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New York Tax Law Questions & Answers
0 Answers | Asked in Tax Law and Estate Planning for New York on
Q: How to apply and explain valuation discount for 50% ownership of a home in a tax return?

I am filing a gift tax return for my client who is transferring 50% ownership of a second home into an irrevocable trust. The ownership presents restrictions, and I believe a discount for valuation is appropriate. How should I apply this discount, and how do I explain it on the tax return?

2 Answers | Asked in Estate Planning and Tax Law for New York on
Q: How can I leave my home to my fiancé through a trust to minimize costs in NY?

I own my own home and want to leave it to my fiancé. We both live in the home, and there are no other beneficiaries. I am considering setting up a trust to ensure he can inherit the property without incurring significant costs, such as estate taxes or any other charges. The property is free of any... View More

Gary Lane
Gary Lane
answered on Apr 16, 2025

Yes. Absolutely. I do them all the time! garyleelane1@gmail.com. Love to help you two.

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2 Answers | Asked in Estate Planning and Tax Law for New York on
Q: Can two properties in a revocable trust share one EIN?

I have two separate properties under the same revocable trust, and currently, one of the properties has an EIN. Can I use the same EIN for both properties within the trust? What would the tax benefits of this be, and are separate EINs necessary for each property?

Benjamin Z. Katz
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answered on Apr 1, 2025

Properties do not have EINs. If the Trust is a revocable trust, you may use your SSN or my apply for, and receive, a separate EIN. When transferring properties to or from a Trust, the Trust must be identified by either a SSN or EIN on transfer documents. So, to answer your question, you must use... View More

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2 Answers | Asked in Business Formation, Business Law and Tax Law for New York on
Q: Launching a taxi-hailing platform in New York: legal considerations for capital income exchange and cash split.

I am a developer planning to launch a taxi-hailing platform in New York, partnering with driver cooperatives. What should I consider legally regarding capital income exchange and structuring the cash split with the cooperatives?

Samuil Buschkin
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answered on Mar 27, 2025

This is a great question with a lot of moving parts. Structuring a platform like this—especially in New York—raises regulatory, tax, and contractual considerations. You’ll want to think through how revenue flows between you and the cooperatives, how profits and risks are shared, and whether... View More

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1 Answer | Asked in Tax Law and Real Estate Law for New York on
Q: Overcharged due to assessor's tax error for 10 years.

I've been overcharged by my assessor who has incorrectly applied a 1.25% view tax along with a lakefront adjustment for the past twenty years. Upon enquiry about a tax increase this year, the assessor acknowledged it as an error, mentioning they couldn't charge both. I calculate that... View More

James L. Arrasmith
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answered on Apr 12, 2025

If the assessor has admitted to an error in applying both a view tax and a lakefront adjustment to your property, that acknowledgment is an important step in correcting the situation. In New York, property owners can seek refunds for overpaid taxes due to assessment errors, but there are strict... View More

1 Answer | Asked in Tax Law and Real Estate Law for New York on
Q: When does a tax lien on real property expire in NY due to owed income tax?

I have a tax lien on my real property in New York State, which was placed due to owed income tax in 2013. I haven't had any communication from the state tax authority, nor have I made any payments or settlements. I'm concerned about the expiration of the lien, especially since selling... View More

James L. Arrasmith
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answered on Apr 12, 2025

In New York, a tax lien related to income tax does not automatically expire after 10 years. Under New York State Tax Law § 1141(b), the Department of Taxation and Finance may enforce a tax warrant for up to 20 years from the date it was docketed. This means that if a tax warrant was filed against... View More

2 Answers | Asked in Divorce and Tax Law for New York on
Q: Should I claim head of household for tax benefits after divorce?

I have been divorced from my ex-wife for 5-7 years, and we remain on good terms. I live in a separate house with my two sons and our dog, and my sons are with me 5-6 days a week. My ex-wife suggested that I claim head of household for tax benefits, but I'm unsure if this will primarily benefit... View More

Peter Christopher Lomtevas
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answered on Apr 3, 2025

Head of household filing status has two main advantages over filing single or married filing separately—more taxable income falls under lower tax brackets and there is a higher standard deduction.

As for how to advise the asker, we simply cannot. We know nothing of his finances. We do not...
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1 Answer | Asked in Child Custody, Child Support and Tax Law for New York on
Q: Divorced, living with sons, ex-wife suggests head of household status, impact on tax benefits.

I am divorced and live with my two sons and our dog, while my ex-wife lives in a different house. My sons are with me six days a week and have lived with me for more than half of the year. We have no formal custody or support agreements, but my ex-wife wants me to become head of household for tax... View More

James L. Arrasmith
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answered on Apr 12, 2025

Based on what you’ve shared, you may actually qualify to file as Head of Household, which could provide you with valuable tax benefits. To qualify, you must have a qualifying child (your sons), pay more than half the cost of keeping up your home, and your children must live with you for more than... View More

1 Answer | Asked in Business Law and Tax Law for New York on
Q: Is a board of directors necessary for a 501(c)(3) agency?

If an operating agency has a 501(c)(3) tax-exempt status, is it necessary to establish and maintain a board of directors, or can it continue operating without one?

James L. Arrasmith
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answered on Apr 12, 2025

Yes, if your agency has 501(c)(3) tax-exempt status in New York, it is required to have a board of directors. Both federal IRS rules and New York state nonprofit law mandate that tax-exempt nonprofit organizations be governed by a board. The board is responsible for overseeing the organization’s... View More

4 Answers | Asked in Bankruptcy, Employment Law, Gov & Administrative Law and Tax Law for New York on
Q: Concerns about Public Trust clearance with financial issues and foreign contact.

I'm an Air Traffic Controller applying for a Public Trust clearance and have concerns about my background. Since August 2024, I've been in contact with a woman from Colombia, sending her money occasionally for living expenses. I filed for Chapter 13 bankruptcy in November 2024 but am... View More

Carl  Cottone
Carl Cottone
answered on Mar 7, 2025

Because his Ch13 is a given and he is not asking about his Ch13, his question is NOT a bankruptcy question, it's a Public Trust clearance question.

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1 Answer | Asked in Tax Law and Contracts for New York on
Q: How to prove $3,000 cash income to IRS without formal records?

I'm a tutor planning to file my taxes but haven't done so yet. Most of my earnings are on a 1099-K, but I also earned about $3,000 in cash last year from a single student through regular weekly payments. I didn't deposit this cash into a bank account and have no formal records of the... View More

Gabriela Firpi-Morales
Gabriela Firpi-Morales
answered on Mar 7, 2025

The $3,000 you earned would be considered as a self-employment income. When filing you tax return, you must report the $3,000 on line 8 of the 1040 Form. For line 8, you must include Schedule 1 in your tax return filings. Schedule 1 will also assist you in determining how much you might owe the... View More

1 Answer | Asked in Tax Law and Business Law for New York on
Q: Will reporting cash income with 1099-K cause audit?

I own a business and need to report my income on a 1099-K. My total income includes $7,000 from the 1099-K and an additional $3,000 in cash earnings not on the 1099-K. If I report both amounts together on my tax return, will my return get flagged due to the discrepancy between my total income and... View More

Samuil Buschkin
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answered on Mar 4, 2025

This should not be considered legal advice and you should definitely consult an attorney who understands these issues but your tax return is unlikely to be flagged just because your total income exceeds the 1099-K amount. The IRS expects all income to be reported, including cash earnings. The lack... View More

2 Answers | Asked in Divorce, Tax Law and Family Law for New York on
Q: Ex-spouse claimed both kids for EIC against divorce decree terms. Steps?

In our 2023 divorce decree, we agreed that each of us would claim one child on our taxes. Last year, we filed accordingly without any issues. This year, my ex-spouse filed first and claimed both children for the Earned Income Credit (EIC), stating his lawyer advised it was permissible because he is... View More

Stephen Bilkis
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answered on Mar 13, 2025

I understand how frustrating this situation must be, especially when you have a clear agreement in your divorce decree regarding claiming the children for tax benefits. The issue you’ve encountered involves the Earned Income Credit (EIC), which is a valuable tax benefit for custodial parents.... View More

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2 Answers | Asked in Estate Planning and Tax Law for New York on
Q: My father’s house was in a Medicaid Asset protection Trust. I have confirmed it gets a step Up in basis.

Will we also benefit from the single $250,000 capital gains exemption. His trust was a grantor , Medicaid asset protection trust and considered part of his estate at death. He lived in the house for 45 years and died in it as well. He maintained some control of the trust with limited power of... View More

Nina Whitehurst
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answered on Feb 12, 2025

It is common for the grantor of a Medicaid Asset Protection Trust (MAPT) to retain just enough controls to trigger estate inclusion at the death of the grantor and, therefore, to cause the assets in the MAPT to obtain a step up in basis at the death of the grantor.

If a residence is owned...
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1 Answer | Asked in Tax Law for New York on
Q: I am taking my previous tax attorney to small claims court for what I think is excessive billing with no results on a

tax issue: Failure to return calls in a timely manner, making a mistake and billing to remedy it, failure to properly inform IRS of POA for my parents (This is their issue, not mine), and the inability to properly access the account to keep me informed.

Is there anything I should know? In... View More

Carli Jo Aelker
Carli Jo Aelker
answered on Feb 11, 2025

Hi!

Few things, if you requested access to the case file and had authorization, being your parents’ issue not yours, then an attorney must provide access.

When it comes to submitting POAs to the IRS I would confirm whether the issue was on the attorney’s end or the IRS’....
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2 Answers | Asked in Tax Law for New York on
Q: I haven't filed taxes in several years. Should I file 2024 or will I first have to go back and file past years?

I didn't file federal and NY State for several years due to cancer treatment. I'm now cancer-free and wondering should I file 2024 and wait for a response, do I need to file all previous years before anything, or if I should do something else? Thank you!

Carli Jo Aelker
Carli Jo Aelker
answered on Feb 11, 2025

If you possess a filing requirement then you will need to file your back taxes. This will depend on income earned and filing status (single, married filing joint, etc). If you are unsure of the income earned for your missing tax periods you can request a wage and income transcript from the irs.... View More

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1 Answer | Asked in Tax Law for New York on
Q: Can an attorney for billing for time on hold with the IRS only to request a call back?

He billed $500 and just left a message. I am thinking of suing him.

Carli Jo Aelker
Carli Jo Aelker
answered on Feb 10, 2025

An Attorney can bill for their hold time if it is considered a part of their working time.

Within my firm, we often call the IRS and experience very long hold times even when using the particular practitioner line. We bill for the hold time unless we are disconnected during that hold and...
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2 Answers | Asked in Estate Planning, Real Estate Law and Tax Law for New York on
Q: How to fill New York State form IT2663 for title transfer into revocable living trust for foreigner.

I am a non-US citizen. I own a condo in NYC which is not my primary residence. I want to transfer this condo into my revocable living trust (domestic). My attorney filled out form TP584 as a conveyance without consideration. Therefore, no transfer tax is due. At the end of this form, it states that... View More

Marco Caviglia
Marco Caviglia
answered on Feb 7, 2025

A revocable trust's assets are still your tax responsiblity, e.g. property taxes, because it is revocable. The form you are filing suggests you are getting income from the property and that is taxable. If you have no confidence in your atorney, you should obtain another one. Do so or take... View More

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3 Answers | Asked in Tax Law for New York on
Q: I am selling my house. I am going to give the profits to my son. Do we have to claim it on our income tax forms ?
Phillip Todd Zagotti
Phillip Todd Zagotti
answered on Feb 3, 2025

You will likely have a gift tax reporting issue, and depending on the size of your estate, you might be subject to tax liabilities as the person giving the gift.

That said, depending on the intent and desired timing, there might be more tax-efficient ways to achieve a similar outcome....
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1 Answer | Asked in Tax Law for New York on
Q: I am creating a website where people can gift me money, and then I will donate 99% to charity. Tax question.

I am creating a website where people can gift me money, and then I will donate 99% to charity. Not a charitable donation to me, it is a gift. I have a good history/record of doing this, but now I will do it on a bigger scale. (I’ve sold product and from sales I donated to different charities.... View More

James L. Arrasmith
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answered on Feb 8, 2025

When people give you money as a gift, the IRS generally does not consider it taxable income for the recipient. However, to qualify as a true gift, the payment must be made out of generosity with no expectation of goods or services in return. If the IRS determines that these payments are actually in... View More

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