Texas Taxes: Is an Owner Liable for Business Taxes?

When one thinks of Texas and taxes, the idea that Texas does not have an income tax may come to mind. This is true. Texas does not currently have an income tax. This does not mean that Texas does not collect taxes. Texas collects taxes–and a lot of taxes. This includes everything from property taxes…

California Taxes Out-of-State Trusts for Out-of-State Asset

A record number of taxpayers have moved from California to other states, such as Texas. With advance tax planning, this type of move can produce significant tax savings. The savings can be had year after year. This type of move can also help avoid the audit and appeals process in California. This alone is worth…

Texas Franchise Tax: What are COGS?

Texas Franchise Tax: What Are Cogs?

With advance tax planning, it is often possible to avoid the Texas franchise tax. If the tax does apply, it can often be minimized by a close reading and application of the rules. The recent Sunstate Equipment Co., LLC vs. Comptroller of Public Accounts, No. 17-0444 (Tex. 2020) case provides an opportunity to consider when…

Avoiding State Income Tax on Part-Time Residents

Avoiding State Income Tax On Part-time Residents

Sometimes you can’t avoid paying state income taxes. This is true for those who have no ties to any state other than a state that has an income tax. But for those who have ties to multiple states, they can often structure their affairs to avoid the state income tax. This can be difficult to…

Aggressive State Tax Collections

If you owe back taxes, the general rule is that you pay the state and then negotiate with the IRS. The reason for this is that the states are particularly aggressive when it comes to collecting back taxes. Some states are more aggressive than others. And their practices vary over time. In the event of…

Lessons Learned from Colorado’s Taxpayer Bill of Rights

Taxpayers’ Bills of Rights (TABORs) prevent state governments from increasing taxes or spending revenue growth without first obtaining voter approval. Several states are poised to adopt state TABORs in the near future. The State of Colorado adopted a TABOR in 1992. There are a number of lessons that other states can learn from Colorado’s TABOR…