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
Identify issues that arise for revenue, revenue exclusions, compensation, cost of goods sold, and apportionment
Understand calculations for margin, apportionment, and research & development credit
Apply court decisions to determine appropriate Texas franchise tax treatment for various business activities
Time
Topics
Issues
8:30
Franchise Tax Overview
Nature of Franchise Tax
Nexus and Safe-Harbor for Remote Sellers
Passive Entities
Reporting Periods
8:45
Calculating Margin
Revenue & Revenue Exclusions
Cost of Goods Sold Method
Compensation Method
30% Net Revenue
$1 Million Statutory Subtraction
10:00
Break
10 Minute Break
10:20
Apportionment
General Apportionment Rules
Service Industry Apportionment
Transportation Industry Apportionment
Net Gains & Losses Apportionment
11:20
Combined Reporting
Affiliations Test
Unitary Criteria
11:35
R&D Credit
Qualifying Research
Credit Calculation
Credit Carryforward/Limitations
Software Issues
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
Identify issues that arise for revenue, revenue exclusions, compensation, cost of goods sold, and apportionment through working out specific franchise tax problems
Understand calculations for margin, apportionment, and research & development credit through working out specific franchise tax problems
Time
Topics
Issues
12:30
Revenue, Exclusions, Subtractions, and Apportionment
Real Estate Revenue Exclusion
Oil & Gas Exclusions
Real Estate COGS Subtraction
Heavy Equipment Rental
COGS Installation Labor
Compensation
Service Industry Apportionment
Apportioning Net Gains/Losses
Transportation Apportionment
2:00
Break
10 Minute Break
2:10
Combined Reporting, R&D, Industry Issues, and Challenging Assessments
Management Company Issues
Combined Reporting and No Nexus Members
Texas Research Tax Credit
Medical Exclusion Issues
Challenging Tax Assessments
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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