Estate Tax: AMERICANS pay taxes throughout their lives, then pay again after death. This is wrong. The death tax itself should be terminated. Yes, there are two things we can’t avoid – death and taxes. But it should not mean that taxes paid during our lives resurrect to haunt us again… after death. Alternative Minimum…
1. What is New? Same sex marriages are considered the same as couples of opposite sex marriages for Federal tax purposes. On the other hand, other relationships that are not considered marriage under state law are not considered marriage for Federal tax purposes. 2. In most cases, tax is usually less if you file married…
WHEN is the Use of Deadly Force by Police Unreasonable? The Fourth Amendment of the U.S. Constitution protects persons from unreasonable search and seizures, including the use of excessive or deadly force. The U.S. Supreme Court ruled, in the case of Tennessee v. Garner, that an officer cannot use deadly force against a fleeing suspect…
“God has come to help his people.” YOU may be surprised to find out that quite a number of dead people were resurrected. The Bible mentions some resurrections that occurred en masse at the resurrection of Jesus. The whole Christian world celebrates the resurrection of Jesus Christ this Sunday about 2000 years ago, after His…
TERRY Lafitte was a 49 year-old black man riding his bicycle in the dark of night in South Central Los Angeles. Two sheriff’s deputies, in their squad car, saw that Lafitte’s bicycle did not have safety light reflectors attached to it. The deputies also claimed that that they thought Lafitte was drunk. The deputies tried…
ARE you a U.S. citizen or resident working in a foreign country? Did you declare your foreign income? Did you even file a tax return? Or are you hiding from the long and lovely arms of the IRS? Can the U.S. government reach you on the other side of the globe? Unfortunately, yes. But is…
IS the government after you for huge unpaid taxes that you cannot afford to pay? Do you get sick to your stomach not knowing what the government will do next to collect what you owe? Most people think they have no recourse when it comes to dealing with the Internal Revenue Service. This is absolutely…
ESTATE and gift tax basics • Form 706 must be filed: 1) To elect portability regardless of the size of estate, to transfer deceased spouse unused exemption (DSUE) to surviving spouse; 2) Gross estate plus adjusted taxable gifts and specific gift exemption valued in excess of $5,490,000 if death take place in 2017 or $5,450,000…
(Part 2 of 2) HERE are some more misconceptions about bankruptcy that we did not discuss last week: 1. Will I lose my house? Normally, debtors get to keep their residence as long as their equity in the house does not exceed the applicable homestead exemption. If the equity of the house is within the…
Q: I WORK as a “team member” in the service industry in Los Angeles. Before we clock-in for our shift, we are required to attend a “huddle,” or a meeting where we discuss events during prior shifts, our assignments, etc. These “huddles” last 15 to 20 minutes every day. Should we be paid for these…
ARE your debts keeping you up at night? Are you always worried about money? Are you barely surviving and can’t even keep up with minimum payments on your credit cards? Do you wish to reduce or eliminate your debts but don’t even know where to start? If you are searching for debt reduction solutions, you…
“ An honest debtor is one who truthfully discloses his financial affairs, income and expenses, assets and liabilities in his bankruptcy petition.” HAVING literally represented several thousand clients in successful bankruptcy cases in the last 35 years in California, I have distilled the common misconceptions about bankruptcy into the following: 1. Will debtor go to…
Should they be paid additional wages? JAIMIE Quinby, Linda Gomes, and Eric Fontes worked as “General Managers” (GMs) for ULTA Salon, Cosmetics & Fragrance, Inc. (ULTA) in its California locations. The GMs sued ULTA for unpaid overtime wages and missed meal and rest breaks. Now, one may ask: Aren’t managers exempt from overtime and the…
HERE are 10 tips to pull you through an audit: 1. Bring the right attitude with you. It could spell the difference between winning and losing. 2. Be on time. Some auditors get irritated with taxpayers who come in late for an appointment. 3. Bring in only what is asked for. You might be inclined…
WARNING: Excessive credit card debt can lead to financial disaster and can affect your financial well-being. The reason they call it “credit card debt trap” is because once you’re in, it may be difficult or impossible to get out. It is actually the number one reason people end up filing bankruptcy when they have no…
Customer Service Dashboard: The goal is provide tools and resources in resolving tax matters. The “Customer Service Dashboard” was launched in March 1, 2017 with estimated time frames for your wait time. For more information go to: https://www.ftb.ca.gov Deductions for Taxes Paid or California Other State Tax Credit (OSTC) Legal Ruling 2017-01: California resident is…
“Chapter 7 will just wipe out all of his potential liability for the damage caused.” Freak accident liability I THINK I want to discuss the client with the freak accident first. First client is 45. This is really a very unusual case. In fact, I have never encountered a case like this before in the…
Q: I WAS diagnosed with herniated disc and severe anxiety. I want to request leave but want to keep my privacy at work. Do I need to tell my employer about my medical or psychological condition? A: No. The employee is not required to disclose the nature of the employee’s medical condition or disability (i.e.,…
THERE are two approaches to prepare for an audit: organized and shoebox. Organized means arranging your records. Shoebox means simply being you—your naturally disorganized you. Let’s discuss each method so you can determine which one is best for your next audit. Why You Should be Organized: 1. This approach of presenting data in a structured…
IF you are in debt and don’t have enough to pay your debts each month after taking care of living expenses, you may be tempted to borrow money from credit cards to pay your other debts. At first blush, it may seem like a “brilliant” idea. Don’t do it. If you do, you are playing…
It is not a good business practice to pay cash for wages. Issues when paying employees cash 1. You are exposed to income tax audits of both agencies federal and state for not reporting the wages. 2. You have the legal obligation to withhold payroll taxes and report wages. 3. There are no check stubs,…
RICARDO Vaquero and Robert Schaefer worked as Sales Associates for Stoneledge Furniture, a retail furniture company. Stoneledge paid sales associates on a commission basis, based on the company’s Commission Compensation Pay Agreement. If a sales associate did not earn “Minimum Pay” of at least $12.01 per hour in commissions in any pay period, Stoneledge paid…
(Part 3 of 3) 11. Your case is referred to an Automated Collection System (ACS). The ACS is a nameless, faceless computerized collection system that utilizes telephones. IRS personnel at various “call sites” have little authority to help you by way of compromise or installment but have great authority to harm you. If I may…
MOST people don’t talk about their credit card debt because they find it embarrassing. They can talk to their friends and family about everything else but when it comes to the subject of how much debt they are carrying, most people would not divulge any information. It makes them very uncomfortable. So what happens is…
Q: I WORK in the service industry and I often receive performance bonuses on top of my hourly rate. I also work a lot of hours (50 to 60 hours!) per week. My friend recently saw my paystub and said my overtime pay is wrong because it doesn’t include my bonus. Is this right? How…
(Part 2 of 3) 6. YOU first receive a contact letter advising you that your return has been selected for examination. It spells out the preliminary areas for audit. You are required to contact the IRS office within 10 days. An appointment is made and you or your rep proceeds to the nearest IRS office….
YOU want to help your children go to college and if you’re like most parents, you would do anything to help them get a good education. At some point, you may be asked to co-sign your child student’s loans. That may be fine but my question is: Do you really understand what you are getting…
WE discussed previously the requirement for consistent basis reporting between the person receiving the property and the decedent’s estate. Applicability of filing requirements for US Citizens for transfer certificate. 1. Citizen of the US including with dual citizenship upon death and died after December 31, 1976. 2. Part A. Decedent’s worldwide estate exceeds the unified…
SOMETIMES debtors cannot decide whether they should seek debt relief through Chapter 7 wipe out of all dischargeable debts or a consolidation and reorganization through a Chapter 13. They usually ask me what they should do in their financial situation. I know after handling thousands of bankruptcy cases in the last 30 years, debtors are…
Q: TWO years ago, I signed up with an agency to work as a nursing assistant assigned to patients in private homes. Recently, the agency asked me to sign a document stating that I am an “independent contractor” and I was now going to be a “1099 worker.” I received a W-2 before this. I…
