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 contingent fee lawyers to minimize their annual tax liability.
As we quickly approach year-end, Advocate Capital, Inc. clients may choose to 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 potential 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 2017 Retirement Account Contributions (Click for 2017 limits)
- State & Local Tax Payments (including Property Taxes)
- Unpaid Medical Bills
- Purchases for certain Section 179 Property (Maximum section 179 deduction for 2017 is $500,000)
Make the time to ask your tax adviser about other tax deductible expenditures you can make before year end to minimize your individual 2016 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.
Important: Advocate Capital, Inc. and it's staff do not provide tax, legal or accounting advice. This blog has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisers before taking any action.
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