Questions Answered by D. Mathew Blackburn
Q: Can my company put moving expenses that they paid for into my yearly income for tax purposes?
D. Mathew Blackburn's answer
Yes, under the Tax Cuts and Jobs Act relocation expenses are now taxable to the recipient whether paid on their behalf or given to the employee in cash.
You also cannot deduct these expenses on your personal return unless you fall within a specific military exemption. This all went into effect 1.1.18.
Even though they paid the expenses it's still income to you for tax purposes.
Yes, under the Tax Cuts and Jobs Act relocation expenses are now taxable to the recipient whether paid on their behalf or given to the employee in cash.
You also cannot deduct these expenses on your personal return unless you fall within a specific military exemption. This all went into effect 1.1.18.
Even though they paid the expenses it's still income to you for tax purposes.
Q: Do the taxes I'll be filing next April reflect the government's new tax law?
D. Mathew Blackburn's answer
Yes, the majority of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) took effect 1.1.2018. Some did not, most notably accelerated depreciation took effect 9.27.17 and the ACA penalty is removed 1.1.19.
Yes, the majority of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) took effect 1.1.2018. Some did not, most notably accelerated depreciation took effect 9.27.17 and the ACA penalty is removed 1.1.19.
Q: How would I go about having a lawyer ready to use in case i every needed one.
2 Answers
| Asked
in
Consumer Law, Criminal Law, Personal Injury and Tax Law
for
Colorado
on
Answered on Nov 24, 2018
Answered on Nov 24, 2018
D. Mathew Blackburn's answer
It's always better if you can build a professional relationship before the disaster strikes.
My suggestions would be to call them up and talk to them. Sign an agreement. Put down a retainer of an agreed upon amount. If anything happens you have a lawyer retained and they know they'll get paid.
Some attorneys won't do this at all because they don't want to be responsible for representing you for whatever; they want to know what they're getting into. Others will likely charge...
It's always better if you can build a professional relationship before the disaster strikes.
My suggestions would be to call them up and talk to them. Sign an agreement. Put down a retainer of an agreed upon amount. If anything happens you have a lawyer retained and they know they'll get paid.
Some attorneys won't do this at all because they don't want to be responsible for representing you for whatever; they want to know what they're getting into. Others will likely charge...
Q: Our company bid a job and now no longer has time to do it. No contract signed and contractor wants to sue for damages?
D. Mathew Blackburn's answer
First off you can be sued for pretty much anything so I'd answer that with a yes. Whether there's a viable claim is another story. The fact that the potential plaintiff doesn't really have a case won't stop them from filing suit and forcing you to go through the legal process of proving they don't have a case.
The first analysis is what was agreed to and what were the terms? Was there an agreement at all? If there was a agreement were there damages?
Without knowing more about...
First off you can be sued for pretty much anything so I'd answer that with a yes. Whether there's a viable claim is another story. The fact that the potential plaintiff doesn't really have a case won't stop them from filing suit and forcing you to go through the legal process of proving they don't have a case.
The first analysis is what was agreed to and what were the terms? Was there an agreement at all? If there was a agreement were there damages?
Without knowing more about...
Q: I have a signed 8332 and divorce decree grants me to claim child on taxes. Can I still claim if I have arrears balance?
D. Mathew Blackburn's answer
If the arrearages are for child support, no you can't claim the child. If it's for taxes then yes, but they'll apply any refund against the arrearages.
If the arrearages are for child support, no you can't claim the child. If it's for taxes then yes, but they'll apply any refund against the arrearages.
Q: ISO: business/tax lawyer
1 Answer
| Asked
in
Tax Law, Business Formation and Business Law
for
Colorado
on
Answered on Oct 20, 2018
Answered on Oct 20, 2018
D. Mathew Blackburn's answer
Tax is not restricted to only attorneys that are licensed in the state. I have cases in about 10-11 different states. I'd have to go count them to be sure.
A Colorado attorney can help you with this issue.
Tax is not restricted to only attorneys that are licensed in the state. I have cases in about 10-11 different states. I'd have to go count them to be sure.
A Colorado attorney can help you with this issue.
Q: Do International Business's pay state taxes in colorado if the vendor supplied to an international company not located
D. Mathew Blackburn's answer
It's going to depend on the goods and services provided. Is the company paying for a service or a good? Services are not subject to sales tax, goods are. If I have my brakes changed am I buying brakes, the installation service, or both? The first step would be an analysis of what was purchased and how does CO treat that purchase for sales tax.
For income tax purposes if the international company is buying from you and selling to a 3d party that you then deliver the stuff to, it...
It's going to depend on the goods and services provided. Is the company paying for a service or a good? Services are not subject to sales tax, goods are. If I have my brakes changed am I buying brakes, the installation service, or both? The first step would be an analysis of what was purchased and how does CO treat that purchase for sales tax.
For income tax purposes if the international company is buying from you and selling to a 3d party that you then deliver the stuff to, it...
Q: Colorado is claiming that I own them back taxes for a year that I didn't live there or earn any income there.
D. Mathew Blackburn's answer
Colorado is incredibly aggressive regarding residency for income tax purposes. You're going to have to provide evidence that you were not physically in Colorado and that you had changed your residency to Utah. Here's a CO Dept. of Revenue ("CDOR") FYI publication explaining resident/non-resident status. https://www.colorado.gov/pacific/sites/default/files/Income6.pdf
I would start with sending in the applicable documents to establish residency in Utah. If CDOR rejects those I would...
Colorado is incredibly aggressive regarding residency for income tax purposes. You're going to have to provide evidence that you were not physically in Colorado and that you had changed your residency to Utah. Here's a CO Dept. of Revenue ("CDOR") FYI publication explaining resident/non-resident status. https://www.colorado.gov/pacific/sites/default/files/Income6.pdf
I would start with sending in the applicable documents to establish residency in Utah. If CDOR rejects those I would...
Q: I'd like to give stock in my will -- how would that get taxed?
D. Mathew Blackburn's answer
When an individual passes their property receives a step-up in basis to the current Fair Market Value either on the date of death or what's call the alternative valuation date. There are reasons to pick either I won't go into that right now.
What is basis? It's what you paid for the stock. So you buy 1 share of Acme at $40. If you sell it at $90 you pay tax on the gross revenue less basis 90 - 40 = $50
If you own the stock at death the basis "steps up" from $40 to $90 (FMV on...
When an individual passes their property receives a step-up in basis to the current Fair Market Value either on the date of death or what's call the alternative valuation date. There are reasons to pick either I won't go into that right now.
What is basis? It's what you paid for the stock. So you buy 1 share of Acme at $40. If you sell it at $90 you pay tax on the gross revenue less basis 90 - 40 = $50
If you own the stock at death the basis "steps up" from $40 to $90 (FMV on...
Q: Purchased a Tv from Best buy for 3500 they delivered and installed a Tv to my wall that cost 5000. Do I have to give bk
D. Mathew Blackburn's answer
Can you resubmit the question it doesn't really make any sense and I can't understand what you're asking. Thanks.
Can you resubmit the question it doesn't really make any sense and I can't understand what you're asking. Thanks.
Q: What kind of deduction can I take on rental property improvements?
D. Mathew Blackburn's answer
If it's a repair you deduct it in the year it's incurred. If it's an improvement you adjust basis and depreciation.
Any expense that is incurred under the ordinary and normal course of a trade or business is deductible. 26 USC 162.
If it's a repair you deduct it in the year it's incurred. If it's an improvement you adjust basis and depreciation.
Any expense that is incurred under the ordinary and normal course of a trade or business is deductible. 26 USC 162.
Q: A local bookkeeper prepared our taxes this year. She made mistakes and we want to know what legal actions we can take.
D. Mathew Blackburn's answer
The costs of pursuing legal action for negligence, fraud, etc... are rarely worth the time and costs. You would have to file in the county where you signed the service agreement, or where the BK's place of business is. Filing fee will probably be more than you paid for the return.
If you paid by credit card you can request a chargeback.
I would move on and hire a competent preparer next year.
Let everyone know this person doesn't know how to do returns, just don't...
The costs of pursuing legal action for negligence, fraud, etc... are rarely worth the time and costs. You would have to file in the county where you signed the service agreement, or where the BK's place of business is. Filing fee will probably be more than you paid for the return.
If you paid by credit card you can request a chargeback.
I would move on and hire a competent preparer next year.
Let everyone know this person doesn't know how to do returns, just don't...
Q: Question on Retail Lease
3 Answers
| Asked
in
Business Law, Contracts, Real Estate Law and Landlord - Tenant
for
Colorado
on
Answered on Jul 14, 2018
Answered on Jul 14, 2018
D. Mathew Blackburn's answer
File a lawsuit. If you have a contract and the other party refuses to honor the contract you take them to court and ask a judge to either make them do what they said they would do or to give you damages.
File a lawsuit. If you have a contract and the other party refuses to honor the contract you take them to court and ask a judge to either make them do what they said they would do or to give you damages.
Q: Are there any Colorado penalties for withdrawing from a 401a account early and when does the IRS assess it's 10% penalty
D. Mathew Blackburn's answer
There's no state level penalty, but you can generally exclude income as taxable to CO if you wait. Colorado FYI Publication 25 https://www.colorado.gov/pacific/sites/default/files/Income25.pdf
The federal penalty is imposed on your F1040 so you'll incur it when you file your return.
Exceptions to the additional 10% tax apply for early distributions that are:
Made to a beneficiary or estate on account of the IRA owner's death
Made because you're totally and...
There's no state level penalty, but you can generally exclude income as taxable to CO if you wait. Colorado FYI Publication 25 https://www.colorado.gov/pacific/sites/default/files/Income25.pdf
The federal penalty is imposed on your F1040 so you'll incur it when you file your return.
Exceptions to the additional 10% tax apply for early distributions that are:
Made to a beneficiary or estate on account of the IRA owner's death
Made because you're totally and...
Q: Today I received a Letter from the city of Lansing, Income tax ordinance, section 99,
D. Mathew Blackburn's answer
If you believe the notices are in error you would need to respond and provide evidence that the assessment is incorrect.
If you believe the notices are in error you would need to respond and provide evidence that the assessment is incorrect.
Q: What should I do if I made an honest mistake on my income tax return?
D. Mathew Blackburn's answer
The return should be amended using Form 1040X.
Once the return is filed the additional tax owed should be paid and you'll receive a notice for failure to pay penalties. At that point you can either pay the penalty or request an abatement on Form 843 requesting either "first time abatement" or "reasonable cause".
I would suggest contacting a professional so you can have a conversation about whether the "mistake" creates a situation where you need to amend and how to proceed.
The return should be amended using Form 1040X.
Once the return is filed the additional tax owed should be paid and you'll receive a notice for failure to pay penalties. At that point you can either pay the penalty or request an abatement on Form 843 requesting either "first time abatement" or "reasonable cause".
I would suggest contacting a professional so you can have a conversation about whether the "mistake" creates a situation where you need to amend and how to proceed.
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