Two TSCPA-initiated House bills relating to technical corrections within the margin tax have progressed through committee. Both bills are sponsored by Rep. Charlie Howard (R-Sugar Land).
HB 4265clarifies the definition of controlling interest for partnerships, associations, trusts and other entities. It has been voted favorably from House Ways & Means.
HB 4270, which allows a deduction for related-party transactions at the fair market value of the transaction, was voted from the committee and recommended for the Local and Consent Calendar, indicating broad support.
Remaining in House Ways & Means are these TSCPA-supported margin tax bills:
HB 4264 - requires the COGS deduction to be taken from the federal tax return and eliminates all the specific COGS language.
HB 4266 - allows entities using the tiered partnership section to transfer both revenue and deductions to the upper-tier entity.
HB 4267 - clarifies when someone who does not have legal title to goods will be considered the owner of goods for COGS purposes.
HB 4268 - allows taxpayers that elect to deduct COGS to elect to use the amount reported on their federal tax return in lien of the other specific provisions for COGS deduction.
HB 4269 - clarifies that passive income includes capital gains, not net capital gains and eliminates the 10% business income test for a passive entity.
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