Taxes, Assets And How They Work Together
When it comes to your finances and acquiring assets, taxes are an important part of the process. Whether you own a small business or have saved money over time, there are many tax laws in place that are often unknown or misunderstood. Having an attorney who understands the law is of the utmost importance. The lawyers at Kaplan & Moon, PLLC have over 70 years of combined experience helping those throughout Texas.
Understanding The Estate Tax
Before money is left to your heirs, it is taxed. It is important to know that the estate tax is different from the inheritance tax. Texas does not have an inheritance tax, which means that no death-related taxes are owed. No matter how large your estate, you don’t owe any state taxes. You might, however, owe the federal government. It all depends on the size of your estate and whether you are married.
Owning A Business
When you start a business, the structure of that business can affect your taxes. Corporations are separate legal entities from their owners, meaning they are also separate tax entities. It sometimes means that profits are taxed twice. The benefit of a corporation is that undistributed money is taxed at a lower rate. Plus, some of the profits can be put toward future growth or other expenses.
Sole proprietorships and partnerships are smaller businesses that also have their pros and cons. They are eligible for pass-through tax entities. In other words, income tax is only levied once. All of the profits “pass through” the business to the owners, so you pay income on the money when filing your personal tax returns. Like corporations, there are drawbacks. Employment taxes often take a hit. No matter what type of business you have, we can help you navigate all potential taxes. Together, we will determine what works best for you and your situation.
Petitioning The Tax Court: What You Need To Know
When the IRS audits you, you can either accept its terms or disagree. If you disagree, you must file a petition with the tax court. It is important to talk to an attorney quickly, as you only have 90 days to do this. We can help you provide all the evidence possible to dispute the claim. After your court date, it can take up to two years for a decision. If you lose a smaller case, there is no appeals process. In larger cases, you have another 90 days to file an appeal. Having an experienced attorney is of the utmost importance. We can help you prove your case and avoid fines.
Call Today To Discuss Your Options
Understanding how taxes work is notoriously complicated and often overlooked. If you have questions, contact one of our knowledgeable attorneys today. We can help. Call our Dallas office at 214-666-6608 or fill out our contact form.