As a property investor in California, you may have heard how IRS Section 1031 allows you to exchange properties and defer capital gains taxes. The tax deferment enables you to redirect proceeds fully into a new investment and potentially acquire a higher-value property. However, Section 1031 insists that the properties being exchanged fit the definition of “like-kind.” Examples of like-kind properties The properties being exchanged do not have to be identical. To complete a 1

Both public and private companies conduct mergers and acquisitions. The status of a company influences whether a breakup fee will be part of the terms during negotiation of the deal. A breakup fee is paid when a seller chooses to halt a merger. The penalty usually amounts to between 1% and 3% of the deal’s value. The money compensates a buyer for the lost time and effort put into the failed deal. A privately held company in California is less likely to specify a breakup fee t

While estate planning provides everyone security and peace of mind, parents receive additional benefits. When parents in California carefully plan their estate, they can secure futures for both minor and adult children. Few parents want to consider the grief they will leave behind when they pass away, but proper estate planning helps to ease any additional burdens that their death may have upon their children. Minor children need appointed guardians If you have minor children

When a will goes into probate in California, most events about it happen predictably, if slowly. However, sometimes a person will dispute the validity of the will. This is called a will contest and, eventually, can involve many people. When a will contest happens, the court needs to notify all interested parties. Interested parties include everyone who might be affected if the court says the will is false. This includes everyone named in the will, but can expand to include ot

Intellectual property may be one of the most valuable assets that a California company might own. Therefore, it’s important to verify exactly what you are getting when acquiring another business. If you are the one selling intellectual property, it’s important to know how to properly value it. If you’re acquiring intellectual property If you are acquiring a company’s intellectual property, it’s critical to do due diligence before the transaction closes. This will help you det

When two California companies merge, it’s possible that they will continue to operate as separate entities. However, there are several potential benefits of opting to consolidate a recently acquired business whether you decide to fold it into an existing brand or repackage it as something new. Improve efficiency Consolidating operations may be ideal if you don’t want or need all the assets you acquired in a transaction. For instance, if your factory already produces enough un

Setting up a trust allows you to pass on assets to your beneficiaries without going through probate. Various types of trusts are available to meet different needs. 1. Special needs A special needs trust is for children, including adult children, with special needs. The benefit of setting up a special needs trust is it won’t affect the beneficiary’s eligibility for government benefits for their disabilities. A regular type of trust affects their eligibility. They would most li

Did you sign a non-compete agreement when you left your former employer in California? Even if you did, your former employer could not enforce it under state law, even if company officials repeatedly say they can. Do you have a non-compete agreement in your employment contract? Many California employers are sneaky, burying non-compete agreements in the fine print of contracts or even adding them to the terms of employment after a worker has accepted a job. Employers do this,

If you are making an estate plan, you may want to include a living will that outlines your wishes for end-of-life care. It can be important to have this document if you become incapacitated and cannot say what treatment you would prefer. The living will can also guide the person in charge of making your health care decisions. California has specific provisions for the creation and use of a living will. Legal status For the will to be valid, the person creating it must be at l

If you operate a restaurant or similar business where it is customary for employees to collect tips, it is important to note whether you have to pay taxes on those tips. Employers that do not accurately report income from tips may open themselves to several tax penalties. If you require assistance managing employee tips for your business, you should contact an experienced Roseville tax return planning lawyer. The NewPoint Law Group, LLP is dedicated to helping your company ma

When you have been given a generous gift, there are often tax repercussions to consider. It is noteworthy to point out that Gift Tax applies to the giver, not the receiver. A donation, or present, valued at over $15,000 requires a Gift Tax Return, according to current tax regulations. To ensure proper tax planning, be sure to consult with an experienced Roseville tax return attorney today. An Overview of Gift Tax in California You can give $15,000 to as many people as you wan

It is never too early to begin preparing your finances to file your taxes. Filing your taxes can be a time-consuming and stressful process, but it is best to prepare early to avoid any surprises later. Additionally, if you prepare your taxes early, you will be able to file quickly once the 2019 tax season begins – and you may receive your tax refund earlier than others. If you or a family member needs assistance with filing 2019 taxes, which are impacted by the Tax Cuts and J

Remaining compliant with California’s self-employment tax can be a burdensome process. You must understand what qualifies as a self-employed individual, and you also have to know the appropriate amount of taxes that you must pay. While employees at a California-based business will have their taxes automatically deducted from their earnings, a self-employed individual must remain diligent when calculating taxes to avoid drawing the ire of the Internal Revenue Service. If you r

Forty-five states in the U.S. currently charge a sales tax, including California. However, there are still some facets of California’s sales tax program that could be explained for retailers. If you are having trouble filing your sales tax returns in California, you should consult with an experienced tax lawyer for businesses. The Roseville sales tax lawyers at NewPoint Law Group, LLP are here to explain when businesses in California and online businesses should file sales ta

Self-employed workers experience a wide range of freedom. However, with that freedom comes various tax obligations that a self-employed individual must handle. For example, self-employed workers are responsible for calculating the amount of their quarterly Social Security and Medicare taxes. Additionally, there are new tax regulations for 2019 that will alter self-employed workers operate. If you need assistance handling your tax obligations as a self-employed worker, you sho

Renting out an apartment or commercial property takes more than just handing the keys over to a tenant. The relationship between landlord and tenant requires following state and federal laws strictly. California is a state that protects and upholds the tenant’s rights. In fact, it would seem property and contract law were designed only with the tenant’s right in mind. However, tenants do not have unlimited power. There are rights that landlords can enforce to prevent tenants

Every year, most U.S. citizens must file income tax returns. Federal and state authorities set forth specific laws and regulations pertaining to income tax reporting. The Internal Revenue Service (IRS) is known for being particularly strict when it comes to enforcing tax laws, such as the requirement to file a timely return. Failing to comply with the rules enforced by the IRS could result in severe consequences. The best way to avoid problems with the IRS is to file complete

If you have unfiled tax returns, it is wise to file them as soon as possible. Filing a late tax return can not only result in losing out on a refund, but the Internal Revenue Service (IRS) may choose to pursue you for money owed on unpaid taxes. Under serious circumstances, the IRS may consider referring your case to the Justice Department for prosecution. If you are concerned about the tax implications of your unfiled returns, you should consult with an experienced Roseville

LLCs (Limited Liability Companies) are flexible and relatively easy to form, which makes them a popular option for people that are starting their own businesses. However, LLCs must file tax returns just like any other business. LLCs that fail to file their taxes in California can expect to face penalties that can affect their ability to do business in the future. To learn more about what will happen if your LLC fails to file its taxes in California and how you can use the ser

Owning and operating a business is a task that requires a person’s undivided attention. A business owner has to be concerned about various issues from keeping their inventory well-stocked to ensuring that payments from clients are timely paid. Even with all of these obligations, it is still extremely important that a self-employed person files their self-employment taxes. If you require assistance filing your self-employment taxes, you should consult with an experienced Rosev

If you are an Airbnb host in California, you should be fully aware of any tax requirements that have been placed on the corporation’s operations. For example, if you are hosting a property in a certain part of California, you must know the transient occupancy tax rate that you are required to charge visitors. Failure to follow these regulations could lead to tax issues down the line. If you need assistance handling your tax liability as an Airbnb host, you should consult with

Rental property owners have a lot of flexibility when it comes to leasing their property. However, they must also remember to stay on top of their taxes. For example, failing to report rental income on your tax return can result in a hefty tax bill later on. While managing taxes as a new landlord can be frustrating, you should not become discouraged. If you are having difficulty managing your tax liability as a landlord, you should consult with an experienced Sacramento tax l

You may think everything in your finances is under control. However, this may not always be the case, especially when you are behind on your taxes and have the Internal Revenue Service (IRS) breathing down your neck. The bottom line is nobody wants to deal with the IRS. There are many elements in your finances you can manage and control. However, tax law is a complicated world, often requiring the expertise of a tax attorney who knows the ins and outs of the ever-changing Tax

An offer in compromise (OIC) is a deal between a California taxpayer and the Internal Revenue Service (IRS) or the Franchise Tax Board (FTB) to pay off a tax debt for less than the full amount. The agreement will not be accepted automatically, as the taxpayer must meet specific requirements when applying for an OIC. These eligibility requirements vary depending on whether the taxpayer is applying to the IRS or the FTB, his or her financial circumstances, and other factors. Th