Taxes and probate laws are not always straightforward and can contain loopholes that cause confusion. By enlisting the services of an experienced tax attorney will ensure that you or your business are following the law and filing the proper forms.
Types of Taxes that Affect Individuals and Businesses
Taxes that affect both individuals and business include income taxes. The personal tax system can vary but usually has several brackets, with different tax rates in each, which are indexed annually for inflation.
Some residents may qualify for a credit that offsets the sales tax paid on groceries may also apply or credits for taxes paid to other states and for donations to educational and certain non-profit entities.
State Sales Taxes and More
State sales tax varies from state to state. The tax applies to the sale, rental or lease of tangible property and some services. Additional taxes apply to lodging services and campgrounds, while some resort cities and counties have an additional sale tax option. A use tax, imposed at the same rate as a general sales tax, may also apply in some circumstances. It is a collection for consumption, use or storage of goods when sales tax doesn’t apply. The use tax goes directly to the state instead of the seller of the goods.
Estate Taxes and Probate
Probate is the official manner through which a deceased person’s estate is settled. Not all estates or assets are subject to probate. Placing assets in a living trust can also keep assets away from probate.
When probate does occur, most states have three kinds of proceedings: informal, unsupervised and supervised formal. Most probate proceedings are informal and usually occur when beneficiaries and heirs get along and there are no creditor problems. Unsupervised probate involved a court proceeding where a judge must approve actions such as the sale of real estate or distribution of assets. Supervised formal probate occurs when a judge must approve the distribution of all assets. In such an instance, the best course of action is to work with a tax attorney.
Both Tax Law, and Probate law can be confusing and complicated. The good news is that you don’t have to try and navigate the proceedings alone. Contact an experienced probate attorney or tax law attorney in your area for a consultation.
Buying or selling real estate is probably one of the most significant financial decisions you will make in your life. It involves property law, which is not only unique but also raises issues of practice and complexities that are not present in other types of transactions. A real estate attorney is trained in these areas of law and has the most experience to deal with any issues that arise from real estate transactions.