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California Tax Law Questions & Answers
1 Answer | Asked in Tax Law and Employment Discrimination for California on
Q: my boss gave me a 2-week suspension, during which, i saw my job on craigslist, and wasn't allowed back to work.

I worked for my (ex)boyfriends family business for over a year and about 2 months after we broke up i started seeing a coworker when my ex found out he punched the coworker and the boss "his dad" said we all 3 had to have a 2-week suspension to cool off. However, during the 2 weeks, I... Read more »

Neil Pedersen
Neil Pedersen answered on Oct 21, 2021

In California you are considered to be an at will employee unless you have an agreement to the contrary with your employer about that status. That means you can be terminated at any time and for any reason or even no reason at all. If the employer views you as being a disruption - whether that is... Read more »

0 Answers | Asked in Tax Law for California on
Q: I bought a car in CA a few years ago and payed X in sales tax. Am I entitled to a partial refund since i've sold it?

Selling the car at a loss, surprised CA collects X in sales tax from me, then X-Y in sales tax from the next buyer...

0 Answers | Asked in Tax Law and Real Estate Law for California on
Q: When filing taxes is it legal to claim the interest for a home that you share title on, but don't make any payment to?

Ive made all payments, and the co-borrower has claimed taxes every year without my consent and won't give the the refund. Is this legal?

0 Answers | Asked in Divorce, Real Estate Law and Tax Law for California on
Q: Question on rental property deprecation and property ownership between spouses on a pre-marriage solo-owned property

My boyfriend has moved in with me last month (in September 2021). We are planning to get married in 3 months.

I own the home and haven't paid off the mortgage yet. I bought the home in 2018. My bf will be paying me $1500 per month as rent. A few questions:

1. Will I continue... Read more »

0 Answers | Asked in Real Estate Law and Tax Law for California on
Q: How to transfer Real Estate in North Hollywood, California - from 90 year old Mother/Parent Trust to 65 year old Son?

How best to transfer Real Estate in North Hollywood, California – from Mother/Trust to her Son.

Son lives onsite, rents the front house for $21,000/yr gross, no deductions, plus he receives SSI/SSA amounting to <$800/mo., and has Medicare/Medical health insurances

1. What are... Read more »

0 Answers | Asked in Tax Law and Child Custody for California on
Q: Can I take my daughter’s father to court for not spending The Child Tax Credit ($300/month per child) on our child?

I was a stay-at-home mom because when I was pregnant me and my fiancé (at the time) decided that he made a enough to take care of all 3 of us and that I would quit my job to watch her so that we didn’t have to pay someone else to do so. Well when the 2020/21 Stimulus Checks started coming, they... Read more »

1 Answer | Asked in Tax Law for California on
Q: Would I have to pay income/wealth taxes to California if I am living in Washington and working remotely for a Cali biz?

Hello,

My wife and I live in Washington state. We both work remotely for Washington companies. As such there are no state income taxes for us to pay.

She has received a job offer from a California based company. Though she would be working remotely from Washington, the company wants... Read more »

Maurice Mandel II
Maurice Mandel II answered on Sep 21, 2021

If she is working remotely and designated as employed through the California office, she could be subject to California income tax. You should really take your situation to a Tax Attorney in WA, and discuss it for a specific opinion. Sometimes people working outside California's boundaries... Read more »

1 Answer | Asked in Tax Law for California on
Q: SS# for K1 for trust distribution.

I need to provide my SS for K1 for trust distribution. I have changed my first name but trust is in old name. Do I need to give my new name to trustee?

Maurice Mandel II
Maurice Mandel II answered on Sep 13, 2021

You need to discuss this with the Trustee if you have a legal change of name. The K1 has to match your legal name that goes with your SSN.

1 Answer | Asked in Tax Law, Business Formation and Business Law for California on
Q: Hello, I am planning to found my own consulting firm. Should it be a LLC or sole proprietor?

Hello, I am planning to found my own consulting firm. I am helping startups in the US and EU with public policy, grant strategy, fundraising and business partnerships. Should it be a LLC or sole proprietor? Which one will be better for tax-wise?

Shawn R. Jackson Esq.
Shawn R. Jackson Esq. answered on Aug 6, 2021

The answer depends upon three initial focus points: [1] your exposure to liability ... [2] your desired management structure and [3] how you would like to see ownership and succession. The next step for you would be to schedule at least two free initial calls with attorneys of your choice ... by... Read more »

1 Answer | Asked in Consumer Law, Tax Law and Child Support for California on
Q: I paid 2,100 for my son's field trip to washington dc before corna, but they only gave a refund for 1,800 (late corna).

I paid 2,100 for my son's washington dc trip which was before corona started, but they only gave me a refund of 1,800 which was 300 less than what i even paid and said its for the processing fee??? Can i sue them?

Scott Richard Kaufman
Scott Richard Kaufman answered on Jul 25, 2021

Sure, why not?

1 Answer | Asked in Estate Planning, Tax Law and Social Security for California on
Q: I would like to shelter my lump-sum SSDI payment from further taxation. I am currently in an "uncollectible" status.

A lawyer friend suggested an irrevocable trust. Does that make sense?

Thank you,

Nina Whitehurst
Nina Whitehurst answered on Jul 17, 2021

It is not clear what “further taxation” concerns you. Is it income tax? Estate tax? Real property taxes? Something else? It could be that you yourself do not understand the taxation of SSDI benefits. You should consult with a tax advisor about that. Most likely you will not need any kind of... Read more »

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.

1 Answer | Asked in Immigration Law, Real Estate Law, Tax Law and Estate Planning for California on
Q: If I’m a US citizen does that mean I’m also US resident even if I have residency abroad?

My Grandparents have made a condition on their Trust that no funds should go to issues of my Mom who are not permanent residents of the United States. I have been living in Germany under temporary residency permits and now I’m in California considering moving back to US now in order to protect... Read more »

Agnes Jury
Agnes Jury answered on Jul 9, 2021

The term "permanent resident" of the U.S. in immigration law context refers to someone who is NOT a U.S. citizen but has obtained the right to permanently reside in the U.S. (a.k.a. Green card) and is physically present in the U.S. typically at least 6 months out of any year (so not to... Read more »

1 Answer | Asked in Employment Law and Tax Law for California on
Q: Employee withholding wrong on first paycheck. How to correct before second one.

I took a job with the understanding that I could let them know before the first paycheck whether to submit the W2 form I filled out or whether to change it to a 1099-nec. Payroll wasn’t informed and issued first check as a W2 and I wanted it as 1099. How can we fix this before second payroll?

Neil Pedersen
Neil Pedersen answered on May 27, 2021

You don't get to decide if you are paid on a W-2 or 1099 basis. If you are an employee, you must be paid on a W-2 basis. Reporting income on a 1099 basis means you are being treated as an independent contractor, and that is a legal conclusion based on many factors. In California it is very... Read more »

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.

Julie King
Julie King answered on May 17, 2021

Unfortunately , yes, you have to pay that franchise tax regardless of whether your LLC is active or inactive. So long as the LLC is in existence, you must pay the annual tax. Some people make the mistake of only paying the tax when they earn an income, which causes the LLC to go into "FTB... Read more »

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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.

1 Answer | Asked in Business Law, Employment Law and Tax Law for California on
Q: CA franchise tax required just because I have an employee there?

We are a MA-based S corporation. If we have an employee who works remotely in CA, must we pay the franchise tax (minimum $800)?

RTC DIVISION 2 - PART 11 - CHAPTER 2 - ARTICLE 2 - Section 23153 says that this only applies to (1) corporations incorporated in CA (we're not), or (2)... Read more »

Kenneth Sisco
Kenneth Sisco answered on Apr 30, 2021

Employees have nothing to do with the California Minimum Tax. If you are an entity, LLC, Corp., LP, etc., that has applied for, and obtained qualification to do business in California, you are required to pay the Minimum tax of $800 per year, whether you have any employees or not, in California or... Read more »

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