California is known for its high taxes, but careful planning can help you keep more of your hard-earned money in your pocket. In our blog, we share important tax planning tips, as well as advice for what to do when you find yourself facing an IRS collection action, levy, or lien.
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The Money Side of DivorceWhile divorce may end a marriage, it doesn't end obligations to one another. In many relationships, one spouse is more financially well-off than the other. In a divorce, this earning discrepancy means that the poorer partner is entitled to receive spousal support, or alimony, to help him or her establish...
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John Goralka's Latest Kiplinger Article Regarding President Trump and the Republican Party's Tax Proposals and What California's Proposed Senate Bill Will Do If Federal Estate Tax Is RepealedCalifornia is showing a much greater willingness now to tax its wealthier state residents. Five years ago, it boosted the top tax rates for its wealthiest residents, and now it has a new state estate tax proposal on the table that could come into play if the federal estate tax...
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The Ins and Outs of Deducting Legal ExpensesLegal expenses incurred by individuals are typically not currently deductible under the federal income tax rules. Instead, they're most often treated as either personal outlays (which are nondeductible) or as part of the cost of acquiring an asset, such as real estate. In the latter situation, legal costs usually aren't...
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Estate Tax Repeal? Perhaps Not in California!Both President Trump and the Republican party's separate tax proposals recommend the repeal of the federal estate tax. California State Senator Scott Wiener sponsored Senate Bill (SB)726 which would create a California estate tax in the event that the federal estate tax is repealed. SB726 This new California estate tax...
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Home Mortgage Interest Deductions That Can Save You Money on Your TaxesIf you own a home with a mortgage, you should receive an IRS form from your lender each year with information that is used to claim an itemized deduction for qualified residence interest. For 2016, that form should include additional information that could trigger unwanted attention from the IRS. Here's...
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Learn How You Can Reduce Capital Gains Taxes With a Two Year Sale StrategyIf you plan to sell a substantially appreciated asset, property or business, you can save money with what's called a "two-year installment sale." Basically, it's a double-sale strategy to create a "taxation timing gap" between when the asset sale proceeds are received and when they're taxed. Here's how it works:...
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IRS to Use Private Debt CollectorsBeginning in April, 2017 (this month) the Internal Revenue Services (“IRS”) plans to begin utilizing private debt collection agencies to collect past due taxes.
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How to Take Advantage of Planning Opportunities That May Not be Available at the End of The YearMany of us forget to jumpstart our income tax planning at the beginning of the year. We are accustomed to the last-minute rush of planning activities at year-end and are worn out by January 1st. However, planning at the beginning of the year can provide significant benefits. These benefits include,...
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Remember to Take Your Required Minimum Distributions (RMDs) By April 1st to Avoid IRS Penalties and Consider the Use of Qualified Charitable Distributions (QCDs) for Your WithdrawalsDid you know that, once you turn age 70½, you must start taking mandatory annual withdrawals from your traditional IRAs, including any simplified employee pension (SEP) accounts and SIMPLE IRAs that you set up as a small business owner? These mandatory IRA payouts are called required minimum distributions (RMDs). And...
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Consider Section 179 Deductions for Real Estate ExpensesThe Section 179 deduction for qualified real property expenses was made permanent under the Protecting Americans from Tax Hikes (PATH) Act of 2015. However, claiming this deduction isn't a no-brainer. Here are the pros and cons. Section 179 Deductions: The Basics The Sec. 179 deduction allows you to write off...
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Estate and Income Tax UpdateIs this the Beginning of Estate Tax Repeal? President Trump ran on a platform seeking repeal of the estate tax. On January 24, 2017, Congresswoman Kristin Noem (Republican-South Dakota) along with congressman Sanford Bishop (Democrat-Georgia) and others, introduced H.R. 631 in the House, which if enacted, would repeal the estate...
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IRS Updates FAQs on Certain ACA ProvisionsThe Trump Administration and the Republican majority in Congress plan to repeal and replace the Affordable Care Act (ACA) in the coming months. In the meantime, however, employers must continue to comply with the existing rules for 2016, including the information reporting requirements and shared responsibility provisions. The IRS previously...