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Short Term Securities Investments: The Sales Factor

John A. Biek

In this course, John Biek analyzes two very interesting California cases and an Illinois case that preclude the inclusion of the gross receipts from the sale of temporary investments in the denominator of an entity's sales factor, and instead allow only the net gain from investments to be included. The California cases, however, reached their result only by applying an alternative test that can be invoked only when there is a material distortion in the manner in which income is allocated to California. As noted in this course, the burden of making this determination is on the state, and taxpayers should carefully analyze their own situations. The cases reviewed include:

  • The Microsoft Case
  • The General Motors Case
  • The Mead Corp. Case
  • Conclusion

Course Details
Price:  $30.00
Field of Study:  Taxes
Prerequisites:  Basic knowledge of state income taxation
Level:  Intermediate
CTEC course number:  1075-CE-5154
Course was last updated on:  05/06/08
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Library:
State Taxation

Technical Requirements:
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Credit Available For: Units
CPE 2 CPE
QAS 2 CPE
CTEC California 2 CE

Note: Recommended CPE credit is based on a 50-minute hour. Participants earning credits for states that require self-study to be based on a 100-minute hour will receive half the recommended CPE credits for successful completion of this course.

Since Continuing Professional Education requirements vary from state to state and are subject to change without notice, please contact your state board of accountancy for information on your CPE requirements and the applicability of this course to meet those specifications.

CCH has been approved by the California Tax Education Council to offer courses that provide federal and state credit towards the annual "continuing education" requirement imposed by the State of California. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, toll-free by phone at (877) 850-2832, or on the Internet at www.ctec.org.

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