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265 items found for "income tax"

  • Houston Probate Lawyers Answer, “Will My Inheritance Be Taxed?”

    Income Taxes The IRS requires everyone to claim every source of income when they file a tax return, however the IRS does not consider inheritance to be part of your income, so you likely do not have to claim it on your tax return. Capital Gains Tax You have to pay capital gains taxes anytime a gain is achieved. Death Taxes There is a federal estate tax that applies to any asset transfer that is valued over $5.49

  • Considerations Before Owning a Business with Your Spouse

    This means that they are not subject to corporate income tax. appropriate amount of income tax. In addition, you will pay self-employment taxes on business income (i.e., Social Security and Medicare tax and self-employment tax, and the spouse who is an employee pays income taxes according to their business owners must pay quarterly state and federal estimated income taxes.

  • 5 Things You Need to Do After Probate is Over

    the validation of the will, the appointment of an executor or administrator, the payment of debts and taxes Once all debts and taxes have been paid, the executor or administrator will distribute the remaining File Estate and Income Tax Returns After probate, you must file estate and income tax returns for the This includes filing a final income tax return for the deceased person and an estate tax return (if necessary If you are unsure how to file these returns, consulting with legal and tax professionals is important

  • How President Biden’s Proposed Tax Plan Could Impact Your Estate

    In keeping with campaign promises, he plans to pay for these plans by raising taxes on corporations and initial campaign promises, though, President Biden is no longer proposing an expansion of the estate tax His proposal aims to increase income and capital gains taxes while also eliminating the step-up basis Proposed Changes President Biden has proposed raising the top marginal income tax rate from 37 percent The current policy allows individuals to bypass capital gains taxes when assets are inherited.

  • Inherited an IRA From a Parent? 4 Rules for Inherited Retirement Accounts

    number of choices when it comes to distributing the funds in the account, many of which are subject to income tax and other penalties. The beneficiary may be required to pay income tax on the amount withdrawn, which is calculated based on the beneficiary’s individual tax bracket. Roth IRAs Inherited Roth IRAs are not subject to income tax when received by a beneficiary.

  • The 4 Most Common Types of Trusts and Their Benefits

    For example, if the trust generates income, it may be subject to income taxes higher than individual At Your Legacy Legal Care, we utilize an irrevocable trust that provides asset protection, income to Grantors, and no separate tax return. certain tax benefits, which can ultimately reduce taxes owed on an individual’s estate. 4. For example, while revocable living trusts are taxed similarly to personal income taxes, irrevocable

  • A New Era of Estate Planning

    This could easily lead to adverse tax consequences in the future. Reviewing a pre-2013 estate plan may be really beneficial for higher-income individuals. are new techniques and strategies to help them take advantage of the new rules to minimize estate and income tax liability. Thus, if those assets appreciate in value, they may create an unexpected income tax hit for the heirs

  • Powerful Estate Planning Tools for Charitable Giving

    way to meet RMD requirements while benefiting your favorite charity and excluding an amount from your income Normally, you are subjected to capital gains taxes on the appreciation when selling stock. By gifting the stock to charity, though, you will receive a charitable income tax deduction equal to This is a great way to get around capital gains taxes while also giving back. charities are tax exempt.

  • What Is the Difference Between a Trust and an LLC?

    This explains why some trusts can help minimize or avoid estate taxes. LLCs also are not taxed at the corporate level. Instead, LLC owners pay taxes on business profits on their personal income tax return. stipulate in the operating agreement that, when you die, the business passes to your heirs, or the income Those with large estates can use a family LLC structure to minimize gift and estate taxes.

  • Do You Need an Estate Plan If You Are Single?

    Charitable trusts are separate legal entities that hold assets for you and give you tax advantages. arrangements as either a charitable remainder trust or a charitable lead trust – both options come with income tax benefits.

  • What Happens in Probate Court? A Comprehensive Guide

    Estate Tax and Income Tax Returns – The executor must file all required final individual, estate, and inheritance tax returns. Filing Necessary Tax Returns The executor must file applicable tax returns on behalf of the estate, including estate tax returns. Any taxes owed must be paid out of estate proceeds.

  • Estate and Gift Tax Rate Hikes: What Does This Mean for You?

    “For the 99.5 Percent Act” was introduced, increasing the odds of sweeping federal estate and gift tax The proposed changes would significantly reduce the current federal gift and estate tax exemptions. Proposed Changes In 2021, federal estate and gift tax exemptions are $11.7 million per person and $23.4 Currently, estates in excess of more than $11.7 million are taxed at a flat 40 percent on the excess This may potentially subject assets owned by the grantor to the estate tax.

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