State Income Tax Relief for Military Spouses In California

If you’re a member of the military, you understand all too well the many difficulties that come with serving your country. One of the more notable challenges is the impact of new permanent change of station (PCS) orders on you and your family. These often require you to move your entire life to a new location, sometimes with limited time to prepare.

On December 31, 2018, legislation was passed through the Veterans Benefits and Transition Act of 2018 (VBTA) creating further opportunities to ease the financial burden that may accompany PCS orders to a new state. This new legislation expanded upon previous provisions under the Military Spouse Residency Relief Act of 2009 (MSRRA) relating to state income taxes.

One of the most significant expansions of this new law was to now allow spouses of active-duty military members to assume the state of residency of the servicemember for income tax purposes without having lived in the state. Read the rest of this entry »

7 Tips for Staying Productive Right Now

This year, most people have been stressed (in time, and also cognitively and emotionally as well) more than ever before at home and work. After our busiest spring on record helping clients, we recently brainstormed the best techniques we use internally for staying on track professionally right now: Read the rest of this entry »

4 Steps for Better Emotional Health During Times of Stress

As people all across the world are working to adjust to the unprecedented events that have unfolded over the past weeks, we thought it may help to share some practices we personally follow to help ourselves remain grounded and be present in our interactions with you, our clients during such difficult times.

We as individuals and as a nation are currently dealing with two contagions: first, the coronavirus outbreak itself, and second, the emotions that come along with it. It has been commonly reported that negative emotions are just as contagious as a virus. Read the rest of this entry »

Actions We’re Taking Following Coronavirus (COVID-19)

Clients and Partners,

As we all navigate the outbreak of the Coronavirus together, I wanted to share what’s important to us, what we’ve done, and what we’re doing.

What’s Important to Us
The health and wellbeing of everyone we work with informs our decision-making. Our clients trust us with their life’s savings, but also to be a partner in their journey for so much more. We value this relationship deeply, and we also feel a great sense of responsibility to do things that support the needs of those around us.

There are parts of our population that are particularly vulnerable to this virus, and we intend to do everything in our power to prevent the spread of the virus, or slow its progression.

Simultaneously, we see our partnership with our clients as a valuable relationship, and we intend to do everything necessary to ensure we’re available and ready to help you for everything ahead, financially, emotionally, and for your health otherwise. Read the rest of this entry »

Military Tax Break for Nebraska Residents

Nebraska offers a wonderful tax break opportunity for retired military members, and is one we commonly use with clients of our Omaha and Lincoln financial advisors.

Military retirees may be eligible to reduce Nebraska income taxes on their military retirement benefits by filing Form 1040N-MIL.

This tax break is available for retired military members who served active duty in any branch of the military, in the National Guard, or as Reservists. For families where both spouses are military members, a Form 1040N-MIL must be filed for each military retiree. Also important to note, Form 1040N-MIL must be filed within two years after the date of separation. Read the rest of this entry »

Estate Planning, Trusts, & Probate in California

California Estate Planning, Trusts, and ProbateFor California residents, living trusts are a common estate planning tool. Due to high property values throughout the state, especially the San Francisco Bay Area, estate assets can easily reach millions of dollars. Trusts allow asset distributions to beneficiaries without going through the California probate process, avoiding additional costs and saving time when closing an estate.

Why Set Up a Living Trust?

In a living trust, as the person creating the trust (the grantor), you place your assets into a revocable trust. While you are alive, you are also the trustee and the beneficiary, and you control your assets. Because the trust is revocable, you can add or sell assets, change beneficiaries, etc. Upon your death, the trust becomes an irrevocable trust. The person(s) you named as your successor trustee(s) then assumes control and administers the assets for the beneficiaries according to your instructions.

Revocable Trust Fiduciary Duty

The trustee(s) have a fiduciary duty to the beneficiaries. They must put the beneficiaries’ interests before their own at all times while following the mandates in the trust agreement. Many long-term or complicated trusts also name a trust protector, who advises, oversees, and can replace a trustee if necessary. This offers an additional layer of protection for the beneficiaries. Read the rest of this entry »

Nebraska 4797N – Special Capital Gains Election for Tax-Free Stock Sales

The Nebraska Special Capital Gains/Extraordinary Dividend Election, elected and claimed on Form 4797N, can provide a substantial tax break for employees who acquire company stock over their years of employment. This election allows employees who own stock in their employer, or former employer, to exclude that stock’s capital gains income from their Nebraska taxable income under certain circumstances.

Nebraska Special Capital Gains Election 4797N can save taxes on capital gains from employee stock

More and more employers are offering stock purchase plans and stock-based compensation to their employees, which can make for an excellent opportunity to avoid state income tax on capital gains from the sale of a stock in Nebraska. Some questions to consider if you (or your company) might benefit from this rare opportunity in Nebraska tax law:

  • Does your employer offer an employee stock purchase program?
  • Do you receive employee stock grants from your employer?
  • Do you own stock in and work for your own company?
  • Did you know that Nebraska offers tax breaks for these situations?

Read the rest of this entry »

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