Chapter 13 tricks by bankruptcy attorney Houston: Abstract of Judgment – While a judgment creditor cannot force you to sell your homestead, they can file an abstract of judgment in the real property records of your county. The filing of an abstract of judgment may prevent you from selling your home or re-financing your home. Credit Score – A judgment is a public record and will be pulled into your credit report and may damage your credit score. Even if you resolve the underlying debt, you may not be able to get the judgment removed from your credit report.

Out-of-pocket charitable contributions: It’s hard to overlook the big charitable gifts you made during the year by check or payroll deduction. But the little things add up, too, and you can write off out-of-pocket costs you incur while doing good deeds. Ingredients for casseroles you regularly prepare for a qualified nonprofit organization’s soup kitchen, for example, or the cost of stamps you buy for your school’s fundraiser count as a charitable contribution. If you drove your car for charity in 2019, remember to deduct 14 cents per mile. Jury pay paid to employer: Some employers continue to pay employees’ full salary while they are doing their civic duty, but ask that they turn over their jury fees to the company. The only problem is that the IRS demands that you report those fees as taxable income. If you give the money to your employer you have a right to deduct the amount so you aren’t taxed on money that simply passes through your hands.

The list of property you don’t have to sell or turn over to creditors (exempt property), and the total value that you can exempt, varies by state. Some states let you choose between their exemption list and the federal exemptions. But most Chapter 7 bankruptcy cases are “no asset” cases, meaning all of the person’s property is either exempt or there’s a valid lien against the property. At the end of the process, approximately four to six months from your initial filing, the court will discharge your remaining debts (meaning you don’t need to pay them anymore). However, some types of debts generally aren’t dischargeable through bankruptcy, including child support, alimony, court fees, some tax debts and most student loans. Read additional details on chapter 13 bankruptcy Texas.

As a bankruptcy lawyer in Houston, I primarily help people and companies file Chapter 7 bankruptcy and Chapter 13 bankruptcy. I also help both individuals and companies resolve other debt issues. I have been practicing as a Chapter 7 lawyer in Houston and as a Chapter 13 lawyer in Houston for over 5 years.

Hold Off on Mutual Fund Purchases: People should be wary of buying mutual funds at this time of year if they will be held in a taxable account. You could get hit with a tax bill for year-end dividends even if you just purchased shares. “That’s how mutual funds work, but people don’t realize it,” says Joanna Powell, managing director in the Boston office of accounting firm CBIZ MHM. To avoid paying additional taxes, consult with a broker before making a purchase to find out when distributions are made.

One of Chapter 13’s most attractive features is the chance to keep your home as long as you can pay the mortgage under a settlement plan. Under Chapter 13, people have three to five years to resolve their debts while applying all their disposable income to debt reduction. The option allows applicants to eliminate unsecured debts while catching up on missed mortgage payments. Short-circuiting home foreclosure is one of the option’s most attractive features. Though keeping your home can be a major relief, you’re required to spend years living under the supervision of a court-appointed trustee who will collect and distribute your payments.

I believe that customer help should be the no 1 priority in any business, but it is also very important important in the bankruptcy and debt settlement field. When people are struggling financially they may be stressed, nervous and scared about their situation. The prompt returning of telephone calls and e-mails is important so as to help alleviate anxiety. You can also take comfort in knowing that you will be speaking with an attorney every time you call or come in for an appointment. Dove Law Firm, PLLC is a Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code as well as resolve other debt issues. Find more information on bankruptcy lawyer Houston.

Tax office advices from firms? If you have business income and expenses to report on Schedule C, you will need to share your books and records (for example, QuickBooks or any other accounting system you use, receipts for expenses, and relevant bank and credit card statements).16? The better organized your records are, the less time it will take a preparer to process your taxes, which translates into lower fees for their service.

Consider investing in index mutual funds and exchange-traded funds. These funds are not actively managed and as a result, can be more tax-efficient than managed funds. These investments are a good way to diversify the taxation of your income after retirement. If you qualify for a Health Savings Account, you have the option of investing them instead of spending them on medical expenses. Contributions are tax-free and earnings grow tax-free, and — if you use future distributions to pay for qualified medical expenses — distributions are tax-free as well. The overall benefit of changing the character of your income is that it can reduce your MAGI for each tax year and allow you to take advantage of a lower tax bracket in some cases.

Bonus depreciation is an extra benefit for buying assets. The TCJA also increased this tax break from 50% to 100% of cost for assets placed in service from September 27, 2017 through January 1, 2023. Talk to your tax preparer if you’ve purchased any major assets to find out if you qualify. You can deduct up to $25 per person of the cost of gifts given to customers and vendors. An exception exists for those that bear your business name, are distributed as a matter of course, and cost less than $4. Deducting the costs of entertainment is a bit trickier if you show your appreciation by paying for a good time. These costs are no longer deductible unless the event is directly related to your business in some way. Discover additional information at https://greentree.tax/llc-tax-preparation/.

“Flip houses and make big bucks” scream the headlines. The premise is simple – buy real estate with little down, fix it up, and sell it quickly. What could be easier? Well, easy or not, one thing the promoters rarely tell you is that you’ll pay taxes on any profit you make if you are selling investment property and not the home you live in (your principal residence). If you flip houses or things like furniture for a profit, here are some tax implications and tips about your taxes, and possibly how to lower them.

Tax preparation advices from providers? By the end of January, you should have received all the various tax documents that you need from your employer or employers, as well as from banks, brokerage firms, and others with whom you do business. For each form, check that the information matches your own records. These are some of the most common forms: Form W-2,6? if you had a job. The various 1099 forms that report other income you received, such as dividends (Form 1099-DIV),7? interest (Form 1099-INT),8? and non-employee compensation paid to independent contractors (Form 1099-MISC).9? Brokers aren’t required to mail Form 1099-B,10? which reports gains and losses on securities transactions, until mid-February, so those may come a little later.

The SECURE Act, which became law at the end of 2019, includes several provisions that apply to high income earners. They include: The age for Required Minimum Distributions (RMDs) from retirement plan accounts was raised to 72. However, if you turned 70 1/2 in 2019, you will be required to take a disbursement in 2020. Eliminating the age limit for contributions to Traditional IRA accounts. Increasing annual contribution limits for 401(k) and 103(b) accounts to $19,500, and to $13,400 for SIMPLE IRAs. The contribution maximum for Traditional and Roth IRAs remains at $6,000 per year. Increasing the Social Security wage base to $137,700. Increasing the income ceiling for Roth IRAs. Contributions now phase out at $124,000 and $139,000 of modified adjusted gross income. ($196,000 to $206,000 if you’re married filing jointly.) Increasing limits for long-term care premium deductions to $5,430 per person for people age 71 or over, and to $4,3500 for people between the ages of 61 and 70. Self-employed earners may write off 100% of their premiums using Schedule 1 of the 1040 form. These changes are significant because they make it possible for high income earners to make additional contributions to a retirement plan during the tax year.

The QBI deduction has some other restrictions and limitations, so check with your tax preparer about your eligibility. Setting up and funding a retirement plan for yourself and/or your employees can save you money on taxes. Make sure it’s a qualified plan so you can take advantage of those tax savings. It must be one that’s recognized by the IRS to allow deferment of taxes on earnings until the earnings are withdrawn. They include IRAs and defined contribution plans such as a 401(k) or 403(b). Many options are available depending on your business, your goals, and your needs. Consider talking with a financial professional to figure out which is best for you. Discover more information at https://greentree.tax/best-bookkeeping-service-in-houston-texas/.

“Flip houses and make big bucks” scream the headlines. The premise is simple – buy real estate with little down, fix it up, and sell it quickly. What could be easier? Well, easy or not, one thing the promoters rarely tell you is that you’ll pay taxes on any profit you make if you are selling investment property and not the home you live in (your principal residence). If you flip houses or things like furniture for a profit, here are some tax implications and tips about your taxes, and possibly how to lower them.