Dear Clients and Friends:

There are many benefits of operating a business as a corporation.  To fully realize these benefits a corporation should strive to have the appearance of a true and legitimate operating corporation separate and distinct from its shareholders.  There are two issues we would like to bring to your attention which, if not done properly, may bring into question the validity of the corporation and could cause undesirable consequences.  The two issues are 1) corporate minutes and 2) shareholder loans. Continue reading →

Dear Clients and Friends:

With a new year comes a new tax filing requirement.  Under the 2010 HIRE Act, any individual who, during the 2011 tax year, held an interest in a “specified foreign financial asset” must attach to his or her income tax return Form 8938, Statement of Specified Foreign Financial Assets.  As with any other foreign reporting requirement non-compliance will be met with stiff penalties.  This form is in addition to the FBAR filing requirement (form TD F 90-22.1) and does not replace it. Continue reading →

Dear Clients and Friends:

Year-end is a good time to engage in tax planning by carefully structuring your capital gains and losses which can result in significant tax savings. This tax planning strategy is sometimes referred to as “harvesting capital gains and losses”. Continue reading →

REAL PROPERTY OWNSHIP IN MEXICO BY A US PERSON AND US TAX RETURN FILING REQUIREMENTS IF YOUR MEXICAN PROPERTY IS OWNED IN A MEXICAN TRUST (“FIDEICOMISO”) Continue reading →

Dear Client & Friends:

Tax reporting on the rental of a taxpayer’s residence or vacation home depends on how many days the property is used for rental purposes as opposed to personal purposes. A residence or dwelling is defined as a dwelling unit and includes a house, apartment, condominium, mobile home, boat, or similar property. Residences used personally by the taxpayer generally fall into one of three categories when determining their tax treatment. Continue reading →

Dear Clients and Friends:

Beginning with the 2011 tax year, businesses other than those that are primarily engaged in agriculture, extractive business, savings and loans, or banking and financial activities, may make an irrevocable annual election to apportion income to California using a single sales factor apportionment formula. Continue reading →

October 27, 2011

Dear Clients and Friends:

Unused Estate Tax Exemptions Can Be Left To a Surviving Spouse

The Tax Relief Act of 2010 provided a new estate tax benefit for married individuals – but it is currently only available in 2011 and 2012.  For the first time, a deceased spouse who doesn’t use up their entire estate tax exemption may be able to transfer their unused exemption amount to a surviving spouse.  In other words, unused exemptions of individuals who die in 2011 or 2012 (but not 2010) will be “portable.”  This allows both spouses’ exemptions to be utilized without having to set up a credit shelter trust or engage in other, more traditional, estate tax planning. Continue reading →

Dear Client:

Generally, you must make estimated tax payments if you expect to owe at least $500 ($250 if married filing separate) in California tax for 2011 (after subtracting withholding and credits), and you expect your withholding and credit to be less than the smaller of: Continue reading →

Are you at least 55?  Want to maintain your Prop. 13 property tax basis in your next move?

Dear Clients and Friends:

If you have moved recently, are contemplating downsizing, or are moving in the future there is a little known California proposition (Prop. 60) that may allow you to save a great deal in property taxes.  Homeowners who are at least 55-years of age are allowed to transfer existing Proposition 13 factored base year property tax values to a replacement residence located within the same county (and sometimes in other counties), if certain qualifying conditions are met. Continue reading →

September 9, 2011

To Our Clients and Friends:

Most of us have more than enough to do. We’re on the go from early in the morning until well into the evening—six or seven days a week. Thus, it’s no surprise that we may let some important things slide. We know we need to get to them, but it seems like they can just as easily wait until tomorrow or the next day or… whenever. Continue reading →