12 October

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Income Tax-Free States May Be Worth Considering for Residency in Retirement

There are a number of states – such as Florida, Nevada and Texas - that do not tax income that have received an increasing amount of interest after the new federal tax law passed in 2018 capped state and local tax (SALT) deductions at $10,000. There are currently nine states that do not tax the income of residents. States with No Income Tax Below is an overview of the states with no income tax, according to Fox Business. Alaska In addition to not having an income tax, Alaska has no sales and use tax, generally. Though, local jurisdictions have the right to levy sales and...

15 June

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Death and Credit – Important Info You Need to Know

Posted by Bobby Feisee

in Bobby's Blog

When a family member passes away, there are certain steps that should be taken to alert the passing to the major credit reporting agencies and to assess whether a freeze, or lifting a freeze, on their credit is needed. Swift action is important when it comes to a decedent’s credit. Why? Because if the major credit reporting agencies, along with the financial institutions where your deceased family member had open checking accounts, saving accounts, retirement accounts, etc. are not timely notified, your loved one’s accounts would remain open and could heighten the risk of identity theft and other issues. Suffice it...

17 May

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Time to Re-Brand “Do Not Resuscitate”

Posted by Bobby Feisee

in Bobby's Blog, News

Stories of hospitals being subjected to civil litigation for failing to intervene or, alternately, for wrongfully intervening to resuscitate a patient using advanced life support are quite common. These unfortunate incidents typically have at their core three central figures: A dying patient; The dying patient’s family; and A healthcare professional who misunderstands the meaning of the term: “do not resuscitate.” What Does “Do Not Resuscitate” Actually Mean? The term “Do Not Resuscitate” (also referred to by its acronym DNR) means that a patient should not receive cardiopulmonary resuscitation (CPR) in the event of cardiopulmonary arrest. This is a situation where the patient...

12 April

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Pros and Cons of a Revocable Transfer on Death Deed for California Residents

Posted by Bobby Feisee

in Bobby's Blog

The California legislature enacted a law in 2016 that offered residents an alternative to keep their homes out of the costly and inefficient probate process. This alternative is known as a “revocable transfer on death deed.” This type of deed is sometimes referred to as the “poor man’s trust.” Why? Because it is a less costly way to transfer real property to a named beneficiary without having to create a full-fledged trust. Limitations to a Revocable Transfer on Death Deed There are some limitations associated with transferring real property through this type of deed. For example, the only forms of real property that qualify...

11 April

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Dying with Debt – Who Is on the Hook to Pay It Back?

Posted by Bobby Feisee

in Bobby's Blog

Debt is something many American grapple with. In fact, the average U.S. household with credit card debt carries close to $7,000 in revolving balances, or balances carried from one month to the next, according to NerdWallet. Given the prevalence of debt in our society, an important question needs to be answered: "If you die with an outstanding debt (whether it be a credit card, personal loan, student loan, mortgage, etc.) who or what will be responsible for paying it back?” The laws pertaining to debt after death vary by state so there isn't a single answer to this question. Nevertheless, in general, people...

11 January

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Natural Burial – Is it Right for You?

Posted by Bobby Feisee

in Bobby's Blog

As we learn more about the environmental impact of metal caskets and traditional forms of burial, many people are opting for “green” or “natural” burials. These are burials where no chemicals are used at any stage of the burial. This means no embalming fluid is placed in your body, no vault, and no metal casket. Some natural burial services place a body into the ground wrapped in a shroud or placed inside a non-treated and biodegradable coffin. Are Traditional Burials Harming the Environment? The growing popularity of natural burials has been associated with the growing body of evidence highlighting the potential environmental...

22 October

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Profits Interest – Info You Need to Know

Posted by Bobby Feisee

in Bobby's Blog

You’ve probably heard of “stock options” that enable an individual to buy into a company at a future time. However, if you work for a limited liability company (LLC), you also have the option of utilizing a unique form of equity compensation known as “profits interest” which represents an actual current ownership interest in the LLC. Tax Free Equity Compensation A profits interest, when structured to be in compliance with relevant IRS “safe harbors,” is effectively tax free for the recipient, according to a great article published by Hutchison PLLC. This is because a profits interest basically represents an ownership interest in the...

22 October

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Administering a Small Estate in Virginia – Important Info You Need to Know

Posted by Bobby Feisee

in Bobby's Blog

Virginia has a set of unique rules that allows you to avoid probate if an estate is comprised of “small” assets (defined as assets totaling under $50,000). According to VA Code § 64.2-601, when the total estate does not exceed $50,000, a successor in interest, usually an heir-at-law or a beneficiary of the Will, can collect and distribute the assets without having to go through the full probate process. If there is a Last Will and Testament, it must be admitted to probate, but there is no requirement that an executor or personal representative be appointed, according to the Virginia Academy of Elder...

17 October

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Info You Need to Know About Moving Your Business Domicile To A Different State

Posted by Bobby Feisee

in Bobby's Blog

If you decide it makes sense to relocate your company from the state of formation to a different state, there are a series of steps that must be taken in order to change the company’s domicile. This process is known as domestication. You are able to change the domicile from any state, but can only domesticate to a state that recognizes domestication. Benefits of Domestication The benefits of domestication include keeping the same tax ID (EIN), the same company structure, and with some states also the original date of formation. The disadvantage is cost and relative complexity of the process, compared to...

17 September

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Which Small Businesses Get the 20 Percent Deduction?

Posted by Bobby Feisee

in Bobby's Blog

When tax reform legislation was signed into law, a 20 percent deduction for owners of a variety of pass-through businesses, including limited liability companies, partnerships, so-called S corporations and sole proprietorships was created. The deduction effectively lowers a small business owner's top rate to 29.6 percent from 37 percent. However, when the legislation passed, there was ambiguity as to which "small businesses" would qualify for the preferential tax treatment. Well, the Treasury Department recently issued guidance that helps bring some clarity to this issue. Those Who Qualify for the 20 Percent Deduction The deduction can be claimed by business owners whose taxable income...