Covering the week’s most noteworthy business news impacting the Filipino-American and Global Filipino community.
Part 1 WHAT you need to know when your loved one dies or when you die? What is meant by Final Form 1040, filing of Form 1041 and Form 706? • Final Form 1040: When you die your final year ends with the date of your death. Your Final Form 1040 income tax return is…
THE client is a young senior in his early 60s who took an early retirement last year. He owes $15,000 of credit card debt and nothing else. He has a community property house that is fully paid with a current market value of $500,000. Fortunately for the client, he did not refinance his fully paid…
JAMES Pearl was hired in 2002 by the Los Angeles Bureau of Sanitation. In 2006, he was promoted as a wastewater collection supervisor. In 2011, he was transferred to an office in Reseda. Pearl complained, alleging that it was retaliation for his complaint about a fellow worker’s misconduct. Pearl filed a discrimination complaint with California’s…
HERE’S a list of tax provisions of the Tax Cut and Jobs Act affecting individuals like you and me. 1. The new Tax Cut and Jobs Act keeps seven tax brackets with six of them at lower rates. Most of us will benefit from the new rates, even if the press says the opposite. 2….
MOST people don’t talk about their debts because they find that conversation 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 that…
Q: I have just entered the work force and I work in the service industry on 12-hour shifts. My supervisor says I am entitled to one 30-minute lunch break and two rest breaks of 10 minutes each. A co-worker said it should actually be two lunch breaks and three rest breaks because we work 12…
THE Tax Cuts and Jobs Act saves the student loan interest deduction and keeps tuition waivers for graduate students tax-free. It also expands 529 savings accounts to include private K-12 education. Let’s discuss further. 1. American Opportunity and Lifetime Learning credits remain the same: Both American Opportunity Credit and the Lifetime Learning Credit remain the same….
A LOT of people who don’t have a clue about how bankruptcy works are sometimes too quick to judge others who find bankruptcy as their only option to get out of debt. These people think that filing bankruptcy is something they will never do because it is ‘wrong to run away from your responsibilities’. This…
THE only means an employer can offer employees between taxable and nontaxable benefits is through section 125 plan. What are a section 125 plan, a cafeteria plan, and the IRS requirements for this plan? 1. Cafeteria Plan: Cafeteria plan is a written plan maintained by employer for employees that meets the requirements and regulations of…
THE first client is 75 years old. Her husband passed four years ago and left her with $30,000 of credit card debt. She has been making minimum payments on their credit cards for the last 15 years as far as she can recall at the rate of $800 a month. So in one year, she…
Q: I work as a travelling technician or ompany. Recently, my employer asked me to sign an “independent contractor” agreement and told me that I will now be receiving a 1099 instead of a W-2. Being on 1099 allows me to take home all my pay with no withholdings. But is there anything else I should know…
Part 6: Homeowners 1. THE Tax Cut and Jobs Act reduces the maximum amount of mortgage debt to acquire a first or second residence for which you can claim itemized interest expense deductions from loans of $1 million ($500,000 for married filing separately) to $750,000 ($375,000 for married filing separately). 2. Current homeowners will not…
EVERY day, I meet with couples who are deeply in debt. In a lot of cases, I can feel the stress level that they are experiencing while the couple is in my office. Emotions often run high and you can feel the tension in the air. There can be a lot of finger-pointing, resentment, anger,…
In nearly three years, Garrett Gee and his wife Jessica have traveled to 45 countries and have been on over 150 flights with their two toddlers in tow, digitally documenting the adventures along the way as the “Bucket List Family.” Their travels have been widely followed on platforms like YouTube and Instagram, as they’ve spent…
A CLIENT has had an ongoing “battle” with Wells Fargo for justice on her mortgage since 2007. It’s been nine years since she made the mistake of refinancing her fully paid house with World Savings Bank. Yes, the client was already a senior nine years ago when she decided to borrow $250,000 against her house,…
M.F. worked for Pacific Pearl Hotel Management, LLC as a housekeeper at its five-building hotel property. One morning, the hotel’s engineering manager saw a drunk trespasser with a beer in his hand walking inside the hotel and using the elevator. The manager did not tell the trespasser to leave, and did not report him to…
THE business tax provisions of the Tax Cut and Jobs Act include: • The new Tax Cuts and Jobs Act cuts corporate taxes from eight graduated rates of 15 percent to 35 percent to a flat rate of 21 percent. • Introduces a 20 percent deduction for pass-through entities. • Uses a new territorial system of…
IF you are delinquent on your debts, you may be able to avoid dealing with the bill collectors for a few months but sooner or later, you will still need to face the reality of your debt problems and do something to protect yourself. For example, creditors will probably wait until you are 60 days…
Audit Issues: If you claim deductions for medical expenses, charitable contributions, and employee business expenses in Schedule A of your Federal Form 1040 do not be surprised if you received a letter. Starting January 1, 2018 California will be sending letters related to these deductions. Beware of double dipping your deductions. Some taxpayers claim medical…
THE client is a specialty food retailer who started operations in a commercial center two years ago. Five partners invested $50,000 each for a total of $250,000 for a food business that sells a specialty product that everyone likes to eat. The problem with a business that’s based on a retail outlet in a commercial…
KETRYN Cornell has been diagnosed as severely obese since childhood with a body mass index of over 50. Her weight interferes with daily life functions, including bathing and walking. She cannot stand for more than an hour, cannot walk more than a mile at a time, and experiences shortness of breath from engaging in basic…
1. MORTGAGE interest deduction has been lowered: Current homeowners can continue to deduct interest on loans of $1 million; however, new homeowners will be limited to interest on loans of $750,000. 2. State and local tax deduction is capped at $10,000: Yes, you can continue to deduct state and local taxes, but with a limit…
ARE you one of many people who needs to file bankruptcy but you are afraid that it may be the worst mistake you can ever make in your life? Are you thinking about what your friends and family may think if they ever find out about your filing? If you’ve never owned a home and…
2017 versus 2018 tax rates: individual income tax rates in 2017 in percentage are 10, 15, 25, 28, 33, 35, and 39.6. The 2018 rates in percentage are 10, 12, 22, 24, 32, 35, and 37 and will expire on 2025, under H.R.1 “The Tax Cuts and Jobs Act”. The corporate maximum tax rate is…
“ Apart from becoming a cultural phenomenon, the phrase ‘me-too’ is actually found in the law, as when plaintiffs invoke ‘me-too’ evidence in support of their claims for damages involving sexual harassment and discrimination.” THE MeToo ampaign started about 10 years ago but only recently developed into a movement and exploded into public attention in the wake of news stories regarding Hollywood producer…
THE client is 74. Her husband passed away two years ago. Her only source of income is social security of $2,000 a month, which was her husband’s social security. Her own social security was $1,500 a month. So how come she only has $2,000 of social security and not $2,000 plus $1,500? Because when you…
1. THE standard deduction is doubled: Republicans want to simplify our tax code so more people can claim standard deductions instead of more complicated itemized deductions. This becomes a reality after the new law doubled the standard deduction from $6,350 to $12,000 for single filers, from $9,350 to $18,000 for heads of households, and from…
IF you’re in debt and are considering bankruptcy as an option for you to get needed relief, perhaps just hearing the word “bankruptcy” makes you extremely nervous. Maybe the word conjures up images in your mind of losing everything you have and not having a financial future. Relax. It’s not what you think. Regardless of…
AMOUNTS for tax returns in 2017 are compared with amounts in 2016. Exemption credits: a. $114 from $111 – Single, Married filing separately, Head of Household. b. $228 from $222 – Married filing jointly. c. $353 from $344 – Dependent. d. $114 from $111 – Age 65 or older. You are considered to be 65…
THE client is 50 and operates a business. There is a state court judgment against him for $80K. Is this judgment dischargeable in bankruptcy? The answer is: If the judgment is for breach of contract only, the $80,000 is dischargeable. If the judgment is affirmative for FRAUD, then the $80,000 fraud judgment is not dischargeable….
