Sally A. Brandtneris

Statewide, 2024 begins on a more positive note compared to the trends seen in 2023. "These buoyed first-quarter results may signify a stabilization, easing tax revenue concerns as we look forward to the next growth cycle. The Federal Reserve's stance on the Fed Funds Rate will be a crucial factor in determining whether we face economic stagnation or a boost in consumer spending. Additionally, tourism and local travel during the summer period could further enhance confidence in our economic outlook," said Andy Nickerson, President/CEO. 🔗 https://lnkd.in/dzZCJhxw #localgovernment #revenuemanagement #salestax

11

Are you a small business owner looking to fund your next big innovation? Then please do join Miles Consulting Group, Inc. at the San José State Silicon Valley SBDC virtual workshop. 🗓️ Date: Wednesday, July 17 ⏰ Time: 3 PM - 5 PM This session will dive into the world of US government grant funding, specifically the SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) programs, which offer opportunities to small businesses to access federal funding to conduct research and development on new innovations and technologies. The session will cover the following: • Overview of the SBIR and STTR programs • Qualifications and eligibility requirements for SBIR/STTR funding • How to determine if your innovation is a good fit for SBIR/STTR funding • How to search SBIR/STTR solicitations and topics • Grants versus Contracts • Difference between SBIR and STTR • Steps to preparing a SBIR/STTR proposal • Tips for increasing your success in securing SBIR/STTR funding Looking forward to seeing you there! https://lnkd.in/gimYiYrt #SmallBusiness #Innovation #GovernmentGrants #SBIR #STTR #TechStartups

4

This bill, for taxable years beginning on or after January 1 of an unspecified year, and in addition to the taxes imposed under the Personal Income Tax Law and the Corporation Tax Law, would impose a tax upon gross receipts derived from data extraction transactions at a rate of 7.25% of those gross receipts. The bill would define a “data extraction transaction” for these purposes to mean a transaction where a taxpayer sells user information or access to users to advertisers and the taxpayer engages in a barter by providing services to a user in full or partial exchange for the ability to display advertisements to the user or collect data about the user, except as provided. Exception: The bill would exclude a news media entity, as defined, from the provisions of this tax as either a taxpayer or a user, and would further exempt from the tax any person with less than $2,500,000,000 in gross receipts derived from data extraction taxes in this state in the taxable year. https://lnkd.in/eScMzYhT

1

If you're interested in finding out more about navigating R&D Tax Credit changes, check out this great new blog post from the San Jose-based MTS Professional Tax Service Inc. Just click below.

1

Ready to connect with the next wave of top accounting talent? Get your firm in front of 2,500+ of California’s best and brightest aspiring accountants in this year's CalCPA Career Guide. This is your chance to elevate your firm's presence and snag the future stars of accounting. Don't wait! Contact Michael Wong at Michael.Wong@calcpa.org by August 2. #CalCPA #AccountingCareers #FutureCPAs #CareerGuide #AccountingFirms #AspiringCPA #Accounting

17

#inthenews The Governor's budget plan may need revision as preliminary data suggests a significant shortfall in revenues. The decline in tax revenues is attributed to... 👉 Corporate tax revenues are $1.4 billion below for the fiscal year 👉 A loss of tech jobs 👉 Inflation and high interest rates 👉 Lackluster sales tax collections "Sales and use taxes are also driving the shortfall, missing estimates by $1 billion since November." “This decline reflects consumer challenges balancing higher prices and financing costs with essential household needs,” HdL's President/CEO, Andy Nickerson, was quoted saying. Keep reading: 🔗 https://lnkd.in/diJ9yCMy #localgovernment #revenuemanagement #salestax

15

1 Comment

🚨 Important Colorado Sales Tax Alert 🚨 Colorado local sales and use tax compliance remains a complicated and unique burden. However, H.B. 1041 simplifies compliance for remote nexus retailers in some situations, while providing additional incentives to bring lagging jurisdictions into compliance with the Sales Use Tax System (SUTS). 📅 Taxpayers filing low-liability monthly sales and use tax returns in Colorado should confirm their eligibility to switch to quarterly filing starting January 1, 2025. Additionally, H.B. 1041 grants the executive director of the Department of Revenue the authority to increase the monthly tax threshold starting January 1, 2026. Feel free to reach out if you have any questions. 📞 https://lnkd.in/e74YYe7X

37

VATupdate.com Daily Newsletter: July 3, 2024 Headlines July 3, 2024 -- This is what happened in the ECJ (VAT) in June 2024 – Did Adient bring an end to the discussion on Fixed Establishments? -- France – Updated VAT Registration Thresholds in France for 2024 -- Italy – New penalties for intra-Community supplies of goods -- 2024 Norway 2024 eInvoicing Country Sheet -- What Does Being PEPPOL Compliant Mean?

1

Apple has set up the Bay Area Housing Innovation Fund, with an initial allocation of $50 million to build affordable housing to alleviate the high housing prices and homelessness in Northern California. The first phase of the plan is expected to be completed in two years, with a total of 400 affordable homes built. The San Jose Mercury reported that the funds will be used as low-interest loans to build affordable housing in four locations. Apple, headquartered in Cupertino, has previously pledged to invest $2.5 billion to build houses across California. Kristina Raspe, vice president of the company's real estate department, pointed out that Apple believes in the concept of "everyone deserves a place to call home" and is willing to contribute to this goal with practical actions. Two locations have been selected so far, one is in the Mission District of San Francisco, where 145 houses will be built. The other is in Santa Cruz, where ground will be broken before the end of the year. Apple and its project partners have not yet announced the locations of the other two projects. In addition to the $50 million in funding for this project, Apple has invested $1.6 billion in California to build affordable housing across the state. With the efforts of more than 90 projects, more than 10,000 homes have been newly built or renovated to become units where Californians can live. California's new law relaxes housing construction requirements. Apple uses this new law to develop cheaper housing at a lower cost and higher efficiency. Rebecca Foster, CEO of the San Francisco Housing Accelerator Fund, which is working with Apple, pointed out that the old funding and construction methods cannot alleviate the problem of homelessness and expensive housing in the Bay Area. This project also points the way for other regions. If clear goals are set and partners fully cooperate, California's housing crisis can be effectively alleviated.#Apple #AffordableHousing #BayArea #HousingInnovation #MissionDistrict #SantaCruz #California #RealEstateDevelopment #CommunityInvestment #Sustainability

1

Pillar 2 (P2) rules were designed to stick closely to the accounting treatment, so as to minimize the need for additional data. GloBE Income is based on Financial Accounting Net Income or Loss (FANIL) which is defined (3.1.2) as the “net income or loss for a Constituent Entity (before any consolidation adjustments eliminating intra-group transactions) in preparing the Consolidated Financial Statements of the Ultimate Parent Entity”. The OECD assumed that this was readily available, but we have learned over the years that this is often not the case. The steps between management accounts, local accounting and consolidated financial statements involve numerous steps that often don’t follow the neat pattern that OECD had assumed. So, MNEs already had to figure out how to recreate a FANIL that meets the P2 requirements. But the new P2 guidance issued on Monday (https://lnkd.in/ehB5N_ck) strays further from the concept of sticking to existing accounting data. The OECD kind of had to do this to avoid further discrepancies. Here's why. There are numerous adjustments between FANIL and GloBE Income, such as adjustments relating to stock-compensation (3.2.2), transfer pricing requirements (3.2.3 https://lnkd.in/ejFhZ26g), realisation principle (3.2.5), requirement to follow historical carrying values (6.2.1(c)), exceptions for step up transactions (6.2.2, 6.3.4) and GloBE Reorganisations (6.3.2, 6.3.3). Such adjustments are made to the GloBE Income, but they can all create discrepancies between P2 and accounting values. And those discrepancies can also manifest themselves in later years, due to differences in depreciation, amortization, impairments, gains on disposal and associated phantom deferred and current tax cost (or lack thereof, where you would have expected them). So the OECD decided that all of that basically needs to be corrected for too, which means that every adjustment creates adjustments across several periods. So, MNEs will be required to prepare separate sets of books for P2 purposes after all, creating another set of accounts separate from local, consolidated and tax accounts. What’s worse, this requirement can also apply to some before transactions after P2 comes into effect (though for most provisions this requirement to create GloBE accounts retroactively is limited to the years where the full GloBE rules). Practically, it can require disentangling transactions in old accounts, even if– in the words of Johnny Cash – the old account was settled long ago (https://lnkd.in/e8vNzK6j). Obvious disclaimers: this is not advice. These views are my own and do not necessarily represent my employer.

92

3 Comments

Is your business prepared for potential changes in California's business tax environment? 🏛️ Considering California's proposed changes to NOL deductions, tax credit limits, and apportionment rules, it's crucial for businesses to stay informed and proactive. California plans to suspend NOL deductions for incomes over $1M, cap business tax credits at $5M, and retroactively amend apportionment rules to address substantial budget gaps. These changes could lead to significant tax liabilities for affected businesses. Our SALT team is here to help you navigate these complex changes and optimize your apportionment to potentially reduce your California cash tax liabilities. Learn more: https://lnkd.in/gCW2cYNX #SALT #BusinessFinance #TaxCredits

2

JULY ISSUE OF CA CPA MAGAZINE: CREATING SUCCESS My new article will be published in the July issue of California CPA Magazine: "Helping to Create Success: A Unique Role for CPAs". Not only for CPAs, it is based on 10 questions that business owners often don't think to or have the time to ASK themselves. Who best than their outside professionals? They could also ask themselves along the way. The world of AI, COVID, Inflation, Succession, Growth or No-Growth all bring unique and the same old questions that truly need new ways to be discussed. The article and the magazine should be available July 1, 2024, on this link. https://lnkd.in/gJSrg3h7 All the best. hashtag #valuecreation hashtag #professionalservices hashtag #careerdevelopment hashtag #cuttingedge hashtag #collaboration hashtag #cpas hashtag #nicheservices hashtag #success hashtag #corequestions

2

1 Comment

Growth is simple when you base your business around these principles: - Quality work - Honesty and transparency - Genuine partnerships - Reliability If your business partners don’t check these boxes, it’s time to move on 👍 #letsgrowtogether

3

A large gap exists between the accounting departments of large or publicly traded companies and smaller or private companies. In our past 25 years of consulting we’ve noticed that more often than not, these smaller/private companies will fill the gap with Bookkeepers, rather than the degreed Accountants/CPAs they require. The problem is that companies operating under $10 or even $20 million often can’t (or wont 🙃) afford the degreed accountants, much less a Controller or CFO. We've seen this happen repeatedly in companies of all sizes and industries. The talent pool for these roles is diminishing rapidly and the professionals remaining are demanding higher salaries. But ALL companies need timely U.S. GAAP financial reporting, cash flow forecasting, and budgeting. These things are essential when your company inevitably wants to work in bankers, investors or potential buyers in the future. Read more in these Wiki CFO Articles: https://lnkd.in/g2zicrcy & https://lnkd.in/g37dNAZP.

9

Arizona ranks closer to the top, with 30.9% of employees working from home at least one out of seven days. The highest state has 44% of employees working from home. (According to the Household Pulse Survey data analyzed by Hostinger.) #recruiting #accountingandaccountants #CFO

437

37 Comments