Author: Colleen Netzell
In June 2018 the US Supreme Court upturned the sales tax collection standard in its Wayfair vs. South Dakota decision. While the decision did not uphold South Dakota’s nexus statute based on the amount of sales and transactions, it revoked the prior ruling which required a physical presence to collect...
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The 2017 Tax Cuts and Jobs Act (TCJA) limited the itemized deduction for state and local taxes (SALT) to $10,000. Many states enacted laws to work around this limitation and support business owners by allowing the business to pay and deduct the tax. Minnesota has now enacted its own Pass-Through...
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For states where you are not filing sales tax, review your 2020 sales into those states to determine if you are close to the Wayfair thresholds. You may have to register and begin collecting sales tax by the beginning of 2021. Most states’ thresholds are based on calendar year sales. ...
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The TCJA limited the state and local tax (SALT) itemized deduction to $10,000, which essentially increased the federal income tax on many small business owners operating as passthrough entities (PTE) (i.e. partnerships and S corporations). For federal purposes, a PTE’s income is taxed on the individual income tax return and...
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In June 2018 the US Supreme Court transformed the landscape for businesses collecting sales tax[i]. Our October 8, 2018 blog, “Economic Nexus and How it Might Affect You”, explained the impact of this decision. A year and half later, apart from Florida and Missouri, all states with a sales tax[ii]...
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