Kohler & Smith's Legal Blog

Like Many Other Deceased Musicians, Whitney Houston’s Estate Stands To Continue Earning Income

Kohler & Smith Co., LPA — Wed, 15 Feb 2012 21:28:24 +0000

Like many other famous musicians, Whitney Houston had many financial difficulties in her life. However, even after her death, her estate could be earning a considerable amount of annual income for years to come. While some of the estate’s royalties will be used to pay off her debt, Whitney Houston’s estate joins a list of many others before it that will continue to reap the benefits of the decedents’ stardom.

Forbes recently released a list of the top earning dead musicians showing that Michael Jackson’s estate took in $170M in 2011 alone. While Yahoo does not believe Whitney Houston’s estate will be as prolific, the estate could still be earning a large sum of money for the foreseeable future.

While not everyone is a platinum selling recording artist, everyone stands to benefit from prudent and effective estate planning and asset protection. Royalties and other windfalls do not necessarily have to go to an estate, talk to the lawyers of Kohler & Smith Co., LPA today to protect your family’s financial future.

Tax Breaks: Here Today, Gone Tomorrow?

Kohler & Smith Co., LPA — Wed, 18 Jan 2012 15:34:21 +0000

Much has been written and debated about the payroll tax cut extension passed by the U.S. Congress late in 2011. Much less has been written about all of the other popular credits and deductions that were not extended along with the payroll tax cut. The following tax breaks expired as of December 31, 2011 and will not be available on your 2012 tax return unless the government works to extend some or all of the following:

AMT Patch – without new legislation, tens of millions of families will be subject to higher taxes due to the Alternative Minimum Tax
Tuition and Fees Deduction – provided up to a $4,000 (subject to income limitations) deduction on income for qualifying higher education tuition and fees
Teachers Supplies Deduction – even those teachers who do not itemize their deductions can take a $250 deduction for supplies purchased
Mortgage Insurance Premium Deduction – subject to certain limitations, many taxpayers had been able to deduct mortgage insurance premiums paid, along with mortgage interest paid

The above listed deductions and tax breaks are just a sampling of the many provisions that might be different if no action is taken before the end of the year. With the payroll tax cut fight still looming before the end of February, it would appear that no patches or fixes are on the immediate horizon.

Will Your January 2012 Paycheck Be Smaller? UPDATED DECEMBER 28, 2011

Kohler & Smith Co., LPA — Wed, 21 Dec 2011 21:17:43 +0000

UPDATE: Congress, eight days before its scheduled expiration, passed a two-month extension of the payroll tax-cut. Lawmakers on both sides of the debate will once again pick up the negotiations for a longer-term deal early in 2012.

The two percentage point payroll tax-cut on employees’ wages will continue through February 2012 at which time the temporary tax-cut would, once again, expire if no further action is taken.

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The sticking point on the payroll tax-cut revolves around how the initiative should be funded. Democrats are supportive of an increase in the taxes on the wealthy while Republicans remain opposed to any tax increases.

As of the publication of this post, the United States Congress has failed to extend the 2011 temporary reduction in payroll taxes. If no agreement is reached by year end, approximately 160 million American workers will take home less money from their paychecks beginning in January.

Much like the harrowing tax negotiations that occurred at the end of 2010, the political wrangling of 2011 is continuing right through to the end of the year. In 2010, Congress passed a temporary reduction in employees’ payroll taxes, reducing the amount of social security that is withheld. This reduction resulted in about $20 of extra take home pay per week for an employee earning $50,000 per year. Without an extension of the payroll tax cut, that extra take home pay will be eliminated and a “tax increase” will occur.

There are many year end tax decisions that can save you and your family money. Call the lawyers at Kohler & Smith Co., LPA today to discuss what alternatives could be beneficial for you!

The Estate of Steve Jobs: Will it be Taxed?

Kohler & Smith Co., LPA — Tue, 18 Oct 2011 20:28:58 +0000

Much has been written about the death of Apple founder Steve Jobs over the past days. One area that has received increased attention is the estate planning done by Jobs, his attorneys, his accounts, and other professionals before his death. Forbes columnist, Deborah L. Jacobs, has recently expounded upon this topic in further detail accompanying her prediction that Steve Jobs’s estate will not pay any estate tax.

While most people are not billionaires like Steve Jobs, all families can benefit from quality estate planning. Whether aiming to avoid probate, limit (or eliminate, potentially, in Steve Jobs’s case) estate taxes, ensure that your assets will be passed on to those you choose, support charities, or a whole host of other goals, estate planning is a good idea for each and every adult. Estate planning is not a “one size fits all” undertaking. By meeting with a trusted estate planning attorney, clients can maximize their goals and create plans that are specifically tailored to their needs and desires.

If you have been putting off your estate planning, call (614) 888-4911 today to speak with one of Kohler & Smith Co., LPA’s estate planning attorneys or visit us on the web at www.kohlersmith.com for more information.

2,000th Page View!

Kohler & Smith Co., LPA — Fri, 09 Sep 2011 14:25:48 +0000

Kohler & Smith’s Legal Blog is excited to have received its 2,000th page view since its inception! August of 2011 was the busiest traffic month since the blog was launched last September. Be sure to check back periodically for all of your legal and tax related news and information.

Franklin County Issues First Countywide Property Reappraisal in Six Years

Kohler & Smith Co., LPA — Wed, 31 Aug 2011 13:45:04 +0000

Last week, Franklin County Auditor, Clarence Mingo, issued the first countywide property reappraisals in six years. To the pleasure (or ire) of many Franklin County homeowners, property values in central Ohio dropped considerably. Of Franklin County’s 376,383 residential properties, values dropped in 6.7 percent of the properties from 2005 to 2011. With over 75 percent of property values declining, Franklin County property owners now must cope with the fallout.

Much to the surprise of some, 19 percent of Franklin County property owners actually saw their property values increase. To address discrepancies and disputes, Franklin County is offering 17 review sessions scheduled through September 29. For those property owners who challenge the new proposed valuation, decisions will be rendered sometime before the end of the year – just in time for the tax bills to be mailed at the end of December. For those who think that the valuations are arbitrary, the Franklin County Auditor’s office has stated that it took 39 county appraisers two years to examine each parcel in the county.

Taxpayers who are either unable or choose not to utilize the review sessions over the next month, the Franklin County Board of Revision will begin the appeals process on January 3, 2012. Property appraisers in central Ohio are busy working with property owners and many are unable to schedule new appraisals for at least two weeks.

If you or your family have recently had your property reappraised and you would like help challenging the the new auditor’s proposed value, contact the attorneys at Kohler & Smith Co., LPA today.

2012 HSA Contribution Limits

Kohler & Smith Co., LPA — Tue, 12 Jul 2011 16:43:16 +0000

The IRS has recently announced the 2012 HSA contribution limits:

Individual: $3,100
Family: $6,250
Minimum Annual Deductible (Individual): $1,200
Minimum Annual Deductible (Family): $2,400
Out-Of-Pocket Maximum (Individual): $6,050
Out-Of-Pocket Maximum (Family): $12,100

Ohio Estate Tax Eliminated Beginning In 2013

Kohler & Smith Co., LPA — Fri, 01 Jul 2011 13:24:42 +0000

On June 30, 2011, Ohio Governor John Kasich signed House Bill 153. This 3,262 page appropriations bill, among other things, eliminates the Ohio Estate Tax, beginning in 2013. The Ohio Estate Tax applies to a decedent’s property owned at the time of his or her death. Generally, there is a $338,333 exemption to this tax, with all assets owned by a decedent that exceed this amount being taxed by the Ohio Department of Taxation. For more information on House Bill 153, click here.

Many things can happen in the next year and half. Because of the uncertainties and changes in the law, it is important that your estate planning is up to date and flexible. One thing that can always be counted on in the tax world is that things do not remain the same for long.

Call (614) 888-4911 or visit http://www.kohlersmith.com today to set up an appointment to meet with a Kohler & Smith Co., LPA estate planning attorney. Whether you have never done any estate planning or if it has been a few years since your last updates, the attorneys at Kohler & Smith Co., LPA can help you and your family achieve your succession and tax planning goals.

High Gas Prices Cause IRS To Increase Mileage Rate

Kohler & Smith Co., LPA — Thu, 23 Jun 2011 19:50:46 +0000

The Internal Revenue Service has responded to the nationwide increase in gas prices by raising the mileage rate by 4.5 cents. Starting July 1, drivers will be able to deduct 55.5 cents per mile for the business-related travel they undertake in their private vehicle. Generally, the IRS announces increases in the fall; however, just as in 2008, high gas prices have led the IRS to increase the mileage rate in the middle of the year.

Along with business-related travel, the mileage rate for medical and moving expenses has increased to 23.5 cents per mile – an increase from the 19 cent deduction previously accorded to drivers. According to the Oil Price Information Service, gasoline consumed 9.5% of taxpayers’ median income in May of 2011, this is only slightly less than the 10.2% of consumers’ income gasoline consumed back in 2008.

Even if you haven’t deducted these costs in the past, many employers use the IRS mileage amount to determine how much to reimburse employees for their business related fuel costs.

The business mileage deduction is just one of many deductions available to taxpayers. Let the attorneys at Kohler & Smith Co., LPA help you and your family at tax time – call (614) 888-4911 today.

Ohio Think Tanks Working To Close “Loopholes”

Kohler & Smith Co., LPA — Wed, 22 Jun 2011 18:39:35 +0000

Three Ohio think tanks have been working together to recommend closing perceived “loopholes” in Ohio’s tax laws. It’s not odd that groups would work together to do this, what is odd is the three groups that are working together: the Buckeye Institute, the Greater Ohio Policy Center, and the Center for Community Solutions.

The groups will be recommending the elimination of 20 loopholes to the Ohio General Assembly. If adopted, the changes in Ohio tax law would eliminate approximately $600M in tax payouts. Among the “loopholes” are:

$20 credits for all resident Ohioans (approximately $165M annually)
$65 credits for all Ohioans age 65 and older (approximately $33M annually)
Tax deductions for statewide political offices

Just like the federal tax laws, Ohio tax laws are constantly changing. Contact the attorneys at Kohler & Smith Co., LPA for all of your tax planning and preparation needs.