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Texas Tax Law Questions & Answers
1 Answer | Asked in Tax Law and Real Estate Law for Texas on
Q: I own a piece of property overseas which was purchased by my mother and put in my name. Do I pay US taxes on the sale?

What tax if any am I obligated to pay to USA? I am a US citizen.

James L. Arrasmith
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answered on Apr 15, 2024

As a U.S. citizen, you are generally required to report and pay taxes on your worldwide income, including any capital gains from the sale of foreign property. However, the exact tax implications will depend on several factors:

1. Capital gains tax: If you sell the property for more than its...
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3 Answers | Asked in Real Estate Law, Tax Law, Collections and Landlord - Tenant for Texas on
Q: Can a judgement be filed against an heir that doesn’t reimburse their share of property taxes to the paying heir?

Texas; Want to pay taxes before county seizes the property. Heir who is refusing to pay is squatting in the house. (There’s a court order for back rent, etc. that hasn’t been paid either. House has no offers because of disrepair/won’t appraise.

James L. Arrasmith
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answered on Apr 11, 2024

In Texas, if one heir is paying the property taxes on a jointly owned property while another heir is not contributing their share, the paying heir may have legal options to recover the unpaid amounts. Here are a few potential avenues:

1. Partition lawsuit: The paying heir can file a...
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1 Answer | Asked in Tax Law for Texas on
Q: S-Corp Tax question: On form 1120-S Schedule B line 12, regarding non shareholder debt cancellation, who's debt is it?

Form 1120-S, Schedule B, Other Information, Line 12: The question is: During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or have the terms modified so as to reduce the principal amount of the debt?

Is the question referring to a debt a... View More

James L. Arrasmith
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answered on Apr 6, 2024

Line 12 on Schedule B of Form 1120-S is referring to a debt that the S corporation owed to a non-shareholder, and that debt was either canceled, forgiven, or had its terms modified to reduce the principal amount.

Here's a more detailed explanation:

1. The debt in question is a...
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1 Answer | Asked in Tax Law for Texas on
Q: Income Tax question, Regarding Inclusion of gains that have been deferred under section 1400Z-2 (a), QOF

May a taxpayer voluntarily elect to include part of the deferred capital gain without disposing of the QOF asset or other IRS defined inclusion event? For example, if the taxpayer deferred $100,000 of capital gains by purchasing $100,000 worth of QOF several years before, and then in a subsequent... View More

James L. Arrasmith
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answered on Apr 6, 2024

Based on the rules for Qualified Opportunity Funds (QOFs) under Internal Revenue Code section 1400Z-2, a taxpayer cannot voluntarily elect to include a portion of the deferred capital gain in their taxable income without a triggering event, such as disposing of the QOF investment or another... View More

1 Answer | Asked in Tax Law and Real Estate Law for Texas on
Q: How can I invest in my daughter without getting an unreasonable tax burden with my federal taxes?

My daughter will create LLC in Panama to manage her Airbnb property. She has dual citizenship. USA and Panama. I plan to establish LLC to pay her a salary to manage her property until she gets a footing and is earning enough from the properties to be self suffient.

James L. Arrasmith
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answered on Mar 30, 2024

There are a few options to consider for investing in your daughter's Panama LLC while minimizing your federal tax burden:

1. Gift tax exclusion: You can gift up to $18,000 per year (as of 2024) to your daughter without triggering any gift tax. If you're married, you and your...
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1 Answer | Asked in Tax Law, Civil Litigation and Landlord - Tenant for Texas on
Q: What type of attorney do I need to sue my deceased sons landlord for letting my daughter go in and steal his assets

I'm in texas. My son lived 7 hours away. Landord allowed her to remove assets when I told him his father and I would be in following day. I explained I was next of kin.

James L. Arrasmith
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answered on Mar 26, 2024

In Texas, for a situation involving the mishandling of a deceased person's property, you may want to consult with an attorney experienced in estate law or probate law. These attorneys handle cases related to the distribution of a deceased individual's assets and can help navigate the... View More

1 Answer | Asked in Tax Law and Business Law for Texas on
Q: Do I have to charge sales tax for video editing services in Texas?

If I do a video edit for a client and they provide me all the footage do I need to charge them sales tax?

James L. Arrasmith
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answered on Mar 25, 2024

In Texas, not all services are subject to sales tax; however, there are specific services that do fall under taxable categories. While the state's general approach leans towards taxing tangible personal property, certain services, especially where tangible personal goods are not primarily... View More

2 Answers | Asked in Tax Law for Texas on
Q: Will i need to pay tax on money if i claim it from a deceased relatives offshore bank account
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answered on Mar 23, 2024

When you inherit money from a deceased relative's offshore bank account, tax implications can vary based on the laws of your country and the country where the money is held. Typically, inheritance itself may be taxed, and different countries have different rules regarding overseas assets.... View More

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1 Answer | Asked in Tax Law and Estate Planning for Texas on
Q: Can an heir who inherits everything share inheritance with siblings without having full tax liability?

Can child who inherits all be named Trustor of a Trust (with their sibling(s) as Trustees), with ability to decide amounts to share with sibling(s) whereby each has tax responsibility for amount received?

For instance, if proceeds from sale of inherited property are put in Trust and... View More

James L. Arrasmith
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answered on Mar 16, 2024

Yes, an heir who inherits everything can indeed share the inheritance with siblings while managing tax liabilities effectively. When the sole inheritor is named as the Trustor of a Trust, with siblings acting as Trustees or beneficiaries, this setup allows for a structured distribution of assets or... View More

2 Answers | Asked in Contracts, Criminal Law, Tax Law and Traffic Tickets for Texas on
Q: Why do people allow cops to violate their rights to travel freely without being molested by police. I'm not driving

If the supreme Court says I can travel with out a license then I can travel without a license. It's not driving because a driver is on the road to commit commerce. Why do I have to ask permission to do what I have the right to do. License are another tax on traveling.

James L. Arrasmith
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answered on Mar 2, 2024

You raise an interesting point about the right to travel freely. However, the Supreme Court has upheld certain restrictions and regulations on using automobiles on public roads, even if not explicitly for commercial purposes. Some key considerations on this issue:

- The Supreme Court has...
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2 Answers | Asked in Tax Law for Texas on
Q: I opened two LLC’s and two bank accounts for the purpose of goods being sold. Partners were not completely honest with

agreements while using the LLC’s. They have disappeared and now I have no P& L statements to file taxes. They left me high and dry.

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answered on Feb 23, 2024

Facing a situation where partners have left you without the necessary documentation for tax filing can be daunting, especially when it involves LLCs. In Texas, as in most jurisdictions, LLCs are expected to maintain accurate records and file taxes based on their income, deductions, and credits.... View More

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1 Answer | Asked in Immigration Law, Tax Law and Employment Law for Texas on
Q: I am on H1b, w2 of 2023 W2 reflects only $18,560 due to maternity, what documents are essential to explain the immigrati

- Arrived in the United States on a H4 visa in 2022.

- Transitioned to an H1-B visa in October 2022, although it remains unstamped.

- Labor Condition Application (LCA) for the H1-B indicated a wage of $80,000.

- 2023 W2 reflects only $18,560 due to an unpaid maternity leave... View More

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answered on Feb 22, 2024

The discrepancy between your 2023 W2 earnings and the Labor Condition Application (LCA) wage could potentially raise questions regarding your H1-B status, as H1-B visa regulations require that visa holders are paid at least the wage specified in the LCA. However, your situation involves legitimate... View More

2 Answers | Asked in Tax Law for Texas on
Q: Job took only $90 out of for taxes when I filed only myself. I made over 11 grand what do I do?
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answered on Feb 22, 2024

If your employer withheld only $90 for taxes when you made over $11,000, it's crucial to address the discrepancy promptly. First, review your pay stubs and ensure that the correct tax withholding information was provided to your employer. If there was an error, contact your employer's... View More

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2 Answers | Asked in Tax Law for Texas on
Q: Recently lost Museum/property to back taxes. Do I still have a chance to regain ownership?

I'm a Native American, property was once a tax free museum, still a museum. There was a lot of overlooked descrepencies that are in my favor, I was denied opportunity to make payments. I never signed anything, very little to no paperwork was brought forth to me. I feel a lot of this was... View More

John Michael Frick
John Michael Frick
answered on Feb 16, 2024

It depends on the particular facts and circumstances and procedural status of your particular situation. The owner of a parcel of property is usually responsible to ensure that its name, address, and contact information are correctly listed with the County Tax Assessor.

Appraisals of the...
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2 Answers | Asked in Tax Law for Texas on
Q: Hello, can the City of Houston purchase a tax lien land that our father had that we wasn’t aware of and never notified?

Our father passed in 2005, and before he passed he was in a nursing home for a few yrs, so he never told us he owned the land he lived on before going into the home. I recently ran across a case filed in 2009 after his death where the City of Houston sold or bought the land due to a tax lien, but... View More

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answered on Feb 22, 2024

It's indeed possible for the City of Houston, or any local government, to purchase or take over land due to unpaid property taxes through a process known as a tax lien sale. When property taxes go unpaid, the city can place a lien on the property and eventually sell that lien to recover the... View More

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1 Answer | Asked in Tax Law for Texas on
Q: I received a 1099C for a car that I bought with my deceased ex-husband in 2004. They sent me one for the entire balance.

Should it be for half of the amount since we were divorced at the time of his demise?

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answered on Feb 4, 2024

When you receive a 1099-C for a debt that was jointly held with a now-deceased individual, such as an ex-spouse, the situation can indeed become complex. Generally, the responsibility for the debt and the implications of the cancellation of debt income can vary based on several factors, including... View More

2 Answers | Asked in Business Formation, Business Law and Tax Law for Texas on
Q: Would I need to register another DBA if the base name of the business is the same?

For example, "Green Horn Retail" and "Green Horn Warehouse" or "Green Horn Retail Warehouse"

T. Augustus Claus
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answered on Feb 1, 2024

In Texas, if you are operating multiple businesses under variations of the same base name, such as "Green Horn Retail" and "Green Horn Warehouse," you may not necessarily need to register each one as a separate Doing Business As (DBA) entity, especially if they are operated as... View More

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2 Answers | Asked in Family Law and Tax Law for Texas on
Q: Do I have to split my tax return with the father?

In court through the AIG, we agreed to claim every other year. But he was supposed to keep the child so I didn't pay for daycare. I keep child on his days while he works and pay for daycare 2 days a week. If child is sick I keep the child. If his other child is sick I have to keep our child. I... View More

John Michael Frick
John Michael Frick
answered on Jan 31, 2024

Unless and until modified by a court order, you should continue to follow the prior agreed order that you each claim the child every other year.

The facts you have stated in your question may be relevant in a suit to modify the prior agreed order. But until a judge signs a new order,...
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1 Answer | Asked in Tax Law for Texas on
Q: My park model home that is ANSI A119.5 complaint in Texas is being added to my property tax appraisal. Please advise.

primarily used as temporary living quarters for travel

It's built on a single chassis mounted on wheels

has a gross trailer area in the set-up mode of 399 square feet

is certified by the manufacturer as complying with American National Standards Institute Standard A119.5.

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answered on Jan 30, 2024

Based on the information you have provided, it seems that your park model home qualifies as a recreational vehicle under Texas law. As per the Texas Property Tax Code Sec. 11.14, recreational vehicles do not need to be appraised as an improvement to real property if:

1) It is primarily...
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2 Answers | Asked in Tax Law and Real Estate Law for Texas on
Q: If you paid taxes Can someone take your property if you abandoned it for year and haven't maintained your property?

I have always paid taxes but I live out of town so my son's wife who owns the lot next to my property cuts the grass like it's hers. Can she take it away and claim i abandoned it?

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answered on Jan 30, 2024

In Texas, simply paying property taxes on your land does not automatically protect it from claims of adverse possession, especially if you have abandoned the property and have not maintained it. Adverse possession, commonly known as "squatter’s rights," allows someone to claim ownership... View More

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