It’s The Holiday Season. Can Your Gifts Be Taxed?
The holiday season is upon us. The malls are beginning to pack and the word “Sale!” seems to be popping up everywhere. With all this gift-giving, a lot of us don’t stop to thinking about how the gifts we give & receive may affect our taxes.
Now, little things like CDs and clothes have no value. But bigger gifts, like cars, vacations, and real estate do.
Death & Taxes has a good series on gift tax up.
It’s 4 parts:
Intro: What Is Considered a Taxable Gift
Credits and Exclusions
The “Unified” Credit: You can give up to $1 million in your life without having to pay tax.
Conclusion: When To Hire a Professional to Arbitrate the Giving
Further Reading:
Taxable Income & Gifts: Part 1
Taxable Income & Gifts: Part 2
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Capital Gain or Ordinary Loss
Profitable sales and involuntary conversions of Section 1231 assets are generally treated as capital gain, except for profits on equipment (44.1) and real estate allocated to recaptured depreciation (44.2), and losses are deducted as ordinary loss. However, the exact tax result depends on the net profit and loss realized for all sales of such property made during the tax year. Under the netting rules explained at 44.8, the net result of these sales determines the tax treatment of each individual sale. In making the computation on Form 4797, you must also consider losses and gains from casualty, theft, and other involuntary conversions involving business and investment property held more than one year. Follow the Form 4797 instructions.
How an Estate Tax Attorney In Dallas Can Help
It is almost impossible to avoid the IRS completely; even when you die, the IRS has their hand in your pocket. While many people try to sort out their various estate issues and tax problems by themselves it can get overwhelmingly frustrating and most people end up just using an estate tax attorney to sort out their IRS problems in Dallas.
There are a number of estate tax attorneys in Dallas that can help the living come up with solutions with regard to their final tax payments as well as those who are struggling with a Will or estate that is in probate and the IRS is demanding taxes from.
Although the IRS tax laws remain the same from state to state, estate tax laws differ. The estate tax laws in Dallas may be different than those in Chicago. If you move from state to state and have a living trust, which is a vehicle designed to eliminate or at least greatly reduce estate tax, it is important that you should try and get a new living trust made up in the state in which you live.
If you are in charge of an estate and have run into tax problems with the IRS regarding estate tax, you may be better off using the services of a tax attorney. You will find that some estate tax attorneys in Dallas will charge you a flat fee to take care of the tax problem whereas other tax attorneys will charge you by the hour. Whatever you do, avoid a tax attorney that will charge you by the hour. Dealing with the IRS can be very time consuming and may end up costing the estate thousands of dollars in legal fees. You are better off dealing with an estate tax attorney in Dallas who will charge you a flat fee to sort out all your estate problems.
Dealing with the IRS can be a headache even when everything is going well with your life. It is the last thing that you want to do when you are having problems or have gone through a loss like a death in the family. An estate tax attorney in Dallas can end up taking the burden of dealing with the estate tax off of your shoulders and dealing with it himself. You will not have to worry about phone calls and letters to the IRS as they can all come to and from the office of your attorney.
There are many times when you can deal with the IRS and tax issues yourself. When you have estate tax that is due on a Will or estate in which you are in charge, you should put the issue into the hands of a professional real estate attorney who is experienced in dealing with these matters and is up to date with the most recent laws regarding real estate. When you look for an estate tax attorney in Dallas, make sure that he or she has had plenty of experience in not only dealing with the IRS but also with estate planning. Once you find an attorney who you think is right for you, you can rest easier knowing that you are in good hands and no longer have the nightmare of having to deal with the IRS directly.