I am financing an investment property in Texas that will be sold when it is finished making it a short term capital gains. The business partner I am working with is the person doing all the rehab and will be taking the lions share of the profit however I wanted to be the person on title because I... Read more »
If you and your friend are in business as a partnership, you’d file a form US 1065 and give each partner a K-1 form to report items of income on your 1040 return. It sounds like you should work with a local accountant to figure this out. If you’re not a partnership, then your payment to your...Read more »
The question may require some clarification. Did you receive a 1099 related to cancelled student loans that you now have to include in income on your 1040? Or are your refunds used /taken by the lenders to offset the cancelled student loans? Cancellation of debt income is often ignored or not...Read more »
Apparently for a debt write off over $10,000, the lender reports SS# of both the borrower and cosigner. The IRS is trying to modify my 2016 tax return to include the 1099 income from the debt write off. I had no part in the settlement, and we weren't married at the time the loan was settled. The... Read more »
If the IRS says it will drop it if the creditor sends a letter stating it was an error, try to get that letter. The 1099-C instructions state that a creditor should not 1099 a guarantor for COD income and there is caselaw to that effect as well. The creditor probably can’t cancel that 1099 now...Read more »
The odds of a US citizen being arrested at customs upon a return to the US after 12 years for being unfiled tax returns would probably be close zero. If you have a large amount of unreported income, you should seek out professional advice. You should also think about whether you have received any...Read more »
Take a look at IRS Publication 523 to review the US tax treatment. The gain can be exempt if you meet the requirements and the dollar thresholds. That publication mentions that the prior use of space for rental does not disqualify exemption treatment if at the time of sale the property is used as...Read more »
You might check out California FTB publication 1031 for guidance on CA residency rules and hire a California attorney if there is a lot of potential tax at stake to review the rules and avoid various CA contacts. California may not accept a claim of Texas residency solely on your view that you...Read more »
See California FTB publication 1031. That manual describes the residency rules for CA, what income is subject to tax for both residents, nonresidents, and part year residents. You can look at the examples for lump sum distributions from qualified plans, with a focus on the timing of receipt...Read more »
Based on the statute you cited, this timing may be correct. The statute 58.1-3965 also states that you may be able to work out a deal with the local treasurer to pay off the delinquent tax balance over a period of up to 36 months. You should contact the local treasurer ASAP to try to work out a...Read more »
The IRS publishes general criminal case statistics at its website - https://www.irs.gov/compliance/criminal-investigation/criminal-investigation-statistical-data. Once the IRS recommends that someone be prosecuted, chances are very high that an indictment (formal charges) will follow. For...Read more »
I run a lan center in Michigan, my customers purchase time on my equipment. There are no physical products being bought or sold, Do I owe sales tax to the state on those purchases? I've been paying the standard 6% sales tax on every transaction at my business for 2 years now and am wondering if I... Read more »
Generally sales or use tax applies to the purchase of tangible personal property that is not then resold as part of another taxpayer's business activity. What you appear to be selling to customers is the right to use a computer for gaming purposes for a set period of time, similar to an old school...Read more »
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