Translations from Your Trusted Advisor.
Fair warning: this article is probably not going to answer state specific sales tax questions you have! My purpose is to alert you to when you may have sales and use tax issues to consider for your business. States vary widely in their sales and use tax requirements, so it is necessary to delve deeply into the specifics of any state in which you are transacting. States have also become very aggressive in the collection of revenue, including sales and use tax. This issue has become more prevalent with the 2018 Supreme Court ruling, "South Dakota v Wayfair". Larger businesses generally have experts on staff in this area, but I find that small businesses are the most likely to be completely unaware of their requirements relative to sales and use tax. Use tax is also a consideration for individuals who live in states with a sales tax, but we will confine ourselves to considering use tax as it relates to businesses. This discussion will provide you with some background and general information which will help you identify states you transact in that warrant closer inspection.
New Hampshire has an Economic Revitalization Zone Tax Credit that allows for a credit for new employees hired in specific zones throughout the state. To describe this credit as simply as possible, business can get a credit for having a new project including additions or improvements to the property in certain places that are either unused or underutilized industrial parks or vacant land or structures previously used for business purposes if the new project creates new jobs.
Lena Rozzi, CPA •
What is IRC Section 1202?
As an incentive for non-corporate taxpayers to invest in small businesses, Section 1202, Small Business Stock Capital Gains Exclusion, allows for the exclusion of gains associated with Qualified Small Business (QSB) stocks. Section 1202 was initially enacted with the purpose of promoting investments in new ventures and small businesses by allowing taxpayers to exclude 50% of the gain in select small businesses, however, as capital gain rates changed, the Section 1202 exclusion was increased from 50% to 75%, and subsequently to an exclusion of 100%, effective for QSB stocks acquired after September 27, 2010.
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