Income Taxes
Navigating the Minefield of Settlements: A Primer on Tax Issues for the Probate and Trust Litigator
In these economic times, probate and trust litigators have a growing practice. Litigation results not only from clients who are more knowledgeable in pursuing their rights, but also from the proliferation and increasing complexity of trust documents, together with the...
The Lottery: A Practical Discussion on Advising the Lottery Winner
As lottery winners are becoming more common in Florida, their advisors should understand the particular income, gift, and estate tax issues relevant to lottery winners. A practical difference between planning for a lottery winner and other planning is that generally...
Tax Planning Technique Works TOO Well…Be Careful What You Wish For!!!
As discussed in a prior blog, a grantor of a trust, which is a “grantor trust” for INCOME tax purposes, pays income taxes on the income earned in the trust. The grantor’s payment of the income taxes benefits the beneficiaries of such trust as the income taxes do not...
Do You Have Proper Substantiation For That Charitable Deduction?
Many of us make annual or weekly contributions to a favorite charity, whether a religious institution, school, hospital or other charitable organization. Often taxpayers “assume” they can take a deduction on their income tax return for the contribution just by writing...
To Forgive May Not Always Be Divine…
If you loan someone $10,000 and then either forgive or cancel part of the loan (perhaps because it is too difficult to collect the debt) and the forgiveness or cancellation is not a gift, you probably haven’t realized that such forgiveness will create taxable income...
If You Are An Innocent Party, Can The IRS Foreclose On An Interest That You Own?
Under tax law, the Internal Revenue Service (the “IRS) has a lien on a taxpayer’s property for unpaid taxes. The U.S. Attorney can direct a civil action to enforce the lien and the court can adjudicate all matters and can direct a sale of the property and the...
You Inherit an Annuity…Should You Rely On Advice From A Broker?
Many times our clients are beneficiaries of a loved one’s annuity. They then go to their broker to discuss distribution options. Most brokers will advise their clients to discuss with their attorney or tax advisor which type of distribution to take. Suppose, however,...
Some Tax Extenders On the Way
Several favorable tax benefits expired on December 31, 2013. For several years these benefits have expired only to see Congress “resurrect” them in the following year. The unpredictability of what laws will be extended creates havoc with tax preparers and taxpayers...
WIN-WIN PLAN FOR CHARITIES AND TAXPAYERS IN 2019
In 2019, the Tax Cuts and Jobs Act provides a new standard deduction which has doubled from $12,700 for a married couple in 2017 to $24,400 in 2019. Thus, most taxpayers will not itemize their deductions and will, instead take the standard deduction. As charitable...
To Forgive is Divine but…it may also be taxable!
As many of you know the real estate crash caused many homeowners to owe more than the home was worth (“upside down”). There were many foreclosures and short sales and many banks would “forgive” the indebtedness deficiency of the homeowner. For example, you owned a...