and what to do to keep $250,000 each exemptions in California
answered on Apr 3, 2024
HOW DOES A MARRIED COUPLE QUALIFY FOR THE $500,000 EXCLUSION?
1. At least one spouse must have owned the home for two out of the last five years. The years can be split up – one in 2019 and one in 2021 – but the time has to equal 730 days out of the past five years.
2. And, both... View More 
Can bankruptcy remove liens and protect my home/property
answered on Jan 11, 2024
1. Liens are not impacted by a bankruptcy discharge and therefore remain in effect following a discharge.
2. As decided by the U.S. Supreme Court, a homestead exemption does not protect you from an IRS lien. In other words, the IRS can reach the equity in your home that other creditors... View More
My brother will be signing over ownership of a property to me (my current residence). It is currently valued at $400K. I need to pay off the $200K outstanding mortgage on it (to be obtained through a home loan). I want to turn around and sell it for down payment on a new home in NV. I will pay off... View More
answered on Jan 8, 2024
California does not have a lower rate for capital gains. All capital gains are taxed as ordinary income.
answered on Jan 5, 2024
You may obtain bankruptcy case information at:
https://pacer.uscourts.gov/
answered on Dec 4, 2023
Your receipt of the funds is a taxable event for you.
Your gift of the funds has no impact on your tax liability.
I plan to petition for default divorce since my spouse is in agreement and we do not have any major assets or properties to settle. If we choose to not have a marital agreement, how does our tax liability settle after the divorce? Would we still be equally liable for the joint taxes on our incomes... View More
answered on Nov 21, 2023
Both spouses are liable for a balance due on a jointly filed tax return.
A divorce judgment has no impact whatsoever on the joint IRS liability.
answered on Mar 23, 2023
All companies are required to obtain a California business license, no matter whether they have a physical storefront or just sell online.
Would a life insurance payout increase your tax bracket?
answered on Mar 8, 2023
Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren't includable in gross income and you don't have to report them. However, any interest you receive is taxable and you should report it as interest received.
My partner is considering giving me 50K as a gift. We live together in California and not married yet. We heard that there's 16K annual cash gift limitation but he can assign the rest 34K as his lifetime exemption (Inheritance and I am in his will). My question is are we qualified for this tax... View More
answered on Apr 22, 2022
Unfortunately, the California Revenue and Taxation Code allows the FTB to do this.
It's important to note that relief from the levies may very well be available.
It's best to immediately establish contact with an experienced tax attorney to help you with this.
I live in California, but have a house in Puerto Rice. Is there a withholding of 15% to the IRS for the sale of my house for $400k
answered on Apr 21, 2022
The IRS only requires 15% of the sales price be withheld on the sale of United States real property interests by foreign persons.
Normally, I am self-employed (independent contractor) freelance exec. assistant and run my business from my apartment and use Schedule C to deduct expenses for that business. However, from Jan. to Sept 2021 I collected Pandemic Unemployment Assistance and did not have any earned income and my PUA... View More
I had a tax issue and the issue has gone to IRS court. Can I do a settlement with the IRS instead of going to court? The Tax Agent who has handled my case bailed out at the last moment. Is it advisable to go with an attorney who may charge up to 25k start and may go up? Where should I get good... View More
answered on Apr 3, 2022
Yes, you most certainly settle your case. In fact, a very high percentage of Tax Court cases are settled.
I have a question regarding taxes…my employer last year classified me as an independent contractor, however i was looking into CA state law and based on what I was reading, I should have been classified as an employee. The employer gave me a 1099 and now I owe around $3000 in taxes. Is there... View More
Will California still go after my wife’s income or just mine to pay back the debt
answered on Jan 7, 2022
Because Washington is a community property state, you have a community interest in your wife's earnings. The California FTB can therefore collect on your community interest in those earnings.
The company was sold but only the assets were acquired. Does the tax debt fall on me personally?
answered on Nov 18, 2021
Section 6829 of the Revenue and Taxation Code provides that the California Department of Tax and Fee Administration (CDTFA) may pursue collection action against certain corporate personnel for any unpaid corporate sales and use tax liability.
My parents live in a house I own. I don't want to charge them rent, but do want to set up a rental agreement where they will agree to pay the property taxes and utilities. Do I need to count the property taxes and utilities paid by them as rental income on my taxes?
answered on Jul 11, 2021
The Internal Revenue Code clearly calls for such payments to be characterized as rental income.
Hello
I created a new LLC last July and I'm the only member.
So far the LLC has not been operative and has generated no revenue.
Do I need to file an income Tax return or pay the $800 California Franchisee tax?
Thank you.
answered on May 17, 2021
Yes, you need to file a return and pay the $800 minimum tax.
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