?At each major life event, Americans face difficult tax questions that cause confusion and eventually stress. Events such as getting married, giving birth to a child, purchasing home, or mourning over a death of a loved one are struggles in their own right; but it is important to understand that each may have an unexpected tax implication.
For most tax questions, you would consult an accountant or tax return preparer. But when difficult situations arise, consulting a tax attorney would be far more helpful.
Filing an Estate Tax
If you were the beneficiary of a large estate, you might be required to file an estate tax return and pay taxes on the fair market value of the money or property you inherited. IRS form 706 and Publication 950 can help you determine whether this rule applies to you. If so, you should consult a tax attorney before making any decisions.
The tax attorney may also be helpful to you in establishing your own estate for your beneficiaries.
Starting Your Own Business
The U.S. economy may be back on upswing, but many Americans are still dealing with high unemployment rates and uncertain futures. This has led to more professionals venturing into business for themselves.
Being your own boss is liberating, but it is also risky if you do not have all the information you need to . That is why consulting a tax attorney before deciding on the structure is very important.
Your tax attorney can help you choose between incorporating your business, setting up a limited-liability corporation, or remaining as a simple sole proprietor. Your risk of personal liability and plans to raise future capital will feature heavily in the decision, and a tax attorney can help you uncover any other issues. He may also be helpful in scrutinizing contracts, especially if you plan to do business overseas.