California Tax Updates from 8/25
Update 1: Employers in California counties plagued by wildfires get payroll tax relief. The CA Employment Development Dept. (EDD) has announced tax relief for employers in Trinity, Tehama and Shasta Counties, directly affected by the [...]
Does Your Employer Provide Life Insurance? Here Are The Tax Consequences
Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications. Tax [...]
IRS Additional Guidance Addresses COBRA Assistance Under ARPA
In Notice 2021-46, the IRS recently issued additional guidance on the COBRA premium assistance provisions of the American Rescue Plan Act (ARPA). Under the ARPA, a 100% COBRA premium subsidy and additional COBRA enrollment rights [...]
California Tax Updates from 8/20
Update 1: Three southern California grocery stores will pay fines of $447,836, for violations of certain COVID-19-related employee benefits. The CA Labor Commissioner’s Office has cited three El Super stores for failing to inform employees [...]
Possible Tax Consequences of Guaranteeing a Loan to Your Corporation
What if you decide to, or are asked to, guarantee a loan to your corporation? Before agreeing to act as a guarantor, endorser or indemnitor of a debt obligation of your closely held corporation, be [...]
Scholarships are Usually Tax Free But They May Result in Taxable Income
If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Fortunately, scholarships (and fellowships) are generally tax free for students at elementary, middle and high schools, as [...]
Large Cash Transactions with Your Business Must Be Reported to the IRS
If your business receives large amounts of cash or cash equivalents, you may be required to report these transactions to the IRS. What are the requirements? Each person who, in the course of operating a [...]
California Pass-Through Entity Tax
Governor Gavin Newsom signed Assembly Bill 150 this past July. The new bill establishes an elective pass-through entity (PTE) tax framework that will allow California taxpayers to obtain relief from the current $10,000 limit on [...]
5 Possible Tax Aspects of a Parent Moving Into a Nursing Home
If you have a parent entering a nursing home, you may not be thinking about taxes. But there are a number of possible tax implications. Here are five. 1. Long-term medical care The costs of [...]
Is an LLC the Right Choice for Your Small Business?
Perhaps you operate your small business as a sole proprietorship and want to form a limited liability company (LLC) to protect your assets. Or maybe you are launching a new business and want to know [...]