Hi, my name is Kirsten Krueger and two years ago, I was in a car accident. I was stopped at a stop sign when the driver behind me slammed into my car. Due to my injuries, I had to spend a few days in the hospital and I was unable to work for two months. My medical care was expensive and without being able to work, I couldn't pay my bills. The car accident was stressful enough and then I had to worry about how I would pay my bills. After speaking with a car accident lawyer, it wasn't long before I was compensated for my medical bills and lost wages from work. I'm writing this blog to help others who have been a car accident and haven't received any compensation. As you read my posts, you'll learn how an attorney can help you if you're in a vehicle accident.
In real estate, tax issues go beyond filing tax forms. There are many complicated tax dealings with legal implications. Thus, engaging a tax attorney may be inevitable. A real estate tax attorney provides advice on tax obligations and compliance. Below are the main reasons why you should consider retaining the services of a real estate tax attorney.
1. Starting a Real Estate Business
A tax attorney can offer valuable counsel to a person establishing a real estate business. Ideally, the tax attorney has the knowledge and experience to anticipate all tax obligations related to different types of real estate entities. The attorney will explain the tax benefits of registering a limited company, S-corporation, or C-corporation type of business. Next, the lawyer will provide counsel on how to avoid tax penalties and interest. More so, the attorney is more attuned to tax rules and regulations across states and countries. Thus, having a real estate tax attorney reduces tax-related legal challenges and expenses in a new venture.
2. Buying and Selling Real Estate
In a business sale transaction, there are two competing needs between the seller and the buyer. Typically, a buyer wants an allocation that will enable a quick recovery of the purchase price through depreciation. On the other hand, a seller will wish for an allocation that maximizes capital gain. Having a tax attorney in such a transaction will make a big difference in how the two interests play out.
3. Tax Audits and Payments
Real estate tax attorneys can offer support during a tax audit. The audit itself may not require the intervention of a tax attorney if you have a competent certified accountant. Although tax attorneys can help review the process to ensure there are no errors and all support documents are availed. However, tax audit appeals are ideal situations where tax attorneys can offer representation. Besides, legal representation by a tax attorney may be necessary for tax crimes such as underreporting or falsifying documents. In addition, if the government wants you to pay vast amounts of owed taxes, the tax attorney can assist in negotiating a flexible payment plan.
4. Real Estate Property Inheritance
A tax attorney acts as a guide when planning and executing a will. High-value estates that meet the IRS minimum value threshold attract sizeable tax payments upon the owner's death. An estate planning attorney with tax knowledge will explain the tax consequences of such property inheritance. The attorneys understand the requirements of filing estate tax returns to avoid penalties. More so, they can advise a real estate heir on the tax ramification of disposing of property through sales.
Having an experienced tax attorney on your side will save you the penalties and liabilities related to tax obligations. Why strain with the taxation process when you can hire a real estate tax attorney to counsel and represent you?
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