Tag Archives: State + Local Tax
Know Your Total Tax Burden? You Could be Surprised: Try the Calculator
You may have a good sense of what you pay in federal income taxes. Most people do.
But many people pay other taxes they aren’t as aware of. Like federal and state taxes for cell phones and other taxes levied on your use of cable and electricity.
Perhaps surprisingly, the average American pays more than 20 different taxes during the year. Yet only a small percentage of people can accurately estimate the portion of their incomes absorbed by taxes.
Understanding what you pay (continue reading…)
Posted in High Net Worth Practice, Personal Wealth Planning Services, Tax Services
Tagged Personal Finances, Personal Tax, State + Local Tax, Wealth Planning
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Selling to Out-of-State Buyers? What You Need to Know about Washington’s Nonresident Sales Tax Exemption
Sometimes a little knowledge is a good thing. Then there are those times it can get you into trouble.
For many retailers, Washington State’s nonresident sales tax exemption is a prime example. It may seem simple: You don’t collect retail sales tax if the buyer isn’t a Washington resident.
Unfortunately, the rules are more restrictive than that and there are many exceptions.
It’s important that sellers understand and properly apply the rules. If they provide retail sales tax exemptions to ineligible buyers, they are (continue reading…)
Posted in Closely Held + Family Business Practice, Retail Group, Tax Services
Tagged Business Tax, State + Local Tax
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A For-Profit Corporation with a Social Mission? Washington State Enacts Social Purpose Corporation Law
Jude Martin is one of Seattle’s serial entrepreneurs. With two successful clean technology startups to his credit, he has something a little less business and a little more philanthropic in mind for his next venture. And he has the insanely great idea and the funding for another success.
What he hasn’t found is a corporate structure that supports his socially responsible vision, the implementation of which will impact the new venture’s bottom line: The company will donate a percentage of its (continue reading…)
Posted in Closely Held + Family Business Practice, Emerging Businesses + Turnarounds, High Net Worth Practice, Technology Group
Tagged Business Tax, Entrepreneurs, Startups, State + Local Tax
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Affected by Recent Updates to Washington’s Trust Law?
Jensen Edwards is a Seattle teacher and the trustee of a $5 million irrevocable trust. The trust was established in Washington by his brother Sean, for the benefit of Sean’s daughter.
Sean created the trust after the technology company he founded was sold for a substantial sum. He chose his brother as trustee because he knew Jensen would always act in the child’s best interest. Under the terms of the trust, Sean’s daughter will not benefit financially until she reaches the age (continue reading…)
Posted in High Net Worth Practice, Personal Wealth Planning Services
Tagged Estate + Gift, Personal Finances, State + Local Tax, Wealth Planning
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Losing Out on the Federal Research Tax Credit? IRS Releases Final Regulations for the Alternative Simplified Credit Method
If cats can claim nine lives, this has them beat. It’s the tax credit that wouldn’t, and arguably shouldn’t, die.
Initially created by the Economic Recovery Tax Act of 1981, the federal research credit was intended to expire after four years. And it did, but only temporarily.
Since 1981, the credit has expired and been revived, often retroactively, more than a dozen times.
Introduction to the Federal Research CreditDesigned to encourage investments in U.S.-based research and experimentation, the federal research credit can be claimed (continue reading…)
Providing Complimentary Meals to the Employees of Your Restaurant? Washington State Changes the Tax Rules
Are the complimentary meals you provide your employees really free? Or are they given in exchange for services that employees perform at your restaurant?
The distinction is an important one for tax purposes: It plays a part in determining whether the value of those meals is subject to various Washington State taxes.
You may consider the meals you provide your restaurant’s employees to be complimentary. The State of Washington traditionally has not. And by requiring that such meals be treated as if (continue reading…)
Posted in Hospitality, Restaurant + Lodging Group, Tax Services
Tagged Business Tax, State + Local Tax
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Know the Latest Washington State Tax Rules?
Newly expanded electronic filing requirements become effective next month for certain businesses paying Washington State combined excise taxes.
The federal unemployment tax rate—used to fund unemployment insurance at the state level—is slated to decrease at the end of the month when a temporary surcharge expires. Unless Congress acts to extend the surcharge, employers will be subject to additional recordkeeping requirements this year.
Many Washington businesses pay more in personal property taxes than absolutely necessary as a result of outdated asset records.
If you’re (continue reading…)
Posted in Accounting Services, Closely Held + Family Business Practice, Distribution + Light Manufacturing Group, Emerging Businesses + Turnarounds, Hospitality, Restaurant + Lodging Group, Not-for-Profit Practice, Professional Practices Group, Real Estate Group, Retail Group, Tax Services, Technology Group
Tagged Business Tax, State + Local Tax
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Qualify for Washington State’s Tax Amnesty Program?
Washington Governor Chris Gregoire has signed into law the state’s first ever tax amnesty program, intended to generate as much as $28 million in revenue.
It’s an approach that 46 other states have tried successfully at least once since the 1980s. During the last two years, 16 states have used amnesty programs to generate $1.4 billion in revenue.
According to Tremaine Smith, Interim Director of the Washington State Department of Revenue (DOR), “We know that many businesses are struggling due to circumstances (continue reading…)
Affected by the Repeal of Taxes on Candy, Gum, Bottled Water and Carbonated Beverages?
Posted in Distribution + Light Manufacturing Group, Hospitality, Restaurant + Lodging Group, Retail Group, Tax Services
Tagged Legislation, State + Local Tax
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Receiving Compensation as a Corporate Director?
Common practice in Washington has held that a corporate director is not engaged in a business when serving as a member of a board.
As a result, the compensation the director receives for serving on the corporate board has not been considered subject to the state’s business and occupation (B&O) tax.
This spring, the Washington legislature concluded that corporate directors are, in fact, independent contractors engaged in a business―thus making certain director’s fees subject to B&O tax.
Effective July 1, 2010, corporate directors (continue reading…)
Posted in High Net Worth Practice, Personal Wealth Planning Services, Tax Services
Tagged Compensation, Governance, Personal Tax, State + Local Tax
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