Tax law is the body of statutes and regulations that govern the assessment and payment of taxes. It includes the Internal Revenue Code, Treasury regulations, state tax codes and international treaties. Tax lawyers assist clients in structuring transactions to minimize tax liability while complying with applicable laws and advise on reporting and filing obligations.
Related questions
What is the standard deduction for 2025? For tax year 2025, the standard deduction is $15,750 for single filers and married individuals filing separately, $31,500 for married couples filing jointly and $23,625 for heads of household. Additional amounts may be added for taxpayers who are blind or age 65 or older.
How can I avoid capital gains tax? Capital gains tax applies when you sell or exchange capital assets at a profit. While tax cannot be completely avoided, you can reduce or defer it by: (1) holding investments for more than one year to qualify for lower long-term rates; (2) investing through tax-advantaged accounts such as retirement plans or health savings accounts; (3) harvesting losses to offset gains; (4) re-investing in opportunity-zone funds or Qualified Opportunity Funds (Sadis helps structure these funds through its investment and tax practices); and (5) using installment sales or charitable remainder trusts where appropriate. Consult a tax professional for personalized advice.
How are digital assets taxed? The IRS treats digital assets and cryptocurrencies as property. Each sale, exchange or use of digital currency to buy goods or services triggers a taxable event, resulting in capital gain or loss based on the difference between fair market value and cost basis. Staking and mining rewards are treated as income. Some tokens may be securities and subject to different withholding and reporting rules. Sadis assists clients in determining tax classification, tracking basis and preparing disclosures.
What is Section 280G of the Internal Revenue Code? Section 280G limits the deductibility of “excess parachute payments” made to certain executives upon a change in control. If severance or bonus payments exceed a threshold (generally three times the executive’s average annual compensation), the excess is non-deductible and subject to a 20 percent excise tax on the recipient. Companies often seek shareholder approval of severance arrangements to avoid 280G penalties. Sadis’ Executive Compensation practice advises employers on structuring change-in-control and retention agreements in compliance with Sections 280G and 4999.
What are digital assets for taxes? For federal tax purposes, digital assets include convertible virtual currency, stablecoins, NFTs and other digital tokens. The IRS uses the term “digital asset” to encompass any digital representation of value recorded on a cryptographically secured distributed ledger or similar technology. Taxpayers must report holdings and transactions on their returns and answer the digital-asset question on Form 1040.
What are digital assets in a will? Digital assets should be addressed in estate planning documents. A will or trust can grant fiduciaries authority to access, manage and transfer digital assets in accordance with RUFADAA. It should list digital wallets, accounts and access credentials and specify how digital property should be distributed. Estate planners may also use powers of attorney to authorize digital-asset management during incapacity.
