Taxes Change for Partnerships and S Corporations

Congress has been busy in recent weeks on changes to the tax code that will reduce the taxes paid by individual and corporate residents throughout the U.S. Whether that’s a good or bad thing is subject to debate and opinions as to how tax policy impacts behavior, and we’ll leave that discussion for other forums. But since many of our clients are pass-through entities (or owners of pass-through entities), we wanted to provide a quick update as to the changes.

The biggest change to discuss for pass-throughs is this: the current proposal is that sole proprietors, most S corporation shareholders, and partners in a partnership will be entitled to a deduction equal to 20% of their allocable share of business income. There are some limits to this. For example, the deduction cannot exceed 50% of the share of the W-2 wages paid by the business. Also, the owners of “personal service businesses” are not eligible to take the deduction unless the individual’s taxable income is less than $157,500 (or $315,000 if married, filing jointly).

This proposal has passed through conference committee, and both houses of Congress are set to vote on the proposal this week. Most expect the proposal to pass. Stay tuned …

Is net neutrality dying? Has the FCC killed it? What comes next? Here’s what you need to know

This is a good primer on Net Neutrality and why it maters. Give it a read!

Gigaom

The issue of net neutrality is back in the news again, thanks to some proposed rule changes by the Federal Communications Commission, changes that the regulator says are aimed at protecting a “free and open internet.” A chorus of critics, however, say the commission is trying to eat its cake and have it too — by pretending to create rules that will protect net-neutrality, while actually implementing what amounts to a pay-to-play version of the internet, one that favors large incumbents.

It’s a complicated topic, and one that is prone to a certain amount of hysteria and hyperbole. So what follows is a breakdown of what you need to know, and what some legal experts, technology insiders and advocacy groups are saying about it:

Why is the FCC changing its rules?

The regulator’s ability to monitor and punish breaches of net neutrality was thrown into limbo by a court ruling…

View original post 1,782 more words

The Business of Bitcoin: Taxable Property

Here is a somewhat more extensive discussion of the implications of the IRS’ recent guidance on the tax treatment of bitcoin, written by BCS associate attorney David Freda.

Briskin, Cross & Sanford - Business Law Blog

As you may have now heard, on March 25, 2014, the IRS declared that, at least for now, Bitcoin will be taxed as property, rather than as a currency.  For those who view bitcoin as an investment vehicle similar to stocks, this ruling sets a clearer path with well known “rules of the game” for dealing with the tax implications of bitcoin.

But for those who are interested in bitcoin as a new currency, the path is now cluttered with administrative, legal, and financial complexities.

In order to better understand the implications of the IRS’ new stance, let’s take a quick look at the taxation of property. Generally speaking, if you purchase property and it appreciates in value, you must pay tax on the gain you realize above the original purchase price when you sell the property. This rule has traditionally applied to stocks and bonds in the same…

View original post 1,120 more words

When is software patentable? The Supreme Court is about to weigh in

The Alice Corp. case definitely represents a potential pivot point for software patents. The determination of what what is and abstract idea and what is not in the context of computer software has long been a difficult and fuzzy process. It is hoped that the U.S. Supreme Court will use its decision in the Alice Corp. case to clarify that analysis, thus providing clearer direction to software authors who are considering whether to seek patent protection for their creations.

Gigaom

Software patents have always been controversial, in large part because the dividing line between a patentable software-based invention and one that is not has never been clearly defined. But the often hazy body of law that determines software patentability could be about to change.

On March 31, the U.S. Supreme Court will hear oral arguments in Alice Corp. Pty. Ltd. v. CLS Bank Int’l., No. 13-298, a case that could have wide consequences in the tech community and beyond.  At stake is when and how a particular software-based invention—that is, an invention that incorporates the performance of a computer and software—is entitled to a patent.

At the heart of the matter is the “abstract idea.” An abstract idea on its own is not patentable, but what exactly counts as an abstract idea? The Supreme Court has never set out a specific test for what is and is not…

View original post 1,070 more words

Planting A Startup Garden

An interesting local-centric twist on the VC / Accelerator concept.

I like it!

The Lavabit Shutdown and IT Security

How Lavabit Melted Down : The New Yorker.

The New Yorker has an excellent piece online which discusses in detail the events leading up to the shutdown of Lavabit, a secure e-mail provider which was used by Edward Snowden.

 

The article details the pressure placed upon Lavabit and its owner not just to turn over information that would shed light on Edward Snowden’s activities, but rather, information which would give the government wholesale access to all email passing through the services.

 

This article raises serious issues for IT companies who have committed to safeguard the privacy and/or security of its customers. It also raises serious concerns regarding the extent to which the U.S. Government is willing to (and in fact does) compromise the privacy of innocent U.S. citizens as a routine matter.

 

The dark side of Apple’s iBeacons

Interesting. I can see the interesting things that can be accomplished with this technology, but the specter of getting barraged with adds on my phone when I walk into a mall is not attractive. I, for one, can say: if a place starts spaming based on proximity, that is one of the fastest ways to keep me from going to that location. Ever.

Apple Releases iOS 7.0.2 With Fixes For Lock Screen Bypass, Greek Passcode Keyboard

If you haven’t yet… update ASAP!

Day traders, angels and venture capital: The internet changes everything, including money

An excellent piece by Om Malik on the future of funding . Well worth the read!

Gigaom

London is the grandfather of economic excess and perhaps an appropriate role model for New York and San Francisco, the new Babylons of the post-millennial world. It is hard to escape the presence of money — fancy super cars, fancier homes and fancy financiers — where the stench of excess is masked by the sweet scent of success. Except for one small difference — New York (aka Wall Street) and San Francisco do one thing better than London: branding money. 

Actually, money — whether it is in Bogota or Bombay (Mumbai, if you insist) or Boston — is just money. Borrowing it, investing it or generally rolling around in a bed made of $100 bills is pretty much the same experience regardless of the source or geography of money. Except, somehow, some kinds of “money” are better than other kinds of “money.”

From bulge-bracket banks to white-shoe Sand Hill Road firms…

View original post 2,593 more words

Google tries to fuel innovation outside of Silicon Valley with new Tech Hub network

It would be great to get Atlanta (or even better: Alpharetta) in the mix here!

Gigaom

Google(s goog) is looking to cultivate innovation in some of the more obscure tech markets in the North America. It announced on Wednesday a program that would expand Google’s community ties and outreach in seven large tech hub co-working facilities in the U.S. and Canada.

Chicago, Denver and Waterloo, Canada, aren’t exactly tech backwaters, but they aren’t Silicon Valley, San Francisco or New York City either. In some cases — such as Motorola’s hometown Chicago — Google already has a major presence in these cities. But the idea is for Google to have a more direct involvement in the working facilities, accelerators and incubators that are seeding these cities’ nascent startup scenes.

From a post on Google’s official blog:

We started Google for Entrepreneurs to help foster entrepreneurship in communities around the world. Through our work in more than 100 countries, we’ve been incredibly impressed with the catalyzing impact…

View original post 183 more words