This planning strategy applies regardless of the type of charity or the type of property contributed. For example, assume a taxpayer has a parcel of real estate held for investment that he would like to gift to his church. To make sure you don't have a problem substantiating your 1998 donations, or to find out how charitable contribution strategies would apply to your particular income tax situation, contact a qualified tax practitioner. Beware the taxman. When business crosses state lines, familiar often gives way to the unknown.
Questions frequently arise as to when a company becomes subject to tax in another state.
One perplexing question facing multistate companies is determining what level of activity is sufficient to subject the company to tax. Minor activities in another state often are sufficient to bring on the taxman. The more activities conducted within a state, the more likely a state will impose a tax. Significant activities include maintenance of an office, or presence of property, employees or independent contractors. Historically, physical presence in a state is required before tax may be imposed.