Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Tax for Legal Marijuana
The legal marijuana industry is booming across the United States. But there are tax problems: since marijuana is still a federally controlled substance, selling it comes with costly federal tax consequences. The good news is that with knowledge of the law in this area and some planning, you can cut the tax bill that Uncle Sam would otherwise send you. [...]
Gift Tax
Taxpayers who give money or property to others may wonder about the federal gift tax and if it applies to them. Most gifts are not subject to the gift tax. Here are seven tax tips about the gift tax and giving: Nontaxable Gifts: The general rule is that any gift is potentially taxable. However, there are exceptions to this rule. [...]
SEP or 401K?
Tax-free compounding is like a miracle drug for your retirement. That’s one big reason we recommend a retirement plan. And when you get this retirement plan setup correctly, you take away the stress of the future. It’s a money habit that boosts your wealth. You have many retirement plans to choose from, but let us expose you to two of [...]
Deducting Start Up Costs
Are you planning on starting a new business? This is very exciting, and we want to make sure you maximize your tax benefits with this new venture. Instead of waiting until you officially open for business, you can start the timer now on your deductible expenses. The tax law allows you a deduction for start-up expenses. Think of this as [...]
“Tax Protestor Arguments” – Can You Really Avoid Federal Income Tax?
When it comes to tax advice, be careful whom you trust. There is some remarkably bad and wrong and hazardous-to-your-health information out there that—despite being repeatedly debunked—just will not go away. Some of those ideas are clearly erroneous, but others can snag even very bright people. Consider the case of Carter White Rae, a dentist in Michigan. He followed some [...]
Tax Saving Opportunities for Helping Your Child Buy a House
Have you ever thought of helping your child buy a home? Here are five thoughts: Gift. You and your spouse can each gift $14,000 to your child and to the child’s spouse for a down payment. This gives you a tax-free gift of $56,000 using the gift exclusion, and your child and his or her spouse have $56,000 for the [...]