Albert Yang, CPA Tax Director The IRS recently released draft Form 7217, Partner’s Report of Property Distributed by a Partnership, and related draft instructions. The purpose of Form 7217 is to report all distribution of property that a partner receives from a partnership. A partner receiving a distribution of property from a partnership in a non-liquidating or liquidating distribution will use the form to report the basis of the distributed property. Type of distribution where Form 7217 IS required: Distribution of property subject to section 732. Types of distributions where Form 7217 IS NOT required: Distributions of money (or
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Posts by Chanelle Bosert
Corporate Transparency Act’s New Requirement for All Businesses
Greg Lambourne, Esq. Jason Gonzalez United States citizens should be aware the Corporate Transparency Act (CTA) requires virtually all business entities registered in the 50 states to submit detailed written disclosure of their owners and powerholders to the US Treasury’s Financial Crimes Enforcement Network (FinCEN). These new “Beneficial Ownership Information Reports” (BOI Reports) for entities created before 2024 need to be filed by the end of the year when the Act enforcement begins. The BOE Reports require the names, addresses, and driver’s licenses or passports of all individuals that directly or indirectly own 25% or more of the company’s
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Tax Partner Richard Huffman Speaks at MGI’s 2024 Global AGM
In October, MGI Worldwide hosted their annual Global AGM in Rome, Italy. The conference featured everything from social and cultural activities to insightful speakers and workshops to enhanced interactions. Among many insightful speakers, our Tax Partner Richard Huffman was featured as one of AGM’s speakers over the course of the conference. This year, MGI Worldwide chose Richard Huffman as one of the partners with inspiring stories about the ways in which MGI membership has helped them and their businesses. Many of the other speakers, including Richard, featured stories of collaboration, tech innovation, automation and succession planning. Richard’s story in particular
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Three New Hires Join WFY’s Tax and Audit Departments
In October, our firm welcomed three new hires to our WFY team. Isaac Torres joined our tax department, and Samantha Smith and Amy Lee joined our audit department. WFY is pleased to have these three new hires join our firm. Isaac Torres At the end of October, Isaac Torres joined WFY’s tax department as our newest Tax Supervisor. He received his Bachelor’s degree in Business Administration and received his Master’s degree in Accounting from California Baptist University. Isaac has been in the accounting industry for over 5 years. His accounting expertise includes real estate and food & beverage. Outside of
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California’s Unique, Little-Known Nest Egg Protection Statute
By Gregory Lambourne, Esq. Senior Planning Consultant Most Californians don’t realize they have access to one of the greatest protections for their retirement nest egg; Greater than protections available for 401(k)s, IRAs, and other pension plans. California Civil Procedure Code section 704.115(b) provides unlimited statutory exemption from lawsuits and creditor claims for assets held in trust pursuant to a “private retirement plan”. Understanding the intricacies of this statute, case law, and best practices is crucial to maximizing benefits and avoiding potential planning pitfalls. A California resident may have a company they own or work for sponsor a retirement plan
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Best Practices for 401(k) Plans Self-Certified Hardship Distributions
By Jennifer Haddad, CPA Audit Partner The Secure 2.0 Act of 2022 changed the rules for hardship withdrawals for employee benefit plans by allowing Plan Sponsors to rely on self-certification by an employee for a hardship withdrawal in lieu of requiring documentation. An employee must certify that they a) have an immediate and heavy financial need, b) the distribution is not greater than the financial need, c) the employee has no other means to meet the need, and c) the financial need is permitted by IRS regulations. This change has allowed Plan Sponsors to streamline the hardship distribution process,
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Three New Interns Start Internships at WFY
Wright Ford Young & Co. welcomed three new interns to our WFY team. Colette Kim, Joshua McBride, and Nguyen Pham joined our tax department in July. WFY is excited to have these three interns join our firm for their internships. Colette Kim Colette Kim is a returning Tax Intern in our tax department at WFY. She is currently attending CSU Fullerton and will be graduating with her Bachelor’s degree in the Fall. Colette is receiving her degree in Business Administration with a concentration in Accounting. Once she graduates from CSU Fullerton, she has accepted a position at WFY as a
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Take Advantage of The Augusta Rule: A Tax-Free Business Rental Income Opportunity
The IRS Section 280A, often referred to as the “Augusta Rule,” presents a unique tax-saving opportunity for homeowners who run businesses. Named after the city of Augusta, Georgia, where homeowners rent out their properties during the Masters Golf Tournament, this provision allows homeowners to rent out their homes to their businesses for short periods without having to report the rental income. Here’s a closer look at this tax loophole and how it can benefit you. What is IRS Section 280A? IRS Section 280A deals with the tax treatment of home office expenses and rental use of a taxpayer’s residence. The
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Two New Hires Join WFY
This month, Wright Ford Young & Co. welcomed two new hires to WFY: Annie Luu and Cayla Loren. Annie Luu joined our estate & trust department, and Cayla Loren joined our administrative department. We are pleased to welcome these new hires to our team. Annie Luu In mid-July, Annie Luu was welcomed to our estate & trust department as the newest Estate & Trust Tax Staff. She graduated from CSU Fullerton with her Bachelor’s degree in Accounting. Annie’s experience in the accounting industry includes her two years of experience prior to joining WFY. Outside of the office, Annie loves to
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Supreme Court Decision Impacts Many Business Owners Entity Redemption Buy-Sell Agreement
Cheryl Shelton Estate & Trust Director Do you have a buy-sell agreement with your business partner(s) and the company owns life insurance on each of you so the remaining partner(s) will have the cash to purchase your share from your estate? If so, you will want to know about a recent Supreme Court decision that sides with the IRS stating that the life insurance payout could increase your estate. Here’s what happened: Connelly v. United States No. 23-146 (June 6, 2024) Two brothers who ran a family business entered into a buy-sell arrangement that gave the surviving brother the
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