1031 Exchanges – Pros and Cons

June 21, 2017By KROST

Commercial real estate owners and investors are always looking for new ways to generate profit in their investments. To leverage opportunities and reap the rewards of past investments, it’s sometimes necessary to sell existing property. While generating profit is essential in the sale of commercial real estate, it’s equally important to be aware of tax … Read More

5 Tax Errors That Can Cost Your Business Big

June 3, 2017By KROST

Many businesses operate under the mistaken impression that a small tax mistake here and there isn’t a big deal. These businesses which take such a blasé attitude towards taxes are the ones most likely to lose big on their tax bills year after year, even if they don’t get hit with major fines and penalties. … Read More

Charitable Contribution Substantiation Requirements

March 15, 2017By Jonathan Louie

Over the past few years, Americans have collectively donated more than $350 billion to charity with much of those donations coming from individuals. While charitable giving offers a chance to make a difference, there are also tax benefits associated with this philanthropic activity; however, the IRS may require substantiation for the charitable contributions depending on … Read More

Changes in FATCA and FBAR Reporting

March 2, 2017By So Sum Lee

Changes of FBAR Due Date The filing of FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) (formerly TD F 90-22.1) is imposed by the Bank Secrecy Act (BSA), passed by Congress in 1970. FinCEN Form 114 is used to report a financial interest in or signature authority over a foreign financial account … Read More

Effects of Civil Code §1938 on Commercial Property Owners

February 16, 2017By KROST

With a bill signed in September of 2016, there are new considerations in the Civil Code for property owners renting commercial space. Under Civil Code §1938, a property owner will be required to inform tenants whether the property has been through an inspection for ADA compliance, performed by a Certified Access Specialist or ‘CASp’. If … Read More

New Tax Return Filing Due Date

February 9, 2017By KROST

As tax deadlines are fast approaching, it is important to remember that the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 revised the due dates and extended due dates for certain returns. The changes are generally applicable for returns in those tax years beginning after December 31, 2015. California has confirmed some … Read More

De Minimis Capitalization Election

February 6, 2017By So Sum Lee

The IRS has implemented the tangible property regulations (TPRs) (T.D. 9689) effective for taxable years ending on or after January 1, 2014. This new guidance determines whether certain expenditures are required to be capitalized or expensed. The TPRs provide de minimis safe harbor for taxpayer to deduct up to $2,500 of expenditures (or $5,000 if … Read More

What are the Benefits of Qualified Small Business Stock (QSBS)?

January 27, 2017By KROST

Qualified Small Business Stock (QSBS) entitles owners to exclude 50% to 100% of the gain realized on certain sales. In order to qualify as Qualified Small Business Stock, the stock needs to be issued by a domestic C corporation that does not have more than $50 million of gross assets as of the date the … Read More

2017 California State Sales Tax

January 9, 2017By KROST

Effective Jan. 1, 2017, the sales and use tax rate dropped in the State of California by 0.25%. The rate was lowered one quarter of a percent, from 7.50% to 7.25%, according to the state Board of Equalization (BOE). This lower tax rate is the result of the partial expiration of Proposition 30, a school-funding … Read More