How to Qualify for the OIC Program

Monday, October 3, 2011

How to Qualify for the OIC Program

If you have been delinquent in paying your taxes, sooner or later the Internal Revenue Service (IRS) or the Board of Equalization (BOE) will come knocking on your door. By that time, you don’t only owe them taxes, you also need to pay for fines and penalties. Suddenly, the amount you need to pay is almost double the original, all due to your non-payment of taxes at the proper time.

One way of making things right is by approaching Board of Equalization tax lawyers and asking them to help you make a proposal to the BOE for you to pay an amount less than what is being charged (the fee liability due). This is called an Offer in Compromise (OIC).

Board of Equalization tax lawyers can help determine if you qualify for the OIC program. There are certain guidelines to determine your eligibility for this program.

Qualifications for OIC Program

The burden of paying a huge amount in back taxes, including fees and penalties, is something that you wouldn’t want to deal with, especially if you do not have the capacity to pay the taxes anymore. The OIC program was drafted specifically for people like you. Ask your Board of Equalization tax lawyers the following questions to see if you qualify for the program:

  • Ask your Board of Equalization tax lawyers if you have final tax or fee liability on a closed account.
  • Ask your Board of Equalization tax lawyers if you are someone who is no longer associated with the business that incurred the liability, or is no longer engage in a similar business.
  • Ask your Board of Equalization tax lawyers if you should choose not to dispute the computed amount of taxes and fees you owe the BOE.
  • Ask your Board of Equalization tax lawyers if you are someone who cannot possible pay the amount within a reasonable time frame.

If the answers to all these questions are YES, then you qualify for the Offer in Compromise program.

Applying for the OIC Program

In order to apply for the OIC program your Board of Equalization tax lawyers should help you accomplish and complete an OIC Application. Board of Equalization tax lawyers must also help you gather documents that support your claim. Both the application and supporting documents must be submitted to the Board of Equalization collector who handles your account.

If your Board of Equalization tax lawyers determine that you have liabilities with multiple state agencies, then you must use the Multi-Agency application, which can be used to apply for OIC programs with the BOE, FTB and EDD.

Evaluation of OIC Applications

Your application is evaluated by the BOE according to your circumstances, basing their decisions on certain factors. The following factors are:

  • Your ability to pay the amount required
  • The amount of equity in your assets
  • Your present and future income
  • Your present and future expenses
  • The potential for changes in your situation to happen

Your Board of Equalization tax lawyers can help you prove that all these factors are in your favor, thereby allowing you to qualify for the program. On the other hand, since the OIC must always be in the interest of the State, offers that are substantial enough that the BOE can’t collect the amount within a reasonable timeframe are generally accepted. Your Board of Equalization tax lawyers can help you determine this amount and help you qualify for the OIC program.

How to Reduce Tax Debt with the Help of New York Tax Lawyers

Monday, October 3, 2011

How to Reduce Tax Debt with the Help of New York Tax Lawyers

Many Americans harbor some kind of tax debt at one point in their lives. The tax liability only grows each year because of penalties and interest that continues to accumulate over the life of the debt. Fortunately with the assistance of New York tax lawyers, there is help available. Professionals like New York tax lawyers are well versed in the aspects of law and how to reduce penalties and fines imposed by the IRS. If you find yourself in a situation where you are being charged penalties and interest on top of a tax liability, contacting New York tax lawyers can help ease your penalty amount and may help you negotiate a settlement with the IRS.

Common Solutions to Excessive Penalties

New York tax lawyers are experienced in handling matters where taxpayers are charged penalties for outstanding tax liabilities. Unfortunately, taxpayers are usually unable to negotiate any kind of settlement rates with the IRS unless they are represented by professionals such as New York tax lawyers. Because most taxpayers are unaware of potential settlements, it is up to the professionals to negotiate on their behalf. There are two common procedures that New York tax lawyers will use to either eliminate or severely decrease your penalties.

  • AbatementsAbatements are a way of eliminating penalties if you meet certain conditions. Your New York tax lawyers will discuss the conditions that you need to meet in order to be considered for abatement. Should you meet these conditions, your New York tax lawyers will advise you to file the paperwork as soon as you can to prevent further action from being taken by the IRS. Qualifying conditions include:

    • Loss of Records
    • Life changing event such as divorce or death of spouse
    • You were affected by a natural disaster
    • The IRS has calculated your taxes incorrectly
    • You were affected by a natural disaster

To get the ball rolling on filing for abatement, your New York tax lawyers will advise you of the three ways to contact the IRS in regards to filing for abatement. These three ways include:

    • Mailing in a written petition
    • Oral Interview
    • Penalty abatement forms are available for you to claim through the IRS offices.
  • IRS Offer in Compromise – This is a way for you to settle your tax liability for an amount less than what the IRS is trying to collect. However, this solution is not for everyone as not many people will qualify. Unlike abatement, an offer in compromise has very strict guidelines that must be followed and conditions that must be met. Your New York tax lawyers can help you determine if it is worth filing for. In order to qualify for an offer in compromise you must:
    • Show doubt as to whether the tax is collectible
    • Prove that there is a doubt as to the liability being owed
    • Have extenuating circumstances that will prevent you from paying the taxes and penalties due

The procedure for filing will be described by your New York tax lawyers and must adhere to the filing guidelines established by the IRS. You will be asked to satisfy a burden of proof by providing the supporting documentation. Your lawyers can help you put together the required forms and send it off to the IRS to await their decision.

Common Tax Questions Answered by an Encino Tax Attorney

Monday, October 3, 2011

Common Tax Questions Answered by an Encino Tax Attorney

With the ever changing laws that surround income taxes and filing such, there is no wonder that the IRS publishes a booklet each year to educate taxpayers on the tax filing process. However, not everyone understands taxes despite this publishing. This is where an Encino tax attorney can help you should you live in the Encino, California area. To get a better understanding, an Encino tax attorney has compiled a list of some of the most commonly asked questions surrounding your taxes with the hope of clearing up some misconceptions. If you are still stumped after reading these questions, feel free to contact your Encino tax attorney for more clarification.

Commonly Asked Tax Questions

As an expert in the field, an Encino tax attorney is likely to receive many questions in any given tax season. Here is a list of commonly asked questions and their short answers. For more in-depth clarity on any tax issues, it is best to contact an Encino tax attorney directly with your questions or concerns.

  1. Am I required to file my taxes? The short answer is maybe. Most Americans meet the conditions where they must file taxes to claim a refund or to pay outstanding tax liabilities. There are some people, however, who do not make enough in any given year to file their taxes because they have either had no tax withheld due to low earnings or they have no existing or expected tax liabilities or deductions. Only a tax professional or your Encino tax attorney can help you decide whether you need to file your taxes this year.
  1. How can I work out a payment plan? If you find that you will have a hefty outstanding tax liability at the end of this tax year, you may need to establish a payment plan to satisfy your liability. The IRS is more than willing to work with you in getting your liability settled, so feel free to contact an Encino tax attorney to see what the best solution would be. The most common reasons why people have liabilities is because employers did not withhold enough money or because you claimed too many exemptions on your W-4. While this is not illegal, you will be responsible for paying back all of the determined fees which may include interest and penalties.
  1. I cannot afford to pay my debts, is there help for me? Yes, there are two particular situations that you may qualify for. One is abatement where the penalty assessed on an outstanding tax liability is waived completely. The other is known as an IRS offer in compromise where a portion of your debt is forgiven – usually penalties and interest accumulate on the penalty. Speaking with your Encino tax attorney can help you learn more about the processes and whether your Encino tax attorney thinks it is a good idea to file for either of these options.

These are just a few of the questions that taxpayers call their Encino tax attorney for clarification on. If you have any additional questions, you can find the answers on our website or contact us for more information. When it comes to taxes, you should not leave it to guesswork, but rather consult a professional in the field who is qualified to help you. 

How To Learn The Tax Lien Basics with Your Franchise Tax Board Tax Lawyers

Monday, October 3, 2011

How To Learn The Tax Lien Basics with Your Franchise Tax Board Tax Lawyers

After years of going through the risk of computing and filing your own taxes without the help of Franchise Tax Board tax lawyers, or even deliberate delinquency on your part, you receive a Notice of State Tax Lien. Your luck finally runs out.

A tax lien is a legal claim imposed by the Franchise Tax Board (FTB) to secure payment of your taxes. The lien may be imposed on a personal property or real property, as a result of your failure to pay income taxes, property taxes, or any other taxes. It is the initial step taken by the board to impose their right to confiscate your property. As a side note, a lien is different from a levy in that a levy is the actual confiscation or seizure of your personal or real properties.

Of course, all these could have been avoided had you consulted Franchise Tax Board tax lawyers earlier on. When you find yourself in this situation, you should consult Franchise Tax Board tax lawyers to help you sort things out.

Basics of Tax Lien

Here are some things about the imposition of a tax lien that your Franchise Tax Board tax lawyers can help you understand.

  • Lien for Taxes – Under the Internal Revenue Code (Section 6321), your Franchise Tax Board tax lawyers should inform you that the amount of the tax lien set on your properties, whether real or personal, will be equivalent to the total amount of your unpaid taxes, including interest, additional taxes, additional penalties and other costs.

  • Period of Tax Lien – Under the Internal Revenue Code (Sec. 6322), your Franchise Tax Board tax lawyers must inform you that the tax lien imposed upon your properties starts at the time the assessment of the lien was made until the time you are able to pay the amount you owe the government, or until it becomes unenforceable due to lapse of time.

Effects of Tax Lien on You

When you find yourself facing a tax lien, it is imperative you consult Franchise Tax Board tax lawyers as soon as possible so that they can help you understand its effect on your financial situation. Some of its effects are the following:

  • A tax lien may prevent you from selling, refinancing, or transferring ownership of your properties. However, Franchise Tax Board tax lawyers have assisted many in taking the necessary steps that would lead to the lifting of the tax lien.
  • Since a lien is a public record, it may appear on your credit record and hamper your ability to conduct financial transactions. You may not be able to buy properties, or acquire loans from financial institutions.
  • You should be advised by your Franchise Tax Board tax lawyers that a lien will not only apply to your properties at the time it was imposed but also to the properties you acquire during the time the lien is in effect. Meaning, if you buy a house when a tax lien is in effect on you, the house may be included in the tax lien too.

There are serious implications when a tax lien is imposed on you. However, Franchise Tax Board tax lawyers have all the capabilities to help you get the lien lifted. Of course, consulting Franchise Tax Board tax lawyers much earlier would have spared you all the trouble.

How IRS Tax Lawyers help you Resolve your IRS Debt

Monday, October 3, 2011

How IRS Tax Lawyers help you Resolve your IRS Debt

The last thing anyone needs to add to their list of worries is an outstanding debt with the IRS that can only be handled with the help of IRS tax lawyers. Sometimes through unforeseen circumstances a person can owe more taxes than they planned without having the ability to pay back those taxes when the time comes. If you have recently discovered that you will owe taxes for the current year and are unable to pay the full bill or if you have not filed taxes for a year or several years, there are options for repayment available that you can consult IRS tax lawyers to help you with.

Depending on your unique situation the IRS tax lawyers will determine how best you can repay the debt. For instance someone who has filed their taxes for the current year but is unable to pay the full outstanding debt will be in a better position than someone who has neglected to pay their taxes for several years. This does not make a difference; however, because IRS tax lawyers can help you resolve your outstanding tax liabilities no matter how old they are.

Listed below are a few methods allowed and available through the IRS and they may not require an attorney for the arrangement. However, to obtain the best results, it is strongly recommended that you seek the assistance of IRS tax lawyers in your endeavors.

  • Short Term Agreement- This type of agreement is designed for the person who cannot pay the full bill now, but does have the ability to repay the debt within 120 days. This is a better option than an installment agreement because the interest and penalties are considerably less. When repaying your outstanding tax liabilities, you will find that IRS tax lawyers will advise you on your cheapest overall options for settling with the IRS.
  • Installment Agreement- IRS tax lawyers will tell you that this agreement was designed for the individual who has no possible chance to pay off the debt short term due to hardships or simply not having the money available. The installment agreements can vary in length of time anywhere from one year to three, giving the tax payers a chance to repay without the IRS instituting a bank levy or garnish of wages. The interest and penalties continue to accrue until the full balance it paid.
  • Extension- A taxpayer has the right to extend the filing date out six months in order to repay the debt. However understanding that even though the taxes have not been filed the interest in still accruing and there is a onetime penalty for the extension. It is best to consult with either an IRS employee or IRS tax lawyers to find out what the penalty and interest may be and if an installment agreement may be a better option.
  • Compromise- If you fall into the category of unfiled taxes that have recently been either discovered by the IRS, you make be able to offer a compromise on the debt. A lot depends of any prior tax issues and how old the taxes are. Again this matter may be best handled through IRS tax lawyers to get the best settlement offer possible.

It is always in your best interest to pay your taxes that are due on time, but if you have fallen upon difficult times and are just not able to pay in full, pay what you can by using IRS tax lawyers to negotiate a settlement. By paying down as much of the debt as possible up front, you will save yourself enormous amounts of interest and penalties over the length of your agreement.

Resolving Tax Problems for Entrepreneurs with the Help of Miami Tax Lawyers

Monday, October 3, 2011

Resolving Tax Problems for Entrepreneurs with the Help of Miami Tax Lawyers

If you are an entrepreneur operating a business located in Miami, Florida, you are probably enjoying the benefits of having a fruitful and successful business with the good market that is inherent in the city. However, your business can be affected with tax problems related to compliance issues. When this happens the good standing of your company may be tarnished, or your business may even be totally closed down. To avoid problems and complications related to tax filings and tax payments, you should seek professional guidance from Miami tax lawyers.

Miami tax lawyers have years of experience in handling issues pertaining to the complexity of corporate tax laws in the city of Miami, Florida. Miami tax lawyers can assist and help you avoid situations related to tax compliance issues that may jeopardize the operation of your business or your corporation.

Some Reasons Tax Problems Arise

There are certain reasons why your business or corporation in Miami may encounter tax problems with the Internal Revenue Service (IRS). Miami tax lawyers will explain to you that your tax compliance problems could be due to one of the following reasons:

  • Poor or lack of understanding about tax laws
  • Deliberate non-payment of taxes
  • Filing incomplete documents, including the lack of supporting documents
  • Filing inaccurate reports or filing fake reports or documents
  • Untimely filing of income taxes, business taxes and other taxes
  • Committed certain fraudulent acts relating to taxes and tax documents.

Benefits of Hiring Miami Tax Lawyers

Aside from their in-depth understanding about corporate tax laws implemented in Miami, Florida, Miami tax lawyers also has the experience in handling tax compliance issues and other tax related problems. There are certain benefits and advantages of seeking the counsel of Miami tax lawyers.

  • Consulting Miami tax lawyers from the very beginning gives you the advantage of being able to file your tax documents in an orderly fashion. They can verify authenticity of you documents, help you with the things needed to be filed, and ensure that what you submit to the Internal Revenue Service is complete. By consulting with your tax lawyers from the start, you avoid complications that may arise in the future, like penalties, fees, liens and/or levies.

  • By consulting Miami tax lawyers, you provide yourself and your business a steady partner that will help keep your business’ reputation, and yours too, highly-esteemed at all times. They provide you with the security that your business continues its operation with strict compliance to the law.

  • Miami tax lawyers can help you with tax issues relating to employment taxes, business taxes, income taxes, social security remittances, medical care payments, payroll taxes, currency transaction reports and help you understand Florida sales tax.

Endangering the stability and smooth operation of your business is something that you may not be able to afford, especially with the economic crisis being dealt with by many today. Without consulting Miami tax lawyers, tax problems may arise and will not only impede the steady progress of your business, but also put it at risk of being shut down.

The consequences of facing tax problems are serious, and the Internal Revenue Service will have no qualms about running after you. Knowing your rights and aspects of the laws of Miami, Florida will be of great benefit to you and the people that depend on you. Looking at the bigger picture is always the best way to go.

Reasons to have a Chicago Tax Attorney for your Business

Monday, October 3, 2011

Reasons to have a Chicago Tax Attorney for your Business

There are numerous reasons to hire a Chicago tax attorney for your business. Whether you are a sole proprietor or a large corporation, the tax laws change with every coming year. Even the most intelligent people amongst us would need to take a class to understand the changes in the law that go on year after year. A Chicago Tax attorney, however, can offer much more than just an understanding of the law.

Top Reasons to hire a Chicago Tax Attorney

Like your business is of significance to you so are the tax laws to a Chicago Tax Attorney. Having someone who is in the field and equipped with the knowledge and understanding of the tax laws provides you a peace of mind that your taxes are being filed correctly without any worry of future repercussions. It is also important to hire a Chicago Tax Attorney rather than a CPA. If you should be called in to the IRS on criminal charges a Chicago Tax attorney has the attorney client privilege which prevents them from being forced to testify whereas a CPA can be court ordered.

What a Chicago Tax Attorney can do for Your Business

There are other reasons to hire a Chicago tax attorney for your business as well. A Chicago Tax Attorney can take the burden of any tax issues from you which will allow you as the owner to run your business instead of wondering if you are doing everything correctly. With the Chicago tax attorney in your corner you can ask for help along the way to avoid any tax problems in the future. A Chicago tax attorney can also help a small business owner who is just starting out with such expenses as payroll, budgeting, income, deductions and all others things that affect the business each month as well as after the business gets going with any issues that may arise with an employee, vendor or customer. For larger businesses that have already been established a Chicago tax attorney can help you as the owner to make the best decisions possible for the formation of your company by explaining benefits such as filing as a partnership vs. limited liability as well as a sole proprietorship vs. corporation.

Help with Business Taxes

One of the most significant reasons why business owners will hire a Chicago tax attorney is to ensure that all taxes are calculated and filed correctly. This is especially important for business owners because past due liabilities can come back to haunt you as the business owner with severe consequences. Some of the issues you want to clear away from involve late filing of your taxes, incorrectly calculating sales tax or payroll tax due and ensuring that you claim the proper income on your personal taxes.

As with any viable decision you should check references and history on any potential hire of a Chicago Tax Attorney, making certain that he is experienced in all areas of the law and has a sound reputation. Ensuring that the attorney is capable of carrying out the duties you are hiring him or her for will cause you less headache in the future. After all, the very last thing you want is the IRS knocking upon your business doors for taxes that you thought were handled

Importance of Consulting a Florida Tax Attorney When Buying a Business in Florida

Monday, October 3, 2011

Importance of Consulting a Florida Tax Attorney When Buying a Business in Florida

Venturing into the world of business while being self-employed in Florida is something many of us would like to do. Of course, being your own boss is infinitely better than having to work 8-5 daily for someone else. Now, when you have accumulated or acquired enough funds to do such an endeavor, you can start your dream of becoming an entrepreneur by either starting an entirely new business or buying an existing one.

However, there are key points you need to ask your qualified Florida tax attorney when you do decide to buy an existing business in the State of Florida.

Avoiding the Former Owner’s Tax Liabilities

Before buying or beginning a business, you or your Florida tax attorney should ask the seller if he/she has taxes due. This is because if the former owner has any unpaid taxes, it may become your liability when the business is transferred under your name. You should ask for tax documentation from the seller and have your Florida tax attorney verify their accuracy and authenticity. If your Florida tax attorney finds out that the seller has unpaid taxes, you have the option to withhold the amount from the purchase money you owe the seller.

The seller should show you a Department of Revenue issued certificate of clearance as proof that he/she has no outstanding tax liability or any tax delinquencies. Your Florida tax attorney should help you inspect the document.

In certain cases, a certificate of clearance does not exempt you from possible audits in the future, covering periods before you even bought the business. Because of this, your Florida tax attorney may secure a transferee liability certificate to identify potential tax liabilities of the business you are planning to buy. This certificate ensures that the business will no longer be audited for the period covered by the certificate. However this would require the Department of Revenue to audit the business.

Getting a Transferee Liability Certificate

With the help of your Florida tax attorney, it is imperative that you secure transferee liability certificate before acquiring an existing business. Before you are issued this certificate the Department of Revenue will perform an audit on the business which can be requested by you or the seller.

  • If the seller initiates the request, he/she must submit a Seller's Application for Transferee Liability Certificate (Form DR-842)
  • If you initiated the request, you can ask your Florida tax attorney to submit a Purchaser's Application for Transferee Liability Certificate (Form DR-843). You or your Florida tax attorney should attach a signed sales agreement to this request. Nonetheless, since any tax information is confidential, the transferee liability certificate will only be issued to the seller.

If you wish to apply for this certificate, your Florida tax attorney must include the following in your request:

  • The business name, name of the requestor including his/her signature, address of the business, contact numbers and email address.
  • Valid Identification number
  • Copy of driver’s license of authorized agent registered with the Department of State.

Before buying a business in Florida, it is very beneficial to consult a Florida tax attorney. Securing a certificate of clearance or transferee liability certificate and having them inspected by the right Florida tax attorney can save you from many inconveniences that may arise in the future. Not only are you spared from all the trouble of having to pay back taxes you do not owe the government, it also assures that you give your business the right start. 

Fighting Asset Seizure With The Help of Encino Tax Lawyers

Monday, October 3, 2011

Fighting Asset Seizure With The Help of Encino Tax Lawyers

Having your assets seized is not a penalty that you want to encounter with the IRS. There are many different reasons why your assets may be seized and it is up to you to follow the instructions sent by the IRS to avoid any seizure. However, if that point has already passed, you will want to hire Encino tax lawyers to help you as much as they possibly can in getting your assets back. If the IRS has already sold your assets, you are out of luck, but if they have not yet sent you a notice of intent to sell, you can use your Encino tax lawyers to help you with handling your particular tax situation.

What are some reasons why the IRS will seize my assets?

As mentioned before there are a few reasons why the IRS may seize your assets, but the most common reason assets are seized is to pay off existing tax liabilities. Encino tax lawyers can help you fight any penalties that are assessed and help prevent getting your assets seized. Existing tax liabilities are often derived from unpaid taxes, unfiled taxes or unclaimed income such as that held in offshore accounts. If you meet one of these conditions, you can contact Encino tax lawyers to help you get your taxes straightened out to the point where you will not have to worry about any seizure of assets.

Each year you are required to file your taxes if you meet certain conditions. Without filing taxes, you will not know your true tax liability. Should you be audited, you will be required to file old returns in order for the auditor to assess the true liability owed. A quick phone call to Encino tax lawyers can help you with any questions that the IRS may have about your liabilities and assets.

What Personal Property is Subject to Seizure?

There are many personal assets that the IRS is allowed to seize when they are looking to collect on debts owed. Your Encino tax lawyers can educate you on the types of personal property that you stand to lose if you do not work out a payment plan or otherwise pay off your tax debts. Encino tax lawyers know that the following items are subject to being seized by the IRS:

  • Bank accounts – this includes checking accounts and savings accounts. Encino tax lawyers know that the IRS will place a full hold on your accounts and possibly seize the cash available in the accounts if your tax debt is higher than the amount contained within your accounts. Once your assets are seized from your bank account, they will be applied to your outstanding debt with almost no chance of recovering the funds.
  • Real Property – your personal home or business buildings, if you own them will be at risk and only the help of your Encino tax lawyers can ease this burden before it becomes a reality. One thing that may work in your favor is that the IRS is required to get the order of seizure for personal real property signed off on by a judge. Without convincing a judge that it is necessary to seize your personal or business buildings, you may get lucky and avoid this burden.

Call your Encino tax lawyers today to discuss your options and avoid seizure of your assets. 

Why California Tax Lawyers are Necessary in Estate Planning

Monday, October 3, 2011

Why California Tax Lawyers are Necessary in Estate Planning

Many people have a jaded view of what estate planning really is. Some people think that the necessity for estate planning is only for those who are wealthy, but this is not so. California tax lawyers are able to advise anyone on the necessity for estate planning and the various ways in which a person can protect their assets. Estate planning is necessary even if you only have a little cash in the bank and own a home or rental property and your California tax lawyers will be able to help you with the procedures. The necessity for this is so that your beneficiaries are not burdened with paying unnecessary taxes or being tied up in probate court while fighting the IRS over the tax liabilities.

What Changes have been made to Estate Planning?

In 2010, the IRS repealed the estate tax, but re-established the tax in 2011. Many people as a result of the planned repeal figured that it was no longer necessary to enact any type of estate planning. California tax lawyers were advising taxpayers to continue with estate planning procedures to avoid diverting the burden onto beneficiaries.

What is the purpose of estate planning?

The main purpose of estate planning is to avoid unnecessary taxes that are imposed by the IRS. You can do estate planning with the help of your California tax lawyers and with the help of a valuator. A valuator is important and will work with both the IRS and your California tax lawyers to answer any questions that might arise about the valuation of your personal property. Forensic reasons account for the need of a valuator to assign specific values to your estate. Many California tax lawyers work with valuators specifically for estate planning purposes.

What types of tax deductions can I take to ease my Estate Tax Burden?

This is a good question and one that warrants a visit to your California tax lawyers for an in-depth evaluation. However, there are several broad categories of deductions that you may find yourself qualified to take to lower your tax liabilities on your estate.

  • Marriage tax – if you leave your personal property to your spouse and it transfers immediately on death, your spouse will not be charged any kind of tax on the gifts or bequest. This is one of the most common exemptions from the estate planning taxes that are routinely applied to estates. Speak with your California tax lawyers to determine if your estate will qualify for this.
  • Charitable deductions – if you leave any portion of your estate to a charitable organization, there will not be any taxes levied against the total donated. Professionals like California tax lawyers routinely advise clients to consider charitable donations as they will be tax free.

In addition, the tax exemption rate increases every couple of years as inflation rises. The IRS allows more money to be gifted without being taxed. When you give a gift, it has no bearing on your federal or state income tax filings. It may affect those who you gift with money or property, however. This should not deter you from the estate planning process as the process will make your estate easier to handle after you pass.

If you are looking to establish estate planning, contact your California tax lawyers today for sound advice.