Feedback for you -- add chapters so we can determine what may or may not be applicable. Maybe your core audience is the wealthy, but most of it is irrelevant for those of us in the middle class. Also, for the slide of 2025 gift limit at 7:51 -- it reads $10k, which is lower than 2024's $18k. I'd think that would increase, and not significantly decrease.
Project 2025. Right out of the old dictator playbook.. Chapter 1: Turn the WH counsel, which is supposed to give the president independent LEGAL advice into an "activist force for the president's agenda." Chap 2: Root out anyone in the National Security Council, or the office of Management and Budget who's to woke (well informed) or isn't aligned with the president agenda (a loyalist💋who bend the knee a king) Chap 3: Replace thousands of career civil servants 4ktotal from the Argentina dictator playbook) with MEGA loyalist 💋. Chap 4: Radically increase the defense budget, expand the nuclear weapons production, lift restrictions on arms sales, (increase weapon crime murder) and expel all transgender people from the military. Chap5: Ramp up deportations of undocumented immigrants including dreamers (established Daca recipient), make it easier to detain kids in detention camps and allow ICE officers to arrest migrants anywhere in the U.S. without a warrant. Chap 6: Defund the Palestinian Authority, bring back Trum's remaining Mexico asylum policy, and restrict funding for international health organizations like the W.H.O. Chap 7: Ramp up the use of covert ops (to conceal the identity of the responsible party. Like assassination of foreign officials, overthrowing government that is what creates more migration, destruction of property and institutions subversion of elections, (voters suppression, election denail, disinformation, intimidation, legal or illegal attempts to not count or disqualified votes.) And use the CIA to, "implement president agenda." Chap 8: Defund "leftist news organizations," like NPR and PBS a free public brocast (stops information backup by fact and data to be air to the peasants, while the right to include X gets away with pushing conspiracy, and propaganda.) Chap 9: Get rid of all climate policy from our foreign aid programs. Chap10: Restrict food stamps and free school meals in low income schools district (on ethical cruel and immoral). Chap 11: Abolish the Department of Education. Chap 12: Gut renewable energy program and vasty expandour naturalgas infrastructure (drill drill drill that'll increase consumer poor health outcomes. Ouch, Elon 🐍.) Chap 13: Shrink the EPA and shut down the office of environmental Justice. Chap 14: Get rid of Head Start for low income family (if you are not born with silver spoon, u are FK) and ban the abortion pill Mifepristone. (All thanks to the white evangelist religious colt 💰. ) Chap 15: Ban all non-citizens from living in government subsidies housing (tent city growth)even if they're living in a family with citizens. Chap 16: Weaken the endangered species act (destroy our national natural parks with more fracking, drill, drill) and significantly expand OIL drilling in Alaska. Chap 17: Empower the president to investigate his opponents (Nixon dream) through the DOJ and eliminate the FBI's independence. Chap 18: Make it easier for businesses to discriminate on the basis of religious freedom and, of course, RACE. (Keep wealth inequality alive.) Chap19: Restrict the EPA's ability to regulate CO2 emissions from cars. Chap 20: Force the Department of Veterans Affairs to cease abortion services and gender affirming surgery. Chap 21: Focus the Minority Business Development Agency on "the evil of socialism and Communism." (Stops the Debunking of rightwing, conspiracy, propaganda.) Chap 22: Increase taxes on millions of low income and middle-class households. (Trump supporters advocate against their own self-interest.) Chap 23: It's just a long rant against China. Chap 24: Should we bring back the gold standard? Chap25: Punish planned Parenthood for getting 19 relief loans for getting Covit relief loans (a convicted felon hypocrisy) Chap 26: Give more of congre power to make trade agreements to the president. Chap 27: Abolish the Consumer Financial Protection Bureau (Elon baby), which has saved tens of billions of dollars. Chap28: Limit content moderation on social media platforms (allowing more rightwing conspiracies and propaganda). Leave HATE speech along.(X) Chap 29:Take away the Federal Election Commision's power to prosecute election and campaign law violations (no overside ethics committee, etc.) Chap 30: Go after companies with ESG, DEI, and other corporate social responsibility programs.
Thank you for your feedback @hummersd . Our goal is to cover a wide variety of topics- some of which apply to wealthy individuals. We have a large amount of content relevant to middle class families. Many of our clients want to keep the benefits of proposition 13 for their family, want to buy out a sibling after a parent passes away and keep the parent's low prop 13 taxes, or want to learn how to pay for long-term care for an elder. These are all topics that are important to a broader set of viewers. Thank you again for watching and feel free to post comments in the future.
Appreciate this info. in California, is there any way to GIFT to kids in irrevocable trust for asset protection but avoid property tax reassessment on rental properties in CA?
If a husband and wife do a 1031 of California rental property to an out of state property. Subsequently one spouse dies and gets stepped up basis on that new property, how is annual filing of form 3840 affected?
This is a GREAT question @doyle-s6m and thanks for posting it. Bear with me, this is not an easy answer. The answer is the filing requirement might stop, or it might continue depending on many factors, one of which is the title of the property in the other state. This also is NOT Tax or legal advice: it's a recitation of what the law is and should not be intended to apply to your individual situation. The November 2021 issue of Spidell's California Taxletter dated October 27, 2021 (Spidell) reads “[a]ll taxpayers are required to file Form FTB 3840, California Like-Kind Exchanges, if they exchange a California property for a non-California property in a tax-deferred IRC §1031 exchange. The return is required to be filed in the year of exchange and every year thereafter until the deferred tax is paid (emphasis added).” Spidell cites this requirement from California State Controller's Office Press Release PR21:13 (September 9, 2021). One the FTB’s website it reads "Form FTB 3840 must generally be filed for the taxable year of the exchange and for each subsequent taxable year until the California source deferred gain or loss is recognized.” California Like-Kind Exchanges (FTB 3840) letters, July 2020 Tax News, reads “FTB 3840 must be filed in the year the like-kind exchange occurs and every year thereafter as long as the gain or loss is deferred. The reporting continues until … [t]he property is transferred through inheritance, eliminating the deferred California source gain or loss” When a spouse dies, all community property gets and adjusted cost basis. This “magic wand” of sorts, does not result in payment of deferred tax or recognition of gain. This arguably comes under the inheritance exception provided that the property is community property. If a California married couple owns property in another state that is not titled as community property (perhaps because that state doesn't offer or recognize that titling as an option) this may result in the property NOT getting a 100% adjusted cost basis (either 0% or 50%) in which case the FTB 3840 filing requirement would continue. What if a taxpayer fails to file? Spidell reads "According to the Form 3840 instructions, if a taxpayer fails to file the Form 3840, the FTB may issue a Notice of Proposed Assessment on the amount of income deferred, essentially accelerating the gain recognized on the deferred exchange into the year the form was not filed. "But that's a little misleading. The law only allows the FTB to accelerate this gain recognition in a tax year if the taxpayer fails to file the Form 3840 and also fails to file a California return for that year. So California taxpayers who file a return but fail to file the Form 3840 would not be subject to this accelerated gain recognition. "The law was primarily designed to address non-California taxpayers who fail to pay the tax to California on the deferred income from the California property sale. Residents are likely going to file a return and be taxed on the income anyway. But chances are nonresidents or former California residents are not filing a California return, and unless the taxpayer files a Form 3840, there is no easy way for the FTB to track down the sale." Again, this is not legal advice in your individual situation. If you aren't currently represented we would be happy to meet with you to discuss this issue one on one.
It depends! If the WY LLC is "doing business" in California, it must register as a foreign entity. While just having a manager who is resident in California THEORETICALLY may be viewed as insufficient to trigger the registration requirement, in practice it simply isn’t the case in the real world. An LLC is involved in "business activities” in California when a manager handles management activities within California, has employees or contracts labor in California, or signs contracts in the state of California. If so, the LLC must register as a foreign LLC with the California Secretary of State and pay the state's annual franchise tax, even if the LLC is and remains a Wyoming LLC. More importantly, a Court can take the view that a person (manger of WY LLC) who disregards the law (fail to register) should not be allowed to invoke it (the protections under the WY LLC) for their benefit when it suits their interests. For these reasons, most lawyers will recommend that the WY LLC register in California. If a manager fails to register the WY LLC in California, and later seeks the protections of a WY LLC in a California Court, such failure to register can significantly undermine the manager’s (or other’s) ability to get benefits. Please note that this is not legal advice, and it is information only!
Great video and come at the right time! One thing to point out - in your slide titled "Will the TCJA be Extended.." on time 14:40, it writes "Amount over that will be taxed at 45%". Shouldn't it be 40%? THe TCJA involves exemption amount, but not the estate tax rate, so even after TCJA sunset, the tax rate will remain to be 40% just like in 2024. Right?
@@cacophony6963 According to ChatGPT: "The Tax Cuts and Jobs Act (TCJA) of 2017 is scheduled to expire at the end of 2025. This expiration will reduce the federal estate tax exemption amount to pre-TCJA levels, adjusted for inflation. However, the federal estate tax rate is expected to remain at 40%. The TCJA did not alter the top estate tax rate; it has been 40% since 2013. Therefore, unless new legislation is enacted, the estate tax rate will not increase to 45% after the TCJA sunsets."... is ChatGPT wrong? Wasn't the estate tax rate being 40% in 2016 before TCJA was implemented?
You're correct- Currently with the 2024 elections, Republicans will win the US Senate majority and have 53 seats in the chamber. The Democratic total of 47 includes two independent senators who caucus with the party. The Senate has 100 members, two from each state, who are elected to serve for a term of six years.
Would be great if we could get copies of the slides!
Please send an email to team@cunninghamlegal.com
Feedback for you -- add chapters so we can determine what may or may not be applicable. Maybe your core audience is the wealthy, but most of it is irrelevant for those of us in the middle class. Also, for the slide of 2025 gift limit at 7:51 -- it reads $10k, which is lower than 2024's $18k. I'd think that would increase, and not significantly decrease.
Project 2025. Right out of the old dictator playbook..
Chapter 1: Turn the WH counsel, which is supposed to give the president independent LEGAL advice into an "activist force for the president's agenda."
Chap 2: Root out anyone in the National Security Council, or the office of Management and Budget who's to woke (well informed) or isn't aligned with the president agenda (a loyalist💋who bend the knee a king)
Chap 3: Replace thousands of career civil servants 4ktotal from the Argentina dictator playbook) with MEGA loyalist 💋.
Chap 4: Radically increase the defense budget, expand the nuclear weapons production, lift restrictions on arms sales, (increase weapon crime murder) and expel all transgender people from the military.
Chap5: Ramp up deportations of undocumented immigrants including dreamers (established Daca recipient), make it easier to detain kids in detention camps and allow ICE officers to arrest migrants anywhere in the U.S. without a warrant.
Chap 6: Defund the Palestinian Authority, bring back Trum's remaining Mexico asylum policy, and restrict funding for international health organizations like the W.H.O.
Chap 7: Ramp up the use of covert ops (to conceal the identity of the responsible party. Like assassination of foreign officials, overthrowing government that is what creates more migration, destruction of property and institutions subversion of elections, (voters suppression, election denail, disinformation, intimidation, legal or illegal attempts to not count or disqualified votes.) And use the CIA to, "implement president agenda."
Chap 8: Defund "leftist news organizations," like NPR and PBS a free public brocast (stops information backup by fact and data to be air to the peasants, while the right to include X gets away with pushing conspiracy, and propaganda.)
Chap 9: Get rid of all climate policy from our foreign aid programs.
Chap10: Restrict food stamps and free school meals in low income schools district (on ethical cruel and immoral). Chap 11: Abolish the Department of Education. Chap 12: Gut renewable energy program and vasty expandour naturalgas infrastructure (drill drill drill that'll increase consumer poor health outcomes. Ouch, Elon 🐍.) Chap
13: Shrink the EPA and shut down the office of environmental Justice. Chap
14: Get rid of Head Start for low income family (if you are not born with silver spoon, u are FK) and ban the abortion pill Mifepristone. (All thanks to the white evangelist religious colt 💰. ) Chap 15: Ban all non-citizens from living in government subsidies housing (tent city growth)even if they're living in a family with citizens.
Chap 16: Weaken the endangered species act (destroy our national natural parks with more fracking, drill, drill) and significantly expand OIL drilling in Alaska.
Chap 17: Empower the president to investigate his opponents (Nixon dream) through the DOJ and eliminate the FBI's independence.
Chap 18: Make it easier for businesses to discriminate on the basis of religious freedom and, of course, RACE. (Keep wealth inequality alive.)
Chap19: Restrict the EPA's ability to regulate CO2 emissions from cars.
Chap 20: Force the Department of Veterans Affairs to cease abortion services and gender affirming surgery.
Chap 21: Focus the Minority Business Development Agency on "the evil of socialism and Communism." (Stops the Debunking of rightwing, conspiracy, propaganda.)
Chap 22: Increase taxes on millions of low income and middle-class households. (Trump supporters advocate against their own self-interest.)
Chap 23: It's just a long rant against China.
Chap 24: Should we bring back the gold standard?
Chap25: Punish planned Parenthood for getting 19 relief loans for getting Covit relief loans (a convicted felon hypocrisy)
Chap 26: Give more of congre power to make trade agreements to the president.
Chap 27: Abolish the Consumer Financial Protection Bureau (Elon baby), which has saved tens of billions of dollars.
Chap28: Limit content moderation on social media platforms (allowing more rightwing conspiracies and propaganda). Leave HATE speech along.(X)
Chap 29:Take away the Federal Election Commision's power to prosecute election and campaign law violations (no overside ethics committee, etc.)
Chap 30: Go after companies with ESG, DEI, and other corporate social responsibility programs.
Thank you for your feedback @hummersd . Our goal is to cover a wide variety of topics- some of which apply to wealthy individuals. We have a large amount of content relevant to middle class families. Many of our clients want to keep the benefits of proposition 13 for their family, want to buy out a sibling after a parent passes away and keep the parent's low prop 13 taxes, or want to learn how to pay for long-term care for an elder. These are all topics that are important to a broader set of viewers. Thank you again for watching and feel free to post comments in the future.
Appreciate this info. in California, is there any way to GIFT to kids in irrevocable trust for asset protection but avoid property tax reassessment on rental properties in CA?
We have several videos on Prop 19 that discuss several different strategies. You can watch the video here: ruclips.net/video/TEx0WN-RD1U/видео.html
If a husband and wife do a 1031 of California rental property to an out of state property. Subsequently one spouse dies and gets stepped up basis on that new property, how is annual filing of form 3840 affected?
This is a GREAT question @doyle-s6m and thanks for posting it. Bear with me, this is not an easy answer. The answer is the filing requirement might stop, or it might continue depending on many factors, one of which is the title of the property in the other state. This also is NOT Tax or legal advice: it's a recitation of what the law is and should not be intended to apply to your individual situation.
The November 2021 issue of Spidell's California Taxletter dated October 27, 2021 (Spidell) reads “[a]ll taxpayers are required to file Form FTB 3840, California Like-Kind Exchanges, if they exchange a California property for a non-California property in a tax-deferred IRC §1031 exchange. The return is required to be filed in the year of exchange and every year thereafter until the deferred tax is paid (emphasis added).” Spidell cites this requirement from California State Controller's Office Press Release PR21:13 (September 9, 2021).
One the FTB’s website it reads "Form FTB 3840 must generally be filed for the taxable year of the exchange and for each subsequent taxable year until the California source deferred gain or loss is recognized.”
California Like-Kind Exchanges (FTB 3840) letters, July 2020 Tax News, reads “FTB 3840 must be filed in the year the like-kind exchange occurs and every year thereafter as long as the gain or loss is deferred. The reporting continues until … [t]he property is transferred through inheritance, eliminating the deferred California source gain or loss”
When a spouse dies, all community property gets and adjusted cost basis. This “magic wand” of sorts, does not result in payment of deferred tax or recognition of gain. This arguably comes under the inheritance exception provided that the property is community property.
If a California married couple owns property in another state that is not titled as community property (perhaps because that state doesn't offer or recognize that titling as an option) this may result in the property NOT getting a 100% adjusted cost basis (either 0% or 50%) in which case the FTB 3840 filing requirement would continue.
What if a taxpayer fails to file?
Spidell reads "According to the Form 3840 instructions, if a taxpayer fails to file the Form 3840, the FTB may issue a Notice of Proposed Assessment on the amount of income deferred, essentially accelerating the gain recognized on the deferred exchange into the year the form was not filed.
"But that's a little misleading. The law only allows the FTB to accelerate this gain recognition in a tax year if the taxpayer fails to file the Form 3840 and also fails to file a California return for that year. So California taxpayers who file a return but fail to file the Form 3840 would not be subject to this accelerated gain recognition.
"The law was primarily designed to address non-California taxpayers who fail to pay the tax to California on the deferred income from the California property sale. Residents are likely going to file a return and be taxed on the income anyway. But chances are nonresidents or former California residents are not filing a California return, and unless the taxpayer files a Form 3840, there is no easy way for the FTB to track down the sale."
Again, this is not legal advice in your individual situation. If you aren't currently represented we would be happy to meet with you to discuss this issue one on one.
Doesn't WY LLC have to register in CA if we live in CA?
It depends! If the WY LLC is "doing business" in California, it must register as a foreign entity. While just having a manager who is resident in California THEORETICALLY may be viewed as insufficient to trigger the registration requirement, in practice it simply isn’t the case in the real world.
An LLC is involved in "business activities” in California when a manager handles management activities within California, has employees or contracts labor in California, or signs contracts in the state of California. If so, the LLC must register as a foreign LLC with the California Secretary of State and pay the state's annual franchise tax, even if the LLC is and remains a Wyoming LLC. More importantly, a Court can take the view that a person (manger of WY LLC) who disregards the law (fail to register) should not be allowed to invoke it (the protections under the WY LLC) for their benefit when it suits their interests. For these reasons, most lawyers will recommend that the WY LLC register in California.
If a manager fails to register the WY LLC in California, and later seeks the protections of a WY LLC in a California Court, such failure to register can significantly undermine the manager’s (or other’s) ability to get benefits. Please note that this is not legal advice, and it is information only!
Great video and come at the right time! One thing to point out - in your slide titled "Will the TCJA be Extended.." on time 14:40, it writes "Amount over that will be taxed at 45%". Shouldn't it be 40%? THe TCJA involves exemption amount, but not the estate tax rate, so even after TCJA sunset, the tax rate will remain to be 40% just like in 2024. Right?
No, part of the TCJA was lowering the tax rate from 45% to 40%, so if it sunsets the rate will return to 45%
@@cacophony6963 OK... maybe the ChatGPT is wrong. Thanks
If the TCJA is not extended, the estate tax rate goes form 40% to 45%
@@cacophony6963 According to ChatGPT: "The Tax Cuts and Jobs Act (TCJA) of 2017 is scheduled to expire at the end of 2025. This expiration will reduce the federal estate tax exemption amount to pre-TCJA levels, adjusted for inflation. However, the federal estate tax rate is expected to remain at 40%. The TCJA did not alter the top estate tax rate; it has been 40% since 2013. Therefore, unless new legislation is enacted, the estate tax rate will not increase to 45% after the TCJA sunsets."... is ChatGPT wrong? Wasn't the estate tax rate being 40% in 2016 before TCJA was implemented?
you keep saying 63 senators instead of 53.
You're correct- Currently with the 2024 elections, Republicans will win the US Senate majority and have 53 seats in the chamber. The Democratic total of 47 includes two independent senators who caucus with the party. The Senate has 100 members, two from each state, who are elected to serve for a term of six years.