An experienced business attorney can help you keep more of your income, protect your assets, and prepare for personal and business growth. At France Law Firm, our tax attorneys and business law attorneys help Florida businesses and families create proactive strategies that deliver lasting financial benefits.

What Early Tax Planning Really Means for Tallahassee Businesses and Families

Everyone knows to gather receipts in February and March and hire a tax accountant in the spring. It’s something you should do year-round so you understand how legal, financial and personal decisions will affect your tax position before it’s too late to make changes. This also means retaining an experienced tax attorney who can advise you on the best tax strategy for your situation.

Tax preparation focuses on compliance, including filing accurate tax returns and meeting deadlines, while early tax planning focuses on strategy. It anticipates how you should legally reduce your tax burden to position yourself for stability and growth.

Working with a business tax attorney ensures your plan integrates with your overall legal structure. It can mean restructuring your entity, deferring income, optimizing asset depreciation or aligning business budgeting with long-term financial goals. When you plan your taxes early, you have time to change factors that could decrease your tax bill.

How Early Tax Planning Benefits Tallahassee Businesses

Business owners face unique tax challenges, including managing operating expenses and meeting federal and state obligations. The earlier you plan, the more flexibility you have in reducing taxable income and maximizing deductions.

Many tax-saving strategies have a deadline of December 31, including purchasing new equipment, pre-paying certain expenses, and contributing to employee retirement plans. A business tax attorney can help you identify industry-specific deductions and credits.

Additional strategies may include:

• Proactive planning to avoid penalties and cash flow issues
• Ensuring you have the correct entity structure, e.g., corporation, LLC, non-profit, S-Corp, as they are taxed differently
• Strategically planning for employee compensation, e.g, coordinating financial and legal strategies for compensation packages

How Early Tax Planning Protects Families

Tax planning isn’t only for business owners. It’s also crucial for families. Without careful planning, your interconnected business and personal finances can create unexpected tax burdens. An experienced business tax attorney can help:

• Coordinate personal and business income
• Reduce estate and inheritance taxes
• Optimize retirement and education savings
• Protect family assets through legal structuring

Common Mistakes to Avoid

Even well-intentioned business owners and families can make preventable errors that could cost thousands of dollars every year. Some of the most costly mistakes include:

• Waiting until filing season, as most savings opportunities have expired
• Ignoring life changes such as marriage, divorce, new children, children going out on their own, real estate purchases, and adding business partners
• Failing to seek professional help, as do-it-yourself tax software often does not identify complex savings related to business ownership, estates, and trust considerations

The best time to start tax planning is before the year’s last quarter, though working with an experienced tax attorney year-round allows you enough time to make strategic investments or change your tax structure and capitalize on credits.

We work with accountants and financial advisors, and we use our attorney’s estate planning experience to deliver the best strategies to reduce your tax liability. Whether you operate a family-run company or a growing enterprise, we can help you navigate Florida’s complex tax landscape.

Don’t Wait Until Tax Season—Secure Your Business and Family’s Financial Future Today!

Instead of letting another tax season catch you by surprise, contact France Law Firm at 850-224-1040 or by filling out our online contact form to implement a proactive tax plan that protects your business and your family’s financial future.

The post Why Early Tax Planning Could Save You Money appeared first on France Law Firm.

The Tax Benefits of Charitable Giving

When you donate to qualified charitable organizations, you can reduce your overall tax liability. This type of deduction is valuable to those earning a high income, helping them minimize their tax burden while supporting worthy causes at the same time.

To maximize tax deductions, you should consider several factors, including:

• Choose the Right Charitable Vehicle: Common options for charitable giving include charitable remainder trusts, donor-advised funds, cash donations, and private foundations. Each type has its benefits, including control over funds and tax efficiency. Your estate planning attorney and tax attorneys can help you choose the best charitable vehicle for your situation.
• Leverage Appreciated Assets: By donating appreciated assets, such as artwork or real estate, you can support your favorite charity and maximize your tax deductions. In many cases, if you held the asset for over a year, you can deduct the asset’s fair market value when you donate. In addition to minimizing your tax burden, you could avoid paying capital gains tax. Other assets may include restricted stock, publicly traded securities, private equity fund interests, post-IPO stock, cryptocurrency, equity compensation awards, and privately held business interests.
• Qualified Charitable Distributions: If you are 70.5 years or older and required to take minimum distributions from your retirement accounts, you can transfer funds from your IRA to a charity without realizing taxable income from the distribution.
• Use Bunching Strategies and Optimize Timing: If you can bunch more than a year’s worth of charitable deductions and optimize the timing, for example, by coordinating charitable donations with significant financial events, you could increase your tax savings. Bunching may benefit those who can now take the much higher standard deduction. For example, if you donate for two years in one year, you can itemize in 2023 and then take the standard deduction in 2024.

Charitable Giving and Estate Planning

Charitable giving can also affect the amount of taxes your estate pays. Strategic charitable giving can maximize wealth transfer to your heirs by using various vehicles. Your tax attorneys and estate planning attorneys at France Law Firm can help you structure your charitable giving to minimize not only your yearly tax obligation but also your estate tax obligation.

Obligations for Charitable Giving: Documentation and Record-Keeping

To take advantage of charitable giving, you must document your donations and keep the documentation to prove your donations to the Internal Revenue Service. When you submit your receipts to your tax attorney at France Law Firm, your attorney can include the donations as long as they are to qualified charitable organizations.

Documents may include receipts, appraisals for non-cash assets you donated, and letters of acknowledgment from charitable organizations. Your attorney can use this documentation to file the required tax forms to receive a tax deduction without incurring potential penalties if you exceed certain thresholds.

Contact France Law Firm

Charitable giving and tax planning are complex aspects of your finances. A tax attorney can help you claim charitable giving on your taxes and estate to maximize tax deductions. Your tax and estate planning attorney can help you choose the right philanthropic vehicle and leverage appreciated assets to maximize your tax deductions.

Contact a tax and estate planning attorney at France Law Firm for a consultation by calling 850-224-1040.

The post Maximizing Tax Deductions for Charitable Giving appeared first on France Law Firm.

Taxes for 2023 and 2024

You may not think the upcoming changes for 2024 are important right now since you will be filing for 2023. However, those changes may affect your long-term tax plans, whether for your estate or your business. France Law Firm has an estate planning attorney who is also a business tax attorney who can help ensure your estate plan, business plan, and tax plan all work together to benefit you now.

Taxes for 2024 apply to the tax returns you file in 2025, while taxes for 2023 apply to the tax returns you file in 2024 (current year).

Per-Barrel Oil Tax

The Inflation Reduction Act reinstated the Hazardous Substance Superfund, which adds yet another tax to each barrel of oil. This tax affects anyone who itemizes and claims fuel for their businesses, as the oil companies are going to pass that tax onto businesses and individuals. While the tax is new in 2023, it is retroactive to Dec. 31, 2016.

Standard Deduction

The standard deduction is changing for 2024. In 2023, it is $27,700 for a couple married filing jointly. For 2024 (taxes filed in 2025), you will have an increase of $1,500 for a standard deduction of $29,200. Rates for other filing statuses are:

• Single People and Those Married Filing Separately: $13,850 for 2023 and $14,600 for 2024
• Heads of Households: $20,800 for 2023 and $21,900 for 2024

Marginal Rates

The tax brackets are remaining the same as the 2023 tax brackets. For 2023 and 2024, the top rate is 37 percent for individuals making over $609,350 and for married couples filing jointly making over $731,200. The additional brackets are as follows:

• 35 percent for individuals making over $243,725 and married couples filing jointly making $487,450
• 32 percent for individuals making over $191,950 and married couples filing jointly making over 383,900
• 24 percent for individuals making over $100,525 and married couples filing jointly making over $201,050
• 22 percent for individuals making over $47,150 and married couples filing jointly making over 94,300
• 12 percent for individuals making over $11,600 and married couples filing joint making over $23,200
• 10 percent for individuals making $11,600 or less or married couples filing jointly making $23,200 or less

Alternative Minimum Tax

The Alternative Minimum Tax (AMT) limits deductions. If an individual or married couple itemizing has too many deductions, the AMT kicks in, so you can’t lower your tax responsibility too much. In 2023, the AMT exemption is $81,300 and starts to phase out at $578,150 for individuals and 126,500, phasing out at $1,156,300 for couples filing jointly.

For 2024, the AMT kicks in at $85,700 for individuals and starts to phase out at $1,156,300.

Earned Income Tax Credit

Qualifying taxpayers who have at least three qualifying children can receive an Earned Income Tax Credit (EITC) of $7,830 in 2024 and $7,430 in 2023.

Estate and Gift Taxes

The basic exclusion for estate taxes (commonly known as the Federal Death Tax) for those who died in 2023 is $12,920,00, and in 2024, $13,610,000.

The annual gift tax exclusion is $17,000 for 2023 and $18,000 for 2024.

Contact France Law Firm

These are just a few of the taxes that will affect the average person or couple filing jointly. Several other changes include the limitation for the qualified transportation fringe benefit, employee salary deductions for contributions to health flexible spending accounts, self-only coverage in Medicare Savings Accounts, foreign earned income, and the maximum credit allowed for adoptions.

When it’s time to start your taxes for 2023 and if you need to make changes to your estate plan based on tax changes for this year and next year, contact a tax attorney and estate planning attorney at France Law Firm for a consultation.

The post Understanding the New Tax Laws: What You Need to Know for the Upcoming Year appeared first on France Law Firm.

The saying “The only things certain in life are death and taxes” holds true, but individuals can exercise control over their financial destinies by adopting smart financial decisions for optimal tax outcomes. Year-round tax planning offers a proactive approach, allowing individuals to make informed choices that can lead to significant savings during tax season. Seeking guidance from a business attorney with expertise in estate planning is invaluable in navigating factors such as retirement accounts and staying abreast of tax law changes.

Components of Year-Round Tax Planning

To effectively engage in year-round tax planning, continuous analysis of one’s financial situation is imperative. Regular scrutiny enables informed decision-making to minimize tax liability, presenting numerous opportunities throughout the year to achieve this goal. Key components include:

Review Your Financial Situation

Regularly assess investments, income, and expenses. Major life events, such as marriage, childbirth, career changes, and the loss of a loved one, should be carefully considered as they impact tax situations.

Check Withholding and Deductions

Ensure that withholding allowances are appropriately set to prevent overpayment or underpayment. This practice ensures that the IRS doesn’t hold onto your money without interest.

Investing

Understand the tax consequences of investments, particularly distinguishing between short-term and long-term capital gains, with the former usually subject to higher tax rates.

Tax-Advantaged Accounts

Contribute to tax-advantaged accounts like 401(k)s, Health Savings Accounts, and IRAs. Such contributions not only reduce taxable income for the year but also provide long-term financial benefits.

Stay Informed of Tax Law Changes

Tax laws are subject to constant change, impacting tax liability. Collaborating with Florida tax attorneys can help stay informed and make well-informed financial decisions.

Charitable Giving

Seek opportunities for tax-deductible donations to qualified charities and maintain detailed records of charitable contributions.

Retirement Planning

Leverage strategic financial planning for retirement, taking advantage of tax breaks and employing tax-efficient withdrawal strategies from retirement accounts.

Estate Planning

Utilize estate planning to minimize tax burdens, protect assets during incapacitation, and secure financial interests for future generations.

How Estate Planning Eases Current Tax Burden

Contrary to common misconceptions, estate planning is not exclusive to the wealthy. Anyone with assets, including a car and a bank account, benefits from an estate plan. Estate planning serves various purposes, such as:

• Protecting assets during unexpected incapacitation.
• Addressing capital gains, estate taxes, and probate costs.
• Tackling current taxes through gifting, charitable giving, and trusts.
• Reducing the taxable value of the estate.
• Safeguarding assets for future generations.
• Preventing excessive IRS deductions.

Implementing year-round tax planning and crafting an estate plan empowers individuals to minimize tax burdens through strategic donations and wise investment decisions. It facilitates informed decision-making during significant life changes like marriage, parenthood, relocation, or home building.

Consult the Tax Attorneys at France Law Firm

For personalized tax planning and guidance on creating a year-round tax plan, individuals can turn to the tax attorneys at France Law Firm. Schedule a tax planning consultation to embark on the journey of comprehensive year-round tax planning that aligns with your financial goals and minimizes tax liabilities.

The post Year-Round Tax Planning: Making Smart Financial Decisions for Optimal Tax Outcomes appeared first on France Law Firm.

What is a Revocable Trust?

You might have heard the term “living trust.” That is the same as a revocable trust. This type of trust is very flexible – you can change or revoke the trust any time you want. They are great for managing your assets while you are living. For example, if you get into a car accident and can’t handle your finances for several months, the trust allows someone else to manage your assets. It also helps simplify estate administration and saves your loved one’s time.

A revocable trust that is properly set up can also help avoid probate. Even with probate attorneys helping, the process in Florida is time-consuming. It can also be costly. When you place assets into a revocable trust, most usually bypass probate, which means your loved ones can access their inheritance more quickly.

Another benefit of a revocable trust is that it keeps your assets private. If you list them in a will, once that will is filed with the probate court, it becomes a matter of public record. Revocable trusts remain confidential.

Finally, the best benefit of a revocable trust is that you can change it at will. Got married? You can change the trust. Sold a house listed under the trust? Amend the trust to remove it. Buy a new house? Amend the trust to include the house. Whether it is the birth of a child, a new marriage, divorce, or other changes, you can make the changes you need with a revocable trust.

What is an Irrevocable Trust?

If a trust is irrevocable, you cannot make any changes to it without the consent of the beneficiaries. However, they have more advantages than revocable trusts – for some. When you create an irrevocable trust, you are the grantor, and you transfer ownership of your assets to a trustee for the benefit of your beneficiaries. However, once you create an irrevocable trust, it’s very difficult to revoke or change it.

While the loss of control over your assets may seem daunting, it is what protects assets from creditors and minimizes estate taxes. Irrevocable trusts also ensure no one interferes with your wishes. Estate probate attorneys can help you draft an irrevocable trust with these and other benefits.

One of the most common reasons people choose irrevocable trusts is for asset protection. Because the grantor transfers assets out of your name and into the trust’s name, those assets are not vulnerable to most of your creditors, judgments, and legal claims. Irrevocable trusts are common for people in high-risk professions or those who want to preserve family wealth.

An irrevocable trust is also a powerful estate planning tool for estate taxes. Most assets transferred to an irrevocable trust are no longer taxable to the grantor upon his or her death. You can also use an irrevocable trust as part of a gifting strategy – when you gift assets, you are limited to the amount by the annual gift tax limits. You can transfer some of your wealth to an irrevocable trust to reduce your overall tax liability. However, the tax laws change every year – always discuss this strategy with asset protection attorneys to ensure this is the best option for you.

You can also use an irrevocable trust to help with Medicaid eligibility. If you use a certain type of trust, those assets may be exempt from the Medicaid eligibility calculations.

Contact a Wills and Estate Lawyer

Regardless of your age, creating an estate plan can only benefit you. As long as you have assets, you should have an estate plan since you never know whether an accident or sudden illness will render you incapacitated or take your life. Contact France Law Firm today for an estate planning consultation.

The post Revocable vs. Irrevocable Trust appeared first on France Law Firm.

Responsibilities of an Executor

An executor is a legal appointment in a will that names the person or persons who will carry out the terms of the will after the death of the testator. Executors have a legal duty to act in the best interests of the estate and its beneficiaries, and they are often granted specific powers and responsibilities by the court. These include:

• Notify necessary agencies and organizations about the death. This must be done immediately, especially for banks, creditors and other financial institutions. For instance, credit card providers should be notified after final expenses are made to avert risks of fraudulent use. The notice of death can also kickstart the process of receiving life insurance payments and other death benefits.
• Apply to obtain probate of the will from the court. This is a legal authorization to execute the will.
• Carry out any instructions about the deceased’s funeral that may be outlined in the will. The executor may obtain funds from the deceased bank account to cover the funeral costs.
• Identify and pay any outstanding bills or debts of the deceased, such as loans and credit card balances, using funds from the estate. They must also file and pay any estate taxes owed to the government.
• Document all the deceased’s assets and ensure they are protected from theft, damage and degradation as the estate administration process progresses.
• Manage the assets of the deceased. This involves creating the estate account, offsetting property bills, terminating recurring expenses such as subscriptions or memberships and paying off estate taxes.
• Identify and maintain communication with the beneficiaries. Robust and professional communication with the beneficiaries is vital to help forestall any disputes that may arise.
• Value the estate contained in the will. Assets range from simple items like clothing or artworks to large or valuable items such as jewelry, cars, stocks and real estate. All estate assets must be valued by authorized appraisers or credible sources.
• After the necessary deductions, the executor may distribute the remaining assets to the beneficiaries according to the terms of the will and close the estate.

Considerations When Choosing an Executor

Family disputes, legal claims against the estate and excessively demanding beneficiaries are common problems that may arise in the estate administration process. Where executors are acquainted with or related to the beneficiaries, resolving these conflicts can be challenging as the executor struggles to make judgments that are in the best interests of the beneficiaries while still attempting to carry out your final desires.

Also, most persons chosen as executors have little knowledge of the requirements and intricacies of the legal process, leading to delays in estate administration and costly mistakes that may attract unfavorable sanctions. For these reasons, you should appoint an experienced wills and estate lawyer to serve as your executor or to work directly with your executor. This is to ensure that the administration of your estate is efficient and seamless.

France Law Firm has a team of dedicated and professional estate planning attorneys who are committed to providing the assistance you need as you plan your estate.

The post Choosing the Right Executor for Your Will appeared first on France Law Firm.

One area where many small business owners flounder is taxes. Even if you’re paying taxes on time, you may be overpaying and not realizing it. Or, you could be doing something wrong and setting yourself up for an audit in the future.

Overall, the best strategy is to prepare for taxes ahead of time so you’re not left with a significant financial burden at the end of the fiscal year. So, here are some crucial tax planning tips to help you stay on top of everything. Best of all, you can have a business tax attorney by your side with France Law.

Make Sure to Itemize Deductions

Business expenses can add up, and they can help you minimize how much you pay in taxes every year. Some examples of business deductions can include:

• Rent or Mortgage Payment - If you work from home, you can deduct a portion of your rent or mortgage payment. If you lease a storefront, you can also deduct those payments from your earnings.
• Utility Bills – With a home business, you can claim some of your bills against your income. Otherwise, utility bills for a dedicated office or storefront can be deductible.
• Inventory or Equipment – You may have to buy equipment to run your business, which may include hardware and software. Also, if you sell products, you can deduct the inventory you keep on hand to make those sales.
• Payroll - If you have to pay employees to run your business, you can deduct their payroll against your earnings. However, you also have to pay your portion of the payroll tax, so don’t forget about that.

Overall, anything you spend money on to run your business (within reason) can likely be deducted. By tracking and itemizing these expenses, it’s much easier to lower your taxable income and your overall financial burden.

Accelerate or Defer Payments and Invoices

If your business is service-based, you have to send invoices to clients and wait for their payments. While it can be annoying to wait for cash to come in, you can use that to your advantage toward the end of the year. The way to do this is to accelerate or defer payments as necessary to improve your tax liability.

Accelerating your payments means asking for clients to pay their outstanding invoices before the end of the calendar year (December 31st). You may want to do this to lower your tax rate for the following year, particularly if you’re already in a high bracket for the current year.

Deferring payments means having clients pay after the end of the year so you don’t have to pay taxes on those earnings right away. Deferring payments can work well to lower your overall bill, but you have to consider how that will affect next year’s tax burden.

Working with tax attorneys can help you understand whether either option is viable or necessary for your business.

Utilize Retirement Accounts

Traditional IRAs and 401k accounts are great for tax purposes because you can deduct contributions from your total income. So, it’s best to contribute as much as possible throughout the year to lower your tax payment.

For a non-Roth IRA, the maximum contribution is $6,500 for 2023 (or $7,500 for those over 50). With a 401k, the maximum contribution is $22,500 for the year ($30,000 for those over 50). As you can imagine, maxing out these accounts can limit your liability significantly.

Take Advantage of Tax Credits

The IRS has a full list of business tax credits that can help subsidize your operations and reduce your overall tax burden. While your business may not qualify for many of these credits, some common examples include:

• Work Opportunity Tax Credit – If you employ individuals from a marginalized group, you can claim up to 40 percent of their earnings in the first year and half of those earnings in the second year.
• ADA Access Credit – If you employ individuals with special needs, you can upgrade your office to make it more accommodating with accessibility features. You can then claim up to half of all qualified costs, up to $10,250.
• Retirement Plan Credit - Setting up an employee retirement plan costs money, and you can recoup up to $5,000 of those costs with this credit.

Don’t Forget to Report Losses

Business losses can be a huge advantage when it comes to reporting your taxable income. While operating at a loss can be a bad sign, there are ways to utilize those losses and benefit in the long term. A loss simply means that you spent more than you brought in over a given period, such as a fiscal quarter. By reporting those losses, you can either lower your tax burden or claim a refund for taxes you’ve already paid.

It’s imperative to know that you can’t intentionally force your business to lose money to pay fewer taxes (as that’s fraud). However, if you have a slow quarter, you can still benefit slightly.

Work With a Tax Professional Like France Law

France Law specializes in helping small business owners like you navigate the complicated world of taxes. Having experienced business attorneys by your side allows you to maximize your earnings and minimize your tax burden. We can help you set up your books, manage your cash flow, and itemize your deductions so your business is a well-oiled machine. Don’t wait for tax season to start – contact us today!

The post Tax Planning for Small Business appeared first on France Law Firm.

What Is Gift Tax?

A gift tax is a federal charge that is imposed by the Internal Revenue Service (IRS) on property that’s transferred from one person to another person who pays nothing or only a portion of the actual worth in return. Additionally, if a person sells a product at less than its value or offers an interest-free or low-interest loan, it may be considered a gift.

The gift tax is levied on the donor and falls between 18%–40% of the asset’s original worth. Though this may sound cumbersome if you’re considering gifting away assets such as money, real estate, vehicles, art or securities such as stocks and bonds, with the right tax attorney to guide you through the IRS provisions, you may not pay a dime in gift tax.

Gift Tax Exemptions

While gift taxation typically applies to sizable gifts, certain exemptions exist to reduce the tax burden on Americans. These exclusions represent the number of gifts you can make yearly and over your lifetime without incurring taxation. These include:

Annual Exemption

The annual exemption is a provision by the IRS that allows you to make gifts up to a certain amount each year without incurring tax. As of 2023, the annual exemption allows you to make gifts of up to $17,000 yearly to any number of recipients. For example, if you have two children, you can transfer as much as $17,000 per child for a total of $34,000, entirely tax-free.

Lifetime Exemption

The lifetime exemption is another provision by the IRS that allows you to make gifts up to a certain amount over your lifetime. It represents the total amount you can give away throughout your life without incurring gift tax. As of 2023, the IRS set the gift tax lifetime exemption at $12.92 million per individual. This means that, even if you exceed the annual exclusion amount, the excess is simply deducted from your lifetime exemption when you fill out the IRS Form 709. For example, if a father chooses to give a $20,000 car to his grandson on his college graduation, the excess of $3,000 above the annual limit of $17,000 will be subtracted from the lifetime exemption.

Not Every Gift Is Taxed

For certain gifts, you don’t need to pay tax, and you don’t need to apply for exemptions, either. These gifts are entirely tax-free. They include:

• Gifts given to a spouse or dependent (who are U.S. citizens)
• Gift payments for school tuition (made directly to the school account)
• Gift payment for medical care (made directly to the hospital’s account)
• Charitable donations
• Political contributions

Helpful Tips for Gift Tax Planning

Do you want to reduce your estate tax? Gifting your property helps to avoid these unnecessary expenses. Some other tips to help you with gift tax planning include:

• Being married doubles your gift tax exemption amounts, meaning you and your spouse can give $17,000 each for annual exclusion and $12.92 million each for lifetime exemption ($34,000 and $25.84 million, respectively).
• The IRS raised the exclusion amounts from $16,000 and $11.7 million in 2022 to $17,000 and $12.92 in 2023 — the highest ever.
• Consider trusts to maximize exemption.
• Hiring an experienced tax attorney for expert advice and guidance will help to enjoy the full benefits of gift taxation exemptions.

The Experienced Estate Planning Attorneys at France Law Can Help You Navigate Gift Tax Laws

Are you looking to create a will, manage your estate or plan your federal income tax or gift tax? The business law attorneys at the Florida-based France Law know the best strategies to help you have a stress-free journey, accomplishing your objectives with no necessary taxations or complications. Contact us today to book a consultation.

The post Gift Tax Basics appeared first on France Law Firm.

1. Tax Reduction Strategies

With probate, the government collects taxes on estate worth over a certain amount. An estate planning attorney can help you create an estate plan that minimizes the taxes due. Factors that affect taxes include:

• The gross estate value.
• Expenses incurred during the estate settlement.
• The debt you owe at the time you die.
• The deductions your estate can take.

The Internal Revenue Services figures estate taxes on the estate’s net worth – gross minus expenses, debt, spousal transfers via a trust, and charitable donations. If the estate tax exemption is larger than the net value of the estate, you most likely won’t have to pay taxes.

2. Preventing Fighting in the Family

When someone dies, family members inevitably start fighting over who gets what, especially if you decide to leave more money to one family member over another or leave a family member out of your Will. When you clearly define who gets what, you can minimize the risk of a contested probate case. Creating trusts (you can have more than one) also minimizes family squabbles, especially when you have children as a result of more than one marriage or relationship.

3. Avoiding Costly and Lengthy Probate and Publicity

If you die without a Will, the state determines who receives your assets. You have no choice in the matter. An estate plan ensures that your wishes are met. It also reduces the length of the probate process and can keep the public out of your business. Wills are public documents filed with the probate court. However, Florida does not require you to file a trust. If you put all your assets into a trust, the public does not know what you have. Probate attorneys at France Law can help you create an estate plan to avoid this lengthy and costly process.

4. Planning for Unexpected Incapacitation

An estate plan isn’t only for your death. If you become incapacitated because of an illness or accident, your assets are at risk. The court could appoint a guardian you don’t agree with or someone that would steal from you. Creditors could put liens on your assets.

An estate plan consists of several documents, including a Will, trusts, financial power of attorney, healthcare power of attorney, parenting plans if you have minor children, a living will, and more. These documents ensure that those you choose to care for you and your assets are those you trust.

Trust France Law Firm With Your Estate Planning

Estate planning attorneys customize documents that are tailored to your specific needs. When you opt for the do-it-yourself version, you get fill-in-the-blank documents that will most likely not meet your needs unless you have a very basic estate. However, even if you are younger and don’t have many assets, you will most likely acquire assets over time.

Each time you purchase another asset, such as a home or another vehicle, you get married, increase your savings, and make other life choices; an estate planning attorney can easily update your estate plan to ensure you are protected in the event of an unexpected accident or illness.

Contact an estate planning attorney at France Law for an estate planning consultation.

The post Top Reasons to Hire an Attorney for Estate Planning appeared first on France Law Firm.

Here are some tips to navigate the complexities of business taxation that can help you reduce your tax burden or even reduce the risk of an audit.

Retain Business Law Attorneys

A Florida business law attorney, like the tax attorney at France Law, has experience in tax laws that affect businesses, including choosing the best entity type and helping you through your years in business. Tax attorneys can do your taxes like an accountant, but they also know the laws and must keep up with all of the new tax laws.

Always Keep Adequate Records

While it’s tempting to throw your receipts in a box and deal with them at the end of the year, doing that could increase the risk of an audit. If you lose a receipt or miscategorize it, it could impact your tax obligation. Keeping receipts in date order and separating them by category makes your federal taxes much easier – and you’re sure not to miss a significant deduction.

Part of keeping adequate records is separating business and personal expenses. If you commingle your expenses, the IRS can start looking through your personal accounts for business expenses.

Claim All Income

Make sure you claim all of the income you earn, even if someone doesn’t give you a 1099. If you don’t keep track of your earnings in an accounting program, keep a spreadsheet of everything you earn. Even though your clients do not send you a 1099, they are still reporting the income you earn to the Internal Revenue Service, as it is an expense for them.

Many clients no longer send 1099 forms if they pay you via PayPal or another online processor. Some processors send you a 1099 based on the amount you ran through the processor and / or the number of payments you received. When that happens, and a client pays you, you end up with two 1099 forms for the same income. Thus, some clients stopped sending 1099 forms.

Know What Gross Income and Net Income Is

Gross income is what you earn before any deductions, including the cost of goods sold. Gross profit is what you have when you subtract the total cost of goods sold.

Net income is gross income minus the cost of goods sold, operating expenses, interest on loans and debts, depreciation, income taxes, overhead, and other government deductions.

When selling goods, you must know what your realized profit is, or you could end up losing money. For example, if you sell Widget A for $100 and your cost of goods is $25, you might think your profit is $75. However, you must also subtract all the other expenses that go into making Widget A. If the listed expenses exceed $75, you will take a loss on that product.

Manage Payroll

If you do not do payroll yourself, be sure to find a reputable company to do it for you. You could find that the company deducts taxes but never sends your payroll taxes in – and then you’re on the hook for anything the payroll company didn’t pay. Always check your accounts.

Contact France Law

Business law attorneys and tax attorneys can reduce the stress of tax time by helping with your taxes and ensuring you set your company up in a way that best benefits you. Contact the tax attorneys at France Law for help with your yearly federal taxes and setting up a company that best benefits you and your business.

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