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

A home holds incalculable value to a family. It’s a place to grow together and make countless memories. It can also be significantly valuable if you rent your home out in the future, or you own rental real estate. Capital assets of your business also hold tremendous value. Unfortunately, the IRS will require you to have a clear understanding of the value of these assets and other properties you own. Above all Read More

Nobody enjoys disorganization. Think of a grocery store: sure, it can be stressful trying to find that one key ingredient you need for dinner – but imagine if grocery stores just randomly sorted items on their shelves with no labels on the aisles. If that thought made you shudder, think of an even more alarming situation where a loved one dies without having any system or organization for all their important Read More

The Augusta Rule is a lesser-known aspect of the tax code that more business owners should be taking advantage of. Whether you’re completely unaware of the rule or simply misunderstanding how it works, we want to put you in a position to get the most out of your money. For the golf fans reading this, yes, the “Augusta” Rule is indeed named after the famed Masters Tournament. More accurately, it’s named after Read More