Video: Optimizing State and Local Income Tax Rules

Tax planning for C corporations involves strategizing to minimize tax liability through lawful use of tax laws and regulations while considering the timing of income, deductions, and credits, and the selection of investments and types of revenue.

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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All right let's talk about optimizing state and local tax rules. I'd say less less common to see and this is more in our more brief multi-jurisdictional tax rules lesson. Obviously NOLs and capital losses that's just that's more common on the exam and just a more common topic overall but we want to make sure we're familiar with multi-state operations overall as well. When a business plans to expand understanding and optimizing state and local tax rules is crucial. Yeah I would definitely agree. You ever wonder why if you live in a state like New York you miss out on a lot of the great fast food chains that the rest of the country has? Well just opening one location in the state of New York can really mess up mess you up with taxes regulations rules. I mean well past taxes there's many government agencies that you have to report to but here we are dealing with taxes so maybe one day we'll get an in-and-out burger here in New York. I don't know for for now I'll just have to go to Texas California those other places and grab one of them god I love those. All right now these rules can significantly impact our overall tax liability you know definitely how income is apportioned and where the business is located right we have lessons on multi-jurisdictional tax issues dealing with apportioning income if we've got multi-state operations how much of the income is apportioned to which to you know how much is $50,000 of our income to state A to New York is $60,000 to Kansas right if we have if we operate in all 50 states income is going to go to all 50 states possibly depending on various situations that we see through

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C corporations

Module: 3 Concepts, 30 Videos

Corporations: Consolidated Tax Returns Overview

1:22

Introduction to Consolidated Tax Returns

2:25

Entities Not Able to File a Consolidated Return

3:20

Requirements for Affiliated Groups