Tax Law Blog

Tax Considerations for Residents Leaving California

Published September 13, 2019 Blog, Business Law Blog, Tax Law Blog Comments
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So if you plan on leaving California for a low or no tax state to reduce your taxes, be sure to “walk the walk” and leave a clear paper trail while doing so.

Opportunity Zones

Published August 27, 2018 Blog, Business Law Blog, Tax Law Blog Comments
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Opportunity Zones One of the little-known features of the Tax Cuts and Jobs Act (TCJA) is the incentive for so-called “opportunity zones.” Designed to encourage investment in depressed communities around the country, this tax break was supported by an unlikely coalition of billionaires and politicians—see this fascinating Forbes article for more about the back story. […]

After the Tax Cuts and Jobs Act of 2017

Published July 24, 2018 Blog, Business Law Blog, meta data, Tax Law Blog, Uncategorized Comments
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On December 22, 2017 President Trump signed the Tax Cuts and Jobs Act into law. The new law significantly changed the tax landscape in a number of important ways. As a result of tax reform, the federal corporate income tax rate is now 21%, down from as high as 35%. While this was designed to […]

What does Tax Reform do for My Living Trust?

Published May 31, 2018 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog, Uncategorized Comments
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Congress enacted sweeping tax reform, which President Trump signed into law on December 22, 2017. It is called the Tax Cuts and Jobs Act. How does this change impact my living trust? The Tax Cuts and Jobs Act doubles each person’s estate tax exemption from $5,000,000 to $10,000,000. Because the estate tax exemption is adjusted […]

IRS Scam

Published May 9, 2018 Blog, Business Law Blog, meta data, Tax Law Blog Comments
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Recently I received a voicemail informing me that the IRS had filed a lawsuit against me and urging me to contact a customer assistance line. I deleted the message. A day or two later, I received the same identical message. I deleted that one too. This is not the first time that a con artist […]

Proportionate Transfer+ See-Through Trust

Published April 26, 2018 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog Comments
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Property tax reassessment—but more importantly, the avoidance of it all together—is a critical issue facing California property owners. A 2017 decision by the California Supreme Court confirmed that two separate rules for avoiding reassessment—the so-called “proportionate transfer” rule and “beneficial owner” rule—may be applied together to allow a taxpayer to avoid reassessment. It appears that […]

Phantom Shares

Published May 24, 2017 Blog, Business Law Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog Comments
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In part I of this blog, regarding employee equity, I discussed how giving key employee’s equity in your start up business can make a lot of sense–to off set lower salaries, create buy-in and create “skin in the game”. I also addressed reasons that this might not be the most advantageous option. Specifically that the […]

“My key employee wants equity. What should I do”?

Published May 19, 2017 Blog, Business Law Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog Comments
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The question of employee equity comes up regularly in small business environments. Employees may believe that having a “stake” in the business will validate their importance, enhance their sense of accomplishment and self-worth. Employees may also believe (rightly or wrongly) that ownership will provide a significant financial upside. Offering equity to employees can be attractive […]

Estate Planning for Retirement Accounts

Published March 10, 2017 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog, Uncategorized Comments
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In my earlier posts we talked about how to set up a living Trust properly in order to be the pay-on-death beneficiary of an IRA. That is all well and good if you are actually setting up the IRA and have the opportunity to do it right. What happens if you discover that a deceased […]

Estate Planning for Retirement Accounts–Part II

Published January 26, 2017 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog Comments
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In Part 1, we discussed the fact that IRAs and other retirement accounts can result in estate-planning complications because they are (hopefully) stuffed with untaxed money. We also discussed how you can name your loved ones as “pay-on-death” beneficiaries of your retirement accounts—a method that can provide important tax benefits. Estate Planning for Retirement Accounts–Part […]

Estate Planning for Retirement Accounts

Published January 10, 2017 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog Comments
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Like many Americans, you may have a retirement account such as a 401(k) or conventional IRA. Because the money in your retirement account has never been taxed before (except in the case of a Roth IRA), your retirement account can pose a special tax challenge for your estate plan. Overview Here are a few principles […]

I Want to Take Care of my Son in my Estate Plan. How Can I Protect Him From His Creditors—And Himself?

Published September 22, 2016 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog Comments
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Many of us know one or two people who cannot handle money. Some folks struggle with addiction to substances or gambling. Others chronically overspend, entrust their money to charlatans, or give away more than they can afford. A person can be honest, hardworking, and a walking financial disaster. If you have a child who fits […]

Good Reasons to File Your Income Tax Return–Even if you Can’t Afford to Pay.

Published August 24, 2016 Blog, Business Law Blog, meta data, Tax Law Blog, Uncategorized Comments
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Reduce Your Penalties! Why file your income tax return if you cannot afford to pay the taxes owed? The penalties will be the same, right? Wrong! The IRS assesses a late filing penalty if you fail to file your tax return on time. This penalty operates like “super-interest”—the IRS will charge 5% of your unpaid […]

Ouch!!! There is a Shark at my Pool Party!!!

Published July 12, 2016 Blog, Business Law Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog Comments
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Startups and other business ventures involve forming new business relationships—sometimes several at a time. In some ways, a business venture is like a pool party. Your business is the swimming pool, and the people you involve in your business—investors, business advisors, engineers, consultants, attorneys, and accountants, not to mention employees—are your guests. For obvious reasons, […]

When Is a Family Trust Established by an Overseas Investor Required to Establish its Own EIN? Part 2

Published April 27, 2016 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog, Uncategorized Comments
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In the last installment, we began to examine whether a family trust, set up under New Zealand law and in receipt of income from its U.S. limited partnership interest, is required to establish its own EIN or may use an ITIN obtained by the surviving spouse. Under 26 CFR 301.6109-1(a)(2)(i)(A), the trust is required to […]

When Is a Family Trust Established by an Overseas Investor Required to Establish its Own EIN?

Published March 8, 2016 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog, Uncategorized Comments
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I encountered this question for the first time a few weeks ago and was not able to find much guidance in my usual practice guides—I’m talking about you, LexisAdvance. So, it was down the rabbit warren (no single rabbit hole in this Wonderland!) of grantor trust rules and regulations in an effort to suss out […]

International Business Establishing a Presence in the United States

Published January 12, 2016 Blog, Business Law Blog, meta data, Tax Law Blog, Uncategorized Comments
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In today’s global economy, there may be compelling business reasons for a small business based outside the United States (for example, a company formed under the laws of Germany, France, or Dubai) to establish a U.S. presence. There are several ways to proceed. For example, the overseas company’s may be able to simply establish a […]

Franchise Tax Board Telephone Fraud

Published December 8, 2015 Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog, Uncategorized Comments
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I am under the gun with a rush project when my office phone rings. “Hello” I distractedly say as I continue to peruse the document glaring back at me from the bright computer screen. “This is Karen, from the Franchise Tax Board, and I have some questions for you regarding your estimated first quarter tax […]

California’s Single Sales Factor & International Business

Published November 30, 2015 Blog, Business Law Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog, Uncategorized Comments
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In 2012, California adopted the “single sales factor” to determine how much of a taxpayer’s business income should be subject to California tax. This is determined by multiplying the taxpayer’s total business income by the sales factor, the numerator of which is the total sales of the taxpayer in California during the taxable year, and […]

LLC vs. S-Corporation: Eeny, Meeny, Miny, Moe

Published October 1, 2015 Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog, Uncategorized Comments
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Please find my article, LLC vs. S-Corporation: Eeny, Meeny, Miny, Moe, at the October, 2015 “Business Law” Edition of Contra Costa County Bar Association. Online Article located at http://cclawyer.cccba.org/2015/10/llc-vs-s-corporation-eeny-meeny-miny-moe/. This is just a basic overview and is not legal advice specific to your situation. If you would like to speak with Jonathan about your […]

Should I Update My Living Trust?

Published September 24, 2015 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog, Uncategorized Comments
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Since thinking about—much less reading—your Living Trust is about as fun as thinking about and paying your taxes come April 15th, it should not be surprising that many of us leave our Living Trusts locked away for years at a time…along with our archived tax returns. Despite what some would have you believe, most Trusts […]

Is Your Property Being Reassessed Due to New Construction?

Published July 15, 2015 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog, Uncategorized Comments
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Is your property being reassessed due to new construction? Have you received a Notice of Reassessment? California’s property tax structure, colloquially known as “Prop. 13”, can be confusing even to the “initiated.” Like many states, California calculates property taxes based on the value of one’s property…the greater the value, the higher the tax. Prop. 13 […]

Do I Need a Trust to Avoid the Estate Tax?

Published July 1, 2015 Blog, Business Law Blog, Estate Planning Blog, meta data, Tax Law Blog, Uncategorized Comments
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Generally, no. Like the boogeyman, the Estate Tax generates a lot more anxiety than it rightfully should. Currently, the Estate Tax comes into play only for individuals with estates worth more than $5,430,000, or married couples with estates worth more than 10,860,000. Whether you are married or single, you are entitled to shelter these amounts […]

To Make Good Choices for the Future, We Must First Accept the Present

Published June 26, 2015 Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog Comments
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To walk away—and save the remaining $30,000 for a better day—he has to accept the fact that he just spent $50,000 on a dry hole. This is not easy. But it is critical to making a good decision.

CONTRACT? WHAT CONTRACT? I DID NOT SIGN ANYTHING!

Published June 22, 2015 Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog Comments
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A slap dash “I accept” that you click on or a quick email reply to a contractor, who has a paper contract with you, agreeing to a change in the contract is legally equal to your sitting down and signing your John Hancock to a new contract with a flourish of your pen.

DO YOU PLAN TO INCLUDE A NON-U.S. INVESTOR IN YOUR BUSINESS? (PART II)

Published June 8, 2015 Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog, Uncategorized Comments
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The idea is that the non-U.S. partner can recover the difference between the amount withheld and his or her actual tax liability by filing a U.S. federal tax return. (Of course, this assumes that the partnership’s taxable income is treated as effectively connected to a U.S. trade or business—a subject that is beyond the scope of this discussion.)

DO YOU PLAN TO INCLUDE A NON-U.S. INVESTOR IN YOUR BUSINESS? (PART 1)

Published June 4, 2015 Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog Comments
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In today’s global economy, it is not uncommon for a U.S. partnership or LLC to include a non-U.S. investor. The benefits are obvious—overseas investors, often friends and family, can be an important source of capital for a new business. However, it is vital to understand the tax consequences before you sign on the dotted line.

TAKE AN EMOTIONAL STEP BACK

Published May 28, 2015 Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog Comments
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As a business lawyer, my job is to help my client make a good business decision that he or she she can live with months and years into the future. Sometimes, this involves stepping back from the emotional need for justice or vindication. For example, it may make sense to settle a dispute even if you’re in the right so that you do not have to incur the incredible financial, emotional, and time-consuming toll of litigation.

It takes guts to stand back and weigh the costs and benefits of a resolution that may make sense but feel unfair. 9 times out of 10, you’ll be glad you did.

I Have a Corporation, Do I Still Need Insurance?

Published May 15, 2015 Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, meta data, Tax Law Blog Comments
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The takeaway message is that corporation or limited liability company can be an excellent way for a business owner to minimize his or her personal liability. But insurance is still a vital piece of the puzzle.

S-Corp or LLC Better for My Business Part II?

Published May 11, 2015 Blog, Business Law Blog, Estate Planning Blog, Internet and E-Commerce Blog, Tax Law Blog Comments
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S-Corp or LLC Better for My Business Part II? One of the most important distinctions between an S-corp and an LLC involves ownership. In general, an S-corporation may have only shareholders who are: (1) individuals who are U.S. citizens; (2) resident aliens; (3) certain types of trusts; and (4) other S-corporations

Tax Law Blog

Tax Law Blog

Tax Considerations for Residents Leaving California

Opportunity Zones

After the Tax Cuts and Jobs Act of 2017

What does Tax Reform do for My Living Trust?

IRS Scam

Proportionate Transfer+ See-Through Trust

Phantom Shares

“My key employee wants equity. What should I do”?

Estate Planning for Retirement Accounts

Estate Planning for Retirement Accounts–Part II

Estate Planning for Retirement Accounts

I Want to Take Care of my Son in my Estate Plan. How Can I Protect Him From His Creditors—And Himself?

Good Reasons to File Your Income Tax Return–Even if you Can’t Afford to Pay.

Ouch!!! There is a Shark at my Pool Party!!!

When Is a Family Trust Established by an Overseas Investor Required to Establish its Own EIN? Part 2

When Is a Family Trust Established by an Overseas Investor Required to Establish its Own EIN?

International Business Establishing a Presence in the United States

Franchise Tax Board Telephone Fraud

California’s Single Sales Factor & International Business

LLC vs. S-Corporation: Eeny, Meeny, Miny, Moe

Should I Update My Living Trust?

Is Your Property Being Reassessed Due to New Construction?

Do I Need a Trust to Avoid the Estate Tax?

To Make Good Choices for the Future, We Must First Accept the Present

CONTRACT? WHAT CONTRACT? I DID NOT SIGN ANYTHING!

DO YOU PLAN TO INCLUDE A NON-U.S. INVESTOR IN YOUR BUSINESS? (PART II)

DO YOU PLAN TO INCLUDE A NON-U.S. INVESTOR IN YOUR BUSINESS? (PART 1)

TAKE AN EMOTIONAL STEP BACK

I Have a Corporation, Do I Still Need Insurance?

S-Corp or LLC Better for My Business Part II?

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