ca - Linkenheimer LLP CPAs & Advisors

California Tax Updates for 3/17

Post 1:

New California sales and use tax rates take effect on April 1, 2021. The CA Dept. of Tax and Fee Administration (CDTFA) has announced new rates that were approved by CA voters in November 2020. The new tax rates apply only within the indicated city or county limits. The new rates, tax codes, acronyms and expiration dates will be available to download and view before April 1, 2021, on the CDTFA webpage. They have been organized into three categories, by city, county and unincorporated areas. Here’s more: https://bit.ly/3sZfXIR

Post 2:

California’s Franchise Tax Board (FTB) has announced the 2021 mailing of CA Golden State Stimulus payments. This is a one-time payment of $600 or $1,200 to eligible recipients. Those eligible are taxpayers who have filed a 2020 tax return, has CA adjusted gross income of $75,000 or less, is either a CA earned income tax recipient or filer with an individual taxpayer identification […]

By Linkenheimer LLP|2021-03-17T18:22:36+00:00March 17th, 2021|ca, CA tax, california, ftb|0 Comments

Partial Conformity to PPP Loan Tax Rules for California

Yesterday, Governor Gavin Newsom, Senate President pro Tempore Toni G. Atkins and Assembly Speaker Anthony Rendon announced that they have reached an agreement on a package of immediate actions that will speed needed relief to individuals, families and businesses suffering the most significant economic hardship from the COVID-19 Recession.

The package includes an agreement to partially conform California’s tax law to the new federal tax treatment for loans provided through the Paycheck Protection Plan (PPP). More than 750,000 PPP loans were taken out by California small businesses. The agreement allows companies to deduct up to $150,000 in expenses covered by the PPP loan. All businesses that took out loans of $150,000 or less would be able to maximize their deduction for state purposes. Larger firms that took out higher loans would still be subject to the same ceiling of $150,000 in deductibility.

This tax treatment would also extend to the Economic Injury Disaster Loans.

While the legislative language has yet to be published, this package is expected to be part of an early budget action that is quickly passed and signed by the governor. Similar proposals have emerged in the Legislature, namely AB 281 (Burke), […]

By Linkenheimer LLP|2021-02-18T22:32:01+00:00February 18th, 2021|ca, CA tax, california, New Tax Laws, ppp|0 Comments

California Tax Updates for February 17th

Update 1:

California’s Franchise Tax Board (FTB) has reopened. In a public service bulletin the FTB announced that beginning Feb. 1, 2021, its field offices and their public counter operations reopened to assist customers by appointment only. Requests for appointments can be made by contacting the field office directly by phone (here’s the link with phone numbers: https://bit.ly/3oXd0WN) or by sending an email to: FTBFieldOfficeAppointments@ftb.ca.gov

Update 2:

Interest rates on unpaid or underpaid taxes in California will remain unchanged for the second half of 2021. The CA Dept. of Tax and Fee Administration (CDTFA) has announced that the interest rate on taxes that are unpaid or underpaid remains at 6%. The interest rate on overpayments and refunds will remain at 0%, for taxes and fees administered by the CDTFA. These taxes include: sales and use tax, cigarette and tobacco products tax, hazardous substances tax, alcoholic beverage tax, […]

By Linkenheimer LLP|2021-02-17T17:23:33+00:00February 17th, 2021|ca, california, ftb, New Tax Laws|0 Comments

New California Relief Grant Program For Small Businesses Opens Today

California small businesses can now begin applying for some extra relief as part of a $475 million grant program the state is offering. Round 1 for applications starts Wednesday, December 30th and runs through Friday, January 8th at 11:59pm. These grants are limited to small businesses with gross revenue under $2.5 million.

Some highlights of the grant program include:

• $475 million of funding administered by the California Office of the Small Business Advocate will be distributed by Lendistry as the Intermediary, with certain third-parties designated by Lendistry to provide additional support (“Partners”).
• Anticipate issuing grants in the following two (2) rounds of distributions:
o Round 1 – approximately $237.5 million
o Round 2 – approximately $237.5 million
• The program is not on a “first come, first served” basis.
• The application portal for each round will open for applicants for a Open to active For-Profit businesses and Non-Profits.
• Grants will range from $5,000 to $25,000 per eligible business (based on gross revenue).
• Yearly Gross revenue must be at minimum $1,000 and maximum $2.5 million.

Funds from the grant can be used to pay for an establishment’s rent, utilities, resources, employee expenses and other relevant costs.

Eligibility requirements include:

• […]

By Linkenheimer LLP|2020-12-31T01:12:49+00:00December 31st, 2020|ca, california, covid-19, New Tax Laws, small business|0 Comments

Immediate Tax Relief For Some California Small Businesses

Immediate tax relief for some California small businesses. In connection with COVID-19, the CA Dept. of Tax and Fee Administration (CDTFA) is offering tax relief for eligible businesses impacted by the virus restrictions. Business owners who file CDTFA returns for less than $1 million will be granted automatic 3-month extensions on payments and returns originally due between Dec. 1, 2020, and April 30, 2021. Small businesses having under $5 million in taxable annual sales or larger businesses in sectors hit by operational restrictions of the virus can apply for a 12-month, interest free payment plan to defer payment of up to $50,000 of sales and use tax liability. Contact your Linkenheimer CPA with questions.

By Linkenheimer LLP|2020-12-16T17:45:36+00:00December 16th, 2020|business, ca, california, New Tax Laws, small business|0 Comments