The tax arena involves rules, policies and laws covering the taxation process, which is how the government accrues revenue on economic transactions. Taxes can be indirect (sales tax) or direct (income tax) and levels of collection vary from local to federal. Primary areas of representation involve income, estate and capital gains taxes.
Income Taxes — Some states do not have an income tax, but all U.S. citizens must pay a federal tax on earned income for the year.
Estate Taxes — An estate tax is levied on one’s estate after his or her death and before transferring it to another. An alternative is an inheritance tax, which is paid by the individual receiving the property. The taxes are not imposed if property is transferred before death; however, the estate may be subject to a gift tax.
Capital Gains — A capital gain is a profit resulting from the sale of an asset (stock, bond, real estate, etc.), when the amount realized from the sale is more than the original purchase price.
Eventually, everyone is subjected to taxes, so it’s important to have sound, experienced legal counsel in planning to avoid legal matters altogether or in case a controversy arises with the Internal Revenue Service (IRS). Waddell, Cole & Jones has several attorneys who are well-versed in taxation to help you in any of the following areas:
- IRS representation
- Arkansas state tax representation
- Estate planning
- Real Estate taxes