California Office of Tax Appeals (OTA), the OTA clarified that in determining whether an out-of-state LLC doing business in California and therefore subject to the annual tax each year, the determination based on the property...
FTB Clarifies what is Taxable to a Nonresident’s Sale of a California Partnership Interest
The FTB issued Legal Ruling 2022-02 on July 14, 2022 to address the taxation on the sale of certain partnership assets by a nonresident of California. The sale of the partnership interest is a tangible asset, sourced and taxed to the taxpayer’s state of residence....
The EU Joins in Creating Consumer Protection for Crypto Users
The European Union (EU) executed its Marketplace in Crypto-Assets (MiCA) on June 30, 2022, which provides the regulatory framework for digital assets in the EU bloc when the asset, or token, has an issuer. Coins that have no issuers, like Bitcoin, will have other...
Governor Signs Bill Regarding the Cannabis Industry
Assembly Bill No. 195, published July 1, 2022, makes a number of important changes to streamline administration and transparency of California's cannabis industry. One such amendment was made which discontinues cultivation tax beginning on January 1, 2023, and...