There is little you can do to protect your assets against the IRS’s collection of federal income taxes. What about clients who owe taxes to a foreign government for business conducted overseas? I had a client who wanted to know how to protect assets from several U.S. creditors and taxes owed to a European government.
Income Tax Liability From Unsolicited Mortgage Release
Bank of America has been forgiving second mortgage loans for primary residences after it entered into a national settlement related to its mortgage foreclosure abuses. BOA has been making unsolicited offers to certain homeowners to release their second mortgage and cancel the indebtedness.
Income Tax Liability From Unsolicited Mortgage ReleaseRead More
Nevada Law Helps Asset Protection Planning With Some Partnerships And LLCs
The 2009 Nevada legislature passed an interesting estate planning statute designed to increase the effectiveness of family limited partnership (FLP) and family limited liability companies (FLLC) for estate tax planning. The bill, SB 350, went into effect on October 1, 2009.
Nevada Law Helps Asset Protection Planning With Some Partnerships And LLCsRead More
Update: Overpaying Taxes To Protect Money From Judgment Creditors
I have recently posted blog articles about a client who is trying to protect money from a judgment creditor by overpaying estimated taxes to the IRS, and when a refund is due from the next tax return, asking the IRS to hold his refund to pay future taxes.
Update: Overpaying Taxes To Protect Money From Judgment CreditorsRead More
Forclosure Tax Effect: Imputed Income From Debt Forgiveness May Be Offset By Investment Losses
Many people facing foreclosure are concerned about income tax liability from the lender’s forgiveness of mortgage debt. If the mortgage lender does not pursue a deficiency judgment and writes-off the loan after foreclosure the lender could send the owner a IRS Form 1099 for imputed income for the amount of debt forgiven.
Inherited IRAs Not Exempt- According To Florida Court Decision
IRA funds are exempt from creditors in and out of bankruptcy pursuant to the exemption in Florida Statute 222.21(a)– except if your “IRA” is inherited, according to a recent decision by a Florida appellate court.
Inherited IRAs Not Exempt- According To Florida Court DecisionRead More
Foreclosures, Deficiency, And Income Tax: Investment Loss May Offset Imputed Income For Some Investors
People facing foreclosures on investment property usually hope their lender will not pursue a deficiency judgment and will forgive balances due under their mortgage note. If the investor is fortunate enough to avoid a deficiency lawsuit he still faces income tax issues because of the general rule that forgiveness of a debt results in imputed taxable …
Curing A Late-Filed Subchapter S Election
Asset protection planning often involves forming new corporations or LLCs taxed as Subchapter S entities for income tax purposes. The general rule is that the taxpayer has a limited amount of time to file an S election after forming the corporation or LLC and obtaining a tax identification number.
Entireties Account Protected Even Though Money Deposited By Debtor Spouse
As a general rule if spouse one, the debtor spouse, owns a non-exempt asset and conveys the asset to both spouses as tenants by entireties the transfer could be a fraudulent conveyance by the debtor spouse.
Entireties Account Protected Even Though Money Deposited By Debtor SpouseRead More
Tax Trap From Foreclosure of Investment Property
I saw an email about income tax liability associated with foreclosure or bankruptcy sent by attorney Larry Heinkel. The email addresses income tax liability from the foreclosure of properties which have previously been depreciated for tax purposes.
