January 7th, 2025 Los Angeles Wildfires – Gain Deferral Election on Disaster Events Under IRC § 1033
This memorandum addresses the process and implications of electing Section 1033 of the Internal Revenue Code (IRC) to defer recognition of gain resulting from the involuntary conversion of property due to the recent fires. Section 1033 provides a mechanism for taxpayers to defer taxable gains if the proceeds are reinvested in qualified replacement property within […]
Federal And California Tax Filing And Payment Extensions Due To Los Angeles County Disaster Declaration
Due to the wildfires and winds that began on January 7, 2025, the Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB) have announced an extension of the tax filing and payment deadlines for individuals and businesses located in Los Angeles County. Federal and California Tax Filing Deadlines: The IRS and the FTB […]
New Form 1099-K Reporting Requirements
Starting in January of 2025 payment cards (credit and debit cards) and E-commerce platforms like PayPal, Venmo, Amazon Pay, and other payment processors will be required to issue IRS form 1099-K, officially titled “Payment Card and Third-Party Network Transactions,” for taxpayers who received $5,000 in payments for goods, services, or rent for business transactions in […]
Court Halts Reporting Obligations Under the Corporate Transparency Act
On December 3, 2024, a Federal District Court in Texas issued a nationwide preliminary injunction against FinCEN enforcing the Beneficial Ownership Information (“BOI”) reporting as mandated by the Corporate Transparency Act (“CTA”) stating that the regulation is likely unconstitutional and outside of Congress’s power. Under the injunction, the CTA and the BOI reporting rules are […]
New Reporting Requirements Under the Corporate Transparency Act
As you may be aware from our previous memo (view here), the Corporate Transparency Act (“CTA”) initially went into effect as of January 1, 2024, requiring timely submission of specified information on a new form known as the Beneficial Ownership Information Report (“BOIR”) on new or existing companies and their beneficial owners, regardless of industry, […]
2024-2025 Tax Planning Guide
Dear Clients and Friends, If the last 4 years have taught us anything it is that change and taxes are inevitable, and you can only postpone taxes temporarily. We don’t know what the future holds, but we can take steps to proactively plan for and keep ourselves informed of the ever-changing landscape. To help you […]
Newly Enacted CA Legislation: NOL Suspension, Business Credits Cap, and More
On June 27, 2024, California enacted a number of corporate and personal income tax changes including following: suspending net operating loss (NOL) deductions for 2024, 2025, and 2026. capping business credits at $5 million per year for 2024, 2025, and 2026. eliminating a deduction for intangible drilling and development costs for oil and gas wells. […]
Expansion of Section 179d for Energy Efficient Commercial Buildings
The energy efficient commercial buildings deduction under Section 179D has been in effect since January 1, 2006, and was made permanent as part of the Consolidated Appropriations Act of 2021. Section 179D was originally designed to incentivize owners of commercial buildings and four-story or greater multifamily buildings to increase energy efficiency. The newly enacted changes […]
