Q. My wife and I were wondering how much we could leave to our children free of any gift or estate tax? A. The answer may surprise you. A married couple can actually transfer to up to $10,980,000 to their children, free of any gift or estate tax (in 2017). You can either do so… Read More »
Posts Categorized: Tax Matters
Claiming a Tax Deduction for Long-Term Care Insurance Premiums.
Q. Tax day is coming soon and I wonder if I can claim a tax deduction for my Long Term Care Insurance Premiums paid during this past year? A. Depending upon your income and age, the answer may very well be ‘yes’, at least as to a portion of your premiums paid. Here’s the… Read More »
Family Loans: Avoid Running Afoul of IRS Rules
Q. My wife and I want to make a loan to our son to help him buy a home. We are really not interested in charging interest and we might even forgive the loan in our Wills. Are there any tax implications of which we should be aware? A. Yes, there are. Concerns regarding intra-family… Read More »
Property Tax Loan Program Helps Seniors and Disabled Remain In Their Homes
Q. Our property taxes are due soon and we worry that we may not be able to pay them, as my wife and I had large care expenses this year. Are there any programs that we might turn to for help? A. Yes. California lawmakers have reinstated a program called the “Senior Citizens and Disabled Citizens… Read More »
A Winning Strategy To Protect Home From Taxable Gain and Medi-Cal Claim
Q. My mother has been in a nursing home on a Medi-Cal subsidy for the last 18 months, and I know Medi-Cal will have a substantial “payback” claim when she passes. She owns a home which she bought 40 years ago for $40,000, which is now worth about $700,000. I worry about the growing Medi-Cal… Read More »
Claiming A Parent As A Dependent
Q. My mother-in-law lives with my wife and me and we pay most of the cost for her caregiver, as well as providing free room and board. Can we declare her as a dependent on our tax returns? A. You may very well be able to do so. Actually there are several ways in which… Read More »
Preserving Your Parent’s Low Property Tax on Trust Distribution
Q. My mom owned her home for 35 years before she recently passed. Her trust leaves it 50-50 to my brother and me. I would like to keep the home by purchasing my brother’s interest for cash, and he is okay with that. Is there a way that we can do this without triggering a… Read More »
A Tax Savvy Alternative To Joint Tenancy: Community Property With Right of Survivorship
Q. My husband and I hold title to our home in joint tenancy. When we bought it years ago we were told that was the simplest way to avoid probate. However, I now hear that there may be tax advantages to holding title as community property. If so, is there a way to get the… Read More »
Preserving Your Low Property Tax For Your Children
Q. My wife and I have owned our home, and a rental duplex, for approximately 20 years and have a low assessed value on each. We would like to preserve the low property tax rate for our son. If we pass it to him by gift or by inheritance, would either transfer trigger reassessment and… Read More »