Patrick Dougher of DoerTV speaks with Jeff Pickering, a CPA, about tax loopholes and other tax questions on this edition of Tax Talk on Google+ Hangout.

Jeff reminds people that you pay into taxes all year round, not just around tax time before April 15. The estimate is that 1/3 of your income goes into paying of taxes – federal, state, fuel taxes, commerce taxes, sales taxes, etc. He also says that most people spend more time planning and thinking about their vacations than planning on how to do their taxes.

In other editions of Tax Talk, Jeff has given examples of how people made a simple mistake on their tax forms, or did not use the correct forms, and it cost them up to $10,000 in penalties. There are so many tax loopholes that most people are not aware of, and that most programs that help people do their taxes themselves do not address.

This week’s example concerned a couple where the wife has terminal cancer, and Jeff addresses the planning issue and tax loopholes that can crop up when it comes to tax planning.

What happens when you pass away and you own property? He explains the tax rule – “Step Up” where property was given away and appreciated after the death. What happens if you are about to inherit property, but you will die first before the property changes hands? When you inherit property you will inherit it at the fair market value, so in a case like this it is best to consult a tax specialist, like Jeff, to find out which way to go. Loopholes like this in the tax code are tricky to understand, but a master tax specialist understands them and can steer you in the best way to save you on taxes.

Some states are community property states, like Texas. Many people don’t understand this concept. Half of everything the husband owns the wife has an interest in, and vise versa, so if the house or property is only in one name the spouse still has an interest in it. In some other states that are not community property states, if you own property in your name your spouse does not have a vested interest in it. It is best to understand your state’s rules, and not assume that your spouse’s property will be transferred to you when they die.

If you would like to get ahold of Jeff Pickering CPA, you can contact him by phone at 972-378-5200; Email him at  jeff@pickeringcpa.com ; or visit his website at http://www.PickeringCPA.com.