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APRIL 2025
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Laugh More, Stress Less The Secret to a Happier, Healthier Life
We all know that stress isn’t great for us. It’s scientifically proven that stress can affect our physical and mental health. But on the flip side, studies show that smiling and laughing contribute to heart health, reduce stress, and even help us live longer. And what better time to remind ourselves of this than April: National Humor Month? Life isn’t always easy — there are tough moments, challenges, and unexpected bumps. But in the grand scheme of things, most daily frustrations aren’t as life-altering as they seem in the moment. When something stressful happens, ask yourself, “Will this matter in five years? Or will I be laughing about it by then?” More often than not, it’s the latter. So, why not go ahead and laugh about it now? Growing up, I had the best example of what it meant to live with a light heart in my dad. If I had to describe him in one word, it would be “jolly.” He’s the guy on vacation who makes friends with everyone, cracks jokes with strangers, and brings laughter wherever he goes. He has this natural ability to connect with people and have them smiling within minutes. And honestly, it’s left a lasting impression on me. Then there’s my mom and grandmother, two of the kindest, most thoughtful people you could ever meet. If they ever accidentally offended someone, they’d be
mortified. My grandmother, in particular, made you feel like the most important person in the world every time you spoke with her. That kind of kindness and warmth is something I strive to carry with me. Now that I’m a dad, I see the importance of that balance. My kids never fail to bring a smile to my face. Just the other day, my son spilled some of his drink and, in his tiny voice, very politely apologized. Instead of getting frustrated, I just laughed and handed him something to clean it up. It was adorable. And that’s the thing — there’s always an opportunity to find humor in the little moments. We often hear about optimism and being a “glass half full” person. But what if we took it a step further? What if, instead of being optimistic, we also tried to add humor to our days? Because when you fill that glass with laughter, suddenly, it’s not just half full. It’s overflowing. Humor has the power to turn a good day into a great one. It takes the sting out of stressful situations and reminds us that life isn’t about perfection; it’s about connection and sharing moments that make us feel alive. But what about when life isn’t easy? That’s when humor is even more important. Laughter doesn’t mean ignoring challenges; it means facing them with a little more
lightness. I struggled at times when I was just starting out with my own practice. I even tutored high school kids in Spanish to make ends meet. It wasn’t always fun, but I can look back now and laugh a little. And even then, finding small moments to joke and laugh made things easier. Humor also has a way of bringing the right people into your life. People are drawn to positivity; the more you laugh, the more you’ll find yourself surrounded by others who appreciate the same lightheartedness. My dad is a perfect example. Some people may roll their eyes at his constant joking, but the ones who laugh along? Those are his people. And maybe that’s one of the best things about living with a sense of humor — it makes your life brighter and filters out negativity. People who don’t appreciate a good joke, who can’t find joy in the little things are likely not the people you want to be around anyway.
At the end of the day, stress may take years off your life, but laughter adds them back!
–Tyler Q. Dahl
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Divorce isn’t just an end to your relationship — it’s the separation of your lives completely and legally. As a California estate planning law firm, we frequently see the impact divorce has on valuable assets — and the challenges that arise if you don’t properly handle the transfer of assets during and following this separation. UNDERSTANDING THE AUTOMATIC TEMPORARY RESTRAINING ORDERS (ATRO) DURING A CALIFORNIA DIVORCE. California Family Code section 2040 imposes ATROs on both parties during a divorce. These orders become binding on the petitioner upon filing and on the respondent upon service of the summons. ATROs prevent certain actions, such as transferring or selling jointly-owned property, altering non-probate transfers, or making significant financial changes, unless both parties agree in writing or obtain a court order. ATROs specifically limit modifications to non-probate transfers for estate planning purposes, like revocable trusts. While these restrictions prevent actions that could alter property distribution, they allow for flexibility. The key purpose of these restrictions is to maintain fairness and transparency while ensuring that no assets are improperly transferred or disposed of without both parties’ knowledge. NON-PROBATE TRANSFERS OF ASSETS DURING THE PENDENCY OF DIVORCE. Non-probate transfers, such as trusts, are subject to specific rules during a California divorce. While you cannot transfer property into a trust during the proceedings without consent or court approval, you may be able to create an (almost) unfunded trust. An unfunded trust contains no or very little assets at the time of its creation, but it may serve as a placeholder for future transfers. These trusts are particularly useful if a pour-over provision in your will directs assets into the trust upon your death during the divorce. ATROs are temporary measures, meaning they can be modified or lifted with written consent from the other party or through a court order. PROTECT YOUR ESTATE AND YOUR ASSETS IN CALIFORNIA. Dahl Law Group works with California business owners, families, and individuals to protect their assets and ensure compliance with the relevant laws during transfers and transactions applicable to your estate. Contact our offices in Sacramento or San Diego today to discuss your estate planning needs and how we can help you protect what matters most during this critical time. Automatic Temporary Restraining Orders What Divorcing Couples Need to Know
Did You Know? Did you know that laughing literally burns calories? It’s true! Let’s look at a few fun(ny) facts surrounding humor and belly laughs. UNIVERSAL EXPRESSION Laughter is recognized by all cultures. Everyone, even babies, enjoys a good laugh. CARDIOVASCULAR BENEFITS Laughter can improve the function of blood vessels and increase blood flow, which can help protect against heart attacks and other cardiovascular problems.
CALORIC BURN
Laughing for 10 to 15 minutes a day can burn approximately 10 to 40 calories, which could add up to about three to four pounds lost over a year.
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California imposes taxes on any gain accrued during the property’s ownership within the state — even if the property is exchanged for one outside California. This rule effectively ensures that the state captures its share of taxes on California-based investments, no matter where your portfolio grows. Lastly, California’s top marginal income tax rate of 13.3% — the highest in the nation — can significantly impact high-income earners. The state’s aggressive tax policies can increase your financial burden, whether your income is derived from rental properties, a business, or capital gains from real estate sales. Some investors even consider relocating to avoid these rates, but California is known for pursuing taxes aggressively, even after individuals have moved out of state. Contact Dahl Law Group at our offices in Sacramento or San Diego to discuss how we can assist with your real estate and tax planning needs.
Federal Benefits vs. California Limitations Qualifying as a Real Estate Professional
TAX IMPLICATIONS OF CALIFORNIA’S HANDLING OF REPS.
The California real estate market offers magnificent opportunities to create a highly profitable portfolio, but the legal landscape creates unique challenges. FEDERAL LAW VS. CALIFORNIA LAW: HANDLING OF REAL ESTATE PROFESSIONAL STATUS (REPS). Qualifying as a real estate professional at the federal level allows eligible taxpayers to offset passive rental losses against other ordinary income (such as wages). However, California does not follow these federal rules at the state level. Federal law establishes strict criteria to achieve REPS status; a taxpayer must meet the following requirements: • Spend at least 750 hours annually in a real estate trade or business in which they materially participate. • Spend more time on real estate activities than any other occupation. • Meet material participation standards in real estate activities, which generally require actively managing properties rather than hiring a management company. A crucial federal rule affecting REPS classification is the 30-day rule. If a taxpayer leases a property for fewer than 30 days and materially participates in its management, it can qualify as non-passive for federal tax purposes, potentially increasing tax savings. FEDERAL TAX SAVINGS AND EXCEPTIONS FOR REPS. The federal tax benefits of REPS can be significant. Qualifying taxpayers can fully deduct rental losses against their ordinary income by classifying them as non-passive. Without REPS, rental losses are generally limited to $25,000 per year for taxpayers with modified adjusted gross income (MAGI) under $100,000, and this deduction phases out entirely for MAGI over $150,000.
California’s unique tax treatment of real estate extends beyond REPS. For instance, the state does not allow federal bonus depreciation, which lets investors accelerate tax deductions for property purchases. Instead, California requires its depreciation schedules, often resulting in higher compliance costs. Maintaining separate records for state and federal purposes is not just an administrative burden; it can also lead to unexpected tax liabilities. Another significant challenge is California’s “clawback rule” for 1031 exchanges. While 1031 exchanges allow investors to defer federal capital gains taxes by reinvesting proceeds into similar properties,
Classic Fish Fry
Inspired by FoodNetwork.com
We’re in the middle of Lent, so there’s no better time to host your own fish fry for your loved ones!
Ingredients • Vegetable oil • 2 lbs fresh cod • Salt and pepper, to taste • 1/2 cup all-purpose unbleached flour • 2 large eggs
• 2 tbsp water • 2 cups plain bread crumbs • 1/2 tsp mustard powder • 1/4 tsp cayenne pepper • Lemon wedges
Additionally, there are specific exceptions to passive activity loss limitations or special rules under federal law:
• The rental activity may be treated as non-passive if the average stay per tenant is less than seven days or if the taxpayer provides significant personal services. • Taxpayers may group real estate activities with other trades or businesses under certain conditions to meet material participation standards. • Real estate professionals who do not qualify under REPS may still claim deductions for mortgage interest, depreciation, and other expenses that reduce taxable rental income at the federal level.
Directions 1. Pour 2 inches of vegetable oil into a large skillet over medium-high heat. 2. Cut cod into 4 servings and season with salt and pepper. 3. Place flour into a pie tin. Whisk egg and water in a second pie tin. Combine bread crumbs, mustard powder, and cayenne in a third pie tin. 4. Coat your fish in the flour tin, then the egg tin, then the bread crumb tin. 5. Set coated fish in hot oil and fry for 5 minutes on each side. 6. Serve with lemon wedges and enjoy!
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INSIDE What’s
2. 1. Your Reminder to Laugh a Little More Laughing Matters What Happens to Your Estate During a Pending Divorce?
3.
Complications of Real Estate Professional Classification
Classic Fish Fry
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Make Exercise Fun and Effective
Find an Exercise Routine You Can Stick To The Hidden Benefits of Loving Your Daily Workout
When getting in shape and sticking to an exercise routine can feel like an uphill battle, it doesn’t have to. Current studies show that we should strive for at least 150 minutes of moderate exercise weekly. Moderate being defined as walking 2 miles in 30 minutes or biking 5 miles in the same amount of time at a rate that requires some effort to hold a conversation. With these guidelines in mind, it’s time to reset your workout expectations with these three tips to help you find a program you can stick with. CHOOSE SOMETHING YOU ENJOY. It’s okay if lining up at dawn to enter a CrossFit gym isn’t your thing. There’s nothing worse than dreading daily trips to a weight room when you’d rather be out hiking or playing a competitive sport. The important thing is to do what you enjoy. If
it’s easier to exercise with friends, ask at your gym for groups that meet there or find other people who want to work out with a group on social media. BREAK THE 150-MINUTE GOAL INTO SMALLER, ACHIEVABLE INCREMENTS. If you like jogging, rather than running for 30 minutes five days a week, substitute cycling — either outdoors or inside on a stationary bike — every other day to take the pressure off your feet and
habits tangible. If you need a boost, look for different yoga, dance, or martial arts classes to incorporate into your schedule. After 30 days of success, give yourself a treat, whatever may be motivational. The bottom line is that exercise should be enjoyable if you’re going to stick with it. Don’t beat yourself up if you fall off the wagon. The voice in your head should be encouraging, the way you would speak to a friend who’s struggling. Give yourself time to establish your new routine. If you choose activities you enjoy, taking time
joints. Three 10-minute workouts rather than one long session is also fine. Whatever feels good for you and keeps you giving your best effort each workout. TRACK YOUR SESSIONS AND REWARD YOURSELF. Keeping a calendar of your successes helps make your good
for yourself will be a pleasure. You’ll start looking forward to your exercise routine and be more likely to stick with it over the long term.
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