Toledo Tax Law Blog

Baseball player's estate caught in limbo

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. posted in Probate and Estate Planning on Wednesday, February 13, 2019.

Many will remember the tragic death of Kansas City Royals pitcher Yordano Ventura, who died January 22, 2017 in a single-car crash. While contracts are an important part of professional sports, or any job for that matter, some will be surprised to note that the Royals have not paid the remaining $20.25 million guaranteed to Ventura, whose five-year-old daughter is the sole heir of his estate.

As the executor for the estate, the child's mother has hired attorneys to pursue a resolution. The Players Association and Major League Baseball have become involved in the through the grievance process, which is confidential. The issue is complicated because there is not precedence for these circumstances of a player dying while they were owed money on a guaranteed multi-year contract.

Was your divorce final last year? What happens to your taxes?

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. on Saturday, February 9, 2019.

After all of the media coverage surrounding the new tax laws last year, you probably heard that if you suspect you will either pay or receive alimony, you should finalize your divorce before Dec. 31, 2018. Whether you managed to reach an agreement out of court or let the court resolve your divorce issues, you were single on Jan. 1.

Now, as tax season begins, you may wonder why you stressed about making sure that your divorce was final before the stroke of midnight on New Year's Eve. Even if you leave the courthouse on Dec. 31 divorced, the IRS considers you single for the entire tax year.

5 Tips for getting a house ready to sell

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. posted in Business and Real Estate Transactions on Monday, February 4, 2019.

Selling a home or property is one of the biggest business deals that most Americans will ever handle. This can lead to a lot of stress and even frustration. While different real estate experts have different approaches to preparing a property for selling, owners can also help their property to stand out by spending some time, money and effort to getting that it ready. The goal is to make it appealing enough that buyers want to move in or consider it a good investment.

Improving the curb appeal

Clean titles ensure that real estate transactions are legal

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. posted in Business and Real Estate Transactions on Wednesday, January 30, 2019.

Real estate transactions are biggest financial deals that many of us ever engage in. At the heart of that deal is transferring the title from the seller to the buyer, so it is absolutely critical that property owners and buyers make sure that the title is clean or clear.

What could go wrong

IRS will not penalize miscalculations that come close

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. posted in Tax Law on Tuesday, January 22, 2019.

The 2019 tax season is going to be one of the most confusing and frustrating in memory. The combination of using the new guidelines set out in 2017’s Tax Cuts and Jobs Act as well as the government shutdown impacting all non-essential workers in the Treasury Department will certainly add new challenges to an already difficult process of filing taxes.

Notable changes include:

Sears sells off remaining assets

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. posted in Business and Real Estate Transactions on Thursday, January 17, 2019.

The epic saga of Sears has entered a new and possibly final chapter. The 132-year-old retail chain that filed Chapter 11 bankruptcy in October of 2018 has received a $5.2 billion offer for the last 450 retail stores as well as all other remaining assets. The offer was made by Eddie Lampert and his ESL hedge fund, which took over Sears in 2013. The offer will need approval in the courts on February 1. The deal would then be closed on February 8.

Creditors wanted liquidation

Small businesses looking for answers on new tax law

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. posted in Tax Law on Monday, January 14, 2019.

Countless small business owners will be looking for answers revolving around the Tax Cuts and Jobs Act that need to be addressing during the 2019 tax season. Many are trying to determine if they legally qualify for a 20 percent exception of their income. Despite the fact that the IRS issued guidelines for how the complex new law applies, many still have questions and are getting conflicting advice.

According to news reports, the questions often involve deductions designed to help sole proprietors, partners and owners of S corporations (also known as pass throughs because the company income passes through the owners’ 1040 forms). This was designed to give these business owners the same benefits enjoyed by traditional C corporations.

Tax season starts in February. Watch out for scams

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. on Friday, January 11, 2019.

It's a new year, and that means that tax season is around the corner. Like many other Toledo residents, you may be starting to gather your documents whether you want to get your taxes out of the way or file them at the deadline.

As part of your preparation, you may be looking for some help, especially considering the new tax laws. During your search, you may want to remain cautious about the person you entrust this task to. The IRS warned taxpayers about several scams last year that could appear this tax season as well.

The advantages of generation skipping trusts

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. posted in Probate and Estate Planning on Friday, January 4, 2019.

Sometimes it makes more sense to set up a generation skipping trust, particularly if the objective is to reduce the size of tax obligation among family members. This trust does this by directly placing assets with grandchildren and future generations rather than having them go through each successive generation, thus being taxed each time. According to a recent article, those who took advantage of a generation skipping trust saved between 18 and 40 percent on estate taxes, depending on the estate and how much was wealth was transferred.

Breaking it down

The advantages of a Roth IRA

On behalf of Mockensturm, Ltd of Mockensturm, Ltd. posted in Probate and Estate Planning on Thursday, December 27, 2018.

Many of us have heard the term “Roth IRA” and may even understand that it is a good way to avoid paying unnecessary taxes or avoiding probate. Needless to say, many out there believe that there is a lot to like about this estate-planning tool.

Some basics about the Roth IRA