California (2021, September 24) - The California Legislature had its final date on September 10, ending the 2021 process. Only minor changes occurred with tax bills, which SmartCPA can help you better understand.

During this year's hearings, there was a request to pass AB 310. This bill would impose an extra 1% in taxes on those worth more than $50 million and 1.5% if $1 billion. AB 310 did not go through this year, but it will likely come back in the future.

AB 1253 was another bill that went before the Legislature. It would increase the personal income tax rate to 16.8%. Again, this bill may show up in the future, but it did not pass this time.

AB 71 was the most significant bill considered for business owners and corporations. It would require some taxpayers to adhere to laws under Global Intangible Low-Taxed Income. Though it saw some movement early, it is currently inactive and likely will not happen.

One of the bills that did pass the Legislature was the SALT cap workaround. This proposition allows business owners and independent contractors to get out of the $10,000 cap on deductions. You have to have an S corporation or a partnership to pay the 9.3% entity tax that qualifies as the workaround.

Finally, Senate Bill 539 will soon be active in California. It states that the state has to follow Proposition 19, which creates fairer property tax valuations for the disabled and elderly. For homeowners to transfer their house, however, there are rules for the new residents. They have to live there for at least a year.

SmartCPA is a tax and accounting service Garden Grove-based. They provide individuals and business owners the expertise they need to follow all IRS-enabled laws and California regulations. The accountants at SmartCPA can even help you better understand the SALT cap workaround so that you can save on your tax return as a business owner.