Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). The loan may be a mortgage to buy your home, or a second mortgage. You can’t deduct home mortgage interest unless the following conditions are met. You file Form 1040 or 1040-SR and... Read More

If you own a business in California that sells cannabis and/or cannabis products, the CDTFA will require your business to register with the CDTFA for a seller’s permit and regularly file sales and use tax returns. In addition to a seller’s permit, the CDTFA requires distributors to register with the CDTFA for a cannabis tax... Read More

The Internal Revenue Service has announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. The IRS assessed its collection activities to see how it could apply relief for taxpayers who owe but are struggling financially because of the pandemic, expanding taxpayer options... Read More

Assembly Bill (AB) 5 and AB 2257 replaced the common law test with the EDD ABC test to determine whether a worker is an employee or independent contractor in California. The EDD will apply the ABC test for the purpose of the Unemployment Insurance Code beginning January 1, 2020. Under the ABC test, the EDD will classify a worker... Read More

California requires some remote sellers to register with CDTFA and collect and remit sales tax. Moreover, the new use tax collection requirement for a remote seller will apply to taxable sales of tangible personal property to California consumers on and after April 1, 2019, and is not otherwise retroactive. Retailers that exceed the $500,000 sales... Read More

Generally, if you’re in a trade or business and receive more than $10,000 in cash in a single transaction or in related transactions, you must file Form 8300. The Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement... Read More

Frequently, the IRS audits schedule C sole proprietorships. The IRS has issued hobby rules to help taxpayers determine whether their activities qualify as a trade/business or a hobby. Millions of people enjoy hobbies that are also a source of income. From catering to cupcake baking, crafting homemade jewelry to glass blowing — no matter what... Read More

IR-2021-59, March 17, 2021 The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days. “This continues to be... Read More

The Internal Revenue Service (IRS) is aware that “virtual currency” may be used to pay for goods or services, or held for investment. Moreover, many taxpayers are unaware of the rules of taxation of crypto currency. Virtual currency is defined as a digital representation of value that functions as a medium of exchange, a unit... Read More

The United States Tax Court is established as a court of record under Article I of the Constitution by section 7441 of the Internal Revenue Code. The Tax Court’s jurisdiction is generally prescribed by Internal Revenue Code section 7442, but specific grants of jurisdiction are interspersed throughout the Code. The procedure under which the court... Read More