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Questions Answered by Andrew M Steiger
2 Answers | Asked in Real Estate Law and Tax Law for Texas on
Q: Selling an investment home, how do I show profits are going to business partner when title is in my name?

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 »

Andrew M Steiger
Andrew M Steiger answered on Jun 5, 2019

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 »

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2 Answers | Asked in Tax Law for Wisconsin on
Q: I need advice from a tax attorney

Tax returns offset for student loans that have been discharged

Andrew M Steiger
Andrew M Steiger answered on Jun 5, 2019

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 »

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2 Answers | Asked in Tax Law for Florida on
Q: Ex wife settled a student loan that I cosigned on. IRS chasing me for unpaid tax on 1099. Do I have any remedy with IRS?

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 »

Andrew M Steiger
Andrew M Steiger answered on Jun 3, 2019

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 »

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3 Answers | Asked in Tax Law for Pennsylvania on
Q: Residence outside US , neither taxes paid nor pension collected, senior with handicap Can i return without arrest?

Can i reclaim pension and find pro bono help? I am 76 , alone, and have no earnings, I left in 2007

Andrew M Steiger
Andrew M Steiger answered on Jun 1, 2019

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 »

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1 Answer | Asked in Real Estate Law and Tax Law for California on
Q: If I bought my home in 2009 and rented it out for 11 months in 2011, will I owe property gains tax if I sell it?

I originally purchased the home for 228000, now we are selling for 349000. It has been our primary residence since 2009 except for the 11 months in 2011.

Andrew M Steiger
Andrew M Steiger answered on May 31, 2019

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 »

2 Answers | Asked in Tax Law on
Q: to have a 2nd home in Madera county but want to retain my Texas resident status for tax purposes. How can I legally do?
Andrew M Steiger
Andrew M Steiger answered on May 31, 2019

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 »

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2 Answers | Asked in Tax Law for California on
Q: I took a hardship withdrawal from my 401K while living in TX.

I moved to CA in the same year but after receipt of the money. Do I have to pay tax on the withdrawal to CA?

I am being audited from CA for 2015

Andrew M Steiger
Andrew M Steiger answered on May 31, 2019

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 »

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1 Answer | Asked in Tax Law for Virginia on
Q: My propett taxes are delinquent. Ad a has been posted. Proceedings will start 6/14/19 Section 58.1-3965. I

I have been told by Powhatan's lawyer that next I will receive a summons; then go to court in August; then property goes for sale in September. Is this correct?

I am raising the funds to pay it off.

Andrew M Steiger
Andrew M Steiger answered on May 26, 2019

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 »

1 Answer | Asked in Tax Law for Michigan on
Q: My ex was investigatedfor tax evasion. His case was recommended for prosecution , what percent of cases are prosecuted?

Investigation covered 2013-17

After investigation case forwarded to Supervisory special agent

Andrew M Steiger
Andrew M Steiger answered on May 23, 2019

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 »

2 Answers | Asked in Tax Law for Michigan on
Q: I run a lan center in Michigan, my customers purchase time on my equipment. Do i owe sales tax?

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 »

Andrew M Steiger
Andrew M Steiger answered on Jun 1, 2019

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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