The IRS stands firm on the ruling that client case costs are considered a receivable for accounting and tax purposes and are not a tax deductible expense. However, the Advocate Capital, Inc. Case Expense Funding product provides a solution to help contingency fee lawyers to minimize their annual tax liability.
As we quickly approach year-end, Advocate Capital, Inc. clients can fund client case costs, using the proceeds generated from the funding request to make tax deductible payments before year-end, minimizing the Firm’s current year tax liability.
Below are just a few examples of tax deductible expenditures a Firm can make using the cash they have access to by funding their client case costs before year end:
- Year End Bonuses
- Charitable Contributions
- Maximize 2015 Retirement Account Contributions (click link for 2015 limits)
- State & Local Tax Payments (including Property Taxes)
- Unpaid Medical Bills
- Purchases for certain Section 179 Property (maximum section 179 deduction for 2015 is $25,000.00)
Make the time to ask your tax adviser about other tax deductible expenditures you can make before year end to minimize your individual 2015 tax liability. The dollars you save may be your own!
The Advocate Capital, Inc. Case Expense Funding product provides countless strategic financial solutions for Plaintiff Lawyers; minimizing the annual tax liability, is just one of many solutions. To learn more about how the Case Expense Funding product can benefit your clients and your practice, contact your Account Manager or click here for contact information.
Senior Vice President, Client Services
Photo Credit: Scott Van Blarcom