{"href":"http://player.captivate.fm/services/oembed?url=http%3A%2F%2Fplayer.captivate.fm%2Fepisode%2F35392b24-29b5-44a3-bc1b-04cb1fb4d108","version":"1.0","provider_name":"Captivate.FM","provider_url":"https://www.captivate.fm","width":600,"height":200,"type":"rich","html":"","title":"Insights on California Tax Issues with Michael Cataldo (Part 1)","description":"In the first episode in a two-part series of the SALTovation podcast, Meredith Smith and Stacey Roberts, from TaxOps\u2019 SALTovation Team, speak with Michael Cataldo, of Cataldo Tax Law in California. Michael shares his insight with his experience on Franchise Tax Board, public accounting and private law on the publications released by the Franchise Tax Board. He also talks about tax issues and cases related to Public Law 86-272 and business versus non-business income.\r\n\n \r\n\nTopics discussed in this episode:\r\n\nCurrent issues discussed by Franchise Tax Board including market-based sourcing and multi-state practice\r\n\nBusiness vs. non-business income and what qualifies as doing business in the state\r\n\nPublic Law 86-272 and alternative proportment\r\n\n\n \r\n\nWhat You Will Learn:\r\n\n[00:57] An introduction to Michael Cataldo\r\n\n[03:21] Current tax issues\r\n\n[10:20] Business vs. non-business income\r\n\n[17:55] What qualifies as doing business in the state\r\n\n[22:05] Interpreting Public Law 86-272\r\n\n[29:28] The procedure for alternative proportment\r\n\n\n \r\n\nQuotables:\r\n\n \r\n\n\u201cOver the years, there\u2019s been this sort of gradual shift where my clients used to be mainly located in California, and now more and more of them are located outside the state.\u201d - Michael Cataldo [04:09]\r\n\n\u201cIt used to be a little more debatable and it\u2019s still not completely decided, but is it business or non-business income? You have to look at that question.\u201d - Michael Cataldo [11:38]\r\n\n\u201cTrying to explain that concept of business income vs. non-business income to the unknowing, it\u2019s like \u2018But I\u2019m not in the business of selling land.\u2019 But \u2018Ok, fine, but did you use that land in order to create your other business income?\u2019 It\u2019s almost a given that if you call something non-business income, you will be audited. Like 100%\u201d - Meredith Smith [14:03]\r\n\n\u201cThese issues come all the time and there is room to argue about it. Now California has their rule and regulation on substantial and unusual sales are thrown out of the sales factor but the income is still in there. The question is \u2018Hey, is this a fair reflection of income?\u2019 Sometimes it\u2019s not.\u201d - Michael Cataldo [17:00]\r\n\n\n \r\n\nRelevant Links:\r\n\nCataldo Tax Law: cataldotaxlaw.com\r\n\nMichael Cataldo on LinkedIn: linkedin.com/in/michael-cataldo-aaa9205/\r\n","thumbnail_width":300,"thumbnail_height":300,"thumbnail_url":"https://artwork.captivate.fm/c3b4340f-db06-4d75-9a00-09f9eb3abb86/salt-1-bpay1.jpg"}