The Blog

Phil Mickelson Wins British Open—And California Taxes It Tax relief is what Phil Mickelson needs after his CA tax bill from the British Open. According to Sports Illustrated, Phil Mickelson made $36 million last year from his sponsors. Companies such as KPMG, Barclays, and Callaway endorse Mickelson. His recent win in the British Open escalates his endorsement and marketing appeal, which will mean even more revenue in the future. However, with more revenue, there will be more taxes. Although Mickelson currently resides in a high-tax California home, he has become a poster-child for selecting residency based on tax law. Mickelson found himself in the news after he announced that his taxes were high and that he would have to look at all available options. He even … Continue reading →

A new ruling has declared tax breaks for same sex marriages since they will now receive equality across the entire nation.The Defense of Marriage Act (DOMA), enacted by Bill Clinton in 1996, was terminated this summer. This act, which allowed same-sex couples to receive the same tax benefits as heterosexual couples, was recently repealed by a 5-4 majority vote of the Supreme Court. While this vote may demonstrate a shift in the opinion of the American people, it also provides certain fiscal advantages for gay couples. Previously, only states that recognized gay marriage allowed same-sex couples to file federal tax returns as married couples. Now, however, gay partners are permitted by law to file federal returns as married couples in any state regardless of whether that … Continue reading →

A court ruling from December of 2012 could result in many small business investors in California owing large sums of money in back taxes from a practice now deemed unconstitutional.  Five years ago many small business investors in California were promised a tax break.  The investors were told that if they invested in specific types of businesses, they would receive a large tax deduction.  Now these same investors are being told that they could receive tax bills that for up to $250,000 for deductions that were granted under tax laws that were on the books at the time the investments were made. Of course there is an enormous uproar and battle over this ruling! Senator Ted Lieu (a Redondo Beach Democrat) said, “When we make … Continue reading →

The American dream used to be to get rich young and retire by the age of 40. However, the results of a recent survey by the Spectrem Group indicate that the current goal for many wealthy Americans is to work past the age of 70. This survey revealed that America’s uppermost wage earners do not plan on retiring until they are at least this old. A third of those surveyed who have annual earnings of $750,000 or more, claim they will not retire until after they turn 70. Of that group, 15% say they never plan to step down.  On the other hand, the same survey showed that only 6% of those making under $100,000 a year say they plan to work that long. Another … Continue reading →

It is very common to read about a celebrity or affluent person who owes the IRS a large amount of money in back taxes.  Believe it or not, some people have even taunted the IRS on social media pages in regards to stealing and defrauding the government. Here are some hot stories in the news media this summer that are a good read: First off, it seems Courtney Love has landed herself in the news again. It is not good publicity either! The singer reportedly owes the Internal Revenue Service more than $260,000 in unpaid back taxes. It has been reported that the IRS filed a tax lien on Courtney Love claiming that she needs to settle an outstanding balance of back taxes from 2009 … Continue reading →

The Supreme Court recently declared the Defense of Marriage Act unconstitutional. This means that, in some states, same-sex couples who are legally married can now receive the same Social Security, retirement and health care benefits that have long been available to heterosexual couples.  The ruling could even lead to a check from Uncle Sam for some!  This article discusses the financial and tax implications of this new ruling for same-sex couples. Gift Taxes and Estate Planning Gift and estate taxes have been a core issue for many same-sex couples. Since there was previously no federal recognition of same- sex couples, members of these unions were not able to pass their assets on to their spouses upon their death without being taxed. Now some same sex couples … Continue reading →

A current survey after the 2012 United States tax season showed that a majority of taxpayers were in favor of a tax system where everyone pays the same percentage of their income in taxes. Think about it: After another stressful tax season, in which, decent and fair Americans rush to get all of their information together and out of the door by mid-April, it seems that these taxpayers would like to trade their system in for a more efficient and easy system. How would this work? The United States tax law is currently 72,000 pages. It is a complicated and always evolving system. One of main factors of the confusion for the taxpayers is all of the deductions and exemptions and tax codes. For this … Continue reading →

The Senate just passed a bill that will make certain large retailers charge sales tax to online shoppers.  The bill will allow states to collect sales tax from goods sold via the internet. If it passes the House of Representatives and is signed into law, this law will mark the end of an era where large retailers such as Amazon and EBay benefit from a twist in the system that allows them not to collect sales tax from goods ordered online. The U.S. Senate, overwhelmingly and with strong bipartisan support, passed the Marketplace Fairness Act of 2013 by a vote of 69-27. This bill will benefit states by allowing them to collect sales and use taxes on sales made to customers over the internet. Many … Continue reading →

Tax season has come to an end and now audit season is about to commence. People always fear that they will be audited, but in reality the chance of being audited is fairly low. About 1 out of 100 people are actually audited. Read below on how to endure an audit. However, if you do happen to be one of the unlucky people, here are a few easy steps to take to make the process go smoothly: Don’t Ignore Mail From the IRS – Although it may be frightening, it is always best to open mail from the IRS. It is best to face the problem head on and resolve the issue. You are usually given about 30 days to respond to the letter. Keep … Continue reading →

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