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Questions Answered by David S. Greenberg
1 Answer | Asked in Real Estate Law and Tax Law for California on
Q: Does a tenant paying property taxes and utilities count as taxable income to the owner?

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?

David S. Greenberg
David S. Greenberg answered on Jul 11, 2021

The Internal Revenue Code clearly calls for such payments to be characterized as rental income.

3 Answers | Asked in Business Formation, Business Law and Tax Law for California on
Q: Do I have to pay the CA franchise and file annual income tax for a newly formed single member LLC with no 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.

David S. Greenberg
David S. Greenberg answered on May 17, 2021

Yes, you need to file a return and pay the $800 minimum tax.

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1 Answer | Asked in Tax Law for California on
Q: Are capital gains part of gross income under California tax law?
David S. Greenberg
David S. Greenberg answered on May 7, 2021

California taxes capital gains as regular income.

4 Answers | Asked in Bankruptcy for California on
Q: How do I file for bankruptcy? I lost everything due to Covid & don't qualify for help. My new business failed.

I launched a new business the day shelter in place in California occurred. I'd been building the business for over a year & living on savings that's gone. I was a teacher for 20 years and had to quit due to cancer. I don't qualify for government help though I've tried. I... Read more »

David S. Greenberg
David S. Greenberg answered on Jan 24, 2021

From what you've said, it would appear that Chapter 7 bankruptcy is the likely remedy for you.

It's best that you consult with a qualified bankruptcy attorney who will explain the entire process.

In our office, we provide consultations in that regard without charge.

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1 Answer | Asked in Tax Law for California on
Q: I plan to live abroad for some months. Can I use a commercial mailbox as my address in the US?

I am employed by a California company and can work remotely. I don't own a residence in the US. Should the commercial mailbox be in California so I continue paying California taxes? Is it okay to choose it to be elsewhere? I don't plan to return to California.

David S. Greenberg
David S. Greenberg answered on Nov 11, 2020

California can tax you on all of your California-source income even if you are not a resident of the state.

That being said, it's nonetheless best to cut all ties with California to the extent possible, i.e., do not maintain a commercial mailbox within California.

4 Answers | Asked in Bankruptcy for California on
Q: I also received a summary of trustee’s final report and application for compensation. The last page looks like this:

Timely claims of general (unsecured) créditos totaling $35,118 have been allowed and will be paid pro rats only after all allowed administrative and priority claims have been paid in full. Does this mean I have to pay that or they telling me they will pay it or they paid it??

David S. Greenberg
David S. Greenberg answered on Oct 20, 2020

All payments described in the trustee's final report will be paid by the trustee utilizing funds derived from non-exempt assets. You will not personally be responsible to make any such payments.

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2 Answers | Asked in Tax Law and Real Estate Law for California on
Q: capital gains tax

My dad is 83 owns a house outright here in california. My mother passed 2 years ago. The house is in trust to me (only son) if he were to pass. If he does pass, and the house is inherited by me, and I sell it after that, do I get hit with capital gains tax?

David S. Greenberg
David S. Greenberg answered on Oct 18, 2020

When your dad passes, the basis is stepped up to then current market value. If there is no increase in value by the time you sell it, there will be no capital gains tax exposure.

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5 Answers | Asked in Bankruptcy for California on
Q: Should I file for bankruptcy to get out of a timeshare
David S. Greenberg
David S. Greenberg answered on Aug 11, 2020

A Chapter 7 bankruptcy would ordinarily generate a discharge of your timeshare obligation.

However, the decision to file the Chapter 7 should be based upon your entire financial situation.

The Chapter 7 remedy is a powerful tool to clear out dischargable debts, and can only be used...
Read more »

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4 Answers | Asked in Banking and Bankruptcy for California on
Q: Hello, I am receiving unemployment insurance in my checking account after the 341 meeting of creditors chapter 7 in Ca

No creditor showed up for my 341 meeting. Can they still take money from my checking account? Thanks!

David S. Greenberg
David S. Greenberg answered on Jun 15, 2020

On the date that the bankruptcy petition was filed, there came into existence an automatic stay order which precludes any creditor from undertaking collection activity. The conclusion of the 341 meeting does not serve to change in any way that automatic stay order.

When the discharge...
Read more »

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2 Answers | Asked in Tax Law for California on
Q: When deducting attorneys fees incurred for the collection of taxable alimony, do I deduct the full amount incurred?

On my tax returns, When deducting attorneys fees incurred for the collection of taxable alimony, do I deduct the full amount incurred or only the portion that I paid? I still owe on the total I incurred.

For example- I incurred $15,000 in attorneys fees to enforce collection of taxable... Read more »

David S. Greenberg
David S. Greenberg answered on Jun 4, 2020

You can deduct only the amount you actually paid.

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2 Answers | Asked in Tax Law for California on
Q: Pro or Con of filing separately or jointly for 2019 taxes. She has properties. We have house to be sold. Also tax bill
David S. Greenberg
David S. Greenberg answered on Apr 23, 2020

In community property states such as California, all income earned by either spouse belongs equally to both. Therefore, if you file separate married returns, you must total all marital income then divide it down the middle, with each of you reporting half.

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5 Answers | Asked in Bankruptcy and Tax Law for California on
Q: Are income taxes from about 10 years ago dischargeable through chapter 7 bankruptcy?

My partner never filed the tax return for those years. I believe IRS filed substitute returns and the income taxes owed for each year were assessed a while ago. Do I need to file returns for those years before filing bankruptcy?

David S. Greenberg
David S. Greenberg answered on Mar 22, 2020

Assessments resulting from substitute for returns are not dischargeable in a Chapter 7 bankruptcy.

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1 Answer | Asked in Tax Law for California on
Q: Can California collect on taxes never filed (2017). I was sent a bill threatening levy, but i haven't filed yet.

I didn't filed in 2017 and CA state sent me notices asking me to file. Then they sent a State Income Tax Balance Due Notice saying that if I agree with their notice and if I don't pay in full in 30 days they may begin collection action. If I disagree, I have to contact them. Can they... Read more »

David S. Greenberg
David S. Greenberg answered on Mar 3, 2020

If the FTB acquires income data by way of a W-2 or 1099, and if there is no response to a request that you file a return, the FTB has standing to file what is known as a substitute for return.[SFR]

They can then take collection action on the balance due shown in the substitute for return....
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3 Answers | Asked in Bankruptcy for California on
Q: What documents do I need to supply the trustee for a chapter 7 in San Diego?
David S. Greenberg
David S. Greenberg answered on Nov 22, 2019

[ ] Tax Return most recently filed

[ ] Income Verification (i.e., pay stubs or Profit & Loss Statement)most recent 60 days

[ ] 2. Valuation of motor vehicles

[ ] 3. Pay off documentation motor vehicles (i.e., balance due)

[ ] 4. Copies of vehicle...
Read more »

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2 Answers | Asked in Tax Law, Appeals / Appellate Law and Constitutional Law for California on
Q: How long would the BOE have to file a levy on an irrevocable trust

The BOE wrongfully linked my deceased mother's SS# to a sales tax matter. over a year after her death they levied the trust account left to me. Is this legal?

David S. Greenberg
David S. Greenberg answered on Oct 4, 2019

The facts as you've described them are quite unusual and an answer to your inquiry would require an investigation and analysis by a skilled attorney with experience in dealing with the BOE, which is now the CDTFA.

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2 Answers | Asked in Tax Law and Collections for California on
Q: I cancelled an inactive LLC but still have back-tax/penalty notices coming in. What can happen/what is my best recourse?

The notices were going to a location where I do not live (went to my ex-partner's parents house), and I just got my hands on the notices that say we owe thousands. This LLC was only active for a few years, as a production-company shooting a series, and unfortunately, the entity wasn't... Read more »

David S. Greenberg
David S. Greenberg answered on Aug 14, 2019

It is quite possible that you will be insulated from personal liability for the tax obligations of the LLC.

If you would like to discuss this in detail, please call my office to schedule a free initial consultation.

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3 Answers | Asked in Employment Law, Tax Law and Workers' Compensation for California on
Q: My ex employer misclassified me and all employees as independent contractors . Repeatedly would not pay on schedule.

Recently terminated for demanding paycheck which consistently was late 3-4weeks. what steps do I take to report employer and clarifying to tax board the misclassification

David S. Greenberg
David S. Greenberg answered on Jun 12, 2019

With regard to the misclassification issue, you should consult an experienced tax attorney to guide you through the process of filing an IRS Form SS-8.

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3 Answers | Asked in Consumer Law and Tax Law for California on
Q: I need advice on the course of action I should now take to straighten out a tax issue

An EA was paid to file for tax forgiveness on my behalf. He did not. I am now being garnished. He is not answering my inquiries. I also want to initiate legal action against him; but the tax issue first!

David S. Greenberg
David S. Greenberg answered on May 16, 2019

Immediate action is required to negotiate a release of the garnishment and resolution of the account. Please contact me ASAP to discuss the details.

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2 Answers | Asked in Tax Law and Construction Law for California on
Q: If someone fraudulently got my ssn and 1099 me but never had a signed w9 from me, can i fight this lie?

I worked for the person contracted to do this job and he couldnt contact them at tax time so he pretended to be someone else to get my ssn. I did cash some checks from him cause he claimed he couldnt withdraw the money and i had acheck cashing account. i cashed them for him to pay the people... Read more »

David S. Greenberg
David S. Greenberg answered on Apr 24, 2019

I have represented a taxpayer in a situation quite similar to yours. My approach led to the IRS completely exonerating my client.

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