Recently released final regulations provide some relief to taxpayers that are subject to high foreign taxes on their global intangible low-taxed income (GILTI), but whether the GILTI high-tax exclusion is beneficial to any given taxpayer will require annual calculations as there are trade-offs to making the election.
The 2020 Proposed Regulations also clarify that amounts recaptured under the earnings and profits limitation carry over to an acquiring corporation in a distribution or transfer under section 381(a). Treasury and the IRS viewed this provision as a clarification of existing law.
Many things are taking place:
IRS and Treasury Issue Carried Interest Regulations
On July 31, 2020, the Department of Treasury and IRS issued proposed regulations (the Proposed Regulations) that provide guidance to the "carried interest" rules under Section 1061 of the Internal Revenue Code.
Long-term capital gains derived by individuals are subject to a preferential 20% US federal income tax rate (plus 3.8% "net investment income" tax after certain income thresholds are met). On the other hand, individuals are subject to US federal income tax on short-term capital gains at the graduated ordinary income tax rates with a maximum tax rate of 37% (plus 3.8% "net investment income" tax after certain income thresholds are met).
White House Regulatory Office Reviews Endowment Tax | Chief Investment Officer
The White House's Office of Information and Regulatory Affairs has taken the so-called endowment tax under review, according to the regulatory review office's website.
The endowment tax is a 1.4% excise levy on the net investment income of high-endowment private colleges and universities that was included in the Tax Cuts and Jobs Act of 2017.
The tax applies to private college or universities that have at least 500 full-time tuition-paying students—more than half of whom are located in the United States—and that have assets other than those used in its charitable activities worth at least $500,000 per student.
ADP, Walmart Among Businesses Still Craving Covid Tax Guidance
In case you are keeping track:
Election 2020: Trump Vs Biden On The Coronavirus, Unemployment, Taxes, Regulations, & The
In 10 weeks, America will vote for its 46 th president, 35 Senate seats, and 435 House seats, in one of the most important elections in U.S. history. The implications for the economy and financial markets are significant, especially in the midst of a coronavirus that has global leaders, medical professionals, and scientists searching for a solution. If Joe Biden prevails over Donald Trump, how will the markets react?
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According to the Pew Research Group, Trumps approval rating for his handling of the coronavirus has fallen from 48% in March to 37% in early August. Thus, Biden's first order of business will be to attack Trump's pandemic response and point out character flaws in Trump, the man. A parallel theme will be Biden's plan to control the coronavirus and create jobs.
Santa Barbara County's cannabis tax revenue takes big jump, partly due to COVID-19, report says |
Joe M. Garcia prepares his cannabis-based medication at his son's Lompoc home in this image from 2017. The COVID-19 pandemic has resulted in more people staying at home and using cannabis products, leading to an increase in Santa Barbara County's cannabis tax revenues.
A graph included in a Santa Barbara County report on cannabis shows how much tax revenues increased in the fourth quarter of the 2019-20 fiscal year.
A tray full of cannabis buds sits on the table of a Santa Barbara County resident. Health orders keeping people at home in response to COVID-19 has increased the demand for cannabis, which in turn has led to an increase in the county's cannabis tax revenue.
Public hearings to discuss tax rates | Local News | moultrieobserver.com
MOULTRIE, Ga. — The Colquitt County Board of Commissioners will hold public hearings next month about a potential tax increase … except they aren't really raising tax rates. They're just not cutting them enough.
The situation arises from a massive growth in the county's digest, the total taxable value of property throughout the county. The county Board of Tax Assessors re-valued commercial property throughout the county for the first time in 30 years, Chief Appraiser JimMac Booth told The Observer last month. That resulted in a huge increase in the values of many of those properties. Some values doubled.
INSIGHT: Ecuador: Should You Register as a Nonresident Digital Service Provider?
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