During these challenging times, some business owners have had, or may face the difficult situation, to decide whether to close their business or continue operation. Closing a California business means a domestic corporation may legally dissolve, foreign corporations may legally surrender, and limited liability companies (LLC) and Partnerships (domestic and foreign) may legally cancel. Don’t …
Have you ever wondered what happens to your return once it has been sent to the IRS? Once the return has been filed, it goes through a series of review before it will be posted to the IRS system and a refund issued if applicable. This review process is a combination of automated systems and …
Executors are sometimes pressured by beneficiaries to “wrap up” the estate quickly and make distributions of estate assets. Often this is because beneficiaries want their money and don’t understand the liability executors can face for distributing the funds before it is advisable. I’ve written before about how this can have significant, adverse consequences when the …
The Fifth Amendment of the Constitution allows a person to refuse to answer questions or give testimony that would go against his or her interest in a criminal proceeding. It also allows someone to refuse to produce incriminating documents. However, this protection does not extend to document requests directed at a person acting in a …
Generally, a taxpayer can deduct all ordinary and necessary expenses paid or incurred to carry on a valid trade or business, even if this would create an overall loss on the income tax return. However, if the taxpayer’s activity is considered a hobby, rather than a business, deductions are limited to the gross income earned …
Congratulations! You sold your house! And in this market, no doubt made a mint. So now you’re probably wondering how does selling my house impact my taxes? A gain on the sale of a home is the result of when the home sells for more than what was paid for it. When it comes to …
It’s no secret identity theft is a major problem. And if you fall victim, a major headache. It would be great if identity thieves steal your tax information to pay your tax bill, but no. They’re stealing your refunds. Here are some steps to protect against identity theft the IRS suggests to keep your identity …
Did you know you don’t have to call the IRS to see when your tax refund will be in your bank account? In fact, the IRS recently updates their FAQs on the status of non-amended and amended returns and say you should refer to those rather than calling them. Due to COVID-19, there are still …
Going back in its long history, state community property laws were justified by the pragmatic recognition that such joint ownership recognizes the theoretically equal contributions of both spouses to the creation and operation of the family unit, as a basic component of a civil society. Currently there are only nine states which are considered “community …
When the Tax Cuts and Jobs Act (TCJA) was put into place at the end of 2017, one of the biggest disadvantages to taxpayers was the removal of miscellaneous itemized deductions for employee expenses. Employees used to receive a deduction on their schedule A for unreimbursed expenses incurred as an employee, but that is no …