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MAY 2022
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Coaching On and Off the Field A Lesson That Truly Impacted Me Greetings, newsletter friends! In our previous newsletter, I discussed my love and passion for sports. Playing sports teaches you discipline, mental and physical stamina, and teamwork; these lessons have made me into the man I am today. I grew up playing sports — soccer, basketball, football, and lacrosse. But I quickly learned that you want to be good academically and good athletically. One of my football coaches, who was also my math teacher, taught me this. One day, he wanted to talk to me after class about school. I could’ve gotten good grades if I wanted. But as a young teenager, I didn’t care much about school — I
He knew I could do a lot better in school and that it would take me places. Having this conversation with my coach made me see the reality of my situation, and I decided to make a change. To this day, my mom will tell you I changed after that talk. I got straight A’s throughout the rest of my time in high school and graduated with a 3.9 GPA, and finished 40th in a school with 500 seniors.
didn’t try. I attended one school during my elementary years where they put a lot of focus on education. They were really demanding academically and pushed me to challenge myself. Then, during junior high and high school, I went to another school where this push for academic success wasn’t as strict. I think attending a school with such a strong academic focus drove me away from trying my best. But that mindset changed when I had a conversation with
“He always wanted me to do my best and push myself … it has impacted me and stuck with me all this time.”
In undergraduate studies, law school, and even now, while pursuing my master’s in tax law, I never got a C. I’m very thankful my coach pulled me aside to talk to me. He made me realize there is more to life than just sports, and if I wanted to do something more, I needed to try academically. I will be forever grateful.
The lesson of this story is to try your best in everything you do. Never be afraid to push yourself and fight for what you want. Even if you don’t get the outcome you were looking for, that’s okay! You can always learn from those experiences, and they will help you become a better person. In the words of basketball legend Michael Jordan, “I can accept failure; everyone fails at something. But I can’t accept not trying.”
my coach. He always wanted me to do my best and push myself. I’ll never forget what he told me; it has impacted me and stuck with me all this time. “You’re a great athlete, and you have so many things to look forward to. You’re also really smart, and I can tell you’re not trying. I think you need to understand that you can be the best athlete in the world, but you will never go anywhere if you’re not trying. You need to be good academically and good in sports. That’s what sets you apart,” he said.
–Tyler Q. Dahl
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This California Tax Law Has Been Improved Few states in the United States allow employers to pay state income tax on PTE income. California is one of the few. Here’s what you need to know about it. What is the SALT cap workaround? Starting in 2021 in California, the SALT cap workaround allows certain pass-through entities (“PTEs”) to pay state income tax on PTE income at a rate of 9.3%. If elected, the PTE takes the deduction for the state tax paid without limit, reducing federal taxable income passed through the tax owners. Tax owners will then receive a California income tax credit (“PTET Credit”) for the tax paid by the entity, which both offsets the costs and avoids the income being taxed twice. How has it been improved? On Jan. 1, 2022, a new bill (Senate Bill 113) was enacted that vastly improves the performance of California’s SALT cap workaround. It restored corporate net operating loss deductions and lifted a $5 million annual cap on business tax credit claims — an entire year earlier than planned. Previous limitations will only apply to the 2020 and 2021 tax years. Additionally, the bill conforms California to federal tax treatment of grants under the Restaurant Revitalization Fund and Shuttered Venue Operators Grant program. This means it exempts the grants from state tax and allows deductions for related expenses. It also exempts payments that water, wastewater, gas, and electric utility customers received to pay their bills under pandemic relief programs from state tax. The companies that qualify for this election have been recently expanded, so you don’t want to miss your shot. Notably, reversing the limitations will reduce state revenue by $5.5 billion, so don’t ignore the tax benefits while you can!
The Fitness Boost You Need
How Rewards Can Reinforce Healthy Habits
People often talk about why we need to exercise more and eat right. But how do you reward yourself for the new habits you embrace? If you aren’t rewarding yourself, then you may find it challenging to stick to your plans.
Don’t be shy to give yourself the boost you need — the right way.
Can rewards be dangerous? In some cases, yes. Gretchen Rubin, author of “Better Than Before,” recently told Medium that rewarding our good habits can be “dangerous.” You might feel the same way. After we get the reward we wanted, it might feel easier to give up the habit or make it more difficult to meet our goals. After all, we might give up on running if we don’t meet our weight loss goals because improper foods are the reward after a run. That’s counterproductive! Or, what if we decide our reward isn’t worth it to begin with? For example, you might tell yourself, “I don’t really have time for a nice bath tonight, so I’ll just skip my run today.” However, Rubin says that one kind of self-reward is always best: the reward that takes you deeper into your new habit. Reward a new fitness habit right. Finding an exercise you enjoy is one of the most effective ways to reward yourself and continue to build your new fitness habit! If you look forward to working out in a gym environment with gym equipment, then at-home exercises probably won’t feel as satisfying. But there’s still at-home equipment and sports, such as biking, that you can do to reward yourself, especially if you have a favorite time of day to get outdoors. Other awesome rewards for exercising can include running or yoga socks, a nice water bottle you enjoy using, a new yoga mat, a subscription to a workout program or app, or a fitness tracker. You can also watch fitness videos or documentaries that explain the benefits of your new hobby or habits, which will both educate and encourage you! A fitness habit, after all, is linked to all sorts of long-term health benefits you’ll enjoy for a lifetime.
If interested, just give us a call — we’ll help you find out if you qualify.
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Why Your Business May Not Survive Probate Court
Your business is part of your legacy, but it could vanish almost overnight if the unexpected happens and you pass away. Should this occur, the company could be dragged into probate court without a will. Here are the questions you should ask yourself before that happens. First, is your business a probate asset? Probate is the legal process used to distribute a deceased person’s assets. During probate, executors of your will (or, without a will, a court-appointed administrator) will collect the assets of a deceased person, pay any liabilities remaining on the person’s estate, and distribute the assets of the estate to beneficiaries. What meets the definition of “assets”? Probate assets are solely in the decedent’s name that pass either through a will or, in absence of a will, according to state laws.
The only assets not subject to probate — also known as non-probate assets — are accounts owned jointly with right of survivorship, assets held in a trust, IRAs that pay on death, and life insurance and annuities payable on death. So, if you’re the sole owner of your business and do not have a trust, the future of your company may eventually be in the hands of your will’s executor — or, without a will, a court-appointed administrator. Second, why would businesses die in probate? Probate can be a surprisingly long process. On top of appointing an executor or administrator, they will publish notice to creditors, determine validity of claims against the estate, file the deceased’s tax returns, and pay the debts of the deceased. Once that is all over, assets will be distributed to the rightful heirs and beneficiaries.
This process, at its fastest pace, can take six months. However, it can take years. That’s a long time for a
business to survive if there was no plan for your departure. What if you needed a loan to keep the business going? Who’s going to take out the loan? If your business required a loan to continue running and you were the sole owner, your legal heir will be responsible to pay for the loan. You don’t want your family to pay money they don’t have to, but without estate planning, it may be nearly impossible to avoid. If you’ve found yourself in a similar situation, don’t hesitate to give our offices a call. As a family-owned business and estate planning law firm with tax expertise, we’re proud to help you every step of the way.
Brunch Rainbow Frittata
Check out our Summer 2022 Promo! Up to $500 Off an Estate Plan!
Inspired by EatingWell.com
Scan the QR code below for more information:
Ingredients
• Nonstick cooking spray • 1/4 cup sweet potato, diced • 1/4 cup yellow pepper, diced • 1/4 cup broccoli, chopped • 8 eggs
• Basil, thyme, salt, and pepper, to taste • 1/2 avocado, pitted, peeled, and thinly sliced • Cherry tomatoes, halved • Sriracha hot sauce (optional) 4. Pour egg mixture into skillet with vegetables. Don’t stir but instead use a spatula to lift the edges of the egg mixture until it is evenly distributed. 5. Transfer mixture to oven. Bake for 5 minutes or until the dish sets. 6. Top with avocado and tomatoes. Drizzle Sriracha on top (if desired).
Directions
1. Preheat oven to 350 F and coat a cast-iron skillet with nonstick cooking spray. 2. In the skillet over medium heat, cook sweet potatoes, yellow pepper, and broccoli until soft.
3. In a medium bowl, whisk
together eggs, basil, thyme, salt, and pepper.
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INSIDE What’s
2. 1. Try Your Best at Everything You Do New CA Tax Improvement!
How Do I Reward My Fitness Habits? Your Business Must Plan to Survive Probate Brunch Rainbow Frittata 5 Business Podcasts to Boost Growth
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5 Podcasts to Boost Your Business Growth We’re Listening — Are You?
All of these podcasts are available on Spotify, Apple Podcasts, and a variety of other platforms. ‘How I Built This’ — Have you ever wondered what it was like behind the scenes in the early days of Coinbase? What about Expedia, Mailchimp, or Ben & Jerry’s? The “How I Built This” podcast from NPR dives into all of those stories and more during fascinating interviews with founders and CEOs. Find out what hurdles they faced, how they overcame them, and what lessons you can steal to level up your own business. ‘Entrepreneurs on Fire’ — This award- winning podcast is hosted by author and thought leader John Lee Dumas. On it, he interviews entrepreneurs like Tony Robbins, Seth Godin, Gary Vaynerchuk,
Barbara Corcoran, and Tim Ferriss and extracts business tips for you. Tune in for episodes like “How to Raise $400 million on the Internet and Build a FinTech Business with Jilliene Helman” and “Earn More with LinkedIn Sales Navigator with Julbert Abraham.” ‘Smart Business Revolution’ — Want more B2B clients? Then you might want to hear free, shared wisdom from some of the best, brightest, and most intriguing business minds in the world. Hosted by our very own John Corcoran, he’s interviewed hundreds of CEOs, founders, authors, and entrepreneurs, from Peter Diamandis and Adam Grant to Gary Vaynerchuk and Marie Forleo. ‘BizChix’ — “BizChix” is catered specifically to women entrepreneurs and hosted by
business coach and strategist Natalie Eckdahl. The episodes mix business and advice and training with on-air coaching calls and interviews. If you’re looking for specific tips like how to pivot your client base or get in the hiring mindset, this podcast will be a perfect fit for you. ‘Wisdom From the Top’ — Hosted by Guy Raz of “How I Built This,” this podcast expands beyond business leaders to glean leadership tips from all fields, including army generals, scientists, and reporters as well as CEOs. As the podcast’s description puts it, “You’ll hear accounts of crisis, failure, turnaround, and triumph, as the leaders reveal their secrets on their way to the top. These are stories that didn’t make it into their company bios, with valuable lessons for anyone trying to make it in business.”
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