ca tax - Linkenheimer LLP CPAs & Advisors

California Governor Signs Two Major Bills: SB 113 and SB 114

Today, California Governor Gavin Newsom signed SB 113, which expands the passthrough entity elective tax benefits by:

Repealing the tentative minimum tax limitation on the Passthrough Entity Elective Tax Credit;
Allowing partnerships/S corporations/LLCs with owners that are partnerships to make the election (although the tax can’t be paid on behalf of the partnership owner);
Allowing SMLLCs that are passthrough entity owners to claim the Passthrough Entity Elective Tax Credit (although SMLLCs are still prohibited from making the election themselves); and
Changing the credit ordering rules related to the Passthrough Entity Elective Tax Credit to increase the benefit for taxpayers that claim the Other State Tax Credit (beginning with the 2022 tax year).

Except as noted, these changes will apply to the 2021 tax year. Yesterday, we posted more info on SB 113, which you can read here.

SB 113 also:

Fully conforms to the federal exclusion of Restaurant Revitalization Grants, retroactive to the 2020 tax year;
Partially conforms to the federal exclusion of Shuttered Venue Operator Grants, retroactive to the beginning of the 2019 tax year; and
Repeals the $5 million business credit limitation and NOL suspension for higher […]

By Linkenheimer LLP|2022-02-09T20:03:46+00:00February 9th, 2022|ca, CA tax, california, New Tax Laws|0 Comments

California Tax Updates for 9/23

Update 1:

All California taxpayers who have an active Power of Attorney (POA) will soon be getting a letter from the state Franchise Tax Board (FTB). The letter provides a list of the taxpayer’s active POAs with the FTB and the representative relationship on the taxpayer’s account. The new form is intended to keep taxpayers informed of their POA relationships, the level of access the POAs have (limited or full) and the expiration date of the declaration. The form should not be used to revoke a POA. Contact us with questions.

Update 2:

Property owners in California can apply for property tax deferment for the 2021-2022 tax year. The CA Property Tax Postponement (PTP) Program is administered by the Controller’s Office. It allows qualified homeowners to postpone the property tax on their primary residence. Applicants must be seniors, blind, or have a disability and meet certain income and equity requirements. Funding for the PTP Program is limited, so applications will be processed in […]

By Linkenheimer LLP|2021-09-23T17:05:34+00:00September 23rd, 2021|CA tax, california, ftb, property tax|0 Comments

California Tax Updates for 9/8

Update 1:

New figures that affect your 2021 California taxes have been released, adjusted for inflation. Tax rates and related items have been indexed to reflect an inflation rate of 4.4%, according to the CA Franchise Tax Board (FTB). As it did for 2020, the FTB also included adjustments for the standard deduction. For single or separate taxpayers the standard deduction for 2021 rises from $4,601 to $4,803. For all others it rises from $9,202 to $9,606. Personal and senior exemptions rise from $124 to $129. For a joint or surviving spouse it increases from $248 to $258. The dependent exemption credit rises from $383 to $400. Contact your Linkenheimer CPA with questions.

Update 2:

Certain airport employees in California lose in court. CA wage law requires that employees must be paid for all hours worked. But employees of vendors at the Los Angeles International Airport (LAX) were subject to waiting in federal Transportation Security Administration (TSA) lines without pay on their way […]

By Linkenheimer LLP|2021-09-08T18:42:21+00:00September 8th, 2021|CA tax|0 Comments