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Why We Became a Client

You might be a little skeptical about a blog authored by a marketing person at BakerAvenue, so before you skip, I'd like to share why my family became clients.   

Utilizing the Net Unrealized Appreciation Strategy for Tax Savings

What Is a Qualified Personal Residence Trust?

Frequently Asked Questions About Retirement Planning in Volatile Markets

With continued volatility and uncertainty in the market, you may be wondering how it's affecting your retirement planning and financial security. Here are some answers to questions we've received regarding action you can take now, considerations, and pitfalls to avoid.  

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.

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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.

Frequently Asked Questions About the 1031 Exchange and DSTs

The 1031 exchange offers one of the most strategic planning tools available to real estate investors. A properly executed 1031 exchange can defer taxes, create a sustainable stream of income, and potentially offer estate and liquidity advantages. We can help you strategically maximize the benefits of a 1031 exchange by setting up a Delaware Statutory Trust (DST). With a DST, you can be a part owner of real estate assets by purchasing fractional units and gaining the same benefits as large institutional real estate investors -- without the management hassles.

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.

What Is the Great Wealth Transfer?

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.