2000 McDonald Road, Suite 200 | South Elgin, IL 60177
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Recent Blog Posts
How Recent Changes to Illinois Law Affect Limited Liability Companies
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.
Changes to Federal and State Laws Address Alimony and Driving Safety
The new year typically brings alterations to existing federal and state laws, and 2019 is no exception. This year’s updates include a change to federal tax laws that will significantly impact both parties involved in divorce, while one change to state laws adds a provision designed to reduce injuries in car accidents.
Spousal Support Tax Changes
A substantial change in U.S. tax law that went into effect on January 1, 2019 spawned an increased push to finalize divorces before the new year. To help defray the cost of the 2017 tax reform bill, spousal maintenance (formerly called alimony in Illinois) is no longer tax-deductible for former spouses who make payments. Also, maintenance recipients will no longer claim those payments as taxable income. This change applies to couples who finalize their divorce after December 31, 2018.
Check Your Tax Exemptions in Order to Avoid an April 15th Surprise
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.
Be Sure to Update Your Taxes if You Are Getting Divorced This Year
Going from married to divorced radically changes one’s finances. Instead of splitting bills with a partner, you now have to pay expenses on a single income. In addition to this, your taxes will likely change in several ways. In most cases, you can anticipate how your taxes will be affected by divorce, allowing you to alter your tax strategy accordingly.
Updating Income Tax Withholding
One area of your taxes you should review is whether you are withholding the right amount of taxes from your paycheck. Typically, married taxpayers who file together are taxed at a lower rate, and they may be able to claim certain deductions to reduce their tax burden.
When someone is no longer married, his or her tax liability will likely go up. If you do not change the amount withheld from your paycheck, you could face a large tax bill when filing your next tax return.
How to Spot a Fraudulent Real Estate Investment Club
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.
How Recent Changes to State and Federal Law Affect Spousal Maintenance
For many couples, spousal maintenance is an important issue to address during divorce. Alimony payments can help a lower-earning spouse maintain a standard of living similar to what they enjoyed while they were married, and they will also have a major impact on the finances of a higher-earning spouse. However, divorcing couples should be aware that there are significant changes in store for divorces which are finalized on or after January 1, 2019. On that date, both federal and state laws will be going into effect that will change the way courts award spousal maintenance and how alimony is treated for tax purposes.
Changes to Federal Law
At the federal level, alimony will no longer be tax deductible for the paying spouse. For the spouse receiving spousal maintenance, the new law does not require that spousal support be claimed as income. Experts generally agree that this will likely have the effect of smaller spousal maintenance payments, since more of the paying spouse’s income will go toward paying taxes.
Distracted Driving Can Cause Fatal 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.
Essential Elements to Include in Your Illinois Parenting Plan
If you are an Illinois parent going through a divorce, your divorce decree will include a parenting plan that specifies how parental responsibility (also known as decision making) and parenting time (also known as custody and visitation) will be allocated between you and your ex-spouse.
This is an important document that will play a major part in determining how you will interact with your former spouse and your child for years to come. Therefore, it is critical to think through this document and to be as comprehensive as possible. It is also important to make the terms flexible. This plan must be able to grow with your family for years to come.
The Importance of a Parenting Plan
Before discussing what should be covered in your parenting plan, it is important to understand the purpose of such a document within the scope of your family law case. You and your ex may be able to work together to create a parenting plan, but if you cannot agree on the terms of the plan, each of you must file your own parenting plan. Typically, each spouse is required to file a parenting plan within 120 days of petitioning for parental responsibilities. A court will review and consider the parenting plans when deciding how parental responsibilities will be divided.
The Effects of the Tax Cuts and Jobs Act of 2017 on Divorce Cases
Last December, Congress passed the Tax Cuts and Jobs Act of 2017, which represented the largest reform of the U.S. Tax Code in the past 30 years. This law made a wide variety of changes which will affect nearly everyone who pays taxes in the United States, and couples who are planning to get end their marriage should be sure to understand how this law will impact their divorce. Here are three areas of the tax law which will affect divorce cases:
- Spousal maintenance - For divorce agreements executed after December 31, 2018, maintenance (alimony) will no longer be tax deductible for the payor, and maintenance payments will no longer be includable as part of the recipient’s gross income. Divorcing spouses should be sure to understand how this change will affect their maintenance payments, and couples with a prenuptial agreement may need to update their agreement to reflect this change to the law.
How LLCs Can Benefit from Tax Reform
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.
2000 McDonald Road, Suite 200, South Elgin, IL 60177
Phone: 847-695-2400
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