Articles & Press
The LAProbate Expert - Bill Gross, interviews David Ellis of Ellis & Ellis, CPAs, Inc.
The LAProbate Expert - Bill Gross, interviews David Ellis of Ellis & Ellis, CPAs, Inc.
The LAProbate Expert - Bill Gross, interviews David Ellis of Ellis & Ellis, CPAs, Inc.
Bill Gross interviews David Ellis of Ellis & Ellis CPAs, Inc., on accounting for Trusts, Estates, Divorces, and Legal Matters.
December 17, 2021
David Ellis is the managing partner of Ellis & Ellis, CPAs, Inc. located in Pasadena, California. He has over 30 years of experience in the practice of Divorce, Trust/Estate, and other family tax matters. He is an advisor in matters pertaining to Trust, Estate, and Corporate Taxation to the Los Angeles County Office of the Public Guardian. The firm also provides other general tax services and IRS representation...
Bloomberg Tax: How Estates Can Reduce a Double ‘Death Tax’ on Decedents’ Income
The LAProbate Expert - Bill Gross, interviews David Ellis of Ellis & Ellis, CPAs, Inc.
The LAProbate Expert - Bill Gross, interviews David Ellis of Ellis & Ellis, CPAs, Inc.
Bloomberg Tax: How Estates Can Reduce a Double ‘Death Tax’ on Decedents’ Income
By David Ellis, CPA
April 11, 2023
CPA David Ellis delves into the details of deducting estate tax on income in respect of a decedent, or IRD deductions, which reduce a double “death tax” by allowing an estate’s beneficiaries to claim the deduction in the same year they pay the tax.
If one thing is anathema to taxpayers and their advisers, it’s paying tax twice on the same income. Sometimes, they’ll twist themselves and the Tax Code into a pretzel to avoid it. Other times, the relief they seek is hiding in plain sight...
Tax Connections: Tax Aspects Of Dividing Stock Options In Divorce
The LAProbate Expert - Bill Gross, interviews David Ellis of Ellis & Ellis, CPAs, Inc.
Tax Connections: Tax Aspects Of Dividing Stock Options In Divorce
Tax Aspects Of Dividing Stock Options In Divorce
By David Ellis, CPA
August 18, 2021
Mr. Kochansky Meets Revenue Ruling 2002-22 - Richard W. Kochansky was a medical malpractice attorney who divorced his wife, Carol, in 1985. As part of their property settlement Richard agreed that he would share the contingent fee in a medical malpractice suit he was pursuing. Little did he know that his agreement to share his prospective earnings...
Tax Connections: Post-Tax Cuts And Jobs Act (TCJA) Alimony
Spidell's Federal Taxletter: When the taxpayer ends, the estate begins (or does it?)
Tax Connections: Tax Aspects Of Dividing Stock Options In Divorce
Post-Tax Cuts And Jobs Act (TCJA) Alimony
By David Ellis, CPA
August 3, 2021
More than three years have passed since the Tax Cuts and Jobs Act (TCJA) fundamentally changed how alimony is treated for federal tax purposes, yet confusion still reigns among many family law and tax professionals. One of the most common questions in this author’s experience is “Does modifying an alimony agreement that was in place prior to the TCJA cause alimony to become not taxable to the recipient...
Spidell's Federal Taxletter: When the taxpayer ends, the estate begins (or does it?)
Spidell's Federal Taxletter: When the taxpayer ends, the estate begins (or does it?)
Spidell's Federal Taxletter: When the taxpayer ends, the estate begins (or does it?)
When a person dies with a revocable trust, a new independent taxable entity is created. By David Ellis, CPA
Guest Contributor - June 2021
Many taxpayers upon their final exit will leave behind trusts or estates that are subject to income tax reporting and/or payment on Form 1041, U.S. Income Tax Return for Estates and Trusts. The fiduciary for a domestic estate must file Form 1041 for a domestic estate that has any of the following...
DEATH AND TAXES: When the Wealthy Unexpectantly Perish
Spidell's Federal Taxletter: Taxpayers denied refund in spite of next business day mailing rule
Spidell's Federal Taxletter: Taxpayers denied refund in spite of next business day mailing rule
By David Ellis, CPA
February 5, 2021
If there is one absolute certainty in life, it is one day all of us will have our last day.
The unfortunate reality is that death does not just come calling for the aged and
infirm. Every day in the United States thousands of people die from causes that are not natural, such as auto accidents, accidental poisoning (mostly drug and alcohol related), falls, drowning, boating...
Spidell's Federal Taxletter: Taxpayers denied refund in spite of next business day mailing rule
Spidell's Federal Taxletter: Taxpayers denied refund in spite of next business day mailing rule
Spidell's Federal Taxletter: Taxpayers denied refund in spite of next business day mailing rule
Who knew the concept of “next succeeding day” could be so complex?
By David Ellis, CPA
Guest Contributor - August 2019
When it comes to matters such as insurance claims, lawsuits, and tax refunds, it’s a pretty good general rule not to wait until the absolute very last day possible to put the envelope in the mail. This point was recently driven home by the United States District Court for the District of Maryland...
Spidell's Federal Taxletter: Marriage Tax Foreclosure Alert
Spidell's Federal Taxletter: Taxpayers denied refund in spite of next business day mailing rule
Spidell's Federal Taxletter: The Innocent Spouse: A Close Look At A Classic Case
The IRS can foreclose on a married couple’s jointly owned property even though only one spouse owes back taxes.
By David Ellis, CPA
Guest Contributor - June 2019
In most instances when two people join in marriage, it results in a lifetime of sharing. They share life’s triumphs and tragedies great and small. Sometimes, as in the case of Philip and Sharon Jackson, they even share the consequences of each other’s separate...
Spidell's Federal Taxletter: The Innocent Spouse: A Close Look At A Classic Case
Spidell's Federal Taxletter: The Innocent Spouse: A Close Look At A Classic Case
Spidell's Federal Taxletter: The Innocent Spouse: A Close Look At A Classic Case
On appeal, the court sees a very different story.
By David Ellis, CPA
Guest Contributor - April 2019
At first it looked like Karen Wilson had finally caught a break. Her husband, Lloyd, had gone from a small-time self-employed insurance salesman earning about $30,000 a year, to a maven of international finance netting $20,000 a month...
Expertise.Com: Best Accountants In Pasadena, California 2019
Spidell's Federal Taxletter: The Innocent Spouse: A Close Look At A Classic Case
Opporty.Com: Top-5 Management Accounting Companies in Pasadena, California
Ellis & Ellis CPAs, Inc.
Ellis & Ellis CPAs, Inc. is an accounting firm backed by almost 55 years of service in the area. Services include tax entity preparation/compliance for individuals and businesses, trust, estate, and gift tax planning, forensic accounting for matters such as divorce and debt collection, innocent spouse applications, and state/federal tax resolution...
Opporty.Com: Top-5 Management Accounting Companies in Pasadena, California
Spidell's Federal Taxletter: The Innocent Spouse: A Close Look At A Classic Case
Opporty.Com: Top-5 Management Accounting Companies in Pasadena, California
Ellis & Ellis CPAs, Inc.
David Ellis is the managing partner of Ellis & Ellis, CPAs, Inc. located in Pasadena, California. He has over 30 years of experience in the practice of Divorce, Trust/Estate, and other family tax matters. He is an advisor in matters pertaining to Trust, Estate, and Corporate Taxation to the Los Angeles County Office of the Public Guardian...
Divorce Tax Alert: Turning Post Tax Reform Support into Equivalent of Deductible Alimony
Divorce Tax Alert: Turning Post Tax Reform Support into Equivalent of Deductible Alimony
Divorce Tax Alert: Turning Post Tax Reform Support into Equivalent of Deductible Alimony
By David Ellis, CPA
March 8, 2019
The Tax Cuts and Jobs Act of 2017 (aka Tax Reform) put an end to the deductibility of alimony for divorces when the agreement specifying the terms under which the alimony payments are to be made was not committed to in writing prior to January 1, 2019*, or did it?...
Quick Tax Refund from Fire Loss Alert
Divorce Tax Alert: Turning Post Tax Reform Support into Equivalent of Deductible Alimony
Divorce Tax Alert: Turning Post Tax Reform Support into Equivalent of Deductible Alimony
By David Ellis, CPA
January 7, 2019
If you have an otherwise deductible “casualty loss” from a Federally Declared Disaster, there is a special election that allows you to deduct the loss on your tax return for the immediately preceding year. Thus, a person who paid income tax on a 2017 return could potentially get a refund...
Huge New Auto Tax Deduction Alert
Divorce Tax Alert: Turning Post Tax Reform Support into Equivalent of Deductible Alimony
Divorce Tax Alimony Alert: Student Loan Payments Ruled to be Deductible Alimony
By David Ellis, CPA
December 14, 2018
Tax Reform has given us many gifts, not the least of which is what I call “the get a giant tax deduction when you trade-in your business auto loophole”. Here is how it works, prior to 2018, when you traded-in your business auto, the basis of the old vehicle was automatically...
Divorce Tax Alimony Alert: Student Loan Payments Ruled to be Deductible Alimony
Divorce Tax Alimony Alert: Student Loan Payments Ruled to be Deductible Alimony
Divorce Tax Alimony Alert: Student Loan Payments Ruled to be Deductible Alimony
By David Ellis, CPA
November 13, 2018
Vanderhal v. Commissioner T.C. Summary Opinion 2018-41 (attached). The Tax Court has ruled that payment of former spouse's student loan obligations are deductible alimony despite IRS claim to the contrary...
Divorce Tax S Corporation Stock Alert: You can still Trust your Trust(s)
Divorce Tax Alimony Alert: Student Loan Payments Ruled to be Deductible Alimony
Divorce Tax S Corporation Stock Alert: You can still Trust your Trust(s)
By David Ellis, CPA
November 8, 2018
In private letter ruling 2018834007 (attached) IRS has ruled that a S Corporation will not be considered to have a Second Class of Stock, (which would void the Company's S Corporation Status), because of...
Divorce Tax Bankruptcy Alert
Divorce Tax Alimony Alert: Student Loan Payments Ruled to be Deductible Alimony
Divorce Tax S Corporation Stock Alert: You can still Trust your Trust(s)
By David Ellis, CPA
November 7, 2018
In a recent Bankruptcy case, the court ruled that IRA and 401k funds that were awarded to man from his wife's accounts were not exempt from creditors. The court reasoned that the exemption only applied to the...
Divorce Tax Alimony Alert: Deducting alimony when divorce is not finalized prior to January 1, 2019
Divorce Tax Alimony Alert: Deducting alimony when divorce is not finalized prior to January 1, 2019
Divorce Tax Alimony Alert: Deducting alimony when divorce is not finalized prior to January 1, 2019
By David Ellis, CPA
November 5, 2018
In spite of much that has been written to the contrary, a strong case can be made that it is not necessary to have a divorce finalized prior to January 1, 2019, in order to deduct the related alimony payments...
Home Mortgage Tax Loophole?: Home Mortgage Money For College Tax Loophole Alert
Divorce Tax Alimony Alert: Deducting alimony when divorce is not finalized prior to January 1, 2019
Divorce Tax Alimony Alert: Deducting alimony when divorce is not finalized prior to January 1, 2019
By David Ellis, CPA
October 27, 2018
As most people know by now, Tax Reform put the final nail in the coffin of using the equity in your home to finance a college education via tax deductible home mortgage...
Divorce Tax Legal Fees Alert
Divorce Tax Alimony Alert: Deducting alimony when divorce is not finalized prior to January 1, 2019
AccountingWeb.Com: Advice on Dividing IRAs in a Divorce
By David Ellis, CPA
September 14, 2018
Tax Court Rules Rich Guy can’t deduct $3 Million in Attorney and other Professional fees paid for keeping $47 Million in Partnership Distributions out of the hands of his ex-wife...
AccountingWeb.Com: Advice on Dividing IRAs in a Divorce
Radio show host talks his way to a win in tax court on employment status
AccountingWeb.Com: Advice on Dividing IRAs in a Divorce
By David Ellis, CPA
Managing Partner
Ellis & Ellis CPAs, Inc.
December 1, 2017
When a couple divorces, it is not unusual for the retirement plan of one or both spouses to be the most significant asset that must be divided. If the plan is a “Qualified Plan” such as a Defined Benefit or 401k, the plan may be divided between the spouses using a Qualified Domestic Relations Order (QDRO)...
AccountingWeb.Com: What is the Greatest Tax Loophole of All Time?
Radio show host talks his way to a win in tax court on employment status
Radio show host talks his way to a win in tax court on employment status
By David Ellis, CPA
Managing Partner
Ellis & Ellis CPAs, Inc.
September 8, 2017
The greatest tax loophole of all time is a secret – or at least it might as well be since so few people know about it. It is a safe bet that the vast majority in Congress are unaware of it, even though it is written into the tax code in plain sight, (Code Section 1014(b)(6)). The Greatest Tax Loophole of All Time allows you to...
Radio show host talks his way to a win in tax court on employment status
Radio show host talks his way to a win in tax court on employment status
Radio show host talks his way to a win in tax court on employment status
By David Ellis, CPA
August 2016
A radio show host recently demonstrated that he could talk as well in tax court as he could in front of a microphone. At issue was the question of whether or not a person can be an employee as well as an independent contractor simultaneously with the same employer. During 2007, Juan A. Ramirez was employed by Univision as an on-air talent and program director for radio station KXTN in San Antonio, Texas...
Dreams Magazine: START 2015 TAX PLANNING NOW - Tax Code Changes Create Challenge
Dreams Magazine: START 2015 TAX PLANNING NOW - Tax Code Changes Create Challenge
Dreams Magazine: START 2015 TAX PLANNING NOW - Tax Code Changes Create Challenge
By David Ellis, CPA
Managing Partner
Ellis & Ellis CPAs, Inc.
An important, yet often overlooked, issue for small business owners is the choice of the form of entity under which they operate. For 2015, this will become critical as Congress contemplates major changes to the tax code. Currently, the maximum corporate federal tax rate is generally less than the maximum individual tax rate. This has led many business owners to consider converting their sole proprietorships and pass through (such as S corporations and LLCs) into...
MARITAL PROPERTY: THE TAX CONSEQUENCES OF DIVIDING MARITAL PROPERTY
Dreams Magazine: START 2015 TAX PLANNING NOW - Tax Code Changes Create Challenge
Dreams Magazine: START 2015 TAX PLANNING NOW - Tax Code Changes Create Challenge
By David Ellis, CPA
Managing Partner
Ellis & Ellis CPAs, Inc.
Family law is extremely complex
because it involves the interplay of
the law, emotions, family dynamics,
finance, and taxation, among other
things. It is not possible for a family
law attorney to have all of the knowledge and skills necessary to provide clients with quality service, unless he recognizes his limitations. The bottom line is that the attorney does not know what he does not
know...