RJS LAW - Tax & Estate Planning

Got Receipts? What Happens at an IRS or FTB Tax Audit When You Do Not Have Tax Receipts by Joseph Cole, Esq., LL.M. It is important to save your receipts in the event the IRS or FTB audits your tax return.  There is a general rule that taxpayers should keep receipts for seven years for tax audit purposes. However, every general rule has its exceptions, and some taxpayers may need to keep some receipts longer than seven years. A recent Office of Tax Appeals (OTA) Case illustrates what happens at an IRS or FTB tax audit when you do not have tax receipts and how one of the exceptions to the seven year rule came into play. Learn more on our blog (see comments) #IRS #Receipts #FTB #TaxAudits

Wyoming Asset Protection Trusts by Sean Erdman If you insure your home, car, and health, then why not insure your other assets? Wyoming is one of the few states in which you can set up a domestic Asset Protection Trust (APT). For high-net-worth individuals looking into ways to safeguard their assets against creditors, lawsuits, and ex-spouses, creating a Wyoming Asset Protection Trust is one of the best options. Learn more on our blog (see comments) #WyomingAssetProtectionTrusts #EstatePlanning #AssetProtection

Labor Day is a powerful reminder of the resilience and dedication of the American worker. At RJS LAW, we honor the hardworking individuals who contribute tirelessly to make our country great. The efforts of the American worker, though often challenging and sometimes undervalued, form the very foundation of our society. Thank you for all that you do. #LaborDay #TaxAttorney #RJSLAWFirm

Generation Skipping Trusts by Sean Erdman Generation Skipping Trusts, also known as GSTs, are an excellent estate planning tool created to avoid double estate taxation at the death of a grantor and the subsequent death of their children. Considering the potential changes in estate tax exemptions coming soon, this type of trust may become an increasingly useful tool in planning for and transferring wealth. What is a Generation Skipping Trust and how does it work? A generation skipping trust is a fiduciary agreement that moves assets to either the grantor’s grandchildren or an individual who is at least 37.5 years younger than the grantor. The trust earns its name because the grantor skips over their own children, passing the inheritance to their grandchildren. These irrevocable trusts enable the grantor to avoid potential estate taxes applicable to the children were they to take ownership of the assets. Irrevocable trusts may also provide additional asset and tax protection. It is important to note that even though GSTs may avoid estate tax, they may still be subject to a generation skipping transfer tax. The federal generation-skipping tax (GST) exemption is indexed for inflation and increased in 2024 to $13.61 million for individuals and $27.22 million for married couples. Grantors are entitled to a lifetime generation-skipping tax exemption up to that amount against the property transferred into the GST. Learn more on our blog (see comments) #GenerationSkippingTrusts #EstatePlanning #EstateTaxation

Friday's Mega Millions Jackpot is an estimated $627 million. You hit the lottery jackpot! Now what? by Remy Hogan We play the lottery jackpot when we are feeling lucky. But how does a winner ensure they stay lucky when they hit it big? Hitting the lottery jackpot might seem like a dream come true: by spending a few dollars and selecting a few numbers, a person can win an enormous amount of money. But it is never that simple. With the bump in a winner’s bank account, a lottery winner might also hit some bumps in their financial and estate plans. As such, the intersection of tax planning and estate planning becomes particularly critical after winning a sum of money in the lottery. If one thing in life is certain, it is taxes. Winning the lottery jackpot does not exempt a person from paying the federal and state taxes on their new income. Learn more on our blog (see comments) #CalifoniaLottery #MegaMillions #LotteryJackpot

What is Probate? by Brian M. Malloy In California, when a person dies having assets in their name worth over $184,500, their estate is subject to probate whether they had a will or not. A will does not prevent probate. The only difference between having a will and not having a will is that with a will, the testator chooses who will administer their estate (executor) and to whom their assets will be distributed (as opposed to the State of California making that decision). Probate is the court-supervised process for identifying and gathering the decedent’s assets; paying taxes, debts, and expenses; and distributing the balance to beneficiaries. A probate typically takes about 1 year to complete. Learn more on our blog (see comments) #Probate #California #EstatePlanning

Our CEO Ronson J. Shamoun had a great time today attending the University of San Diego School of Law LLM Tax Faculty Student Lunch. USD School of Law – Tax Law's faculty is one of the best in the country and their incoming class is the largest since Covid.  If you are ever thinking of obtaining and LL.M., USD LAW is the place! Michael Dallo, CPA, JD, LL.M. | Paul Yong | Miranda Perry Fleischer | University of San Diego School of Law

Declaring Bankruptcy? by Marco A. Torres, Esq. In today’s complex financial landscape, consumers face challenging decisions when it comes to managing debt. Declaring bankruptcy may provide a viable path to financial recovery. This blog post explores the signs that indicate when it might be time to consider bankruptcy, the types of bankruptcy available, and the potential impacts on a one’s financial future. Learn more on our blog (see comments) #DeclaringBankruptcy #Bankruptcy #debt

How to Stay Off the California Franchise Tax Board (FTB) 500 Delinquent Taxpayer List by Joseph Cole, Esq., LL.M. The California Franchise Tax Board or FTB publishes a list of the top 500 largest past due tax balances in the state. Any taxpayer who owes $100,000 or more to the Franchise Tax Board is at risk of appearing on the top 500 delinquent taxpayer list, known as the FTB 500 list. Appearing on the list not only involves potential embarrassment, but it also means the taxpayer could potentially lose any state issued licenses. The FTB is scheduled to publish the FTB 500 list again this October. This means a person on the FTB 500 list can lose their driver’s license as well as any state issued professional license, such as a law license, contractor’s license, or real estate license. Learn more on our blog (see comments) #FTB #DelinquentTaxpayerList #DelinquentTaxes

Alternatives to Filing Bankruptcy by Marco Torres, Esq. Filing for bankruptcy can provide a fresh start for those overwhelmed by debt, but it is a serious decision with long-term implications. Before taking this step, it is important to explore all available bankruptcy alternatives. As bankruptcy attorneys, we often advise clients on various strategies to help regain control of their finances without resorting to bankruptcy. This blog post will discuss some of the most effective alternatives to filing bankruptcy, including debt consolidation, debt settlement, credit counseling, and lifestyle adjustments. Learn more on our blog (see comments) #FilingBankruptcy #Bankruptcy #Debt