New year, new leadership! We’re thrilled to announce David Crouch as our new firm managing partner and Jennifer Ruth as our San Francisco office managing partner. With David and Jennifer joining Jeff Belingheri , managing partner of our Novato office, at the helm, we look forward to a fruitful and prosperous 2019 for BCo and our clients!
Effective as of the 2nd calendar quarter beginning April 1, 2016, the Internal Revenue Service has increased the interest rates by 1% for all non-corporate and corporate taxpayers.
For taxpayers other than corporations (individuals, trusts, etc.), the overpayment and underpayment rates have increased from 3% to 4%.
The corporate underpayment penalty has increased from 2% to 3% and the interest rate on corporate overpayments exceeding $10,000 has increased from 0.5% to 1.5%. The underpayment penalty for large corporations has also increased, from 5% to 6%.
These rate increases are due to the increase in federal short-term rates that took effect February 1, 2016.
California rates will remain unchanged throughout the 2nd quarter (June 30, 2016).
More details regarding the rate increase can be found on the IRS […]
Using a §529 plan to pay for higher education costs can be a great tax savings tool in itself; although contributions are not tax deductible federally or for California, they are deductible in 34 other states. All withdrawals and earnings are tax-free if used to pay for qualified higher education expenses (“QHEE”) for a designated beneficiary. The plans can be transferred to any ‘qualified member’ of the beneficiary’s family (as defined by the IRS in Pub. 970), so the funds do not have to be lost if there is excess after the first beneficiary completes their higher education or decides not to use it at all.
For estate planning purposes, the §529 accounts do not count towards the owner’s gross estate for […]