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Gig Harbor Estate Planning And Probate Blog

TAX BASIS IN REAL ESTATE TRANSFERS

Real Estate transfers occur either by sale, trade, gift or at death. The income tax impact differs in each instance. I need to note at the onset that my Capital Transactions textbook at the University of Denver tax school was about 3 ½ inches thick. So, this summary is not intended as an exhaustive explanation of all tax considerations. It is only intended to identify the major distinctions between the four types of transfers.

Strategies to help solve a property dispute

Imagine buying a piece of property and starting renovations. Things are going well until your neighbor serves with you with a cease-and-desist order. Apparently, your renovations have spilled over onto his property. However, according to the survey you had performed prior to the purchase, you are well within the boundaries of your property.

Property disputes can often turn into nasty court battles. Before you find yourself in the middle of a legal battle without any support, contact a local Gig Harbor real estate attorney for help with your case. Read further for some tips to help you resolve your property dispute.

3 facts to know about using a special needs trust

A special needs trust makes sure your child with special needs has what he or she needs in the future in the event that you can no longer be there to provide or care for your son or daughter. The trust may also be created to give another person control over your child's property, real estate and finances. The person who takes over control of these assets is known as a trustee, and he or she is in charge of doling out and managing assets for your child until your child no longer needs that assistance. Here are three facts you need to know about setting up a special needs trust.

The basics of appealing an IRS action

You just finished a grueling audit that seemed to go on for months. As of yet, the IRS has not notified you of an adjusted tax liability, but you want to be prepared in case it happens. Knowing what to expect will help you prepare for the meeting with the agent.

As with any audit, there is always a chance that you could be facing a significantly increased tax bill depending on how the agent interprets the tax law. You trust that your accountant prepared the return conservatively and that you paid the correct amount of taxes on all of your sources of income. Fortunately, if the IRS concludes that you owe additional taxes, you have the right to appeal the decision. A Washington attorney experienced with tax law can help you with your appeal.

Creating a trust in your 30s: Learn about the types first

Once you reach your 30s, it's safe to assume that you have a better idea of what you want to accomplish in the future. By now, you may even own a home and have a child (or several children).

With all this in mind, it's important to create an estate plan that can give you peace of mind. You don't expect anything bad to happen to you, but you never know what the future will bring. For this reason, it's better to be safe than sorry.

Small business owners must prepare for the inevitable

Your family has come to enjoy the finer things in life, and that is all thanks to your hard work. You have built your company from the ground up and now you are getting to enjoy doing the things you have always wanted to do. Even though things seem great right now, you should stop and think about what is going to happen if you die unexpectedly.

Be honest. You are at the helm of your company. Decisions that have to be made, especially the big ones, fall on your shoulders. You might have a staff that can handle things for a week or two while you are on vacation, but your phone or computer is probably always on. The thought of having to handle a problem from afar is probably floating around in your mind. If you aren't there to handle things, the company would probably enter a downward spiral.

What to do if the IRS claims you owe 14 trillion in taxes like this Brit

This past year, a British man named Giles Hembrough was contacted by the HMRC (Britain's tax collection agency) with a notice that he owed over 14 trillion pounds in taxes. To put that number in perspective, it's enough money to buy 93 million Lamborghini cars or 46 billion iPhones.

Trading your space, services or stuff for cash? Beware taxes

The sharing economy is not a new concept. People have always rented out spare rooms, loaned their cars to other people and engaged in other types of "sharing" in exchange for money.

Improved technology, though, provides platforms for consumers to loan money, borrow goods, provide services and make exchanges with more convenience. This market allows individuals to gain revenue from assets they own. Sometimes these arrangements are paid for "in kind." An example of this would be bartering. However, most often these items are paid for in cash.

Property dispute with your neighbor? Here's what NOT to do...

Individual land ownership is at the heart of a free economy. However, it's not always easy to figure out where property lines lie. Even the most advanced surveying equipment or detailed parcel descriptions can leave room for doubt. These gray areas sometimes lead to bitter disputes between neighbors.

Many of us have been there: You've built a garage, shed or deck, only to be faced with a neighbor's contention that the structure juts into their property. Or perhaps you're on the other side and your neighbor has encroached onto your property. There are countless potential sources of conflict between neighbors: Fences, trees, driveways, pools, even gardens, to name a few.