Whatever your politics are, San Francisco and the entire state of California has a reckoning to do with the new “Trump” tax changes. It’s called SALT (State and Local Taxes), and the new $10,000 cap on deductibility. This month’s eLetter focuses on taking the new tax changes with a grain of SALT (To download the September eLetter, click here.)
SALT and High Tax California: We Can Help
California is one of the highest tax states around, and living in San Francisco is anything but cheap. We live here because of the beauty of the city, its culture and diversity, and of course the weather (though Mark Twain did remark that the coldest winter he ever spent was a “summer” in San Francisco). Our high SALT (State and Local Taxes), however, came under fire when Congress capped the deductibility at $10,000. It’s more complicated than that, however, because of the AMT (Alternative Minimum Tax). Many San Franciscans have been paying the AMT for years and in that scenario their SALT taxes were not deductible. So, as is so often true with taxes, it’s complicated. Call our office if you want us to analyze your situation and recommend strategies. Secondarily, this month we look at the necessary but not always pleasant issue of “life insurance.” If you are up in years, own a business, have significant assets, or need to do some creative things for your heirs, life insurance can be a good strategy. Even better is to look at your end-of-life planning with a 360 degree perspective: assets, income, expenses, and your goals vis-a-vis your heirs or favorite nonprofits. We can help, there, too. Neither topic in this month’s eLetter is especially fun, but they’re important. So read up, pass the SALT, and reach out!
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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