Income Tax Apportionment (Completed)

Date: Monday, July 22, 2019
Instructor: Michael Bannasch
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs

As companies continue to expand their geographical footprint through exploiting the national economy via sales on the Internet, hiring telecommuting employees, or actually opening new facilities, the need to properly divide their income tax base among the states in which they operate becomes even more crucial. While states are trending toward a single-factor sales apportionment, there are still things that need to be understood about three-factor apportionment, in addition to the many complexities of sourcing sales of services under both cost-of-performance and market-based rules. This webinar will help you make sure your state income tax returns are prepared correctly, and give you some planning ideas that could reduce state income taxes.

Who Should Attend
CPAs with clients selling to customers in more than just their state of commercial domicile.

Topics Covered

  • The why and the historical development of apportionment
  • Establishing the right to apportion income (aka How Nexus is Your Friend)
  • The property factor in three-factor apportionment formulas
  • Properly sourcing payroll in three-factor apportionment formulas — it is probably not quite how you think it should be sourced
  • Dealing with throwback and throwout rules for sales sourcing
  • Sourcing sales of services — cost-of-performance vs. market-based

Learning Objectives

  • Identify and resolve complexities with sourcing sales of services
  • Recognize how to properly prepare the apportionment calculations for multi-state income tax returns
  • Describe how to proactively plan to impact sales apportionment to your benefit

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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