Hello. I may be receiving $1,000,000 from a company out West this August. The company will wire it to my bank. Of course, all is legal as the company is reporting this income to the IRS and I will be receiving a 1099 form at the end of the year. I live in New York and I am single with no allowances, dependents or property so I will surely be crucified in taxes. I want to know how much I wilI have to set aside to pay the taxes on $1,000,000. I am sure I will be forking over at least half to Uncle Sam. Is there any way to minimize the tax hit? Should I consult with a tax lawyer or financial planner before the money arrives in a few months?
2 Answers from Attorneys
You must have been quite capable and intelligent to earn that kind of money. Use your brains and seek counsel from competent professionals to calculate your tax liability and to possibly reduce those tax obligations.
You should absolutely consult with an estate planning attorney and a tax attorney (My personal feeling is that the best estate planning attorneys are also tax lawyers.)
Depending on your specific situation, there may be various techniques that can be used to minimize your tax liability. We would need to know more about your current financial situation, your family, your goals, and many other issues. There are many different factors, so please speak with an attorney AND a financial planner right away. Our office is located in New York City and we would be happy to work with you.
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