By Jyothi Chillara, CPA, Principal
Section 1202 of the Internal Revenue Code is gaining greater interest from shareholders and investors in start-ups and small businesses. It offers favorable tax treatment for capital gains to those holding qualified small business stock (QSBS). A qualified small business (QSB) is an active C corporation with assets of less than $50 million at the point of or immediately after the issuance of stock.
According to IRC Section 1202, QSBS holders may have gains of 50 percent to 100 percent excluded from their tax obligations, depending on the date the stock was acquired. The exclusion is generally limited to either $10 million or 10 times the taxpayer’s basis in the stock, whichever is greater. (more…)
San Jose, CA (February 12, 2019) – Abbott, Stringham & Lynch (ASL), one of the largest local CPA firms in Silicon Valley, is proud to announce that Jyothi Chillara has been promoted to Tax Principal, Josh Cross has been promoted to Audit Principal and Chris Madrid has been promoted to Tax Director, effective January 1, 2019.
In making the announcement, Abbott, Stringham & Lynch’s Managing Partner, Ray Scheaffer, said, “We are excited to welcome Josh and Jyothi to the partnership group. In addition, we are pleased to announce Chris’ promotion to Tax Director. Their expertise and exceptional leadership will continue to support and contribute to our firm’s growth and commitment to delivering superior quality and service.” (more…)
In a further indication of the IRS’s continued focus on international tax issues, the tax agency updated an International Practice Unit (IPU) summarizing the calculation and recapture of foreign and domestic losses and their impact on the foreign tax credit.
(more…)
San Jose, CA August 16, 2016 — we are pleased to announce that Jyothi Chillara and Naila Sharifova of Abbott, Stringham & Lynch have successfully earned the IBFD-AG Advanced Professional Certificate in International Corporate Taxation. Jointly created by Allinial Global and IBFD, one of the world’s foremost authorities on international taxation, this rigorous program allows participants to differentiate themselves by becoming certified experts in international taxation.
On their way to certification, program participants earn 100 CPE credits and engage in a combination of self-study courses and live webcasts, followed by a final three-day training event. Course materials focus on three central components: fundamentals of international taxation, corporate international tax structuring, and treaty and transfer pricing aspects of international tax planning. In order to complete the certification process, participants must pass an assessment during each stage of the program, as well as a two-hour final exam. (more…)
Categories: Uncategorized
It is very common for U.S. parent companies to include key non-resident alien employees of their foreign subsidiaries in their stock option plans. What happens when the non-resident exercises the options or sells the options? Is the non-resident subject to withholding tax? Is there a U.S. tax filing requirement?
I have noticed that people use the term “service,” “product,” and “intangible” interchangeably in relation to software. For example, I was recently going through a client’s website to learn more about their technology and business, and I asked my husband (an engineer) to help me. He started explaining what they did with various acronyms like WLAN, CMOS, LTE-capable and so on, but it didn’t take long for me to get lost in his tech jargon. After seeing my blank face, he boiled it down to this: they sell a software product. But what does that really mean? What is licensing of software considered? And really, why does it matter?…