When a real estate deal is made, both buyers and sellers seek to tilt the contract in their favor – but there are some clauses in a real estate deal that can benefit both. A rent-back clause has that potential. Sometimes called a “leaseback” agreement, it’s essentially an occupancy agreement that allows the seller to act like a renter – and the buyer like a landlord – for a specific time after closing. How does this benefit each party? Moving out of one home and into another can be a logistical nightmare, especially for sellers who are older or who are trying to close on another property at th ..read more

One thing that can trigger an audit is when you make a tax mistake. This is often why people are very concerned about making unintentional errors. At our firm, we have already discussed how there is a big difference between an accidental mistake and intentional tax fraud, but it is still important to look at how these mistakes happen as they relate to the odds of an audit. The Internal Revenue Service has compiled a list of some of the most common mistakes they tend to see year after year. Below are a few examples to keep in mind. Filing at the wrong time In some cases, people file too early ..read more

Most people who are creating an estate plan want to ensure that they’re leaving their loved ones as much as possible. One thing that could eat away at that total inheritance is taxes.  Ohio doesn’t have an estate tax, so you’ll only have to think about federal taxes. Understanding a bit about these may help you determine how to set up your estate and what steps you need to take while you’re still alive.  Federal estate taxes In 2024, federal estate taxes apply to the transfer of property at death and are governed by specific thresholds and rates. The federal estate tax exemption for ..read more

Whether you’re doing taxes as a business owner or an individual, you’re expected to do them correctly. You may not officially have any training or education regarding how to do your taxes, as most people don’t. But there’s still an obligation to follow the regulations the IRS has laid down and to pay the taxes that you owe. This makes some people relatively nervous. They worry that they’re going to make a mistake or an error accidentally and then find themselves facing criminal charges after an audit. They believe they’ll be accused of trying to defraud the government and they could face jail ..read more

Navigating tax obligations can be challenging, especially if you’re already feeling financially constrained. Fortunately, the Internal Revenue Service (IRS) offers options for taxpayers who are able to make installment payments, providing a structured approach to fulfilling tax liabilities without undue burdens. Understanding the installment payment options available to you can help to alleviate stress and ensure compliance with tax obligations. Exploring installment payment options The IRS offers several installment payment options tailored to individual circumstances: Online Paymen ..read more

Tax season might be over, but that doesn’t mean you’re safe from the IRS. Businesses of all sizes in Ohio can face tax audits, which can feel stressful and overwhelming. But don’t panic! Here’s a breakdown of what to expect and how to prepare if your business gets chosen for an audit. What is a tax audit? Think of a tax audit as a double-check on your business tax return. The Internal Revenue Service (IRS) will review your tax forms and documentation to ensure everything is accurate and you’ve paid the correct amount of taxes. Why do businesses get audited? There are a few reasons why your bus ..read more

Estate planning’s primary goal is for you to pass down assets to your beneficiaries. While many people don’t think about this aspect of estate planning, finding options to ensure as much as possible finds its way to them is crucial.  Certain estate planning options, such as trusts, have many benefits to consider. Thinking through all of these may help individuals to make decisions that are best for their circumstances.  2 types of trusts Trusts are classified as either revocable or irrevocable. The primary difference between these is that revocable trusts can be altered or canceled ..read more

Tax planning is an important part of owning and running a business. By implementing strategic tax planning measures, businesses can enhance cash flow, improve profitability and better ensure compliance with relevant tax laws. Several tips that can allow you to more effectively engage in tax planning for your business are worth considering. They include the following. Understand your tax obligations Before utilizing tax planning strategies, you must know your business tax obligations. This includes all information related to local, state and federal taxes. Choose the right business structu ..read more

Many business owners and individuals fear an audit when doing their taxes. They are worried that they’re going to make a mistake and that the IRS is suddenly going to swoop in, looking for evidence of fraud and potentially handing out financial fines – or even making arrests. But how likely is that to happen? Statistically speaking, audits are very infrequent. As a general rule, roughly one out of 100 Americans will face an audit. But it can be significantly smaller than even that 1%. For example, the rate was just 0.63% in 2020. More than 99% of people who filed their taxes never heard from t ..read more

If you have heard of liens, levies and garnishments, you might feel like you’re stuck in a complicated mess. After all, the tax code is complicated and dealings with the IRS can seem even more so. It is important to understand what these mean, though, and to know how to avoid them. After all, any of these signal financial trouble, which is why you should be aware of what they are. Liens When you owe money to the government, they can place a lien on something you own, like a house or car. It is sort of like a slap on the wrist, but also a reminder to pay what you owe or at least make arrangemen ..read more