Tax Relief Attorneys

Posted on April 16, 2021 by dayat

Tax-relief attorneys are attorneys who help taxpayers with tax-related issues and, in particular, assist taxpayers with obtaining all of the tax relief that they are eligible for from the federal and state tax authorities. Most tax-relief attorneys focus on providing their clients with services related to offer in compromise, full audit representations, and penalty abatement petitions. Tax-relief attorneys work as private practitioners or are employed with tax firms. Most of these tax firms have dedicated tax personnel who also undertake preparation of tax forms and filing of taxes, apart from helping clients with obtaining tax relief.

The federal and state tax authorities have numerous tax-relief programs that are aimed at reducing the tax burden on the taxpayers. Most of the tax-relief measures come under property tax relief, income tax relief, and relief for small business owners. However, working through the tax forms and finally obtaining the eligible tax relief is quite a challenge to many taxpayers. Tax-relief attorneys are particularly helpful in this situation since they are trained in taxation and law and are aware of the constant changes to tax regulations and legislations both at the federal and state levels. Since tax relief is targeted in a large part at taxpayers belonging to the low income and senior citizen categories, the services of a tax-relief attorney can be very crucial in ensuring that the tax relief is quickly and easily obtained.

In short, tax-relief attorneys are professionals who help with resolving tax-related issues. The broad services that they provide can be listed as settling tax debt for a fraction of the debt; stopping wage garnishment, tax levies, and property seizures; settling state and payroll tax; trust fund recovery; tax planning; audit representation; and investment advice. So, even though tax-relief attorneys focus on providing services related mostly to tax relief, they also engage in other tax-related work.

Posted in Uncategorized | Tagged , , | Comments Off

New Tax Relief for Small Businesses and Self-Employed Individuals

Posted on March 16, 2021 by dayat

There are various new tax relief credits and deductions that are available to small businesses. These are an ideal opportunity for any small business to reduce their tax liabilities. Some of these available tax relief options are explained here:

Small Business Healthcare Tax Relief

One of the new and major tax credits is the Small Business Healthcare Tax Relief. This tax credit is given to small businesses and small charities that employ a fair number of low income earning employees. The credit allows for such qualifying organizations to receive a tax break for the premiums that they have paid for their employee’s Healthcare. This tax credit runs from 2010 to 2013. The qualifying tax credit amount is a maximum of 35% of the premiums paid in a tax year for small businesses and a maximum of 25% for qualifying tax exempt nonprofit organizations. However, for the two qualifying years after 2013, the tax credit will be a maximum of 35% for qualifying nonprofit organizations and 50% for qualifying small business. The credit is set such that the smaller businesses and nonprofits with less than 10 full time employees and paying a wage-average of $25,000.00 annually get the greatest tax credit (the credit reduces for larger businesses and nonprofit organizations). For a small business or nonprofit organizations to qualify for this Healthcare tax credit, they must have a maximum of 24 full time employees and must also have a maximum annual average wage of $49,999.00.

Tax Deduction for Healthcare Cost of Self-Employed Individuals

The tax deduction for self-employed individuals who pay for their own Healthcare is another new tax relief that takes effect in 2011. The tax relief is part of the Small Business Jobs Act of 2010. Under this relief, the self-employed individual may reduce the taxable income for a given tax year with the premiums paid for his or her healthcare. The Healthcare coverage needs to be registered under the business name of the self-employed.

Tax Relief on Capital Expenditure for Small Businesses

This tax relief enables small businesses to claim the expense costs incurred in purchasing certain business assets under IRS Schedule 179-Property. Ideally, such expenses should be depreciated over several years. However, with this tax relief, a business can claim expenses up to $500,000.00 of the first $2 million of the cost of the property. The tax relief applies for both tax years 2010 and 2011. Come 2012, the allowed maximum that a business can deduct for capital expenditure will come down to $125,000.00.

Bonus Depreciation Tax Relief

Besides the 179-property relief, a small business can also deduct a bonus depreciation of 100% of the cost of qualifying assets if such assets were purchased after September 8, 2010 and put into use before January 1, 2011

Limitation on Car Expenditure

For business cars, there is a cap on the total amount of deductions that you can place both under the 179- Property tax relief and the bonus depreciation relief. For passenger cars, the total amount of deductions you can make in the first year of purchase is $11,060.00 and if you did not deduct the bonus depreciation relief, it goes down to $3,060.00. For trucks and vans, the maximum amount that you can deduct after making the bonus depreciation deduction is $11,160.00 and if you did not take the bonus depreciation deduction, you can deduct a maximum of $3,160.00 on the first year of purchase.

Robert L. Daniel and partners of Limon Whitaker & Morgan, for years have helped businesses and individuals Nationwide, with their delinquent IRS & State tax problems. The firm is based in Los Angeles, California USA. [http://www.limonwhitaker.com] / Tel:888.321.6188

You have permission to republish and use this article in y

Posted in Uncategorized | Tagged , , | Comments Off

A Guide to UK Pension Tax Relief

Posted on February 16, 2021 by dayat

There are different pension plans in action, and the plan that will be applicable to you would be dependent on a number of factors. At first, the choices and options may appear mind-boggling and overwhelming to you, but once you make up your mind to give some time to these tax relief schemes, you will be amazed to look at the sheer number of choices you have. For instance;

There are two types of pension plans; company pension plans and personal pension plans (PPP).

In company pension plans, you don’t have to worry about anything; your contributions for the pension will be automatically deducted, and tax deductions would be made in the similar manner. However, in personal pension plans, things are a little bit complicated. Let ‘s try to understand personal pension plans (PPP) in somewhat more detail.

How personal pension plans work?

If you are using a personal pension plan, then the relief that you will get would be depend on a number of factors. One of the most important factors is your tax payer status. That simply means, the PPP will give you tax relief depending on whether you are a high rate tax payer or a basic rate tax payer.

If you are one of the basic rate tax payers at 20% and make contributions to the personal plan, then most of the tax relief that you will get will be dependent on your pension provider. They will help you to claim the tax back from the relevant office. For instance, if you are paying the basic tax rate of 20%, you will get 20% tax back on your contributions. That simply means for every £100 you will get £120 in your pension fund. Similarly, if you are a higher rate tax payer at 40%, you will get a tax relief of 40%. However, the tax relief is available for only that amount of income that is taxed at 40%.

It’s also worth mentioning here that the tax relief you will get is claimed differently. While the initial 20% would be claimed from HMRC (Her Majesties Revenue and Customs), but the other 20% you have to claim from your tax office by showing them all the evidences of the payments that you have made in the pension relief scheme.

If you are a non tax payer, you can still get the tax relief by making these pension contributions. However, there is a limit of £2,880 a year, but you will still get the basic tax relief of 20% on your contributions. It simply means that if you invest £2880, your invested money will automatically be increased to £3,600.

Pension tax relief limits

One of the most important things that you should always remember to save yourself from tax penalties is that you should always be aware of the limitations while making your contributions. If you make contributions under the annual allowance, then you can get as much as 100 % tax relief on your contributions. You are eligible for 100% tax relief if you have paid the contributions before the age of 75 and all contributions are under annual allowance.

It’s important to note here that for the year of 2010-2011, the tax allowance is £255,000, as well as for the year of 2009-2010, it was £245,000. Also, if you have made contributions above the annual allowance and a separate life-time allowance; you may have to face tax penalties. There are some changes in the 2009 Budget. As from April 2011 the amount of tax relief will taper if your income is £150,000 or more. These changes are introduced on 22 April 2009, because it came to the notice of the tax department that some people were making extra pension contributions, and they wanted to prevent them from receiving full tax relief before April 2011.

No matter which pension investment scheme you choose, but you cannot take away the fact that this is one of the most important things you do for your retirement planning and also for getting a substantial amount of tax relief.

Here at silvinvest we highlight several superb Forestry Investments which can be used for pension investment via self invested personal pension. Register to gain access to the Sales Brochures and interact with our Potential Returns Calculator.

At silvinvest we highlight several superb Forestry Investments. Register at [http://www.silvinvest.co.uk] to gain access to the Sales Brochures and interact with our Potential Returns Calculator.

Posted in Uncategorized | Tagged , , | Comments Off

Tax Relief

Posted on January 16, 2021 by dayat

Tax relief is any deduction from taxes allowed to taxpayers by federal or state tax authorities for certain expense categories. An example is allowing the deduction of interest paid on educational loans from the income tax payable. Tax relief also takes the form of full or partial tax exemptions for low- and moderate-income families. In some cases, tax relief includes releasing citizens from paying taxes immediately, particularly during cases of natural disasters and similar contingencies. An example is tax relief granted to families following the devastation caused by hurricanes in the south during 2005.

Tax relief helps everyone, particularly the low-income families. It is normally provided as deductions from any of the various taxes like income tax, state tax, property tax, etc. In 1992, a tax-relief program introduced by the Internal Revenue Service was specifically targeted at helping individuals and corporations settle back taxes. This helped persons who were in financial hardship to pay back at least a part of the taxes that they owed. This process, which allows taxpayers settle the back taxes that they owe for less than the full amount, is known as an offer in compromise.

Normally, tax relief works through a process where tax authorities review the ability of a taxpayer to pay taxes based on information regarding the person’s income and assets. A tax relief is granted if it’s found that the recovery of a certain tax is unreasonable on the grounds that asset values have significantly decreased. However, tax authorities grant a tax relief only if the taxpayer’s request for relief is based on a valid reason as defined under law. Tax relief is also granted under special circumstances. In the case of taxes on inheritance and gifts, a relief can be granted if it’s ascertained that the value of the assets received has significantly reduced.

Posted in Uncategorized | Tagged , , | Comments Off

All About Inheritance Tax Relief

Posted on January 16, 2021 by dayat

The amount of revenue that the UK Government derives from Inheritance Tax is growing all the time with significantly more estates being liable to the Tax. If your estate is worth more than £325,000, your beneficiaries will be liable to pay a 40% taxation on the entire amount above that threshold.

As the Government becomes aware of the growing value of this tax, they are focusing more on removing options open to people to reduce this burden. Examples of this are the recent changes to trust legislation.

There are never the less a number of ways in which you can reduce the impact of IHT and it is worth trying to take advantage of as many of them as you can, to ensure you pass on as much of your estate as possible.

Small Tax Relief Measures

Gifting it away

One of the easiest ways to start minimising your tax burden is by giving away gifts to your loved ones during your lifetime. There are a number of gifts that you can make without incurring a tax liability. You are able to make as many small gifts of less than £250 as you like and in addition you can gift a further £3,000 per annum. You can also make unlimited gifts to certain organisations such as charities or political parties.

If you make larger gifts these may either be a chargeable life time transfer if the gift is to a discretionary trust or a potentially exempt transfer (PET). If the gift is a PET then there will be no tax liability providing you survive for at least 7 years from the date of the gift, however, if you die within 7 years, initially the gift will reduce your nil rate band. If the gifts in aggregate exceeded the Nil Rate Band, the excess may be subject to taper relief.

Taper relief has the effect of reduce the amount of tax payable if you die between 3 and 7 years after the gift is given. If you pass away 7 years or longer after the gift was given, the recipient and your estate do not pay IHT on the gift. Any gifts made within 3 years of your death will be subject to a 100% tax liability; however this taxable amount reduces from year 4 to year 7,translating to between 80% and 20% tax liability. Furthermore, any gifts of any value given to your spouse or civil partner are not subject to IHT.

There are other gifting allowances which include wedding gifts to your children, grandchildren or anyone else of £5,000, £2,500, and £1,000 without paying IHT. You can also give £250 to as many individuals as you want in a year without paying IHT, as long as those individuals do not fall within another exemption.

Charities

You can also endow or gift a charity, museum, university or community amateur sports club with any size gift as these are also IHT free. In fact, if you gift up to 10% of your estate, you can qualify for a 4% reduction in IHT.

Political Support

Gifts to a political party are exempt from tax as long as the party has 2 members in the House or 1 member and at least 150,000 votes in the previous general election.

Primary Residence

Your primary residence, if gifted to your spouse, is tax free. Gifted to anyone else, however, it is subject to the 7 year gift rule. However starting in 2017, £100,000 of the value of the home will be considered tax free within the calculations of the state. This amount increases to £175,000 in 2020 and follows the consumer price index thereafter. This increased benefit is gradually withdrawn for estates worth more than £2m.

The saying “you cannot take it with you” is one that is relevant when it comes to the burden of IHT. Giving away your estate is a selfless act and may enable you to bring your estate to a level below the threshold of tax. However, if you want other alternatives or have a much larger estate to provide for your spouse or children, there are two more favourable options.

Business IHT Relief

The first of the two is a direct Business relief which amounts to 50% or 100% IHT relief. Your estate can claim a 100% business relief from IHT on any unlisted company you own or have shares in. A listed business can result in a 50% relief if you control more than 50% of the outstanding voting shares. Your estate could also receive 50% relief for business-related land, buildings or machinery that you owned or that were held in a trust that benefitted the business. However ownership in investment companies, realty companies, non-profits or a business being sold or wound up do not qualify for relief.

Enterprise Investment Schemes (EIS)and Business Relief

One the best ways to mitigate your tax liability is to invest in an EIS or SEIS. Not only do you reduce the impact of IHT but you also get relief against income tax as well as your capital gains taxes on EIS qualifying shares. EIS is an Enterprise Investment Scheme, which encourages investment in small and medium sized trading companies that would otherwise find it difficult to raise capital funding through regular channels.

These shares must be ordinary shares without preferential rights upon winding up of the company, but you can invest an unlimited amount, saving up to £300,000 income tax in any given yearsubject to the limit of 30% income tax relief against the amount of your investment. This is an amazing tax liability mitigation tool. Not only do you receive a tax savings on your annual income but you can also receive 100% IHT relief as long as you have held the investment for a minimum of 2 years at the time of death. You can defer a Capital Gains Tax Liability into an EIS and if you still own the shares when you die, you will never have to pay the Capital Gains Tax.

In order to qualify for the EIS you must not own more than 30% of the shares of a company or be employed by that company. You must also pay for the shares in total to receive the benefits.

Start planning to mitigate your IHT risk by actively gifting parts of your estate and investing in a quality EIS.

Ten IHT Takeaways

1. IHT Tax in the UK is 40% of the estate over £325,000.

2. Primary Residences are exempt from Inheritance Tax on the first £100,000 starting in 2017.

3. Gifts over £3,000 are subject to IHT Tax if they were made within 7 years of a person’s death.

4. Over £3 Billion is collected in IHT annually; this rose by 25% over the last 4 years due, in most part, to rising house prices.

5. Estates passed to a spouse are not subject to IHT, but will be subject to IHT when the spouse (the original holder of the estate) passes away.

6. Shares in unlisted companies that you own or control qualify for 100% IHT relief after 2 years of ownership.

7. Listed companies that you own a controlling stake of voting shares are only eligible for a 50% IHT reduction.

8. EIS provides 100% IHT relief after only 2 years of holding the shares.

9. EIS provides a 30% income tax relief in addition to the IHT relief.

10. Profits from the sale of EIS qualifying shares benefit from 100%

Posted in Uncategorized | Tagged , , | Comments Off