Who We Are

JC FINANCIAL ADVI$ER
Certified Public Accountants & Enrolled Agents

Prestige Assets & Holdings, Inc.

Real Estate Brokerage Representation

CR Wholesale Now LLC
California Real Estate investors

StraightDeal Mortgage.

CA Financial License NMLS 856168

Mortgage Loan Officers

1031 Exchange Specialist

Investor & Trader

JC FINANCIAL ADVI$ER - Wealth Preservation, Tax Planning, Preparation and IRS Resolutions

Mission

Preserve, Protect, Administer Distribute Your Assets Wisely

& Reduce or Eliminate Your Taxes.

Experience

Real Estate Investments & Taxes

Capital gains tax

If you sell real estate for a profit, you may be required to pay capital gains tax. The tax rate depends on how long you owned the property.

Primary residence exclusion: If you sell your main home, you can exclude up to $250,000 of the profit from your income (or $500,000 for married couples filing jointly), provided you meet ownership and use tests.
Investment property: For investment properties, such as rentals or second homes, profits are typically taxed at either short-term or long-term capital gains rates.
1031 Exchange: A "like-kind" exchange, or 1031 exchange, allows real estate investors to defer capital gains taxes by reinvesting the proceeds from a sale into another similar property.

Other real estate taxes

Transfer tax: Some states and local governments charge a transfer tax when ownership of a property is transferred.
Net investment income tax (NIIT): The NIIT applies a 3.8% tax on rental income and capital gains from the sale of passive investment properties for taxpayers whose income exceeds certain thresholds.
Estate tax: Real estate, like other assets, is included in a person's gross estate. Federal estate tax may apply to estates valued over a specific amount.

Tax benefits for real estate investors

Investors can take advantage of tax benefits to reduce their taxable income.

Depreciation: The IRS allows owners of rental properties to deduct a portion of the building's value over its estimated lifespan.
Deductions: Investors can deduct expenses related to property management and operations, such as mortgage interest, property taxes, insurance, and repairs.
Opportunity zones: By investing capital gains into properties in designated low-income areas, investors can defer or even eliminate capital gains taxes.

1031 Exchanges

The 1031 Exchange name comes from Internal Revenue Code Section 1031. It enables you to defer capital gains tax and depreciation recapture by reinvesting the proceeds from the sale of investment property into replacement property, thus preserving significant wealth in your estate. Your 1031 exchange deferrals can be continued through as many exchanges as you wish. However, when you sell the property without reinvesting in a new property, there will be capital gains and depreciation recapture tax liability.

A tax-deferred 1031 exchange can be a powerful wealth-building tool. However, we highly recommend you consult a professional tax advisor to ensure that you meet every requirement of Internal Revenue Code Section 1031. Failure to meet requirements can result in immediate tax liabilities and associated penalties. In addition, you must follow—to the letter—the strict timeline and procedural requirements for a proper 1031 exchanges.

The full scope of your tax-related risks can only be determined in consultation with your personal tax advisor, who should have full knowledge of your tax situation and the specific laws of the state in which you reside.

Fiduciary Accounting

I am a specialized accounting firm, partnering with individual trustees, attorneys, private professional fiduciaries, and financial institutions to document the activities of a Trust, Estate, or Conservatorship.

Our firm has built a strong reputation in California as an extremely knowledgeable team. We focus on helping our clients present a quality accounting, reflective of responsible administration, while significantly reducing the time and effort to produce the accounting.

We understand the value of accurate and timely reporting. Our process transforms numerous individual transactions into a simple, straightforward report – providing you with actionable information to meet your fiduciary accounting needs.

Expertise

Financial Accounting

Purpose:

To prepare financial statements (like the balance sheet, income statement, and cash flow statement) that reflect a company's financial health and performance.

Standards:

Adheres to external standards like the Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) to ensure consistency for external stakeholders like investors and creditors.

Key functions:

Auditing, tax preparation, and identifying financial risks.

What it is:

A branch of accounting that involves the process of documenting, classifying, and reporting a company's financial transactions.

Finance

What it is: A broader discipline focused on managing money and financial assets.

Purpose: To use financial data to plan for the future, manage risks, and make strategic decisions for a company's growth.

Key functions: Includes financial planning, budgeting, forecasting, and analysis (often called Financial Planning and Analysis or FP&A).

Key roles: Financial analysts, financial managers, and personal financial advisors.

Why they are important together

For decision-making:

Accounting provides the historical data on where money came from and where it went, which finance uses to forecast, budget, and make decisions about future investments and strategy.

For control:

A strong understanding of both disciplines helps businesses maintain control over their income and expenses, which is crucial for survival and growth.

For external stakeholders:

Financial accounting provides the necessary information for external parties like banks, investors, and suppliers to assess a company's stability.

Estate Tax Planning

Estate tax planning involves arranging your assets to minimize federal and state estate taxes upon your death, allowing you to pass on more wealth to your heirs. It is a critical component of comprehensive estate planning, especially for high-net-worth individuals, as assets and tax laws are constantly changing.

A key driver for current estate tax planning is that the federal estate and gift tax exemption, which is $13.99 million per person in 2025, is scheduled to be cut roughly in half beginning in 2026.

Key concepts in estate tax planning

Federal estate tax: A tax on the right to transfer property at your death, which consists of the total value of everything you own or have certain interests in. For 2025, the exemption is $13.99 million per individual and $27.98 million for a married couple.
State estate and inheritance taxes: In addition to federal taxes, some states levy their own estate or inheritance taxes. Inheritance taxes are paid by the recipient, while estate taxes are paid by the estate itself.
Gift tax: A tax on the transfer of money or property to another person during your lifetime. The federal gift tax and estate tax are linked through a combined lifetime exclusion.
Annual gift tax exclusion: For 2025, you can give up to $19,000 per recipient without triggering the gift tax or affecting your lifetime exemption. A married couple can combine their annual exclusion to gift $38,000 per recipient.
Generation-skipping transfer (GST) tax: A federal tax on transfers made to a person two or more generations younger than the donor, such as a grandchild.

Common strategies for minimizing estate taxes

Make lifetime gifts: Using your annual gift tax exclusion is a simple and effective way to reduce the size of your taxable estate over time. For larger gifts, you can use a portion of your lifetime estate tax exemption. Gifting before the 2026 exemption reduction allows you to lock in the higher amount.

Utilize irrevocable trusts: An irrevocable trust is a powerful tool for removing assets from your taxable estate. Once assets are in the trust, you generally cannot change the terms or reclaim them.
- Irrevocable Life Insurance Trust (ILIT): This trust is used to own a life insurance policy, so the death benefit is not included in your taxable estate. The ILIT can provide tax-free cash liquidity to pay estate taxes or other expenses.
- Grantor Retained Annuity Trust (GRAT): A GRAT allows you to transfer assets likely to appreciate rapidly. You receive an annuity payment for a set term. If the assets grow faster than the IRS rate, the excess growth passes to your beneficiaries tax-free.
- Qualified Personal Residence Trust (QPRT): This trust can reduce your taxable estate by transferring your primary or secondary residence to your heirs while you continue to live in it for a set number of years.

Establish a Family Limited Partnership (FLP): An FLP allows you to transfer interests in a family business or real estate to family members, often at a discounted value for tax purposes.
Make charitable contributions: Leaving assets to a qualified charity can reduce the taxable value of your estate. Charitable trusts and donor-advised funds offer more flexible ways to incorporate philanthropy into your plan.
Consider life insurance: Life insurance can provide a source of tax-free cash for your heirs to pay any estate taxes that are due, which may prevent them from having to sell other assets.

Tax Preparation, Advisory & Controversy

JC the founder and principal JC Financial Advi$er possesses over 15 years of experience as former public auditor, enabling our tax team to navigate the audit process with precision and skill. Types of federal and California tax audits in which we provide representation include:

Correspondence Audits
Field Audits
Office Audits
Employment and payroll tax audits
Foreign Account Audits (FBAR Audits)
Eggshell and Reverse Eggshell Audits
Small Business Audits
Income Earned Overseas
Bitcoin- and cryptocurrency-related audits
Estate and Gift Tax Audits
Income Tax Evasion Audits
Tax Evasion and Divorce
Tax Planning for Non-Citizens
Income Tax Error Audit
Surviving a Federal Tax Audit
Tax Avoidance and Evasion
Filing Back Taxes & Failure to File
Business and corporate tax audits
Excise Tax Audits
Foreign Account Tax Compliance Act (FATCA) and international tax issues
Doctor’s / Medical Industry Audits
Real Estate Professional Audits
Audits of Cash-Intensive Businesses
FBAR audits (Foreign Bank Account Reporting)
Foreign Account Tax Compliance Act (FATCA) and international tax issues
Non-Filer Compliance Issues
Estate, Trust, Corporations, Nonprofit, Partnerships, LLC, Individuals Tax Audits, Appeals & Resolutions