OUR OTHER SPECIALTIES
What differentiates Mission Oaks Tax and Accounting from our competition? Our staff includes specialists in several areas of taxation such as:
Sales Tax Compliance
On June 21, 2018, The United States Supreme Court ruled 5-4 in the case of South Dakota v. Wayfair, Inc., et al, that states can mandate that businesses without a physical presence in a state, but with at least 200 transactions or $100,000 of in-state sales per annum, collect and remit sales taxes on transactions in the state. A company that incurs this sales tax liability is said to have “economic nexus” in the relevant states, and must register to collect and pay taxes in those states.
Once this ruling became federal law, it opened up a Pandora’s box of tax liabilities, since there are more than 11,000 sales tax jurisdictions in the U.S., each with its own specific regulations. With ever-increasing sales being made via the Internet, applying, collecting and paying appropriate sales taxes in multiple states has become a nightmare for many companies. The situation has become even more confused for companies selling digital products such as online courses, e-books, and downloadable software, since the various jurisdictions have their own unique regulations. For example, software-as-a-service (SaaS) products may be taxed differently than downloaded software. Some states do not tax SaaS products at all, but do tax downloaded software; while other states tax SaaS products at 80% of MSRP, or even 100% of MSRP.
At Mission Oaks Tax and Accounting, our specialists make it their business to stay on top of these challenging issues, so that your out-of-state sales taxes are collected and paid, if applicable, wherever you have economic nexus. Contact us to see how we can help you meet compliance requirements.
Property Tax Issues
If you own real estate (“secured property”) - private or commercial - the amount you owe in property taxes each year is not an issue, as it is determined by the jurisdiction in which you live. However, if you are the executor of a relative or friend's estate, managing probate and preparing the appropriate tax returns for the deceased individual and his/her estate can be very challenging. In most cases, you would be wise to hire a probate attorney to ensure that all the necessary documentation is assembled and presented to us in a timely manner.
Property tax liabilities become more complex for “unsecured property” such as business fixtures and business machinery. The value of such items is assessed annually by each county in which the business has a physical presence. The aggregate taxable amount is deductible on income tax returns at both the federal level (up to a specified limit) and state level. It is important therefore to keep a detailed inventory of such unsecured property, so that you are not taxed on equipment the business no longer owns, and that you promptly dispose of equipment the business no longer uses.
Our experts at Mission Oaks Tax and Accounting, fully understand the intricacies of estate taxation rules and unsecured property taxes, and will use their skills to minimize the individual’s/estate's tax liability when preparing the relevant tax returns. Need help with assessing property tax liabilities? Then contact us.
State Tax Rate Changes
When considering the impact of tax rate changes on your income tax returns, change is the only constant! Most state rate changes take effect at the start of the calendar year, although some states implement certain changes on the first day of their fiscal year (July 1), as noted in this article by the Tax Foundation. In this period of almost unprecedented inflation, many states are adding sales tax exemptions on gasoline to offset the rapid increase in gas prices, while others are increasing their gas tax rates due to previously scheduled statutory rate adjustments. Many of these changes will, in turn, directly or indirectly affect individual and corporate state income tax rates.
To remain current on all California state-legislated changes and their impact on your tax liabilities requires a specialist who knows how to minimize any negative impact (or maximize any positive impact!). That’s why we recommend that if you are filing in California you contact us at Mission Oaks Tax and Accounting to talk with one of our specialists.