Posted on May 02, 2019 in Business Law

On Jan. 1, 2018, Section 199A was inserted into the Internal Revenue Service tax code as part of the Tax Cuts and Jobs Act. As stated in the code, Sec. 199A says sole proprietors, business partnerships, S corporations, and many trusts and estates could be eligible for a qualified business income (QBI) deduction. This lets qualifying taxpayers deduct a maximum of 20 percent of their QBI, in addition to 20 percent of qualified publicly traded partnership (PTP) income and real estate investment trust (REIT) dividends.

When the new law was announced, uncertainty remained as to what kinds of businesses would qualify for the deduction and the scope of its limitations. In January of this year, the IRS issued Publication 535, in which Chapter 12 addresses the QBI deduction. 

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 Posted on January 30, 2019 in Business Law

In mid-2017, a 112-page bill from the Illinois General Assembly significantly altered the Illinois Limited Liability Company Act. Its purpose was to align Illinois law with the Revised Uniform Limited Liability Company Act adhered to in most states. In addition to affecting the formation of future companies, the law also applied to LLCs already in existence. Changes that significantly impacted Illinois business entities and individuals starting a new company include:

Clarification of Procedures for Records Inspection and Copying

If an LLC member wishes to assess the business’ transactions and financial status, the company must provide the necessary records within 10 days of the request, unless it is understood the individual already knows the information contained therein. Disassociated members also maintain these rights, and any denial of access must be made in writing by the company.

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 Posted on October 22, 2018 in Estate Planning

The federal government recently passed the Tax Cuts and Jobs Act (TCJA), which has ushered in major changes to tax laws that will affect nearly every business and individual taxpayer. It is critical to understand these sweeping changes so that you can anticipate your tax burden each year.

According to the Tax Policy Center, under the TCJA, approximately 67% of taxpayers will owe less taxes, 25% will have no change in their taxes, and 7% percent will owe more taxes. However, this may not mean that taxpayers will receive a refund next April.

For most, whether a refund is issued depends on how much tax one pays through income withholding. Experts predict that because the government has reduced the withholding amounts to reflect the reduced taxes, between one third and one half of taxpayers may have a balance due with their next tax return.

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 Posted on September 24, 2018 in Real Estate

Thinking of investing in real estate? Investment deals can be complex, and those not familiar with real estate terminology or the banking industry can be taken advantage of. There are many scams surrounding real estate investing, and one type of scam that seems to be common in the Kane County area is the opportunity to join a real estate investment club.

Generally, this scam operates by asking that investors pool their money to buy properties that will be renovated or rented. Investors who may be priced out of investing in real estate on their own are promised large sums of money in return once the property has been sold.

To be fair, real estate investment clubs can be legitimate. However, some clubs make untrue and inaccurate representations about how the club is structured, what loans may be involved, and what the probable returns will be on these investments.

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 Posted on July 25, 2018 in Car Accidents

Everyone who uses the road has a duty to protect the safety of others. Unfortunately, many drivers neglect this duty and fail to drive as safely as possible. One of the most common ways that drivers endanger themselves and others is by not paying full attention to the road. Distracted driving can lead to car accidents that result in serious injuries and death, and those who are injured by a distracted driver should be sure to understand their options for pursuing compensation for their damages.

The Dangers Posed By Distracted Driving

Driving is such a commonplace activity that many people divide their attention between the road and a variety of other concerns. While multi-tasking may seem to be an effective strategy in many areas of one’s life, driving is not one of them. Drivers should keep their complete attention on the road, since even momentary distractions can have deadly results. In fact, more than 420,000 injuries and 3,100 fatalities occur in the United States every year as the result of distracted driving.

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 Posted on March 22, 2018 in Business Law

The Tax Cuts and Jobs Act of 2017, which was passed by Congress and signed into law by President Trump last December, made a wide variety of sweeping changes to the United States Tax Code. In addition to reducing the corporate tax rate, the tax reform law implemented some changes which can benefit small business owners, and people should be aware of how they can take advantage of these changes and minimize their tax burden by establishing themselves as a LLC.

Pass-Through Entities and LLCs

One significant change that the Tax Cuts and Jobs Act made was in how pass-through entities are treated. With pass-through businesses, such as sole proprietorships or LLCs, profits are taxed at the owner’s individual tax rate rather than the corporate tax rate. Under the tax reform law, owners of pass-through entities can now deduct 20% of their qualified business income.

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 Posted on March 05, 2018 in Car Accidents

A car accident is a frightening experience, whether it is a minor rear-end collision or a major fender bender. In the immediate aftermath of a crash, people are often shaken up and unsure of how to handle the situation. By following these steps, you can not only ensure that you address the legal issues surrounding your accident, but you will be prepared to seek compensation for the injuries you have suffered:

1. Provide assistance - Drivers should always stop their car and, if possible, pull over to the side of the road after an accident, after which they can assess the damage and exchange information with the other driver(s). In Illinois, drivers involved in an accident are required to provide reasonable assistance to anyone who has been injured, including giving medical aid, calling 911, or transporting them to a medical facility.

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 Posted on February 05, 2018 in Personal Injury

It is hard to lose a loved one, even if they die from natural causes after having lived a long and meaningful life. When someone’s time is cut short, however, the pain, loss, and grieving is magnified – especially when death has been caused by another’s negligence or intentionally bad conduct. Besides the immense grief and realization that nothing can bring a loved one back, many individuals and families must deal with the stark reality of the loss of support, both financial and emotional, provided by the work, income, and participation in family responsibilities of the lost loved one. When grief is coupled with tenuous financial straits, survivors of the wrongful death of a family member can seek compensation from the person or entity responsible.

Defining Wrongful Death in Illinois

In general, a wrongful death occurs whenever an individual is killed because of someone’s intentionally wrongful or negligent conduct. More specifically, in the precise legal language of Illinois state law, "whenever the death of a person shall be caused by wrongful act, neglect or default, and the act, neglect or default is such as would, if death had not ensued, have entitled the party injured to maintain an action and recover damages," the individual or entity (e.g. business or other institution) that caused the death may be held liable in a wrongful death suit in civil court.

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 Posted on January 26, 2018 in Car Accidents

The legal term "damages" refers to harms and losses that a person suffers because of someone else’s actions or negligence. These adverse effects can occur in a variety of situations, and depending on the nature of the damages suffered, an appropriate "measure" of these damages is ascertained and applied, and the party who has suffered losses can seek compensation for their damages from the person who was responsible.

Following an automobile accident, damages typically include the losses a person experiences due to personal injuries (including medical bills, lost income, reduced earning capacity, ongoing rehabilitation, and pain and suffering), as well as vehicle damage caused by the negligent or intentionally wrongful conduct of a driver. However, in some cases, additional damages may apply.

When Damages Suffered Go Beyond Personal Injuries and Vehicle Damage 

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 Posted on January 23, 2018 in Estate Planning

The start of a new year is an appropriate time to devote focus to ensuring that your finances are in order for both the short and long term. This due diligence requires that you give adequate consideration to every resource capable of aiding you and your family in the protection of your assets. Besides savings accounts, IRAs, 401(k)s, and investments in the stock market, estate planning is a tremendous resource in matters of asset protection. Devoting time now to careful estate planning focused on finances related to your business, health, and family can make all the difference in the future, allowing your intentions with regard to your assets to be followed correctly.

How Assets May Be at Risk

Three primary risks faced by assets are:

• Government taxation
• Commingling of business and personal assets

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