On Election Day 2020, California voters narrowly approved Proposition 19 (“Prop 19”), a constitutional amendment designed to change the way that tax assessments can be transferred. Although the amendment covered many different areas, those most likely to benefit from Prop 19 (or notice its changes) are 55-and-older homeowners, the severely disabled, or victims of a natural disaster who are trying to sell their homes or those buyers whose property tax may be reassessed. 1, 3...
With the year rapidly coming to a close, and the upcoming tax year looming with uncertainties, you should consider updating your tax strategy to best preserve your assets into the future. Don't wait to make these adjustments. Check out some of the tax strategies below and then reach out to your financial professional now so you’re prepared for any potential tax changes in the New Year. Charitable Donations The 2018 changes to the tax code...
2020 has been one of the most unprecedented years in recent history, but some things—like tax contributions and retirement deadlines—don't change much, if at all. And with the uncertainty surrounding just about everything, meeting these deadlines and getting tax efficiencies in place now may help the rest of the year run more smoothly. Read on for several things you'll want to accomplish before 2020 draws to a close. Establish or Contribute to a Keogh Plan...
When you donate to a charity, you want to know that your donation is going to its highest and best purpose—which means minimizing the tax exposure of the donated assets. One way to accomplish this, whether you're hoping to donate during your lifetime, after your death, or both, is through a charitable remainder trust. Read on to learn more about the benefits of charitable planning through a charitable remainder trust. What is a Charitable Remainder...
What are appropriate checklists for year-end tax planning? Tax planners often develop checklists to guide taxpayers toward year-end strategies that might help reduce taxes. Typically, suggestions are grouped into several different categories, such as "Filing Status" or "Employee Matters," for ease of reading. When year-end approaches, it might be wise to review each suggestion under the categories that may apply to you. Filing status and dependents If you're married (or will be married by the...
Today's low interest rates are a far cry from the double-digit rates seen in the 1970s and 1980s when even a certificate of deposit (CD) could yield up to 20 percent per year. 1 But there are some distinct advantages to a low-interest-rate environment, and now is a great time to look into some tax-saving estate planning strategies. Learn more about how intra-family loans, charitable trusts, and certain installment sales can help you transfer assets...
If you are one of the 90% of taxpayers who don't itemize deductions, you cannot claim a federal deduction for charitable donations. To get past this issue, some people lump their charitable gifts together. Wondering how to claim a deduction for charitable giving? Curious about how clustering charitable gifts together can help? Here's what you need to know. Standard Versus Itemized Deduction Before the Tax Cuts and Jobs Act (TCJA), the standard deduction was $6,500...
As the end of the year approaches, it's time to consider strategies that could help you reduce your tax bill. But most tax tips, suggestions, and strategies are of little practical help without a good understanding of your current tax situation. This is particularly true for year-end planning. You can't know where to go next if you don't know where you are now. So take a break from the usual fall chores and pull out...
When developing your estate plan, you can do well by doing good. Leaving money to charity rewards you in many ways. It gives you a sense of personal satisfaction, and it can save you money in estate taxes. A few words about transfer taxes The federal government taxes transfers of wealth you make to others, both during your life and at your death. In 2020, generally, the federal gift and estate tax is imposed on...
What if there was a year that started with the market hitting new highs after a prolonged bull market and the economy seemed to re-accelerate? What if there was a virus that came from the East and spread to the rest of the world? What if governments around the world closed their economies by imposing a lockdown and all citizens had to shelter-in-place? What if the stock market then dropped 34% and entered into the...
Many of you already have estate documents, probably executed many years ago. You need an estate attorney to look over your documents every 10 years or so. Here are a dozen points to review. 1. Do you have a will and powers of attorney for health care and property? These are part of every complete estate plan. With health-care power, you choose an agent to act on your behalf if you become unable to make...
If you're a CPA or a lawyer, you have extensive personal knowledge about taxes or the legal system, but at the same time, you may be running your own firm and dealing with unique financial situations. To ensure you're increasing your investment and savings efforts, you may want to consult with a financial planner. Here are some tips to help you work with these professionals. 1. Don't Mix Business and Personal In many cases, there...
