Tax Warrior Chronicles

Wayfair - One Year Later

Posted on Thu, Jun 06, 2019

By: Clare Porreca, CPA, MT

 

Since the U.S. Supreme Court’s 2018 decision in the South Dakota v. Wayfair, Inc. case, states have continued to update their statutes to assess and collect sales tax from out-of-state sellers, specifically, online retailers.  In a nutshell, the Supreme Court agreed that out-of-state sellers who met certain thresholds had nexus in South Dakota and thus, South Dakota could collect sales tax from them.  So, what’s happened since the June 21, 2018, decision?

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How Social Media Influencers Are Taxed In the U.S.

Posted on Tue, Apr 30, 2019

By: Ted Nebiolo

 

Social Media is a normal and constant part of our lives. In 2019, there will be 2.77 billion social media users; that’s slightly more than one in three people on the planet!* For some social media users, with a large following and with high engagement of those followers, this means big business and potential income. Companies are using social media to market their products to an influencer’s universe of followers. In today’s blog, we’ll discuss how an influencer is taxed on income generated from marketing or selling products on social media.

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New Tax Strategy for Foreign Investors in U.S. Partnerships

Posted on Wed, Sep 27, 2017

By: Yi Yang, CPA, MBA and Ronald Wiener, JD

 

A recent United States Tax Court case may allow foreign partners to legally avoid paying U.S. income tax on certain income from sale of its interest in a partnership (including LLC’s taxed as a partnership) that engages in a trade or business in the United States.  They may even be able to get refunds if they paid taxes to the IRS on such income in prior years.  This is the principal takeaway from the Tax Court’s 50-page opinion involving the tax treatment of a foreign partner’s disposition of its entire interest in a U.S. partnership.

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Federal Tax Planning for Modest Estates Now Focuses on Income Tax Savings

Posted on Thu, Jan 15, 2015

In the not-too-distant past, there was considerable uncertainty concerning federal estate and gift taxes. This uncertainty was put to rest a few years ago when the top estate and gift tax rate was set at 40% and the exemption was set at $5 million (plus inflation adjustments). Historically, the top federal estate tax rate was 55% and exemption was $1,000,000. Moreover, the highest marginal federal income tax has risen to 43%. This includes the new Net Investment Income Tax passed under the Affordable Care Act. As a result, many modest estates need to be more concerned with income taxes and less concerned with gift and estate taxes.  This post examines planning strategies that should be

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Tax Rules for Children with Investment Income

Posted on Mon, Mar 31, 2014

As adults, we know that we normally must pay income tax on our investment income. But, did you know that this is also true for children?  If a child can’t file his or her own return, their parent or guardian is normally responsible for filing their tax return.  Doing so may provide an excellent opportunity to teach older children about the difficult life lesson of paying taxes.

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