With the Trump tax changes taking effect and sky-high real estate prices in San Francisco, more and more people are discussing leaving California for lower tax states. This month’s newsletter talks about the issue in detail. If you own a business in San Francisco, or are high income, you’ll find this issue informative. (To download the July eLetter, click here).
High California Taxes: Is it Worth it?
Don’t get us wrong. We love California, and we love San Francisco! But, let’s face it, this is probably the highest taxed, most expensive city in the country. You can argue that even compared to New York City, the cost of living in San Francisco is very high. The new Trump tax changes cap the deductibility of state and local income taxes at $10,000, so we have a many clients concerned about yet another cost being added to living in the Bay Area. The buzz term for this is SALT (State and Local Taxes). But SALT isn’t the only ingredient in why you might want to stay in San Francisco. It’s not just the climate or the food. The technology area, and the incredible work force, make it attractive to many businesses. So you need to weigh the pro’s and con’s of the high cost Bay Area. As always, the devil is in the details. We can help you with all aspects of your financial planning and take a holistic view of your income, assets, and strategies going forward. In addition to content on the SALT issue, this month we return to estate planning and even cover the “gift tax.” Fortunately, on those issues the tax picture is better – those taxes have gone down under the new law.
About Safe Harbor LLP – a Professional CPA Firm in San Francisco
Safe Harbor LLP is a CPA firm that specializes in accounting and tax services for individuals and businesses throughout the San Francisco Bay Area and greater California. Safe Harbor CPAs helps both individuals and businesses with tax preparation, IRS audit defense, and audited financial statements. The firm prides itself on friendly yet professional service and utilizes state-of-the-art Internet technology to provide quality customer service. Its goal: to be the best CPA firm in San Francisco.
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