Tax Planning

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Entity Planning and Formation

Significant tax advantages can be achieved through entity formation. A self-employed person, without any entity is subject to self-employment taxes, which are at a high rate to recapture taxes for medicare and other government programs.

We can assist you with your decision to choose an entity for tax planning and liability reasons. We can form an LLC, a Corporation or opt for an S-Corporation. We can also assist you with setting up an LLC that makes an S election. Additionally, we can work closely with your accountant or CPA, to ensure that there will be no gap in terms of financial planning and payment of taxes. We take the steps to ensure that the entity you choose is one you can handle, understand and makes sense. That is the essence of tax planning.

Taxation of Settlements and Jury Awards

We are one of a few practices that can perform tax planning for settlements and judgments received in a civil case. Did you know that without tax planning, your “net” recovery after paying attorneys fees and taxes can be minimal? Civil attorneys are not tax attorneys and they do not know how to plan to properly maximize non-taxable income or use tax deferring techniques.

We will analyze the pleadings and work with your civil attorney and the other counsel involved to negotiate your settlement or award in a way that is ethical and prudent and achieves true tax savings. Allow us to crunch some numbers and show you that tax planning is well worth the investment.

This area of law is extremely niche and requires competent advice. You are potentially paying too much money to the IRS and California Franchise Tax Board without speaking to a tax professional about your recent settlement or jury award. A civil settlement may or may not be taxable, depending on what was the nature of your particular loss. No case is the same as the other, and therefore it is critical you consult with a practitioner with knowledge in both civil law and tax law. Demetrios A. Sparacino is a civil lawyer and tax lawyer and has the ability to recommend how you should handle filing your taxes in a way to preserve your settlement and keep more money in your pockets.

What Makes Us Qualified?

Demetrios A. Sparacino started his career as a civil attorney and worked cases from inception to trial. He still maintains civil cases, primarily in personal injury. Recently, he assisted with the litigation against SDG&E for the wildfire losses that occurred in October, 2007. Mr. Sparacino also handles tax cases, both in terms of planning as well as defense against the Internal Revenue Service and Franchise Tax Board in civil tax cases and criminal tax cases.

How We Can Help You Today

Tax season does not mean planning begins January 1st. Timing is critical. For example, a civil Complaint can be drafted in a way to help the ultimate settlement by consistently maintaining your scope of loss, in the event an audit occurs. Also, certain elections have to be made in certain contexts, which can be devastating if not done. If you have a tax liability, you may need the time to prepare paying the amount to the IRS. We can help with that.

Wildfire Settlements require specialized attention. Whether you are a homeowner, a renter, or an emotionally harmed bystander, there are tax rules that apply to you and can be beneficial for you with proper guidance. We will analyze the pleadings, mediation briefs, settlement agreement and all discovery documents to ensure we can find every applicable deduction or tax deferment. DO NOT rely on something like Turbo Tax or H&R Block. Even a CPA potentially does not have the civil law experience to analyze your situation correctly.

We handle all aspects of civil settlements and jury awards. We can address real property losses, personal property losses, insurance funds, Federal Disaster funds (FEMA), emotional distress, interest, and attorneys' fees. From employment law settlements to personal injury awards, we can help you today.

Associations

We have worked with the San Diego Fire Lawyers. Mr. Sparacino is a member of CASD (Consumer Attorneys of San Diego), the California Bar (Tax Section) and San Diego County Bar (Tax Section).

Call (619) 955-5254

Visit: http://sparacino-law-tax.blogspot.com/

e-mail dsparacino@sparacinolaw.com