Buying or selling a business involves a litany of financial implications that go beyond just what the business sold for. What matters, especially come tax season, is how that number gets divided among the assets being transferred. That process is called purchase price allocation, and it has a significant effect on what both the buyer and the seller owe or save in taxes. If you’re the seller, how the price gets split Read More

When someone passes away, their loved ones often find themselves juggling emotions, paperwork, and financial concerns all at once. If you're the one trying to settle a family member’s affairs (or planning ahead to prevent that burden for your own heirs), understanding how estate taxes work is an important element of what you’re doing. In California, where property values and business holdings can push estate values Read More

California real estate investors have long benefited from the short-term rental tax loophole, especially those who actively manage Airbnb or vacation properties. We’ve covered this strategy before, and for good reason: When used correctly, it creates serious tax savings and helps investors reduce the bite of W-2 or other income taxes. But, recent changes to Airbnb’s policies that offer more income opportunities for Read More

People create trusts to simplify life for their loved ones and avoid unnecessary court involvement later. This preserves the privacy and security of the estate. Even with a fully-funded trust in place, though, the Certification of Trust (often called a Certificate of Trust) may be necessary to uphold its contents. This document makes it easier to prove that your trust exists and that the person managing it has the Read More

It makes sense for California business owners to find ways to cut costs, keeping their profits in-house. One way some business owners and executives look to do this is to draft their own contracts. After all, you know what the contract needs to say and what both parties are agreeing to, right? The challenge is that while it may save you money upfront, it could be costing you significantly down the line. In Read More

Properly planning your estate includes knowing the real, taxable value of your estate’s entirety. Some people underestimate the value of their estate, leaving their children with a heavier tax burden that must be satisfied by assets and accounts they were set to inherit, while others overestimate it and end up with unaccounted for assets and wealth to be distributed through intestacy laws. In reality, the process of Read More

When income taxes eat away at your investment returns, smart tax strategy becomes non-negotiable. Owning numerous short-term rental properties in California can be a fruitful endeavor, but to prolong growth, you need a strategy that reduces your tax burden. Whether you're running a vacation property in Lake Tahoe or leasing a furnished unit in San Diego for a week at a time, California’s market offers the perfect Read More

When you’re planning for your family’s future, every detail matters. The choices you make today will shape the way your children and loved ones carry on your legacy. These decisions become even more crucial when you have a special needs child who will need lifelong assistance. Without the right structure for your estate and retirement accounts, those decisions can unintentionally create bigger, more expensive Read More

Whether you’re investing in valuable California real estate for personal or professional reasons, it’s important to take the right approach to structuring and holding these assets. One option we rarely recommend is holding real estate in a corporation. While corporations offer some legal protections, putting real estate inside a C or S corporation can create tax problems that are difficult—or even impossible—to Read More

California real estate investors and property owners have their reasons for keeping ownership private or ensuring that assets transfer outside of probate. A land trust can meet these goals, but it’s important to understand what it does—and what it doesn’t do. While land trusts may provide limited anonymity, they do not offer true asset protection unless they’re structured in conjunction with other legal tools that do Read More