California – Bregante+Company LLP

Maximizing Benefits of §529 Plans

Using a §529 plan to pay for higher education costs can be a great tax savings tool in itself; although contributions are not tax deductible federally or for California, they are deductible in 34 other states. All withdrawals and earnings are tax-free if used to pay for qualified higher education expenses (“QHEE”) for a designated beneficiary. The plans can be transferred to any ‘qualified member’ of the beneficiary’s family (as defined by the IRS in Pub. 970), so the funds do not have to be lost if there is excess after the first beneficiary completes their higher education or decides not to use it at all.

For estate planning purposes, the §529 accounts do not count towards the owner’s gross estate for […]

By David Crouch|May 9th, 2016|Categories: Individual Tax, IRS|Tags: §529, American Opportunity Tax Credit, California, distribution, education, gift tax, higher education, Plan, QHEE, Qualified Higher Education Expense|Comments Off

FTB Updates Publication 1016 (Real Estate Withholding Guidelines)

California Revenue and Taxation Code Section 18662 and the related regulations require withholding of a 3 1/3% tax at the source from the sale or exchange of California real estate. The California Franchise Tax Board (FTB) has revised FTB Publication 1016, Real Estate Withholding Guidelines. The revised publication, the purpose of which is to provide guidance on the withholding requirements for sales of California real property, covers the following topics:

General Information (e.g., definitions, a list or real estate withholding forms, what is the real estate withholding requirement, who is subject to it, when is real estate withholding not required);

Information for Sellers (e.g., exemptions for sellers, how to calculate withholding, seller’s filing requirements, electing out of withholding on installment payments);

Information for Buyers (e.g., […]

By Jeff Belingheri|December 3rd, 2015|Categories: Franchise Tax Board, Individual Tax, Real Estate|Tags: buyers, California, Franchise Tax Board, FTB, interest, penalties, publication 1016, real estate escrow persons, Real Estate Taxation Code 18662, REEPs, sales of real property, sellers, withholding|Comments Off

GO-Biz Launches California Business Portal

In July 2015, the California Governor’s Office of Business and Economic Development (GO-Biz) launched the California Business Portal, a one-stop website for business owners to find information and assistance regarding operating a business in the state of California. It provides information to business owners regarding starting a new business, obtaining permits and licenses, various tax incentives, local resources and more. Click here to view the new portal.

By Jeff Belingheri|September 1st, 2015|Categories: Business Operations, Business Succession Planning, Business Tax|Tags: business, California, California Business Portal, California Governor's Office of Business and Economic Development, Go-Biz, Obtaining Permits, operating, owners, Tax Incentives|Comments Off

FedEx Drivers in California Held to be Employees

The Court of Appeals for the Ninth Circuit in California, reversing a California District Court, has held that FedEx drivers in California are employees, not independent contractors under California’s “right to control” test. The tests used to evaluate whether a worker is an employee or independent contractor are generally comprised of 10 factors. One of the principal tests is whether the person/company to whom the service is rendered has the right to control the manner and means of accomplishing the result desired. If the person/company to whom the service is rendered to has the right to control, then it will most likely be an employee relationship rather than an independent contractor relationship. The Court of Appeals found that FedEx had the right […]

By Ted Krejdovsky|June 2nd, 2015|Categories: Business Operations, Business Tax|Tags: California, court decision, Court of Appeals, Employees, FedEx, Independent Contractors, Ninth Circuit, relationship, Right to control|Comments Off

Go-Biz publishes more details regarding the California Competes Tax Credit

The Governor’s Office of Business and Economic Development (GO-Biz) has adopted final regulations to implement the California Competes Tax Credit (CCTC) program. The final regulations are substantially similar to the emergency regulations that were adopted on November 17, 2014. GO-Biz administers the CCTC, which is a credit against the personal income tax and the corporation franchise (income) tax for businesses locating or expanding in California, based on an amount negotiated between GO-Biz and the taxpayer (as approved by the CCTC Committee). For Frequently Asked Questions on how the CCTC works please click here.