Tax Questions Every Solo And Small Firm Lawyer Should Be Able To Answer

Appearing in the October of 2021 issue of ALI CLE’s The Practical Lawyer is an article by Kathleen E. (Splett) Pfutzenreuter and Benjamin A. Wagner addressing a variety of tax topics that small and solo firm lawyers should be ready to answer. The tax topics covered include: when to talk to a tax accountant or a tax lawyer, and what the difference is; deductions for those working out of their home; why it is important to keep separate bank accounts for a small business; hiring family members; section 199A of the Tax Cuts and Jobs Act of 2017; determining one’s income; choosing a retirement state; deduction of one’s vehicle, boat, or airplane; classifying “workers” as “independent contractors”; and possible tax traps facing retiring business owners.

Some of these topics can seem straightforward on their face, but often they have variables and nuance to them depending on the issue or the tax period. Kathleen and Ben carefully address these topics in their article, only referencing the appropriate sections of the Internal Revenue Service Code and Internal Revenue Service Forms when needed. Their explanations offer advice on how to understand and navigate certain situations, and whether to take certain actions at all. The results should provide a ready guide to the addressed topics for any solo or small firm, helping them to ensure that they are prepared to satisfy their own clients’ concerns.

Below is the link to the thumbnail of the article providing a glimpse of the aforementioned content: