Member Since: Dec 14th 2015
I am currently back in public accounting on a part-time basis and having fun.
I am also in the CFP certificate program at California Lutheran University and I teach accounting at local Bay Area institutions (primarily UCSC Extension).
I am currently preparing for my series 7 and 66 exams.
Strong interest in taxation, finance, economics, and capital markets.
I spent several years working in a broad range of director and management roles in corporate tax departments, and large accounting firms.
Apr 5th 2021
Disbarment might be considered. How did they pass the Bar exam in the first place, and what was the score on the last ethics exam. This is why the world believes that bar membership is nothing more than a license to lie.
Nov 4th 2019
This is a real danger zone when clients start investing in low quality ETFs, REITs, Preferreds, etc.
The desire for yield is compelling. We need to remind clients that they do not get a return without taking a risk.
I remember seeing several Mortgage REITs go bust in the last recession. Those 10% cash yields went to zero...
Those that do not have a lot of capital to supplement their Social Security and do not have health or ability to work part-time are particularly at risk.
I do not give investment advice, but try to stress that quality of the issuer is important.
Oct 21st 2019
California follows S corp elections I believe. I may have read the article too quickly however.
Sep 21st 2018
Not sure I agree with the credit card rebate if all expenses were personal in nature and not deductible (as business expenses, etc). This would be a rebate on personal consumption. Yes, I agree if the S&L gives you a TV for opening a CD, then it is taxable (and well documented as such). Just my 2 cents. Not important to the story. These clients keep tax defense firms in business. Just get your fee up front. The client has already told you their character, but we are here to serve everyone.
Jun 13th 2018
Thank you for the story. A great reminder. S-corporation tax basis is a land mine we all should avoid. We now have excess business losses, and potentially excess interest expense to track. So much for simplification. Clients need to pay for our work and understand what we do to keep them out of situations like this. We do not need clients like this one. They should have prepared their own return if they wanted to make things up.
Jun 4th 2018
Thank you and TCM 2017-16 was a fun read as the taxpayer and IRS arguments were reversed. We all need to be aware of the grouping rules when working with HNW clients with complicated portfolios of passive activities.
Also scary was how the taxpayers destroyed their chance at an equitable recoupment argument.... We all need to remember this and make sure the tax attorney throws it into the pleading......
Mar 21st 2018
The key here is getting clients in a planning mode early in their 60's, and too use these lower bracket years to convert into ROTHs if the clients are so inclined based on their balance sheet, cash flow, and longevity expectations.
The sad news is that those that are tuned into planning and have the financial capacity likely do not have any lower tax brackets left even if they do not work. For these people gifting out is an option.
How do we engage the average client to get excited about real tax options? I have seen more bad ROTH conversions than good ones.
Best advice, is to keep working enough in your 60's to build your ROTHs organically.
Having assets in taxable, Traditional 401K / IRA, and ROTHs gives you wonderful tax liability options when you need to generate cash flow.
Oct 23rd 2017
Agreed compensation is low. However, it is an option for a retired tax person to keep skills current and provide help to society at large. If Intuit makes some margin, so be it. Intuit's only obligation is to set a price that gives them enough resources to satisfy their demand. No billing hassles, nobody coming after your personal assets, no commute. Some interaction with clients... Nothing is perfect.
Jul 10th 2017
We are all hoping the 3.8% tax goes away...
Jun 19th 2017
Claiming credit against payroll now for one of my qualifying clients. Ken, thank you for mentioning the Notice.