This 4-hour course covers the major issues CPAs and tax professionals confront under the Texas franchise tax. We will cover each of the main components of the franchise tax calculation, including revenue, compensation, cost of goods sold, apportionment, and combined reporting.
Learning Objectives
Learn rules for revenue exclusions, compensation, COGS, and apportionment
Understand calculations for margin, apportionment, and research and development credit
Apply court decisions to determine appropriate Texas franchise tax treatment
Time
Topics
Issues
8:30
Franchise Tax Overview
Nature of Franchise Tax
Nexus and Safe-Harbor for Remote Sellers
Passive Entities
Reporting Periods
8:50
Calculating Margin
Revenue
Revenue Exclusions
Margin Calculation
$1 Million Statutory Subtraction
Tax Rate
10:00
Break
10 Minute Break
10:10
Subtractions
Compensation
COGS
11:00
Apportionment
General Apportionment Rules
Service Industry Apportionment
Transportation Industry Apportionment
Net Gains & Losses Apportionment
11:40
Combined Reporting
Affiliations Test
Unitary Criteria
12:00
Lunch
Provided for In-Person Attendees
Advanced Franchise Tax Workshop
CPE Credit Hours: 4.0
Program Level: Advanced
Program Prerequisite: Texas Franchise Tax or 3 years experience preparing franchise tax returns
Those with a basic understanding of Texas franchise tax law should attend this course to gain in-depth knowledge of Texas franchise tax issues arising in Texas' major industries from an attorney who works on the front lines, trying complex Texas franchise tax cases in court and arguing the related appeals.
Learning Objectives
Apply franchise tax rules to numerous industry hypotheticals
Understand calculations for margin, apportionment, and research and development credit
Identify complex franchise tax issues arising in oil and gas real estate
Learn the details of the research credit provisions
Time
Topics
Issues
12:30
Revenue Exclusion
Texas General Contactor Problem
Texas Oilfield Operator Problem
1:15
COGS
Dallas Integrated Oilfield Services Problem
EZ Rentals and Repairs Problem
Texas Cabinet Co. Problem
1:40
Compensation Subtraction
Smith, Davis & Becker CPAs Problem
1:50
Apportionment
Universal Studios Problem
Retail Stores Problem
Trucking Company Problem
2:25
Break
10 Minute Break
2:35
Management Company Exclusion
Apartment Management Company Problem
2:50
Combined reporting
Toy Sellers Problem
3:05
Challenging Tax Assessments
Bullet Construction Company Problem
3:25
Texas Research Incentives
Game Developer Problem
Qualified Research Problem Set
3:50
Medical Exclusion
Texas Physicians' Clinic Problem
NASBA Statement
LAT Seminars is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority over the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket
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