Dealing with an estate can feel complicated, but it doesn’t have to be.
It’s important to utilize expertise so that you can maximize your tax deductions.
Not long ago, we were helping a client with a very large estate they had. We knew we had to file an estate return and pay tax based on this. However, we ALSO knew to file a protective claim on the estate return because there were some pending legalities.
Filing this protective claim was key for our client’s success, but is something that could have easily been overlooked.
We knew that it would give our client the opportunity for expense deduction down the road.
When the court settlement and all legal issues were settled, we advised the client to take the court judgement to an attorney and have it written in a way that would maximize the deductibility of the payout of the settlement itself.
The attorney did a write-up that classified different pieces of the settlement in a way so that some could be deductible and some were not.
To break it down there were three areas of the settlement:
- The first was deductible and we knew it
- The second was not deductible and we knew it
- The third was a grey area that was rather large
After we conducted research and analysis, we decided to claim the grey area as deductible.
We broke down the complexity of the situation, analyzed the tax ramifications and then took an informed and assertive stance to claim it for our client.
It passed and ended up saving our client over $300,000 dollars.
This would not have been possible if our Tembo team hadn’t been involved every step of the way and it all started with filing the protective claim, working with the settlement agreement and maximizing the deduction.
You better believe we’re here to help you save that hard-earned cash!
