Month: December 2020

Proposition 19 Client Alert

December 23, 2020

California voters recently approved Proposition 19, which may significantly increase property taxes when real property is transferred between a parent and child. This Client Alert explains the changes to current law and what to consider in deciding whether to take action before the new law takes effect on February 16, 2021. Current Law Regarding Parent-Child…

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California Small Business Hiring Tax Credit Application Period Underway

December 18, 2020
Tax Credit

On September 9, 2020, Senate Bill 1447 was signed into law and created a new tax credit aimed at providing relief to struggling small businesses. SB 1447 provides certain small businesses with a $1,000 tax credit for each net increase to full-time employees. Applications are allocated on a first-come, first-served basis, and are being accepted…

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New COVID-19 Workplace Exposure Notice and Reporting Requirements Become Effective January 1, 2021

December 16, 2020
Woman wearing personal protection working on laptop

In response to the COVID-19 pandemic and the need to maintain a safe workplace, AB 685 requires employers to provide specific notices to employees and others related to COVID-19 exposures in the workplace. It also provides the California Division of Occupational Safety and Health (“Cal/OSHA”) with expanded authority to enforce such requirements and ensure safe…

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Proposition 19 Tips

December 14, 2020

December 2020 Monthly Tax Law Tip “Beginning February 16, 2021, Proposition 19 will dramatically limit the exclusion from property tax reassessment for transfers between parents and children, and grandparents and children. If you plan to take advantage, don’t wait to consult your tax advisor or estate planning attorney.”

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The CARES Act and Qualified Improvement Property

December 14, 2020
CARES Act Glasses

A provision of the Coronavirus Aid, Relief and Economic Security (CARES) Act has provided a much-anticipated technical amendment regarding “qualified improvement property” (QIP). This provision corrected a flaw in the Tax Cuts and Jobs Act (TCJA) of 2017, and has made QIP eligible for bonus depreciation of 100%, applied retroactively to tax years beginning after…

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Section 199A, SSTBs and Related Parties

December 13, 2020
Section 199A

Introduction. The Tax Cuts and Jobs Act of 2017 (the “Act”) added Section 199A to the Internal Revenue Code (the “Code”). Section 199A provides a deduction that reduces the effective tax rate on qualified business income (“QBI”) for owners of businesses taxed as sole proprietorships, partnerships, limited partnerships, limited liability companies, S corporations and similar…

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