Taxing Thoughts

From international tax legislation to M&A deals; our Taxing Thoughts blogs cover hot topics and trends in the continuously changing tax landscape.

March 2018

Tax Law Forces Revamps for Agriculture Companies

By | March 14, 2018|Categories: Taxing Thoughts|

The 2017 Tax Cuts and Jobs Act has introduced section 199A, which generally provides special tax deductions to taxpayers doing business as pass-through entities. While an in-depth analysis of section 199A is beyond the scope of this article, section 199A generally allows a special deduction on 20% of qualified business income subject to various limitations. [...]

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February 2018

Tax Insights for Private Equity Investors

By | February 27, 2018|Categories: Taxing Thoughts|

This article explores an intricacy between certain private equity investments and various tax rules deferring the recognition of losses flowing up from partnerships. This article is not meant to be an exhaustive analysis of private equity structuring or the loss limitation rules. Rather, it is to illustrate how the loss limitation rules may apply to [...]

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January 2018

Property Tax Relief for Wineries (and others) after California Wildfires and Mudslides

By | January 31, 2018|Categories: Taxing Thoughts|

Following the devastating wildfires and mudslides in Ventura and Santa Barbara counties, many wineries and other property owners will be eligible for property tax relief with California’s Revenue and Taxation Code 170. California Revenue and Taxation Code Section 170 provides for property tax relief due to a major calamity. A calamity includes earthquake, fire and [...]

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October 2017

Economic Obsolescence: Determining Loss of Property Value Caused by Shifting Consumer Demands

By | October 11, 2017|Categories: Taxing Thoughts|

Shifting consumer tastes in wine can result in the economic obsolescence of winery property and assets, leading to a decline in property value (real and personal) that remains for many years.  Fortunately, Section 51 of the California Revenue and Taxation Code allows the Assessor to temporarily reduce the assessed value (and property tax) when the [...]

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September 2017

Top 5 California Tax Planning Opportunities

By | September 27, 2017|Categories: Taxing Thoughts|

Weather aside, a rapidly growing economy and profitable marketplace has named California one of the most desirable states for new and expanding businesses and individual taxpayers.  One major obstacle that taxpayers face when seeking to enter into, or expand in California, is state taxes.  California is a high-tax state with some of the highest sales/use, [...]

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August 2017

What Tax-Exempt Organizations Should Know About Filing a Form 926

By | August 17, 2017|Categories: Nonprofit, Taxing Thoughts|Tags: , , , |

Many tax-exempt organizations invest frequently in foreign alternative investments (e.g., hedge, private equity, real estate and venture capital funds). When investing into such funds, these tax-exempt organizations’ primary tax concern is generally to mitigate their risk of Unrelated Business Taxable Income (“UBTI”). Funds commonly avoid this UBTI issue for their tax-exempt organization investors by structuring [...]

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July 2017

Required Minimum Distribution “RMD” Rules for Retirement Accounts

By | July 20, 2017|Categories: Taxing Thoughts|

2016 was the first year that the baby boom generation reached age 70 ½, and millions more will hit that milestone in the years ahead. The gift from the IRS is that they must begin withdrawing funds from their traditional individual retirement accounts and employer-sponsored retirement plans, such as 401(k) plans. Overview of RMDs Individuals [...]

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May 2017

California Sales and Use Tax: Nonprofits and Taxable Food Sales

By | May 10, 2017|Categories: Taxing Thoughts|

What is sales and use tax, and how is it applied California? California's sales tax generally applies to the sale of merchandise, including vehicles, in the state. California's use tax applies to the use, storage, or other consumption of those same kinds of items in the state.  Generally, if sales tax would apply when you [...]

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Avoiding PFIC Status – Practical Considerations

By | May 3, 2017|Categories: Taxing Thoughts|

Overview: One area where complexities of U.S. taxation is clearly demonstrated is the Passive Foreign Investment Company (“PFIC”) rules.  These PFIC rules generally apply to U.S. investors in a foreign corporation where U.S. ownership is 50% or less.[1]  A PFIC is any foreign corporation if – 75 percent or more of the gross income of [...]

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