Posted in Asset Protection,Probate & Trust Administration,Real Estate Law,Tax Law & IRS Defense,Wills, Trusts & Estate Planning

What is basis and why does it matter? A basis is a monetary amount assigned to property for tax purposes. This value is very significant because the basis is used when calculating gains or losses on the sale of property. If you inherit property from a family member, friend or any generous benefactor, there will be a basis assigned to that property.
Continue Reading »

Posted in Asset Protection,Probate & Trust Administration,Real Estate Law,Tax Law & IRS Defense,Wills, Trusts & Estate Planning

While the tax basis of a property is important in determining estate tax for higher net worth individuals, it is also a significant consideration for individuals of any net worth in determining the income tax (gain or loss) beneficiaries will ultimately pay when the property is transferred. The basis of property inherited from a decedent is generally the Fair Market Value (FMV) of the property at the date of the individual’s death. Thus, a real estate or personal property appraisal may be advisable to consider.
Continue Reading »

Posted in Tax Law & IRS Defense

What is the IRS Domestic Voluntary Disclosure Program? It is an internal IRS practice that was established to encourage taxpayers to voluntarily report previous tax issues or noncompliance. The program will not necessarily protect a taxpayer from criminal prosecution nor does it create any procedural or substantive rights for the taxpayer. Nevertheless, it can be helpful in preventing criminal prosecution as it is a factor the IRS considers in determining whether or not to recommend a taxpayer for criminal prosecution.
Continue Reading »

Posted in Asset Protection,Real Estate Law,Tax Law & IRS Defense

The Firm is republishing a September 2014 blog post regarding the ability of Florida property owners to contest or appeal the assessed value of their property.  The republished blog, below, includes updated information for 2015.
Continue Reading »

Posted in Asset Protection,Business & Corporate Law,Tax Law & IRS Defense

Calendaring important IRS and tax authority deadlines can save you a lot of headaches at tax time.  To avoid paying penalties and other tax consequences, keep a calendar and review tax deadlines with your Accountant, CPA, Enrolled Agent, or Tax Attorney.  Jackson Law Group has tax attorneys that can assist you with IRS or other tax problems.  The below items are a few examples of important dates:
Continue Reading »

Posted in Asset Protection,Probate & Trust Administration,Tax Law & IRS Defense,Wills, Trusts & Estate Planning

1. Not Understanding the Purpose of Asset Protection: Asset protection will not make you “judgment proof.” Someone can still obtain a judgment against you.  You must distinguish obtaining a judgment and collecting on a judgment, which is typically only done after a judgment is rendered.
2. Waiting Too Long To Begin Planning: Preventative planning is both most effective and least expensive before you have legal problems.
3. Believing That It Is Too Late To Protect Assets: It’s never too late to improve protection. Anything is better than doing nothing.
4. Thinking Creditors are Lazy or Not Smart: Don’t underestimate the skill and intelligence of your adversaries. Creditors and their attorneys are not lazy or thoughtless.  The court system can be a slow process.
5. Failure to Comprehend Vulnerability of Your Business: The shares of stock or membership interests you own are vulnerable to creditor attack.
6. Fraudulent Transfers and Conveyances: You cannot protect assets by giving them to family members.
7. Misunderstanding Salary Exemption: Salary exemptions can be complicated. Don’t be trapped into misunderstanding these concepts, especially for business owners.
8. Confusing Estate Planning With Asset Protection: Asset protection is oftentimes part of estate planning, but a living trust or will does nothing to protect your assets from creditors.
9. Confusing Bankruptcy Law and Asset Protection Law: The new bankruptcy law does not affect Florida’s unlimited homestead exemption and other exemptions outside bankruptcy court.
10. Giving Up Control Over Your Assets: The easiest asset protection plan is to give someone else control over your assets. This is all too often a poor solution.

If you own assets and are concerned about protecting them, avoid making the mistakes mentioned above.  For more information on developing an asset protection plan that is thorough and unique to your particular situation, we encourage you to contact a qualified, licensed attorney.

Posted in Asset Protection,Real Estate Law,Tax Law & IRS Defense,Wills, Trusts & Estate Planning

In a previous blog (click here), we posted about the Mortgage Forgiveness Debt Relief Act (“MFDRA”) and how it had yet to be extended by Congress to cover mortgage debts forgiven in 2014.  MFDRA prevents homeowners who went through a short sale, foreclosure sale, a principal reduction, or some other type of waiver of a deficiency regarding their primary residence from being taxed on the amount of mortgage debt cancelled or forgiven.
Continue Reading »

Posted in Tax Law & IRS Defense

The Internal Revenue Service has made a change to a policy that was rejected in 2010.  Based on the proven health benefits of breastfeeding for women and their children, the IRS will now allow mothers to count the costs of breast pumps and other supplies as a medical deduction on their taxes.  Breastfeeding women can spend as much as $1,000 each year on nursing supplies, thanks to the efforts of the American Academy of Pediatrics and other breastfeeding advocates that fought in recent years to advance this proposal.
Continue Reading »