Q. I understand that the recently passed Proposition 19 on the California Ballot will make major changes in the property tax structure. Is that true? A. Yes, indeed. California voters just narrowly approved Proposition 19, overhauling our property tax rules originally stemming from the passage of Proposition 13 in 1978. Most notable are the new… Read More »
Monthly Archives: November 2020
Consider Tax Savvy Year-End Gifts
Q. My wife and I are considering making large gifts to our two children and four grandchildren, and we would like to do so in a way that is “tax wise”. Do you have any advice for us? A. Yes. Many people mistakenly believe that one cannot gift more than $15,000 per year/person without incurring a… Read More »
Social Security Benefits To Increase Modestly in 2021
Q. Has there been any word as to whether there will be a cost-of-living increase in Social Security in 2021? A. Yes. Just recently, the Social Security Administration announced a 1.3 percent rise in benefits in 2021, an increase even smaller than last year’s cost-of-living increase. Cost-of-living increases are tied to the consumer price index,… Read More »
Special Planning for an Incapacitated Spouse
Q. My wife suffers from dementia and has been in a nursing home for some time. About a year ago, we put everything in my name so she could qualify for a Medi-Cal subsidy to help pay for her care. We currently have only simple wills which leave everything to the survivor of us, and… Read More »
Giving Your Home to Your Children Can Have Income Tax Consequences
Q. I am thinking about giving my home to my son now, so that probate can be avoided and my affairs simplified when my time comes. Any comment as to whether this plan makes sense? A. Caution: Giving your home to your son during your lifetime can have adverse income tax consequences. Example: assume that… Read More »