Posts by Peter Soh

Changes to BBA Allow Partnerships to File Amended Returns

The April 15th Tax Filing Deadline has come and gone. But if you filed an extension or are looking to submit return amendments, you’re on the hot seat to comply with the next set of looming deadlines. And this brings up an issue many small business owners face concerning the Bipartisan Budget Act of 2015 (BBA), which pared-down existing rules for auditing partnerships (legislation that first took effect in 2018). These revised rules could potentially
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Recent Changes To PTE Tax Are Good For Qualifying California Taxpayers

  As you’re probably aware, the Trump era Tax Cuts + Jobs Act senate bill capped SALT (state and local tax) deductions. Instead of being able to deduct the majority of the taxes you pay on income, capital gains, and property taxes paid at the state and local level, that deduction is now capped at $10,000. As a workaround to this deduction cap, California passed AB 150 last summer. The bill allows eligible businesses to
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Incorrectly Reporting Cryptocurrency Transactions on Your Tax Return Can Raise Red Flags

  Is cryptocurrency here to stay, whether as a “digital asset” or an actual form of currency? At this point, only time will tell. But crypto is here now. And the IRS is zeroing in on this financial instrument. A fact that’s of genuine concern to all tax filers currently trading or exchanging cryptocurrency. Here’s what to watch out for… New Standardized Crypto Question on 2021 Tax Forms On this year’s 1040 standard form, you’ll
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How to Prepare in Case You’re Audited

  The annual tax filing deadline is quickly approaching. So, if you haven’t already, get in touch to book your tax appointment ASAP! Of course, tax season can be a very stressful time. To begin with, nobody likes taxes. Gathering the required documentation and worries over how much you might owe can make you more than a little bit anxious. But those worries are typically assuaged once you’ve met with your CPA, filed your return,
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How to Prepare for Your Annual Tax Appointment

  It’s tax season. A cold hard fact that probably has you dreading your annual CPA appointment. And if you’re like most anxious taxpayers, this worry isn’t just about the money you (potentially) owe. It’s the uncertainty of how much you (potentially) owe. Not to mention the broader financial implications of your tax bill. As in, where are you going to find the money to pay up if you owe more than you expected? All
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How Will President Biden’s Proposed Build Back Better Plan Impact Your Taxes?

  If you’ve caught even a whiff of recent political news, you’re well aware congress is fighting it out over President Biden’s “Build Back Better” legislative proposal. A broad-based framework, Build Back Better (BBB), addresses issues ranging from COVID relief to healthcare to social services + welfare to infrastructure development to climate change + related environmental concerns. BBB discussions are technically on hiatus at the moment, pending several related votes in congress. And there’s a
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New Federal Infrastructure Bill Impacts Crypto Currency

  In case you haven’t already heard, Congress recently passed a 1.2 trillion “infrastructure bill.” And as is often the case with such legislation, it’s stuffed with a plethora of peripheral measures that have nothing to do with “infrastructure.” One of which directly impacts Cryptocurrency. So, what’s the latest from the federal government on this burgeoning digital asset investment? In short, there are two major issues crypto investors should be concerned with… Filing 1099-B Form
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Governor Newsom Signs SALT Income Tax Deduction Cap Workaround Bill

  There was certainly lots for taxpayers to love about former President Trump’s Tax Cuts and Jobs Act (TCJA) tax legislation. But a couple of elements in Trump’s plan ambitions plan left many California residents less than thrilled. One aspect, in particular, is the cap on federal income tax deductions for state and local taxes, commonly known as the SALT deduction. Prior to Trump’s TCJA legislation, you could deduct a significant portion of SALT (state
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Biden Tax Plan Overview

When not hammering on each other, the US Congress is still hammering away at President Biden’s proposed $3.5 trillion tax plan. The Biden Administration aims to do lots of “good” with the increased tax revenue this plan is projected to generate. Programs like free continuing education, financial support to children and families, and tax cuts for the middle and working classes are all on the docket. But of course, someone has to pay for all
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Democrats Propose Tax Credits On US-Made Electric Vehicles

  The US Congress, currently controlled by the Democrats, is considering a slew of tax incentives and tax increases amid annual federal budget negotiations. A vote is pending on a $3.5 billion budget resolution, and while the Democrats are not keen to discuss proposed tax increases (which we’ll discuss soon), they are happy to trumpet possible tax incentives. One of which includes a potential tax credit on the purchase of US-made electric vehicles. So, what’s
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