On March 25, 2022, the California Franchise Tax Board (FTB) issued Legal Ruling 2022-01, on the subject “Numerator Assignment of Gross Receipts from Sales of Services to Business Entities.” The ruling sets forth the FTB’s position regarding the “relevant considerations and proper analysis” for sourcing sales of services under California’s current market-based sourcing rules.
What makes a California resident?
In this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove discusses the ins and outs of California residency with Partner Tim Gustafson. They outline the various tests used in determining residency for California income tax purposes and identify common pitfalls for individuals who are considering a move out of
California Office of Tax Appeals shuts down refund claim related to 338(h)(10) election
The California Office of Tax Appeals (OTA) recently sustained the Franchise Tax Board’s (FTB) income tax treatment of an IRC 338(h)(10) election. In return for all the outstanding stock in the target S-Corporation taxpayer, third-party buyers paid an initial (fixed) purchase price and agreed to make deferred contingent earnout payments totaling up to $50 million
Back to the market again! California market-sourcing regulation amendments
In this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove is joined by Associate Annie Rothschild to discuss some noteworthy developments in the proposed amendments to California’s market-sourcing regulations. They highlight changes to the regulations that Annie discusses at length in a recent Tax Notes State article.
They conclude
A look into West Coast tax legislation
In this episode of the SALT Shaker Podcast focused on policy issues, host and Eversheds Sutherland Partner Nikki Dobay hosts a full house for a West Coast legislative update. Nikki welcomes back Rob Gutierrez, President and CEO of the California Taxpayers Association (CalTax), and Jeff Newgard, Principal and Owner of Peak Policy and also
California says certain online activities and remote workers eliminate P.L. 86-272 protection
In Technical Advice Memorandum (TAM) 2022-01, the California Franchise Tax Board (FTB) considered whether remote workers and various online activities eliminate P.L. 86-272 protection. In large part reflecting the Multistate Tax Commission (MTC) guidance issued last year, the TAM concludes that a variety of activities may disqualify a taxpayer from the protections provided
The California FTB’s proposed market-sourcing regulation: Eight changes to watch
In this installment of A Pinch of SALT for Tax Notes State, Eversheds Sutherland attorneys Eric Coffill and Annie Rothschild review the Franchise Tax Board’s proposed amendments to California’s market-based sourcing regulation, including its conception and eight important changes to watch as it moves through the approval process.
Read the full article here.
Back in business: New California law restores the NOL deduction and removes limitations on tax credits starting for tax year 2022
Today, California Governor Gavin Newsom signed budget trailer bill SB 113, allowing taxpayers to again fully utilize business tax credits, like the R&D credit, and net operating loss deductions for taxable years beginning on or after January 1, 2022. For tax years 2020 to 2022, AB 85 (enacted in 2020), limited the amount of
Golden news from the Golden State: Bill lifting NOL suspension and credit limitations lives, bill for single-payer healthcare dies (along with the taxes required to fund it)
Introduced this week, California AB 87 implements Governor Gavin Newsom’s proposed budget plan to allow taxpayers to again fully utilize business tax credits, like the R&D credit, and net operating loss deductions in 2022 (see our previous coverage on Governor Newsom’s proposed budget here). For tax years 2020 to 2022, AB 85 (enacted in
California doesn’t need GILTI
In this episode of the SALT Shaker Podcast, host and Eversheds Sutherland Associate Jeremy Gove is joined by Associate Annie Rothschild for a quick review of GILTI, a 2021 failed California proposal to conform to GILTI and how GILTI has been treated in other states.
They examine the history and purpose of GILTI, and what