The making of a will is serious. A valid will dictates who gets your property and when they get it. An invalid will can result in your property passing according to Texas intestacy law. It can also set up an expensive probate dispute. This is why estate planning attorneys take such care in helping clients…
TX-LW Blogs
Meal & Entertainment: The IRS Auditors “Bread & Butter”
I once worked with an IRS agent who would only make two types of adjustments. He would make UNICAP/inventory adjustments and meal and entertainment adjustments. If either of these items could be adjusted for a tax return, he would adjust them. It didn’t matter what else was listed on the tax return. It did not……
The “Discovery Rule” in Probate Disputes
There are some strict deadlines for contesting a will in Texas. The will contest generally has to be filed within two years of the time the will is admitted to probate. What happens if one of the parties hides the existence of the will and secretly probates the will? What if they make statements to…
Tax on Virtual Currency Received for Microtasks
Our Federal income tax laws take a broad view of what counts as income and gain. The tax law then imposes a ridged framework for classifying and computing tax on income or gain. By casting the net wide, the tax law is able to capture just about every type of transaction that one could dream……
Signing a Will With a Rubber Stamp
A will has to be executed with the proper legal formalities. This includes having the terms of the will be in writing and signed by the decedent. There have been a number of disputes as to what counts as a writing and what counts as a signature. The courts have developed a body of case…
Broken Promise to Leave Property to Heir
What happens if someone makes a promise to leave property to another person in their will, but then they update their estate plan and fail to provide the property as promised? Can the person who expected to receive the property recover from the property from the probate estate? If so, what if the promise was…
Illness as a Defense to Late Filing Penalties
Will the IRS penalize you if you are unable to file your tax return on time due to the burden of caring for a loved one with COVID? The IRS has not provided penalty relief for taxpayers impacted by COVID-19. The existing penalty relief rules may provide a remedy for some taxpayers. These rules do……
Adult Child’s Rights to Parent’s House
Living arrangements can pose a number of problems when an older family member is placed in a home or they die. The family members have to decide what to do with the property. These issues often result in probate litigation after the parent dies. But what about when the parent is alive, but incapacitated? If…
What is a Rental Activity?
The ability to generate current year tax losses is a strong incentive for high-income taxpayers to own real estate. Real estate often produces tax losses, but not economic losses. This happens because the current operating expenses plus tax depreciation result in a current year loss. At the same time, the property likely increased in value……