Want to create a tax-shelter that eliminates capital gains, recapture taxes, and gives your heirs a nice tax break?
All you have to do is die.
You may not want to rush to take advantage of this extreme tax strategy but you should know that keeping your home until death, and in a living trust, has distinct advantages. At death, your estate avoids both capital gains and recapture taxes, and passes the home to your heirs at a fair-market stepped-up basis.
Unfortunately may people decide, without advice, to put their heirs on title with them as Joint Tenants. The problem is the heir(s) take over at your tax basis and may have to pay capital gains and recapture taxes when selling the home. Plus if the heirs have creditors they could then attach your home if they obtained a judgment against your heir(s).
The best advice it to get advice. Find out more at www.dalexander.com
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Tuesday, January 17, 2012
Sunday, January 15, 2012
New California employment laws for 2012 affect your business’ day-to-day operations and policies.
New employment laws passed in 2011 could affect your California business’ day-to-day operations and company policies in 2012. Review the summaries of these new laws provided by CalChamber and how each of these California laws could affect your business by clicking on the link below:
For example:
AB 22 prohibits employers and prospective employers, not including certain financial institutions, from obtaining and using consumer credit reports (credit information) about applicants or employees.
SB 459 provides new penalties of between $5,000 to $25,000 for the "willful misclassification" of independent contractors, defined as "avoiding employee status for an individual by voluntarily and knowingly misclassifying that individual as an independent contractor."
AB 469 requires employers to provide nonexempt employees, at the time of hire, a new notice that specifies, among other things, specific information regarding payment of wages. This legislation also increases penalties for wage violations.
AB 551 increases the maximum penalty from $50 to $200 per calendar day for each worker paid less than the determined prevailing wage and increases the minimum penalty from $10 to $40 per day for violations of prevailing wage obligations.
To keep updated be sure to follow me on Twitter: @dalexanderlaw or visit www.dalexander.com
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