(6/26/2014) New State Tax Laws
Now that the deadline for the Governor to veto legislation has passed, our report on what's going to be new law is in Current Legislation. Here is a more complete list, courtesy of the Tax Foundation of Hawaii.
(4/17/2014) 1st Quarter Federal Report
Thank you to Thomson Reuters / RIA for the report on federal tax developments in the first quarter of 2014. Here are the headlines, with details at News and Updates.
- IRA rollovers to be limited.
Popular expired tax breaks may be revived.
Severance payments are subject to social security taxes.
Luxury auto depreciation limits for 2014.
Maximum auto/truck values for cents-per-mile valuation.
Relief from individual mandate for certain limited health coverage.
Proposed regulations on the individual mandate.
Guidance on the employer mandate to provide health insurance.
Small estates get more time to transfer unused exclusion to surviving spouse.
New IRS guidance on virtual currency.
Hello and welcome to Aloha State Tax! This is the home page of Thomas Yamachika LLLC, a very small law firm (population: me) with emphasis on taxes imposed by the State of Hawaii, the Aloha State.
Why care about state tax? One thing that comes along with doing business in Hawaii is the Hawaii General Excise Tax, or GET. Although it is imposed at a nominal rate of 4%, it produces nearly half of all general fund revenues for the Hawaii state government. This is because the tax is imposed on virtually all economic activity, and has the broadest reach in the United States. It reaches services, interest, royalties, and other things that most folks would never dream are taxable. And, because it's a tax on gross receipts, it allows very few deductions. Many people think it's simple...but it really isn't.
Most people care about federal income tax because the rate is higher. But what if a business is experiencing a current loss? GET still needs to be paid. What if a business is experiencing current income that is offset by losses from prior years? GET still needs to be paid, and maybe state income tax does too because the state rules are different.
What can be done about it? "Knowledge is power." "To play the game, you have to know the rules." Tom has worked for the Hawaii Department of Taxation and then spent 16 years in the accounting firm world. We can help!