FTB Amnesty for Syndicated Conservation Easements and Captive Insurance Companies 

CA Franchise Tax Board
FTB Amnesty for Syndicated Conservation Easements and Captive Insurance Companies 

California’s FTB is offering amnesty for syndicated conservation easements and captive insurance company tax deductions. Both investments are highly-sophisticated, often-fraudulent tax schemes. I’ve been getting lots of calls recently from taxpayers who invested in one of these for their generous tax write-offs, but who are now under FTB audit. If the FTB finds a syndicated conservation easement or captive insurance company investment is not legitimate, then the taxpayer is subject to a 40 percent penalty, plus a doubling of the interest rate. Unfortunately, many of these transactions are not legitimate. Read more » 
August 5, 2023

Your Credit Score May Go Up When You File Bankruptcy in LA

Bankruptcy, Bankruptcy Aftermath
Your Credit Score May Go Up When You File Bankruptcy in LA

Most of my clients are surprised when I tell them their credit score may go up when they file bankruptcy. In fact, one of the Top Three Fears of Bankruptcy I hear from clients is the negative impact it’ll have on their credit scores. This is the case especially for renters since so many property management firms and landlords check a potential tenant’s credit score before renting. Read more » 
July 28, 2023

Are There Limits to Tax-Deductibility of Fine Art Donations by Artist?

Taxes
Are There Limits to Tax-Deductibility of Fine Art Donations by Artist?

Many thanks to my seatmate on a recent flight who posed this hypothetical question, worthy of a Harvard Law School Professor: if an artist sells her painting for $1 million, can she then paint an identical copy, donate it to a charity, and claim no income for the tax year, on the assumption that the value of the copy is $1 million (because that’s what she sold the original for)? The answer is “no.” Read more » 
July 14, 2023

California State Bar Certificates of Specialization

Bankruptcy, Taxes
California State Bar Certificates of Specialization

As many of you may know, I hold a Certificate of Specialization in Bankruptcy Law and in a Certificate of Specialization in Tax Law from the State Bar of California. You probably also don’t see many California attorneys advertising this. That’s because fewer than five percent of lawyers in California have taken the exam and continuing legal education courses necessary to obtain this certificate. Read more »
July 7, 2023

What Happens to California Homes with IRS Liens in Bankruptcy?

Bankruptcy, Bankruptcy Procedure, Pre-Bankruptcy Planning, Tax Liens
What Happens to California Homes with IRS Liens in Bankruptcy?

Many debtors in California file chapter 7 bankruptcy with a home that has an IRS tax lien on it. What happens in these cases? If the IRS has a federal tax lien on real property in California prior to a bankruptcy being filed, then that lien will survive bankruptcy. In other words, debtors cannot use bankruptcy to escape an existing federal tax lien on a California property, despite the fact that California bankruptcy law allows chapter 7 filers to take up to $678,000 in equity in a primary residence through bankruptcy. Read more »
June 14, 2023

How Long Does A Chapter 7 Bankruptcy Take in Thousand Oaks?

Asset Protection, Bankruptcy, Bankruptcy Procedure, Pre-Bankruptcy Planning
How Long Does A Chapter 7 Bankruptcy Take in Thousand Oaks?

My clients often ask: how long does a Chapter 7 bankruptcy take? The short answer: it depends. It depends on how quickly the client organizes their information and documents; it depends on whether it makes sense to postpone filing to protect some assets that would be otherwise taken; and it depends on the Bankruptcy Trustee. I rarely have a bankruptcy take less than 4 months or longer than 8 months. The average is 5-6 months. Read more »
April 5, 2023

Is the IRS Audit in Everything Everywhere All at Once Accurate?

Audits, In the News, IRS, Tax Collection Issues, Taxes, Taxes in the News
Is the IRS Audit in Everything Everywhere All at Once Accurate?

Everything Everywhere All at Once won seven Oscars at the 95th Academy Awards including for Best Picture. The movie begins with the havoc unleashed by IRS Agent Deirdre Beaubeirdra (Jamie Lee Curtis won Best Supporting Actress), when she audits the laundromat of Evelyn & Waymond Wang (Michelle Yeoh won Best Actress and Ke Huy Kwan won Best Supporting Actor. But are the audit scenes realistic? Short answer: yes, but mostly no. Here’s how the movie differs from a real-life IRS audit. Read more »
March 13, 2023