Terence Talks: Princes' Will and Estate in Question

With the untimely death of Prince, came a slew of individuals coming forth looking for ways to capitalize on their interests. This happens to many celebrities who are in the public eye. Terence E. Smolev of Smolev Law said "It is not uncommon when someone of wealth passes away that people appear and claim that they are rightful heirs entitled to all or part of that dead persons assets. We have seen that with the James Brown estate and now with the Prince estate.  Years ago without DNA testing the unraveling of heirship was more difficult, but not impossible. In fact, not that long ago it was determined that many people claiming to be descendants of Thomas Jefferson was found to be true. DNA played a part in those determinations. You may even see women and men appearing to claim spousal rights. DNA does not play a role in those claims. Marital certificates and/or common law marriage rights become in issue. Let the circus begin!" To read more about living wills and estates you can see Terence's website at http://smolevlaw.com/

Do you have a living will?

Do you know what a living will is? Living wills allow you to specify how you want to be cared for in case of an inability to speak for yourself during a health emergency. This document acts as a template of action concerning your personal state. Creating one of these documents can provide your family with a concrete plan for emergency situations. Not only does this set up a good emergency plan, but it also puts your family at ease. Having a plan takes the burden off your family for making difficult decisions during these types of situation. Your family will not have to suffer while deciding important health decisions. Terence Smolev and Chirsitna Rickheerman Jonathan form Smolev Law are leaders in their field and have dealt with the creation of hundreds of living wills. Do you or a loved one need a living will created? Contact Smolev Law at 516-931-9500 and talk to an attorney today. Terence and Christina also have a huge amount of resources for you on their website. Follow the link below for your free resources http://smolevlaw.com/.

Claming a Tax Deduction for Medical and Dental Expenses - By Terence E. Smolev

Your medical expenses may save you money at tax time, but a few key rules apply. Here are some tax tips to help you determine if you can deduct medical and dental expenses on your tax return:

• Itemize. You can only claim your medical expenses that you paid for in 2015 if you itemize deductions on your federal tax return.

• Income. Include all qualified medical costs that you paid for during the year, however, you only realize a tax benefit when your total amount is more than 10 percent of your adjusted gross income.

• Temporary Threshold for Age 65. If you or your spouse is age 65 or older, then it’s 7.5 percent of your adjusted gross income. This exception applies through Dec. 31, 2016.

• Qualifying Expenses. You can include most medical and dental costs that you paid for yourself, your spouse and your dependents including:
o The costs of diagnosing, treating, easing or preventing disease.
o The costs you pay for prescription drugs and insulin.
o The costs you pay for insurance premiums for policies that cover medical care qualify.
o Some long-term care insurance costs.
Exceptions and special rules apply. Costs reimbursed by insurance or other sources normally do not qualify for a deduction. For more examples of costs you can and can’t deduct, see IRS Publication 502, Medical and Dental Expenses. You can get it on IRS.gov/forms anytime.

• Travel Costs Count. You may be able to deduct travel costs you pay for medical care. This includes costs such as public transportation, ambulance service, tolls and parking fees. If you use your car, you can deduct either the actual costs or the standard mileage rate for medical travel. The rate is 23 cents per mile for 2015.

• No Double Benefit. You can’t claim a tax deduction for medical expenses paid with funds from your Health Savings Accounts or Flexible Spending Arrangements. Amounts paid with funds from those plans are usually tax-free.

• Use the Tool. Use the Interactive Tax Assistant tool on IRS.gov to see if you can deduct your medical expenses. It can answer many of your questions on a wide range of tax topics including the health care law.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

REMEMBER WE ARE HERE TO HELP—CALL US 516-931-9500

Did you know about these 9 deductions?

Few realizations are more painful to a taxpayer who's just filed a tax return than realizing that you forgot to include a deduction that would have lowered your tax bill or increased your tax refund. In the rush to get your tax return completed by the deadline, it's all too easy to miss avenues that might lower your taxable income. Here are some of the deductions that many overlook.

1. Sales Taxes

You have the option of deducting sales taxes or state taxes off your federal income tax. In a state that doesn’t have its own income tax, this can be a big money saver. Even if you paid state taxes, the sales tax break might be a better deal if you made a big purchase like an engagement ring or a car. You have to itemize to take the deduction, but the IRS provides tables to use as a guide.

2. Health Insurance Premiums

Medical expenses can blow any budget, and the IRS is sympathetic to the cost of insurance premiums – at least in some cases. For most taxpayers, medical expenses have to exceed 7.5 percent of your adjusted gross income to be deducted. However, if you’re self-employed and responsible for your own health insurance coverage, you can deduct 100 percent of your premium cost. That gets taken off your adjusted gross income rather than as an itemized deduction.

3. Tax Savings for Teacher

It’s the rare teacher who doesn’t have to reach into her own pocket every now and then to purchase items needed for the classroom. While it may sometimes seem like nobody appreciates that largesse, the IRS does. It allows qualified K-12 educators to deduct up to $250 for materials. That gets subtracted from your income, so you can take advantage of it even if you don’t itemize.

4. Charitable Gifts

Most taxpayers know they can deduct money or goods given to charitable organizations – but are you making the most of this benefit? Out-of-pocket expenses for charitable work also qualify. For example, if you make cupcakes for a charity fundraiser, you can deduct the cost of the ingredients you used to bake them. It helps to save the receipts or itemize the costs in case of an audit.

5. Paying the Babysitter

You might be able to deduct the cost of a babysitter if you’re paying her to watch the kids while you volunteer to work for no pay for a recognized charity. The federal Tax Court has ruled that it’s OK to list the cost of a babysitter as a charitable contribution on your return, if you can document that while she was performing her duties, you were volunteering.

6. Lifetime Learning

The tax code offers a number of deductions geared toward college students, but that doesn’t mean those who have already graduated, don’t get a tax break as well. The Lifetime Learning credit can provide up to $2,000 per year, taking off 20 percent of the first $10,000 you spend for education after high school in an effort to give you new or improved job skills. This phases out at higher income levels, but doesn’t discriminate based on age.

7. Unusual Business Expenses

If something is used to benefit your business and you can document the reasons for it, you generally can deduct it off your business income. A junkyard owner, for example, might be able to deduct the cost of cat food that encourages stray cats to hang around and keep the mice and rats away. A bodybuilder got approved to deduct the body oil he used in competition.

8. Looking for Work

Losing your job is traumatic, and the cost of finding a new one can be high. But if you’re looking for a job in the same field, you itemize your deductions and these expenses exceed 2 percent of your gross income, any expenses over that threshold can be deducted. It may seem like a high bar, but those costs add up quickly – consider deducting the mileage you put on your car driving to interviews and the cost of printing resumes.

9. Self-employed Social Security

The bad news about being self-employed: You have to pay 15.3 percent of your income for social security taxes, the portions ordinarily paid by both employee and employer. But there's one small consolation – you do get to deduct the 7.65 percent employer portion off your income taxes.

source: https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Deductions-and-Credits/9-Things-You-Didn-t-Know-Were-Tax-Deductions/INF26934.html

Terence Smolev has an exciting speaking engagement!

The Washington College of Law at the American University in Washington, DC is a highly coveted and competitive University. Terence E. Smolev, who attended the University himself, lectures about Criminal Tax Law. These lectures enrich the students’ educational process, with real life applications and experiences. Learning about the functionality of their studies allows students to obtain a different dimension of understanding. When Terence was asked about this experience he responded, “The students at The College of Law are very responsive, and love to interact during the lecture. It has been a valuable experience for both myself and the students”.

            Terence is a graduate of Hofstra University, BBA Accounting, in 1966. Mr. Smolev also earned his law degree from Washington College of Law of the American University, 1969. He received his LLM in Taxation from New York University Graduate School of Law, 1974. A specialist in all aspects of tax law, corporate law, estate and trust law, and education law. Mr. Smolev has been a long-time member of the American Bar Association, The New York Bar Association and the Nassau County Bar Association. He currently owns his own practice in Jericho, NY.