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Massachusetts Tax Law Questions & Answers
1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Massachusetts on
Q: If I am setting up a irrevocable living trust with 2 properties do I just complete and sign in front of a notary?

I was wondering if the properties in Mass have to be reregistered at some point or is there anything about the trust setup thats common I have never done this before. Any help is greatly appreciated.

Christopher Tolley
Christopher Tolley answered on May 18, 2021

If the plan is for the irrevocable trust to own the properties, and the properties are real property, you need to convey the properties by deed from whoever owns them to the trust.

1 Answer | Asked in Tax Law for Massachusetts on
Q: What should someone do who owes taxes from 2019 but has no income and is on state funded health plan?

My sister-in law owes taxes from 2019. She is currently on MassHealth (since 2020) and in a nursing home where all her income goes too. She is also dying of stage 4 cancer and is only expected to last another month or two. She has no income to pay the taxes. She has no assets, husband, or children.... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Feb 24, 2021

If your sister does not have any assets then there is nothing for the IRS to get. She should be eligible to be marked currently not collectible. Contact your local taxpayer advocate and ask for help. Here is the link to find your local taxpayer advocate... Read more »

1 Answer | Asked in Divorce and Tax Law for Massachusetts on
Q: Do I have to claim as income a cash settlement that is part of the divorce agreement?

The money is from half the equity from the sale of our house. My spouse was required to sell within 5 years. I let her live there until she retired, but it has been 15 years since the divorce. I also signed the deed over to her a few years ago. She died last year, and our children now own the... Read more »

Lillian J. LaRosa
Lillian J. LaRosa answered on Feb 17, 2021

This is really a taxation question. Waiting and not filing a Modification Agreement to change the sale date may be problematic for enforcement purposes as well. The creditor claim period is one year from the date of death also.

1 Answer | Asked in Divorce, Family Law, Tax Law and Child Support for Massachusetts on
Q: Can owner change her S-Corp to be taxed as C-corp so her income for support will be lower based on W2 only in divorce?

She is paying high alimony & child support now due to high income from W2 + K1( from business income reported on her tax return). Is it legal for her to change her S corp to C-corp so her future income from C corp will be far lower that is based on W2 only? Her company is growing and needs to... Read more »

Lillian J. LaRosa
Lillian J. LaRosa answered on Feb 9, 2021

It depends upon the terms of the Separation Agreement/Divorce Judgment and the Judge's perspective on the level of income available for alimony and child support.

1 Answer | Asked in Business Formation, Business Law, Contracts and Tax Law for Massachusetts on
Q: I am trying to start my own business and I honestly have no clue where to start. Some advice would be appreciated! Tkyou
Joanne Belasco
Joanne Belasco answered on Feb 2, 2021

Congratulations! There really isn't an easy way to answer this question. A lot depends on what kind of business you are starting and what form of business is right for you. You would need to make sure the name is available. As to the form of business, an LLC might be perfect for one person... Read more »

2 Answers | Asked in Divorce, Estate Planning and Tax Law for Massachusetts on
Q: My spouse's dad passed away in May and the estate is being questioned by my wife and her 3 siblings.

My spouse refuses to tell me anything and has also told her lawyer to tell her siblings tell me nothing about what is going on. My question what rights do I have to be included in the outcome of the estate distribution among my wife and her siblings ?

Anthony C. Adamopoulos
Anthony C. Adamopoulos answered on Dec 29, 2020

Your question: "My question what rights do I have to be included in the outcome of the estate distribution among my wife and her siblings ?"

Based only on what you write, none.

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3 Answers | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: I co-own a property in Massachusetts. The other owner is buying me out. Are there tax issues I should be aware of?
Steven J. Fromm
Steven J. Fromm answered on Nov 17, 2020

You will have a taxable gain based on the sales proceeds less your basis in the property. If the property was subject to depreciation, then you would have "recapture" income. This recapture income would be taxed as ordinary income and not as capital gain income. Any amount of gain in... Read more »

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1 Answer | Asked in Tax Law for Massachusetts on
Q: I received a stimulus payment for myself but it did not include the amount for my 11 year old.

My son receives SSI and I receive SSDI, does this affect the timing of his deposit or should it have been deposited at the same time if I was going to receive it? I filled out the form online prior to the SSDI deadline to include my dependants.

D. Mathew Blackburn
D. Mathew Blackburn answered on Apr 30, 2020

You'll need to update your information via the Get My Payment website before May 5.

1 Answer | Asked in Tax Law for Massachusetts on
Q: Can my C corp forgive a loan to myself?

I have a business that is set up as a C Corporation. Last year, I took a personal loan from the company of $10,000. Can the corporation forgive that loan as long as I show it as income on my personal return? It seems it might be looked at as a way to circumvent Social Security taxes. Is it better... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Apr 2, 2020

It creates a dividend when forgiven. You also add interest at a minimum of the applicable federal rate for the period.

Dividends are not subject to employment taxes, but they are taxed twice. Once at the corporate level and once a dividend. If you're trying to minimize taxes an...
Read more »

2 Answers | Asked in Divorce and Tax Law for Massachusetts on
Q: Our MA divorce court date was 11-30. Can we file taxes as single?

One lawyer says that due to the nisi period, we have to file married or married/separately. The other and my ex's tax guy says we file single. Which is correct?

D. Mathew Blackburn
D. Mathew Blackburn answered on Feb 1, 2020

Your marital Status is determined as of year end. If you're divorce was finalized by the issuance of a decree on 11.30.19 you would file Single for the year assuming no dependents and you did not remarry prior to the end of the year (yes, I've seen it).

Don't take tax advice...
Read more »

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1 Answer | Asked in Estate Planning and Tax Law for Massachusetts on
Q: Can remainderman living in home 5 years as a care giver get the capital gains exemption if house is sold prior to death

I am a remainderman on my mom's life estate. She sold the house to my brother and I 17 years ago for $1 and kept a life estate. I have lived here for 5 years as her caregiver until she went into a nursing home. We have to sell the house prior to her passing because we can't keep it.... Read more »

Nina Whitehurst
Nina Whitehurst answered on Sep 24, 2019

Yes, the Section 121 capital gains exclusion applies to remainder interests. Here is an excerpt from that statute:

(8) Sales of remainder interests For purposes of this section—

(A) In general

At the election of the taxpayer, this section shall not fail to apply to...
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1 Answer | Asked in Tax Law for Massachusetts on
Q: What would Massachusetts State tax, Federal Tax and any fines and fees be on early withdrawal of a retirement fund?

I am disabled and collecting SSDI in Massachusetts. My spouse has offered an out of court divorce settlement of a TIAA in with four accounts totaling $110,000 (Qualified Retirement Plan, Tax sheltered annuity plan, Tax-deferred annuity Plan, Define Contribution retirement plan).

I would... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Aug 26, 2019

Federal would be ~24% depending on other income and deductions and 5.05% for Mass.

Because the transfer is pursuant to a divorce your spouse doesn't have any tax ramifications for withdrawing the funds and you only have to pay tax on taxable withdrawals, no early withdrawal penalty....
Read more »

2 Answers | Asked in Tax Law for Massachusetts on
Q: Hello. I need to write a letter of Compromise to IRS. I owe around $36K and want to know if I can offer to pay nothing

I don't work, have a CORI, no assets i.e. real estate, 401K or pension. Have an Autistic son and a wife. We live with our parents so they support us. My Net Worth is at ( -36,000 plus I'm on the hook for another $70K that company is suing me for equipment I bought and the machines all... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Jul 21, 2019

An Offer in Compromise is not submitted via a letter. You have to fill out a financial statement and submit supporting documentation for your expenses, as well as Form 656. Without more details we cannot tell you if you are eligible or not. You can try submitting an Offer on your own, hire an... Read more »

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3 Answers | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: After receiving money from a house sale do i have to pay taxes on it in april or can i gift it to my wife?

My grandparents house was sold and it will be split 5 ways. After taxes and fees ill receive 42,800, will i have to pay taxes at the end of the year for it or can i gift it to my wife or use most of it as a down payment for my first house ?

If i do have to pay taxes how do i figure out... Read more »

Christopher Tolley
Christopher Tolley answered on Jun 7, 2019

The answer to your questions requires more time and expertise than an online forum like this can provide. You really need to consult with a tax professional like a CPA on this. It will be well worth the money you spend in fees to them.

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2 Answers | Asked in Tax Law for Massachusetts on
Q: It was sales tax I bought it cash and thought the tax was included
D. Mathew Blackburn
D. Mathew Blackburn answered on May 7, 2019

http://www.chompchomp.com/terms/completesentence.htm

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1 Answer | Asked in Tax Law for Massachusetts on
Q: How can I find out if a 1099 form to my ex-husband is phony or real, and if it was sent to IRS and DoR?
Linda Simmons Campbell
Linda Simmons Campbell answered on Apr 20, 2019

Towards the end of May it should be on file with the IRS. You would not be able to get any information but your ex-husband would be able to call.

2 Answers | Asked in Divorce and Tax Law for Massachusetts on
Q: If wife asks for divorce,both parties still live home with 3 kids, can husband to file taxes and claim 3 kids secretly

Nothing has been filed, not separated. He told her after he filed. He also changed his ira & life insurance and took wife off of it all.

Lillian J. LaRosa
Lillian J. LaRosa answered on Mar 25, 2019

If there are no Court Orders nor is there even a divorce complaint filed, there is no impediment to husband doing so. Your friend should file for Divorce and engage counsel to protect her rights as she seems to be in the dark on same.

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1 Answer | Asked in Tax Law for Massachusetts on
Q: Am i liable for capital gains tax if i am selling my first home less than 2 years after purchasing it?

I purchased my house in June 2017. If i sell prior to June 2019 am i liable to pay federal and state of Massachusetts capital gains tax?

D. Mathew Blackburn
D. Mathew Blackburn answered on Mar 1, 2019

Yes.

1 Answer | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: If I receive a 1099-A representing a loss of $13k for ditching a timeshare can I claim this as a loss? Will it help me?

I was sold a timeshare with false accusations. I have the ability to hire an atty to get the time share nullified and they are saying I will receive a 1099-A to declare the loss. Will this actually provide me any cash savings during the tax process? I have no cap. gains or stock - just basic... Read more »

Michael Hales
Michael Hales answered on Jan 17, 2019

I'd be wary of any attorney that tells you this. I've practiced law in Florida for many years and when I've helped clients get out of a timeshare, they will often receive a 1099 when the timeshare cancels the loan/mortgage. However, if the loan that was cancelled was $13k, the form... Read more »

2 Answers | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: Will my property taxes increase if I add heat to a previously unconditioned outbuilding on my property?
Christopher Tolley
Christopher Tolley answered on Dec 10, 2018

Massachusetts towns assess value annually. They calculate property values based on the market activity as well as certain property-specific attributes such as location, size, construction quality, style, and condition. These include the status of outbuildings. Factors may include the usefulness of... Read more »

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