Get free answers to your Tax Law legal questions from lawyers in your area.
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?
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 
answered on Apr 16, 2025
Yes. Absolutely. I do them all the time! garyleelane1@gmail.com. Love to help you two.
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?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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... View More
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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
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.
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
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
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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... View More
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
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’.... View More
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!
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
He billed $500 and just left a message. I am thinking of suing him.
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... View More
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
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
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.... View More
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
Justia Ask A Lawyer is a forum for consumers to get free answers to basic legal questions. Any information sent through Justia Ask A Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between Justia and you, or between any attorney who receives your information or responds to your questions and you, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask A Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises, or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
