Law Offices of Connie Yi, PC
California
Estate Planning
& Tax Law
Toll Free: 888-312-6978
Website Navigation Menu

Posts tagged "tax planning"

Considering an end-of-year charitable gift? Tips from the IRS

Charitable giving is important all year 'round, but it's often this time of year when we receive the vast majority of solicitations. Why? Well, charities know that if you're in the position to itemize, you may be looking for a few more deductions to offset some gains and bring your entire tax bill down.

You want to leave a charitable legacy, but how?

Effective tax and estate planning is often about accounting for trade-offs. Depending on what is included in your particular estate, charitable giving may offer a trade-off that maximizes benefits for you and your family. It is necessary to use the right legal instruments if you intend to make a positive difference in the world while also protecting your estate.

Do you need to disclaim part of your inheritance?

Estate administration isn't only about distributing assets. The probate process can have major tax implications for heirs and beneficiaries. If a deceased loved one's estate wasn't effectively organized with the use of a will or a trust, then a probate judge's decisions could leave you with a heavy tax burden.

Capital gains and the estate tax

In the process of beginning to create an estate plan a lot of people have probably heard that it is best to give away a substantial portion of one’s wealth before they are gone in order to minimize tax liability and to make sure that gifts go to the people and organizations that they are intended for. This can be a very good method for pre-emptively managing an estate, but in some circumstances might not be the best possible option.

California has highest capital gains tax

Determining one's capital gains tax can be simple for California residents, but it can also become complicated for certain kinds of assets. You need to have held on to an asset for at least a year or more or it will be categorized as a short-term capital gain and be taxed at the same rate as regular income. One should also remain mindful of the fact that, for high-income earners, the Golden State has the highest rate at 13.3 percent.

What this translates into for a high-income earner is paying a combination of state and federal long-term capital gains taxes that can hit a total rate of 33.3 percent. Don't forget to add the 3.8 percent Medicare tax to that figure. Add it all up and you can easily see how important it is to engage in some careful and knowledgeable tax planning.

Tax breaks available for people with disabilities

Tax season is upon us, which means its time to gather your receipts, review your accounts and get to work on your annual return. It can be difficult to determine which deductions and credits you may qualify for, and those factors may seriously effect the outcome of your return. Fortunately, people with disabilities recently received some guidance from the IRS about deductions and credits that may help. There are several types of disability benefits, including Veterans Administration benefits and Supplemental Security Income, are exempt from gross income for the purpose of calculating tax. That could mean a lower tax bill overall. In addition, if a disability requires you to incur extra business expenses, those expenses may be claimed.

Capital gains tax changes and your business

As we discussed last month, the much-talked-about fiscal cliff made included some changes to capital gains tax rates. Capital gains tax for households earning more than $450,000 (or individuals making more than $400,000) will also jumped from 15 percent to 20 percent. This combines with the health-care reform taxes, bringing the top federal tax on long-term capital gains to 23.8 percent.

Contact Us Now to begin your initial consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

FindLaw Network

Office Locations

Law Offices of Connie Yi, PC
490 Post Street, Suite 508
San Francisco, CA 94102
Phone: 415-433-3350
Toll Free: 888-312-6978
Map and Directions

Additional Office Locations:
Pleasanton
323 Ray Street
Pleasanton, CA 94566
Phone: 925-484-0888 
Pleasanton Law Office Map

San Mateo
1900 S. Norfolk Street, Suite 350
San Mateo, CA 94403
Phone: 415-433-3350
Map and Directions

Sunnyvale
1250 Oakmead Pkwy, Suite 210 
Sunnyvale, CA 94085 
Phone: 888-312-6978 
Map and Directions