Year-End Tax Strategy for Plaintiff Attorneys

Year-End Tax Strategy for Plaintiff Attorneys

October 25, 2013 – In just about eight more weeks, the 2013 calendar will be ready for the recycle bin.

For contingency fee-based plaintiff attorneys who’ve had a successful year, recycling one of the best-ever tax deferral strategies is also on their minds as 2013 winds down:  Structured Attorney Fees.

Since the passage of the American Taxpayer Relief Act of 2012, our firm has experienced an EXPLOSION of requests from attorneys inquiring about structuring their fees.

Add to that the impact of Proposition 30 in California and similar tax increases in other states across the nation and the importance of effective tax planning for successful plaintiff attorneys becomes clearer.

These various tax hikes have combined to affect so many practitioners this year that structured attorney fees account for approximately 36% OF ALL OUR FIRM’S ACTIVITY so far in 2013.

Money on the tableStructuring fees just makes so much sense for those who qualify.

Yet surprisingly, attorneys who would never dream of leaving money on the table during a negotiation for one of their clients do it all the time when it comes to their own finances.

That’s where we can help.

With the right amount of analysis and planning, attorneys can arrange to structure their fee so that they credit the income in a future year (often, when an anticipated tax bracket will be lower) to maximize tax efficiency.

Add some pre-tax interest earned and most conclude that they simply cannot pass up such a money saving strategy.

So don’t leave YOUR money on the tax table.  Put it in your own pocket instead.  Call us for an analysis BEFORE you finalize your client’s settlement.


Finn Financial Group