How Estate Planning In Tampa Can Help At Tax Time

Tax season is underway and it is typically one of the most dreaded times of the year. Between long forms, complicated federal guidelines, and the very real fear of potentially heavy tax penalties, it is easy to get overwhelmed.

While you want an experienced tax professional to guide you in filing a return, consulting with our Tampa estate planning attorney in the weeks or months prior is a smart idea. Find out ways in which creating an estate plan can help reduce tax debts for you and your loved ones.

Make These Estate Planning Tasks A Priority This Tax Season

The Internal Revenue Service (IRS) reports that the 2024 federal tax season runs from January 29 to April 15. You can file your 2023 tax return at any point during this time and may make payments without incurring any penalties.

Collecting employee tax statements and other documents needed when filing a tax return is often the first hurdle filers typically encounter. Estate planning can help in getting organized, as many of the same documents are required. Our Tampa estate planning attorneys can guide you in putting a will, advance directives, and other important documents in place. This includes:

• Guiding business owners: If you are a business owner, the type of business entity you choose can have major impacts at tax time. For small business owners, getting a tax code through the Florida Department of State and possibly establishing a sole proprietorship is a smart idea. Larger businesses may want to consider a limited liability partnership (LLP) or corporation (LLC).
• Creating a revocable or irrevocable trust: A trust can help in reducing your income, potentially putting you in a lower tax bracket. In addition to shielding income, it also helps offset the high costs of nursing homes or other long-term care, preventing tax penalties due to early withdrawals from IRAs and other funds.
• Planning distributions among heirs: Creating a trust can also play a key role in protecting inheritances, both those you receive and those you pass along to others. By putting assets in a trust and controlling distributions, you can reduce your estate taxes.
• Making planned gifts: Making financial gifts to your favorite charities and monetary distributions to loved ones not only helps the people you care about most but can also reduce your debts during tax season.

The benefits of a trust are featured twice on the above list. There is another important benefit they provide during tax season: a trust may also help in protecting your assets and preventing them from being seized due to past tax debts.

Contact Our Office And Request A Consultation With Our Tampa Estate Planning Attorney

This tax season, make sure you have everything you need together and take steps now to reduce your income and any tax debts. At Strategic Counsel Law Group, L.C., we can guide you in putting a trust and other important documents in place. For experienced, local legal representation, give us a call or contact our Tampa estate planning attorney online and request a consultation today.

Sources:

irs.gov/newsroom/2024-tax-filing-season-set-for-january-29-irs-continues-to-make-improvements-to-help-taxpayers

dos.fl.gov/sunbiz/start-business/corporate-structure/

irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions