Trusts are the preferred mode of estate planning for most estates but not all trusts are created equally. Certain trusts generate income through the sale of assets as well as holding assets that generate interest. Proceeds from the sale of assets and income gained on assets held are both considered income that must be taxed. Those tax implications stem from the distribution of income to a beneficiary designated by Read More

We consistently recommend that all of our clients have a thorough and effective estate plan in place. Establishing legal planning documents dictating how and to whom important assets will transfer protects your legacy and your loved ones. Effective estate planning also addresses financial obstacles that can present themselves during or after the transfer of wealth, especially in large estates worth millions of Read More

The Federal Trade Commission proposed a new rule at the start of the New Year that would ban noncompete clauses, claiming the clauses lower wages and “harm competition.” This comes six months after President Joe Biden issued an executive order recommending that the FTC do exactly that. The proposed ban would not only ban noncompete clauses moving forward but also nullify any noncompete clauses that are currently in Read More

Last month, we covered how to calculate an asset’s tax basis, which plays a major role in an individual’s ongoing financial responsibilities and taxes. The long-term tax implications that derive from the tax basis of an asset can have a major impact on future planning for yourself and, in the case of business assets, your business. Cost basis is the cost to acquire a particular, and is the initial tax basis of an Read More

Maximizing your business’ tax strategies can help you avoid taxes on unrealized gains when done correctly. One benefit many taxpayers miss out on involves excluding a portion of capital gains from qualified small business stock from taxable income. The Internal Revenue Code provides extensive context for this tax deduction which can lower your income tax liability. Which Small Businesses Qualify? There are several Read More

Last month, we dove into reasons why gifting expensive assets can create financial challenges for both sides of the exchange. Even if the holidays have passed, it’s important to start 2023 with a clear understanding of the financial consequences of gifting. You should be aware of both the annual gift tax exemption and the lifetime estate/gift tax exemption when considering high-value gifts. Both of these numbers play Read More

Investing in real estate can set you, your heirs, and your business up for generations to come – when done correctly. The real estate industry is filled with nuances that investors need to keep track of, but one that’s often overlooked is the impact of estate and inheritance taxes where you invest. In California, we don’t have estate taxes and haven’t since 1982 when the people voted to repeal the tax. This means Read More

  We don’t want to come across as the Grinchhere. Gifting is a time-honored tradition during the holiday season, and we’re certainly not going to stand in the way of the gifts under your tree this time of year. However, we do want to spread caution surrounding high-value gifts for individuals and all gifts to employees. The IRS is always watching. They might not know when you are sleeping, but they’re Read More

The federal government committed to protecting American workers with the Employee Retention Credit. Business owners have the opportunity to claim a $26,000 per employee tax credit for keeping workers on payroll – but the IRS wants to make sure that’s actually where the credit is being applied. IRS officials put out a warning recently, informing employers to be aware of third parties that are attempting to subvert Read More

When you put your hard-earned money into a big expenditure, you hope to get great value out of it over time. Of course, you will generally accomplish this in a practical way, but the value of most assets will also depreciate (lose value) over time. This prevents you from buying, using, and flipping most assets for the same value you paid in the beginning. That’s where depreciation from the tax basis of the asset, Read More