Top 10 Tax Law Articles
It is said that there are only two constants in life: Death and Taxes. In some countries, both are equally unavoidable in the form of estate taxes. While you cannot avoid dying, you might be able to avoid paying excess taxes. No one wants to pay more taxes than they have to and thankfully there are plenty of legal ways to lessen your tax burden.
To understand the basics of tax law in the United States, here are the top 10 tax law articles from the LegalMatch Law Library.
Tax evasion is not something to laugh about, especially considering that’s the charge that got Al Capone thrown into Alcatraz. If you haven’t filed taxes in a long time, you might be prosecuted by the IRS for tax evasion. Luckily, depending on the circumstances, if you discover your mistake before the IRS, you might be able to avoid prosecution.
If you are looking to pay fewer taxes, it is important to always be on the lookout for tax deductions. Depending on the circumstances of your case, if you’ve paid legal fees to a lawyer who assisted you with an income producing activity, you might be able to get a tax deduction.
keeping up to date on the legal and tax implications of certain business activities is a major issue with running a corporation.
Trusts are commonly used to hold money for someone and can be governed by certain rules, such as how much should be paid out, who should be paid, and when the money should be paid. Depending on your individual situation, a trust might enable you or your heirs to pay a lower tax rate.
Unfortunately, money you win while gambling is not considered free money and is still taxable, which is why it might be smarter to choose the monthly installment option rather than the lump sum option if you win the lottery. On the other hand, since gambling winnings are treated as income, gambling losses are deductible.
A tax deed sale is an auction of property to pay overdue property taxes. If your property is being auctioned off in a tax deed sale, you have the right to reacquire the property if you fulfill certain conditions.
Sometimes receiving a gift or inheritance might prove to be more trouble than the gift is worth because of tax issues. If that is the case with a recent gift or inheritance, you can always refuse to accept the gift and for tax purposes it will be as if you never received it.
The person who pays income tax is not the person who receives the money. Instead it is the person who earned the money that must pay, and it does not matter if that person never received the money as long as they earned. This is the reason why if you are thinking about assigning your income to someone else, you should consider the tax implications carefully.
9. Tax Liens
A tax lien is a lien that can be placed on your property by the IRS if you do not pay your taxes. Tax liens can harm property values and can result in you losing your property. However, there are several solutions open to you that might result in the IRS removing the tax lien.
Transfer on death deeds helps families avoid probate when a property owner passes away. There are many benefits to using a transfer on death deed, but unfortunately avoiding taxes is not one of them. However, depending on your situation, the benefits of a transfer on death deed might outweigh the drawback of having to pay taxes on the property transfer.