When a personal residence is destroyed by fire, the IRS treats the event as an involuntary conversion. Special tax rules may allow you to defer or avoid paying tax on the gain, depending on how you use the insurance proceeds.… Read More »Tax Consequences of Insurance Proceeds After a House Fire
When a taxpayer files a tax return after its due date (whether the original due date or a valid extension), the taxing authorities generally assess a late-filing penalty of 5% per month, or fraction thereof, up to a maximum of… Read More »Late-Filed Tax Returns: A Costly California Trap to Avoid
Marriage has significant federal and state income tax consequences, particularly for couples who marry during the tax year and reside in a community property state. Many taxpayers are surprised to learn that the rules governing filing status and income allocation… Read More »Marriage Mid-Year and Community Property Law
The California Franchise Tax Board (FTB) issued an important announcement this morning. The USPS has adjusted its transportation operations effective December 24, 2025, which may delay mail delivery to processing facilities. While postmarking practices remain unchanged, the postmark date could differ… Read More »Avoid a Late Filing Penalty This Tax Season!!
Free Money for Transition-Age Youth In recent years, California has launched an innovative refundable tax credit. It is aimed at improving economic opportunity and financial stability for current and former foster youth. Known as the Foster Youth Tax Credit (FYTC),… Read More »California’s New Foster Care Tax Credit
Your tax refund will no longer arrive by paper check. The IRS recently announced that it will stop issuing refund checks, with limited exceptions. It will require taxpayers to receive refunds electronically. The transition process for federal agencies actually began… Read More »No More IRS Refund Checks!
Congress created a valuable new tax break for tipped workers under the One Big Beautiful Bill Act. The No Tax on Tips deduction applies retroactively beginning January 1, 2025, and the IRS has designated 2025 as a transition year. As… Read More »Update on the New Tip Deduction
This is a good question. We have a new Savers’ store that opened in Santa Clarita, CA, in November 2025. My initial research into this store led me to conclude that, because it is a for-profit entity, donations would not… Read More »Are donations to Savers Stores tax deductible?
After four years of work, the IRS has finalized its cryptocurrency regulations, and crypto tax reporting now begins. Starting with the 2025 tax year, custodial crypto platforms must report taxable crypto transactions directly to the IRS. “Digital asset brokers” must… Read More »New IRS Form 1099-DA for 2025 Returns
You plan to send holiday gift baskets to colleagues, referral partners, and select customers, and you want to deduct the cost. You can take a deduction, but the IRS limits you to $25 per recipient per year. This rule dates… Read More »Deducting Business Gifts
