Tax Law Blog

Tax audit triggers are on everyone’s mind. Many people are afraid to take deductions because they don’t want to get audited. A tax attorney can help alleviate your concerns with proper tax planning and preparation. Hiring a tax attorney doesn’t mean you won’t be audited. But, it does mean that you will be prepared to prove every deduction.

Divorce tax planning is important when dividing assets. Whether you are giving up or receiving assets you need to understand the tax consequences. The type of retirement plan (IRA or qualified plan) determines the rules that apply. It is essential that you plan which party will be responsible for which taxes. Be proactive. Knowing the proper language to use in the documentation is key.

A conservation easement tax deduction may significantly lower your tax bill. But, without a tax attorney’s advice you may end up like Mr. and Mrs. Belk. The Belks contributed 184 acres of a golf course to a qualified organization expecting a conservation easement tax deduction. But instead, they got an audit and a large tax bill.Your charitable contributions are important. You can help others while helping yourself.

Independent contractor taxes are calculated using Form 1099-Misc. Are you an independent contractor or consultant? If yes, then you are considered to be self employed. Not sure? Typically an independent contractor: (1) does not receive employee benefits such as health insurance or retirement benefits, (2) has a more flexible work schedule or location, and is (3) paid when the service is completed.

You must pay self employment tax and file schedule SE (Form 1040) if either of the following applies: (1) your net earnings from self employment (excluding church employee income) was $400 or more, or (2) you had church employee income of $108.28 or more. If you are self employed as a sole proprietor or independent contractor you generally use a Schedule C or C-EZ to figure net earnings from self employment.