Taxes have become a major financial issue for members of the LGBT community
North Highlands, CA (PRWEB) March 5, 2009
Following a roller coaster year for LGBT couples and families, tax season promises further confusion. Tax codes can be daunting for anyone, but create specific problems for the 11 million unmarried couples currently living in the United States. With this in mind, nationally recognized tax attorney Roni Deutch has offered a number of tips for LGBT families on The Tax Lady Blog.
"Taxes have become a major financial issue for members of the LGBT community," says The Tax Lady, Roni Deutch. "Over 1,100 federal laws benefit married couples, and same-sex partners are missing out! Come tax season, it creates a lot of stress for LGBT families. But by planning ahead and making smart financial choices, LGBT couples and families can keep more of their money in their pockets every year."
Recognizing the ongoing struggle of the LGBT community Roni's law firm, Roni Deutch, A Professional Tax Corporation, joined the Sacramento Rainbow Chamber of Commerce in December 2008. "This community's need for tax help is growing. So, throughout tax season, my law firm and Roni Deutch Tax Center are reaching out to members of the LGBT community. Both companies are here and ready to work with the unique dynamics of LGBT tax issues."
Launching these efforts, Roni posted on the Tax Lady Blog an entry titled Taxes 101 For Domestic Partners & Same-Sex Couples. Below are a few tips from the posting.
When it comes to mortgages, the best way to save money on your taxes is to plan in advance which person should take the mortgage out. If you are making $45,000 a year and your partner is making $150,000, it makes more sense for your partner to take out the mortgage. This is because the higher income-earning partner can then claim the mortgage interest deduction over the years, and save more because they are in a higher tax bracket.
Gift Tax Exclusion
A married couple has the great benefit of being able to give gifts to each other without having to pay gift or estate taxes. Unfortunately, couples within the LGBT community cannot do the same. However, there is the annual gift tax exclusion. When used properly, it can make up for some of the inequity. The annual gift tax exclusion allows you to gift $11,000 worth of assets to another individual without paying taxes on them.
Be Prepared for Anything
When living with a partner that you cannot legally marry, it is important that you are both vigilant in your finances. No one wants to think about it, but if your relationship ends you are not protected the same way as you would be if you were married. If there is not a formal agreement governing the relationship, then asset ownership essentially comes down to who purchased what. This may not seem fair, as you may have made purchases based upon who benefited most, taxes-wise. When you begin building up many valuable assets, hiring a lawyer to draw up documents is smart. Consider entering a cohabitation agreement to govern your finances during the relationship and provide the framework for splitting assets if your relationship goes sour.
LGBT Friendly Help
Ask friends, family, and community members if they know a tax professional that specializes in LGBT taxes. When it comes to taxes for unmarried couples, you can use all the advice you can get! Most tax professionals will be able to help you to some extent, but having someone familiar with the specific issues involved in LGBT taxes ensures you're getting the best advice.
Millions of people recognize tax attorney Roni Deutch as The Tax Lady®. She has been helping taxpayers nation-wide resolve their tax liabilities for eighteen years. As an industry leader, she has saved her clients tens of millions of dollars and has helped thousands of families settle their back taxes.
About Roni Deutch, A Professional Tax Corporation
Roni Deutch, A Professional Tax Corporation is a nationally recognized law firm that has been helping clients find solutions to their back tax liabilities for eighteen years. To find out more about the law firm or its IRS tax relief services, visit their website at RoniDeutch.com or call 1-888-TAX-LADY. To learn more about The Tax Lady Roni Deutch, you can visit her blog or YouTube profile.
Roni Deutch, A Professional Tax Corporation
877-232-8477 Ext. 1914