Halcyon Financial Planning, LLC
As a fee-only financial planning and investment manager, Russell D. Francis's goal is to bring the personal back into personal services. This means that he focuses on helping his clients with their financial needs, not on selling products. Russ specializes in constructing income portfolios for retirees and pre-retirees who want to generate income while reducing taxes and market volatility. In this sense, Russell and his firm are dedicated to the "conservative" investor.
As a CPA, Russell understands the complex relationship between investments and taxes. Additionally, as a fixed-income specialist, Russell is particularly passionate about assisting his clients so that they have enough income during their retirement to live the life they've worked so hard to achieve. This is why he believes that safety wins every time.
Before entering the financial planning field, Russell taught high school physics and served 10 years as an Editorial Systems Manager for the Los Angeles Times, where he shared the Pulitzer Prize for reporting on the 1992 Los Angeles riots. He earned his CFP® designation from the College for Financial Planning and a post-baccalaureate certificate in accounting from Portland State University. He holds a BA in chemistry and a teaching certificate from California State University, Fullerton.
Russell is a member of the Portland Financial Advisors Network, a consortium of financial planning experts who have qualifications, experience and credentials that exceed those of most financial advisors. In his spare time, Russell enjoys hiking, bicycling, ballroom dancing, web page development, listening to high definition digital music, and traveling in a camper with his wife, Lynn, and dog, Kia.
Assets Under Management:
Halcyon Financial Planning, LLC is registered as an Investment Advisor with the State of Oregon Department of Consumer and Business Services. All information contained in this website concerning investments is for informational purposes only and does not constitute a solicitation or offer to sell securities or investment advisory services. Such an offer can be made only in states where Halcyon Financial Planning, LLC is registered or an exemption from such registration is available, and no new account will be accepted unless and until all local regulations have been satisfied.
This presentation does not purport to be a complete description of our investment services. Halcyon Financial Plannings’ site, calculators in or linked to this site, other links to or from this site, and content or newsletters in this site should not be construed by any consumer and/or prospective client as Halcyon Financial Plannings’ solicitation to affect or attempt to affect securities transactions, or render personalized investment advice for compensation over the Internet. Use of this site does not create an advisor/client relationship. Information and links in this site are believed to be from reliable sources.
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Halcyon Financial Planning, LLC), will be profitable or equal any historical performance level(s). Historical performance results for investment indices and/or categories generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results.
Upon signing a quitclaim deed, the fair market value of the home would be considered a gift to your daughter. Gifts of over $14,000 require you to file a gift tax return (Form 709) with the IRS. This is an information form only and no taxes are due when you file a Form 709.
If your lifetime gifts and personal assets exceed the Federal Estate Tax exemption (currently $5.45 million), your estate may need to pay taxes upon your death. The giftees (your daughter) never have to pay taxes on a gift.
These are the federal rules. The state of Louisiana may have their own rules regarding gifts, so check with your CPA about state specific rules.
According to the IRS Publication 590-A, if you are self-employed (a sole proprietor or a partner), compensation is the "net earnings" from your trade or business reduced by:
1. The deduction for contributions made on your behalf to retirement plans, and
2. the deduction allowed for the deductible part of your self-employment taxes.
Not living with your spouse, by itself, is not considered "Single" for tax purposes. In order to file as Single, you must be unmarried, or separated from your spouse by divorce or a separate maintenance decree. You can file "Married Filing Separately", or if you have a dependent you may be able to file "Head of Household". Be sure to consult with your tax advisors about which filing status will save you the most taxes.
Upon transfer, the fair market value of the home would be considered a gift to your adult children. Gifts of over $14,000 require you to file a gift tax return (Form 709) with the IRS. This is an information form only and no taxes are due when you file a Form 709.
If your lifetime gifts and personal assets exceed the Federal Estate Tax exemption (currently $5.45 million), your estate may need to pay taxes upon your death. The giftees (your children) never have to pay taxes on a gift. But, if you gift it, there is no step in basis, so if/when your your children sell the property taxes may need to pay taxes any appreciation over your purchased price for the home.
These are the federal rules. The states have their own rules regarding gifts, so check with your CPA about state specific rules.
At the time your mother signed the quit claim deed, it was considered a "gift" to you. You do not pay taxes on the receipt of a gift, but your mother probably should have filed a Form 709 Gift Tax return at that time. There are no taxes due with a Form 709 Gift Tax return, but it is an informational return used when settling your mother's estate.
If/when you eventually sell the gifted home, you may need to pay taxes on your portion of any gain in the value of the home. Your gain would be = Percentage of Ownership x (Sales Price - Tax Basis). Your Tax Basis in the home would be your mother's adjusted basis (cost + improvements). You may get a step-up in basis for the percentage of the home owned by your mother at her date of her death.
This is a very general answer and the results may be different depending how the home was titled and what state you live in. You'll need to consult with your CPA or attorney to get a definitive answer for your situation.