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my Brother sister and I inherited a house from our dad who passed away. He did not live in that house as his primary residence. We are selling the house. It is in escrow. Do we have to pay California tax on the sales price?
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answered on Jul 26, 2024
When you sell an inherited house in California, the key factor for tax purposes is the stepped-up basis. The stepped-up basis is the property's fair market value at the date of your father's death. This value is used to determine the gain or loss when you sell the house.
If the... View More 
The beneficiaries have not changed. There are only 2. What needs to be done to update this trust before my mother dies, to avoid any tax issues at her death. We are very confused what needs to be done ( property was the only thing in the trust. 1 house, which she lives in and a piece of land. That... View More
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answered on Jul 18, 2024
To update your mother's A B trust, it's essential to take a few steps to ensure everything is in order before her passing. Since your father passed away 13 years ago and your mother was unaware of any required actions, the first step is to review the trust documents to understand the... View More
what happens if an estate currently improbate with mostly to sell immediately has delinquent taxes and is scheduled to be sold at a public tax auction?
answered on Jul 15, 2024
Thank you for your question!
It would stay the foreclosure after providing proof of the successors of interest that the property is going to be sold. The tax due amount will be deducted from the sale proceeds before its distribution.
This is merely a discussion of general laws and... View More
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answered on Jul 18, 2024
When you receive a personal injury settlement in California, the federal and state tax implications can vary. Generally, compensation for physical injuries or sickness is not taxable, so you wouldn't need to pay taxes on that portion of the settlement. This means that if you received... View More
My employee login accounts were being tampered with and my taxes information was being changed someone changed my tax information under federal and state they put 0 and another time put 99 I always claimed 3 ALOT of things were changed and my money was taken.the school district I worked for... View More
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answered on Jul 18, 2024
You have the right to take legal action against individuals who have stolen your identity and tampered with your accounts. The evidence you have, such as screenshots and witness statements, can be crucial in supporting your case. It's important to gather all documentation, including police... View More
The above question pertains to government run pensions in UK and NZ. There is contradictory info out there so I'm trying to find the exact tax laws that address this. To clarify, these accounts aren't currently being distributed and don't receive any dividends or payments until retirement age.
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answered on Jul 18, 2024
Understanding the tax implications of unrealized gains and losses from foreign pension accounts can be complex. In the United States, the IRS generally does not tax unrealized gains. However, certain foreign pension accounts may be treated differently under specific tax treaties or reporting... View More
Can IRS come after me personally for the remaining money owed?
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answered on Jul 18, 2024
If your company has fallen behind on payroll taxes and you have already paid the trust fund portion, the IRS might still pursue collection of the remaining balance. This balance can include penalties and interest on the unpaid taxes.
As an owner or responsible party, the IRS can hold you... View More
Essentially I did work at a company and got paid by the company. I also want to give a gift to a friend. Would it raise any flags that the friend I want to give the gift to is also the owner of the company I worked for?
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answered on Jul 2, 2024
To answer this question, we need to consider several aspects of tax law and potential implications. Here's a breakdown of the key points:
1. Legitimate income:
First, it's important that the paycheck you received for work at your friend's company is legitimate income.... View More
Hello,
I need advice on a potential lease-to-own arrangement. I invested in a person who can’t pay me back. He owns several properties but has low equity (around 25%). I’m considering renting the properties from him, making the mortgage payments directly to the bank, and taking... View More
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answered on Jun 29, 2024
Here's an overview of the key considerations for your proposed lease-to-own arrangement:
Legal feasibility:
This type of arrangement is generally legally possible in California, but would need to be carefully structured. You'd likely use a combination of a lease agreement... View More
1. PAYMENT OF MONEY
In consideration for the execution of the general release and agreement to the other terms
of this Agreement by Claimant herein, Respondent will pay a Total Settlement of (xxxxxxxxxxxx) (“Settlement Sum”)
to
Claimant. The consideration paid... View More
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answered on Jun 29, 2024
Based on the language provided in this settlement agreement, it appears that you will likely need to pay taxes on at least part of the settlement amount, but not necessarily on all of it. Here's a breakdown:
1. The portion described as "Non-Wage Payment" for "non-wage... View More
We are 3 siblings/beneficiaries of our mother's trust. Our sister wants to buyout the 2 of us. Will the buyout payment each of us receive be taxable? Will either of us 2 buyout recipients be responsible for higher property tax payments if they become due prior to the sibling property transfer?
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answered on Jun 27, 2024
Based on the information provided, here's a general overview of the tax implications for a sibling buyout in California:
1. Taxability of the buyout payment:
The taxability of the buyout payment depends on several factors:
a) If the buyout is for your share of the... View More
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answered on Jun 26, 2024
Paying off an $8,000 credit card bill in cash is unlikely to automatically raise a red flag with the IRS. However, there are a few considerations:
1. Cash transactions over $10,000 must be reported by businesses to the IRS.
2. Multiple smaller cash payments to avoid the $10,000... View More
My income is tax exempt. The IRS wiped my bank account today by mistake (I hope it was a mistake!).
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answered on Jun 25, 2024
Based on the situation you've described, here are a few key points and potential next steps:
1. Escalation options: While there's no specific "escalation department" outside the IRS phone system, there are alternative ways to address urgent tax lien issues:
-... View More
My income is tax exempt. The IRS wiped my bank account today by mistake (I hope it was a mistake!).
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answered on Jun 25, 2024
Based on the situation you've described, here are a few key points and potential next steps:
1. Escalation options: While there's no specific "escalation department" outside the IRS phone system, there are alternative ways to address urgent tax lien issues:
-... View More
If an individual has an informal profit share agreement, how can this be made clear when doing taxes? (He is in Tennessee, and his partner is in California.)
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answered on Jun 19, 2024
When it comes to reporting income from an informal profit-sharing agreement for tax purposes, it's important to ensure that both parties report their respective shares of the profits accurately on their tax returns. Here are some steps to consider:
1. Documentation: Even if the... View More
I paid my 2023 federal taxes online through the IRS payment website, but my taxes were not accepted until after this happened. When I go to my account on IRS.gov it shows the payment made, but it wasn't applied to my taxes balance and there is not a way to do this via the website that I have... View More
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answered on Jun 18, 2024
Based on the information you provided, it seems like you have a credit on your IRS account from a previous payment that was not properly applied to your 2023 tax balance. Here are a few steps you can take to resolve this issue:
1. Contact the IRS directly: Call the IRS at 1-800-829-1040 and... View More
I'm executor of my dad's will and his only child and beneficiary. He willed his house to me and we refurbished it and rented it out at the end of 2023. There is a small amount of income from that rental that accrues to the estate, therefore. Doing the 2023 1041 form and Schedule E for... View More
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answered on Jun 19, 2024
Based on the information provided, it seems that for estate tax purposes, you should use the date of your father's death as the acquisition date of the property and the stepped-up fair market value (FMV) as the new cost basis for depreciation.
Here's the rationale:
1. When... View More
I am a pro se. The opposing council is demanding discovery of my communications with attorneys I consult with. I declined to provide information other than a privilege log. He's now threatening to move for request to compel discovery. Can he do that?
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answered on Jun 14, 2024
Under California law, communications between a client and an attorney are generally considered privileged and confidential, even if you are representing yourself (pro se). This privilege means that you are not required to disclose the content of your communications with attorneys you have... View More
This is considering the "claim for transfer of base year value to replacement primary residence for persons at least age 55 years." Can we have the property tax paid only in his name, keeping his old prop. tax amount? Or do I have to pay property tax on my full share of the property... View More
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answered on Jun 11, 2024
In California, if you and your senior sibling buy a home together as joint tenants and only your sibling lives in the new home, the property tax treatment will depend on several factors. Here's what you should know:
1. Proposition 60 and 90: If your sibling is over 55 and meets certain... View More
I have been appointed as executor once she can no longer manage. Does spending the estate down, then unable to pay property taxes grounds for removal as trustee of estate? She has until the end of this month (June 2024) to pay $2,770 in property tax or it will fall into default. The property is... View More
answered on Jun 2, 2024
I usually describe the succession of executors and trustees like a baseball team. The person up to bat right now is your loved one who owns the property and is the executor (if they have a Will) or trustee (if they have a Trust). You and the other “back up” executors or trustees are waiting in... View More
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