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Michigan Tax Law Questions & Answers
2 Answers | Asked in Estate Planning, Real Estate Law and Tax Law for Michigan on
Q: In Michigan do we pay taxes after selling deceased parents home

They had no will and we just sold it ( a few years after they passed after getting permission from courts).

There are 7 children splitting the money whom each get about $8,000 each.

They had no other assets or estate to speak of

Brent T. Geers
Brent T. Geers
answered on Mar 7, 2022

Did you already pay the inventory fee to the probate court? Other than that, there shouldn't be.

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1 Answer | Asked in Business Law and Tax Law for Michigan on
Q: I started a software company in Michigan and I am getting clients from other states, do I need to file LLC there?

I started an LLC for software-as-a-service in Michigan and I am getting clients from Ohio and Illinois, I wanted to know that do I need to file an LLC in all states from where I get clients or I can do business from my Michigan LLC only, and where do I pay income tax?

Edward Gudeman
Edward Gudeman
answered on Feb 24, 2022

The filing of Articles of Organization in the other states in which you are doing business is not appropriate. Doing so would create separate entities that would have to be treated accordingly.

The registration of your company in those states in which you are doing business is, however,...
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1 Answer | Asked in Divorce, Tax Law and Arbitration / Mediation Law for Michigan on
Q: My soon to be ex-wife has been skimming money from our tax refunds for a few years now. Any legal options to recover it?

I am in the process of going through a divorce. I found out that my wife has been skimming $2500 a year off of our tax returns for several years. We each have our own children from previous marriages. When confronted she claimed that she was entitled to do this because of her daughter's $2500... View More

Brent T. Geers
Brent T. Geers
answered on Feb 14, 2022

Through your divorce, possibly. But as to the IRS, the money is as much hers as it is yours.

2 Answers | Asked in Employment Law, Tax Law, Business Formation and Civil Rights for Michigan on
Q: Is this a court-worthy case?

I was asked by a former employer to create a website store for his small business. I worked on it, hours everyday for months and spent 500$ to perfect it, which I was told would be covered. After finishing the website I was suddenly let go from the business. I've been an employee of the... View More

Brent T. Geers
Brent T. Geers
answered on Feb 1, 2022

If you were an employee, maybe this is a wage and labor issue?

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1 Answer | Asked in Tax Law for Michigan on
Q: Do you have to pay taxes on real money winnings in phone app games?

Like in app game such as blackout bingo or cash carnival real money slots and spin to win? Also are game like these legal.

Brent T. Geers
Brent T. Geers
answered on Jan 17, 2022

The IRS considers winnings income that you must report. Most legit places will issue a 1099 along with your winnings, which is how the IRS will know to look for your accurate reporting come tax time.

2 Answers | Asked in Real Estate Law and Tax Law for Michigan on
Q: Girlfriend and I own 2 properties together, she lives in one I live in another. Can we both get homestead exemption?

Both houses are in the same city in Michigan. We own them as joint tenant in common with right of survivorship.

Kenneth V Zichi
Kenneth V Zichi
answered on Dec 7, 2021

Your question has a 'fatal flaw'.

There is no such thing as 'joint tenant in common with right of survivorship'. You EITHER own as 'tenants in common' OR you have 'rights of survivorship', It can't be both. Tenants in common implies there is no...
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3 Answers | Asked in Divorce, Estate Planning, Family Law and Tax Law for Michigan on
Q: Can wife and I establish a family trust as co-trustees regarding properties that can withstand an uncontested divorce?
Kenneth V Zichi
Kenneth V Zichi
answered on Dec 7, 2021

It is unclear what you are trying to accomplish.

A divorce will ALWAYS impact jointly owned property, and the fact it is placed in a 'trust' for some estate planning or administrative purpose doesn't mean a divorce court shouldn't or couldn't 'delve into'...
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1 Answer | Asked in Tax Law, Estate Planning and Real Estate Law for Michigan on
Q: Is there a way to pass on a property my S. Corp owns to my children without uncapping property tax?

I am the sole owner of my S. Corp.

Kenneth V Zichi
Kenneth V Zichi
answered on Dec 7, 2021

You have asked a fairly complex question that requires the review of both a lawyer and a tax specialist (that may be one person or if you have a tax accountant it may be two).

Off hand, I'd say it depends on what the property is used for. Residential? Commercial? Rental? And what does...
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1 Answer | Asked in Estate Planning and Tax Law for Michigan on
Q: What would happen to my mother if she added her grandson to a house title and he would give her $40,000 cash
Brent T. Geers
Brent T. Geers
answered on Oct 4, 2021

Nothing; although there may be some unpleasant consequences down the road to your mother's estate or what other family members expect to happen.

1 Answer | Asked in Real Estate Law and Tax Law for Michigan on
Q: How can I pay delinquent taxes and take ownership of a home?

My childhood home has two years of unpaid taxes and if they aren’t paid by March 31st, 2022 the county takes the home. It’s abandoned and no one lives there. I’m not the owner and I cannot reach the owner (I’ve been trying). I was told if I pay the delinquent taxes and get a tax certificate... View More

Kenneth V Zichi
Kenneth V Zichi
answered on Aug 10, 2021

You can’t just pay the taxes and expect to be reimbursed.

That procedure works if you purchase the property at a tax sale, which is the official sale once the taxes have reached the level of delinquency that you mention.

The procedures for bidding at a tax sale or complicated and...
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2 Answers | Asked in Estate Planning and Tax Law for Michigan on
Q: am I able to change the beneficiary on a pre-tax IRA after the account holder has passed. My father lived in NC.

my siblings and I are beneficiary of one of my dad's IRAs, we want to make his surviving wife the sole beneficiary. can we do that and have the IRA still be pre-tax.

Nina Whitehurst
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answered on Jul 22, 2021

It is possible that if all of the decedent's children disclaim that the account would then go to his surviving spouse. But that depends on other factors, including exactly how the beneficiary designation was worded and whether there were contingent beneficiaries after the children. You... View More

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1 Answer | Asked in Tax Law for Michigan on
Q: A family member received a PPP loan and the state took all but one dollar for back taxes.

Does this family member have any recourse against the state of Michigan for doing this?

Brent T. Geers
Brent T. Geers
answered on Jun 9, 2021

Doubtful. Sounds like the state collected a valid debt. Unless there is an issue with whether taxes were owed, there's probably not much that can be done.

1 Answer | Asked in Tax Law for Michigan on
Q: I moved to Michigan from Illinois in the middle of the year and my only income here has been Illinois unemployment.

Does Michigan and/or Illinois tax this income? I understand that Illinois taxes all unemployment paid by them whether resident or non-resident, while Michigan taxes all income (including unemployment) received while a resident. However, Illinois has a reciprocity agreement with Michigan to avoid... View More

Michael Zamzow
Michael Zamzow
answered on May 3, 2021

You'll need to contact a tax attorney directly.

1 Answer | Asked in Family Law and Tax Law for Michigan on
Q: If I have full custody of my kids, 365 days. Their dad never has them. Can I claim them both on my taxes?

In the beginning the judge ordered us to split the kids, he takes one and I take the other. But since I got full custody I have been claiming both of them. Is there a tax law that says who ever has them more gets to claim them?

Brent T. Geers
Brent T. Geers
answered on Apr 29, 2021

Yes there is: if you provide the majority of support over the year, you may claim them. That can be modified by court order (e.g. the judgment of divorce).

Best thing to do would be to file a motion with the court to address this. You could be right in the eyes of the IRS but in violation...
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2 Answers | Asked in Real Estate Law and Tax Law for Michigan on
Q: I'm listed as a resident at an address I've never lived at.

I just did a search online and found that I'm listed as a resident at an address in Michigan. But - here's the fly in the ointment - I've never lived in Michigan. I've never even lived in the USA (I was born in and have been a citizen/resident of another country for my entire... View More

David Soble
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David Soble
answered on Apr 5, 2021

You can try to record an Affidavit of Suspected Fraud related to the property with the Register of Deeds. It would put anyone who was interested in the property on notice that you have no relationship to the home. Additionally, if you have a credit report, notify the credit reporting agencies that... View More

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1 Answer | Asked in Family Law, Tax Law and Child Support for Michigan on
Q: My children's father the non-custodial parent filed for my children at tax time even though they don't live with him

I'm worried he's going to get all of their stimulus money plus the child tax credit that will soon to come out every month he owes at least 5,000 in back child support all three of our children live with me full time I'm worried that he's going to be getting all of their money... View More

Brent T. Geers
Brent T. Geers
answered on Mar 17, 2021

Is there a child support order? If so, you may need to address some of this with the friend of the court. You may also need to make a motion in court about the stimulus money and to make clear who can claim the children for taxes.

1 Answer | Asked in Divorce and Tax Law for Michigan on
Q: I'm trying to file my taxes and my ex husband and I disagree on tax credits and stimulus money. What do i do?

Divorce decree states: "Plaintiff shall claim the minor children as dependents for income tax deduction and child credit on any and all city, state and federal income taxes. The defendant will be allowed to "buy" the exemptions from the Plaintiff if he will benefit from the... View More

Michael Zamzow
Michael Zamzow
answered on Feb 23, 2021

You're unlikely to find an answer to your question here, but if you contact your divorce lawyer you might get an answer. You might also contact a tax lawyer to make sure you're not running afoul of tax regs.

1 Answer | Asked in Tax Law for Michigan on
Q: Can I claim my boyfriends children if we are not married in the state of Michigan?

He has joint custody and they live with us half the time and I pay for half of their expenses.

Brent T. Geers
Brent T. Geers
answered on Feb 15, 2021

No. Your boyfriend may have the legal obligation to support them, but until you are married, you cannot file a joint return, and so cannot claim them as dependents.

2 Answers | Asked in Tax Law for Michigan on
Q: If I pay a relative’s mortgage payments and taxes for them can they take the tax deductions?

The funds would be coming out of my personal bank account as an automatic payment each month. Would it be considered a gift and limited to $15,000 a year?

Brent T. Geers
Brent T. Geers
answered on Feb 10, 2021

You'll want to consult with a CPA or tax attorney about the particulars, but my thought is that the mortgage tax deduction would still go to the person or persons who are obligated to pay under the terms of the mortgage (e.g. your relative); it doesn't matter who actually pays it. And... View More

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2 Answers | Asked in Estate Planning and Tax Law for Michigan on
Q: My mom wants to buy a house with us and live in it with us. I want to make sure this will not be considered a "gift"?

She is offering to pay our downpayment on the house. She will live in the house with us and share living expenses. We are ok with her being listed on the mortgage and/or title to the house. Since basically this arrangement is just us going in together on a house that we will all be living in, this... View More

Nina Whitehurst
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answered on Jan 29, 2021

You are wise to avoid letting your mother’s investment be characterized as a gift. There is more than one way to do this is this and they each have pros and cons and they each require some rather precise math to make sure there is no gift component. One method is the purchase of a life estate and... View More

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