This California Tax Law Has Been Improved Few states in the United States allow employers to pay state income tax on PTE income. California is one of the few. Here’s what you need to know about it. What is the SALT cap workaround? Starting in 2021 in California, the SALT cap workaround allows certain pass-through entities (“PTEs”) to pay state income tax on PTE income at a rate of 9.3%. If elected, the PTE takes the deduction for the state tax paid without limit, reducing federal taxable income passed through the tax owners. Tax owners will then receive a California income tax credit (“PTET Credit”) for the tax paid by the entity, which both offsets the costs and avoids the income being taxed twice. How has it been improved? On Jan. 1, 2022, a new bill (Senate Bill 113) was enacted that vastly improves the performance of California’s SALT cap workaround. It restored corporate net operating loss deductions and lifted a $5 million annual cap on business tax credit claims — an entire year earlier than planned. Previous limitations will only apply to the 2020 and 2021 tax years. Additionally, the bill conforms California to federal tax treatment of grants under the Restaurant Revitalization Fund and Shuttered Venue Operators Grant program. This means it exempts the grants from state tax and allows deductions for related expenses. It also exempts payments that water, wastewater, gas, and electric utility customers received to pay their bills under pandemic relief programs from state tax. The companies that qualify for this election have been recently expanded, so you don’t want to miss your shot. Notably, reversing the limitations will reduce state revenue by $5.5 billion, so don’t ignore the tax benefits while you can!
The Fitness Boost You Need
How Rewards Can Reinforce Healthy Habits
People often talk about why we need to exercise more and eat right. But how do you reward yourself for the new habits you embrace? If you aren’t rewarding yourself, then you may find it challenging to stick to your plans.
Don’t be shy to give yourself the boost you need — the right way.
Can rewards be dangerous? In some cases, yes. Gretchen Rubin, author of “Better Than Before,” recently told Medium that rewarding our good habits can be “dangerous.” You might feel the same way. After we get the reward we wanted, it might feel easier to give up the habit or make it more difficult to meet our goals. After all, we might give up on running if we don’t meet our weight loss goals because improper foods are the reward after a run. That’s counterproductive! Or, what if we decide our reward isn’t worth it to begin with? For example, you might tell yourself, “I don’t really have time for a nice bath tonight, so I’ll just skip my run today.” However, Rubin says that one kind of self-reward is always best: the reward that takes you deeper into your new habit. Reward a new fitness habit right. Finding an exercise you enjoy is one of the most effective ways to reward yourself and continue to build your new fitness habit! If you look forward to working out in a gym environment with gym equipment, then at-home exercises probably won’t feel as satisfying. But there’s still at-home equipment and sports, such as biking, that you can do to reward yourself, especially if you have a favorite time of day to get outdoors. Other awesome rewards for exercising can include running or yoga socks, a nice water bottle you enjoy using, a new yoga mat, a subscription to a workout program or app, or a fitness tracker. You can also watch fitness videos or documentaries that explain the benefits of your new hobby or habits, which will both educate and encourage you! A fitness habit, after all, is linked to all sorts of long-term health benefits you’ll enjoy for a lifetime.
If interested, just give us a call — we’ll help you find out if you qualify.
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