Posted on April 22,2016 in Taxation Law

As part of a trillion-dollar spending package enacted in the eleventh hour last December, averting yet another threatened government shutdown, the Congress made permanent dozens of expired or expiring tax incentives.

Among these was the so-called charitable IRA "rollover."

First enacted in 2006 as a temporary measure, this incentive had been repeatedly allowed to expire and then extended retroactively, impairing its effectiveness as a fundraising tool for charities. It is now a permanent feature of the tax Code.

The charitable IRA "rollover" allows a taxpayer aged 70-1/2 or older to direct up to $100k per year from individual retirement accounts to public charities, without taking these distributions into income.

These distributions do not count against the limitation on the deductibility of charitable contributions, 50 percent limitation of adjusted gross income, but they do count toward your minimum required IRA distribution.

The strategy is especially attractive where the minimum required distribution would otherwise push you over the threshold at which the "Pease" limitation on itemized deductions takes hold - $259,400 for a single taxpayer in 2016, or $311,300 for a married couple filing jointly - or the 3.8 percent surtax on net investment income - $200,000 single, $250,000 joint.

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 Posted on April 15,2016 in IRS Scams

Prepaid debit cards already have enough controversy surrounding them, and this latest bit of news about tax refunds being frozen for prepaid debit card users isn't going to do any favors for the industry.

Several news outlets, including ABC News, are reporting that the reason for this "funds freeze" is because the IRS is teaming up with the financial industry to crack down on tax fraud.

The problem is, of course, is that this is affecting the nation's poorest Americans...and they are finding that they have very little recourse.

But according to the IRS, though this is an inconvenience for these Americans, it's an absolute necessity in order to stave off the growing tax fraud scam that people are doing, using prepaid cards to collect the tax refunds of unsuspecting victims.

In 2012, according to the IRS, there was a Miami man who was sentenced to five years in prison, and an additional three years of probation, for filing over 500 fraudulent tax returns. This man also used prepaid debit cards to collect the money, and this includes using such companies as GreenDot and WalMart Money Cards. Finally, this man also used gift cards to receive the refunds, which totaled over $30,000.

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 Posted on April 08,2016 in Taxation Law

Do you have a pet? Is your pet considered a member of your family?

If so, you should be sure to make arrangements for Fido in your Estate Planning/ Wills & Trusts documents. This is extremely important for both you and your pet. Doing so can make all the difference between your pet living out the rest of his or her life in comfort with a family or person who will devote care and attention to your beloved pet or landing in a kill shelter where disease often abounds and a walk down a one-way corridor may happen at any time. Which would you prefer for the special friend in your life?

With estate planning documents you can provide for your pet by making special provision for who will be awarded Kitty upon your death. Through your estate planning documents, you can leave appropriate funding for Kitty's care and welfare in the event of health issues. Funding can also be used for necessities such as food and medications, as well as toys and treats.

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 Posted on April 01,2016 in Property Taxes

When you're getting ready to buy a home, you may hear terms thrown at you such as "title" and "property deed", and wonder what the difference between the two are. In real estate law, the title is a legal term that means ownership, while the property deed is the document that transfers the title from one party to another.

In regards to the title, it may be partial or full, meaning that other parties could have rights to the property, including the right to access the property, use it and transfer it either in whole or in part to another party. People can take title to a piece of property in many different forms, including joint ownership and tenants by the entirety.

The property deed is the legal document that transfers the title between parties. Under the Statute of Fraud, the deed must be in written form in order to be enforceable. The deed is filed with the official registrar of deeds in the municipality the property is located in . Deeds are also issued in other circumstances when the property is transferred , such as an executor's deed, which is issued by the executor of an estate selling property owned by the estate, or a tax deed, where the property is sold for the payment of unpaid taxes.

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 Posted on March 25,2016 in Property Taxes

Real estate law is complex, and a home sale is often intimidating. Some states require the use of an attorney, while others leave it up to the buyer and seller to decide. Your typical agent will tell you most transactions are straightforward and, if not required by law, there is no need. Is this true?

The simple fact is a real estate licensee, while they can help walk you through the sale process and fill-in the blanks of a pre-written sales agreement, is not a law expert. They have neither the ability nor right to give their clients legal advice. Unless they are also an attorney, the typical real estate agent cannot answer any legal questions, from contract law to zoning issues.

One of the greatest benefits of using an attorney, specializing in real estate law, is protecting you from financial loss. The sale agreements used by real estate agents are fill-in the blank, covering only the most common, generic issues. All real estate transactions are unique, and there is no guarantee that a generic contract will protect you. Don't you agree?

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 Posted on March 18,2016 in Small Business Taxes

Contracts and other types of business agreements, when drafted thoughtfully and properly, are wonderful tools. In addition to stating in writing what services or products will be provided and at what cost, well-drafted contracts and agreements also describe additional terms including time frame for delivery, how the contract can be extended or terminated, and provide an outline of how, and under what laws, disputes will be handled .

If handled correctly, contracts and agreements are negotiated fairly and ultimately serve to protect the interests of both parties. Unfortunately, problems with contracts can arise for any number of reasons, including the following:

• The contract might be "off the shelf" and not tailored for the transaction or type of business;
• One party drafted the contract and the other party wasn't given an opportunity to review it before signing;
• The agreement might not cover all of the products or services agreed upon by the parties;

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 Posted on March 11,2016 in Taxation Law

Do you have an estate plan? If you do, then great! However, if you have considered creating an estate plan, but haven't, have you thought about why you are not moving forward?

Many times, people do not "get around" to having an estate plan drafted or drag their feet when it is time to execute the documents because of fear.

Fear? Really?

Yes, it is often that people do not want to face their own mortality to the effect that, when it comes to deciding "who gets what", they freeze. They panic. They are paralyzed .

To many, signing Estate Planning/ Wills & Trusts documents is like signing their own death sentence. As though, by executing the documents, they will ensure that disaster will strike the moment they walk outside of the law firm. Although this is highly unlikely, the fact is that we will all pass on at some point in time and it is an act of kindness to prepare for your family's security by planning for their future now.

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 Posted on March 03,2016 in Property Taxes

If you are considering a 1031 exchange of real estate, it is important to understand what a 1031 exchange is and isn't, and to be aware of potential issues that could result in favorable tax treatment being denied. Real estate law is complex by itself; add in the element of tax law that comes with section 1031 exchanges and an unrepresented client could easily find themselves out of compliance with the strict requirements of the tax code.

Section 1031 exchanges are named for section 1031 of the tax code which, boiled down to its simplest, allows for property sellers to rollover gains into a new property, postponing the tax bill. There is no limit to the number of times a seller can rollover gains as long as the requirements of the law are met . Those requirements are:

1. Like-kind property. The property being sold and the property being purchased must be used for the same purpose; that is to say that they either both have to be investment properties used in a trade or business. Property held strictly for resale will not qualify for section 1031 tax treatment; neither will primary residences qualify either.

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 Posted on February 26,2016 in Small Business Taxes

As a small business owner, you are required to understand and adhere to the myriad of laws that affect your business, including both federal and state tax laws.

Even when you are confident that you are in compliance with all applicable regulations and requirements, finding out that your business is being audited is unnerving. Know that the fact your business was selected for an audit does not necessarily mean your filings have been flagged by the IRS, state or local tax authorities; you may have just won the tax audit random selection lottery (which is, unfortunately, not nearly as fun as winning the powerball.)

If you are selected for an audit, know that you have a number of rights during the audit process, including the right to professional and courteous treatment, the right to privacy and confidentiality, the right to know why certain information is requested, the right to appeal, and the right to representation.

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 Posted on February 18,2016 in Taxation Law

Let's face it; talking about estate planning using wills and trusts is morbid. Nothing about the discussion is fun or exciting, but it's a discussion everyone needs to have at some point.

Estate planning is planning for what happens to your assets when you pass away, and identifying who should be in charge of that process for you.

Failing to plan ahead, by having a living trust and pour-over will prepared, means that in effect, the state is writing your will for you. State "intestacy" laws spell out, clearly, how assets should pass when someone dies without a will. The problem is, the state's plan for your assets may not be your plan for your assets.

By taking control of your own planning now, you also get to identify who will be responsible for handling your estate and trust administration. This can help ensure that who you want to be in charge will do so, rather than leaving it up to a decision for the courts.

Additionally, properly structured and funded living trusts are designed to avoid probate court at death, meaning that assets pass much more smoothly and with significantly less hassle than they would if a probate proceeding was necessary.

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