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 »
Posts Categorized: Tax Matters
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 »
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 »
The ‘CARES ACT’ Allows You To Skip IRA MRD’s This Year
Q. What options would I have this year regarding my IRA Minimum Required Distributions, which I would normally take by year end? A. Good question. Here are three. While not intended as an exclusive list, they are top of mind for me: Option #1: Skip MRD’s Altogether This Year. This is a new option for… Read More »
Under the CARES Act, You May Be Eligible To Withdraw Up to $100k From Your IRA Without Penalty and “Maybe” Without Tax
Q. I hear that under the CARES Act, my wife and I may each be able to withdraw up to $100K from our IRA’s without penalty and without tax. Is that true? A. Well, not quite. Here’s the deal: Under the recently passed Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Congress did recently… Read More »
Free Tax Filing Help Is Available to Seniors
Q. It’s tax time again and I hear that the IRS may offer free tax preparation services to seniors. Do you know anything about this? A. Yes. The IRS offers information on its site about free tax preparation software, fillable forms, and free taxpayer assistance, all available in an effort to make tax compliance easier,… Read More »
New Law Makes Big Changes to IRA’s & Other Retirement Plans
Q. I heard that there is a new law which makes major changes to IRA’s and other retirement plans. Can you comment? A. The new law, signed by President Trump on December 20, 2019, and effective January 1, 2020, is called the “SETTING EVERY COMMUNITY UP for RETIREMENT ENHANCEMENT ACT”, or the “SECURE ACT” for… Read More »
A Solution To The Tax Problem When Selling A Home Held in Joint Tenancy After The Death Of A Spouse
Q. My late husband and I bought our home 40 years ago for $50,000, and we were then advised to take title as Joint Tenants to avoid probate. When he died 3 years ago, I was told by a realtor that it was worth about $1.2 Million. I was recently told by our CPA that,… Read More »
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 you cannot gift more than $15,000 per year without incurring… Read More »
Giving Your Home to Your Children Can Have 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: Transferring your home to your son by gift during your lifetime can have adverse tax consequences. Example: assume… Read More »