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Utilizing the Net Unrealized Appreciation Strategy for Tax Savings

Important Tax Update for California Residents

As of June 2023: As previously announced (see below), most California residents do not have to file their 2022 tax returns or pay the tax due until October 16th, 2023, due to the storm relief.  

However, we are seeing an increasing number of notices issued by the IRS stating that 2022 taxes are due shortly after clients have filed their 2022 tax returns. In other words, the IRS system is not recognizing the extended due date for tax payments and is auto-generating tax due notices for taxpayers who have filed their returns.

We have confirmed directly with the IRS that these notices for 2022 are being auto-generated and may be ignored. The payment due date remains October 16th, 2023, regardless of whether a taxpayer has filed their 2022 tax returns or not.

Due to the hazardous storms that have hit California in recent weeks, the IRS has  announced that most California residents will have until October 16, 2023, to file various individual and business tax returns and to make tax payments. Tax Day, initially scheduled for April 18th this year, is therefore pushed to October 16, 2023.

What to Expect With Your Inherited IRA

When it comes to inherited IRAs, there are certain withdrawal rules that are important to understand, and the IRS has recently clarified their position in Notice 2023-54. The 10-Year Rule was put into place with the Secure Act of 2019, stating that certain heirs must deplete their inherited retirement accounts within a ten-year period. In this article, we discuss to whom the 10-Year Rule applies, how Notice 2023-54 affects the 10-Year Rule, and other factors to be aware of as they relate to required minimum distributions (RMDs) on inherited IRAs.

How to Take Advantage of Tax-Loss Harvesting

Tax-loss harvesting is both simple and complex. On the surface, it is as simple as sell your losers and take the tax write-off. But it can also get complex, requiring an appreciation of market volatility, correlation between different stocks, and the trickier parts of the tax code as it relates to Wash Sales. In this article, we take a look at these different areas and examine those situations where proactive tax-loss harvesting can be particularly powerful.

Gifting Appreciated Assets to Your Parents Can Make More Tax Sense Than Gifting Them to Your Children

Many are familiar with the concept of gifting to younger generations as an appealing and tax-efficient method of transferring assets, while keeping those assets in the family but out of the taxable estate of the person making the gift, the “gifter.”

However, upstream gifting, a strategy in which the younger generation gifts appreciated assets to the older generation, can capture significant tax savings as well, often more than traditional gifting.

How to Zone In on the QOZ Tax Benefits

With the unprecedented decade-long run in US stocks and real estate, prices look to be returning to more normalized growth rates. We are now seeing increasing numbers of clients choosing to ring the register and cash in at least some of those monster gains. But what about the taxman? He will want his cut of those gains. Here we examine an increasingly popular way to reduce the tax take on those gains by re-investing them (or part thereof) in a Qualified Opportunity Zone.

What You Should Know About Vesting Your RSUs

Restricted Stock Units (RSUs) are a common way for employers, particularly in the technology industry, to attract and retain talent. For the employee, understanding the tax implications of RSUs is vital in maximizing the value of this form of compensation.

Here we look at the key tax considerations for RSUs. If you are interested in the tax treatment for Employee Stock Purchase Plans (ESPP) or for stock options such as Non-Qualified Stock Options (NSOs) or Incentive Stock Options (ISOs), stayed tuned for our subsequent blog posts covering these topics.

From 'Build Back Better' to 'Inflation Reduction'

Sell Your Highly Appreciated Assets Tax-Efficiently

Tax-Deductible Interest