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Utah Tax Law Questions & Answers
1 Answer | Asked in Employment Law and Tax Law for Utah on
Q: If I am hired as a personal assistant, should I sign a W2 or w9 before accepting payment as wages?

The "employer" sent me a cashier's check from an online bank. I'm supposed to pay 2 of his bills, then take my pay and deposit it.

James L. Arrasmith
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answered on Jul 18, 2024

When hired as a personal assistant, it's important to determine whether you're being classified as an employee or an independent contractor. If you're classified as an employee, you should receive a W-2 form from your employer, which details your wages and the taxes withheld. On the... View More

1 Answer | Asked in Tax Law, Banking and Consumer Law for Utah on
Q: Can an online bank issue a cashier's check? How can I see if this cashiers check is legitimate or fake?

I feel like this is a money laundering scam. How can I verify this?

James L. Arrasmith
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answered on Jul 18, 2024

Yes, an online bank can issue a cashier's check, but it's essential to ensure its legitimacy to avoid potential scams. To verify if a cashier's check is genuine, start by contacting the issuing bank directly using a phone number from their official website, not from the check itself.... View More

1 Answer | Asked in Business Formation, Business Law and Tax Law for Utah on
Q: Can I start a business entity that offers analytics services for free? Just for experience now, but may charge later on.

Hello! I would like to start a business entity that offers business analytics services and business process recommendations for free. I'm doing this because I want experience doing analytics and consulting not to make money right now. Is there a business entity I can set up that reports no... View More

Wesley Winsor
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Wesley Winsor
answered on Aug 16, 2023

yes, you can provide free services to people. Tax returns are required for businesses and individuals who make income.

A simple business to set up would be a single member LLC.

3 Answers | Asked in Tax Law, Business Formation and Business Law for Utah on
Q: how do I sign on behalf of an LLC if my Scorp is the member?
Michael Ray Smith
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answered on Mar 17, 2023

Here’s one way, assuming the LLC is member managed:

NAME OF LLC

By its member, Name of Member

By. _________________

Your typed name

Your title

The idea is to make it clear that the member signs on behalf of the LLC and you sign on behalf of the member.

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1 Answer | Asked in Estate Planning and Tax Law for Utah on
Q: Who pays thetax on income received to House in a family trust?

Father put house into trust with me and sister as trustees and now has passed. There is income paid to the house so it pays the mortgage $500 in $500 out. Does the house count it as income or would me and my sister take care of it on our taxes? The trust has an IEN tax number already?

Nina Whitehurst
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answered on Feb 13, 2022

You need to review this with a CPA, but most likely the trust became irrevocable when your father died and is, therefore, a separate taxpayer that is now obligated to file annual income tax returns the same as you are. As such, the income "belongs" to the trust and is reportable on its... View More

1 Answer | Asked in Tax Law, Divorce and Family Law for Utah on
Q: How should my children be claimed each year on tax forms with my ex.

I have 2 children under 18 and one adult completely disabled child (21) for whom I provide the majority of support. My ex thinks we should be taking turns each year claiming either the disabled child or both minor children. It is my contention that we should be splitting the two minor children and... View More

Mike Branum
Mike Branum
answered on Feb 10, 2022

There is no "law" on this issue. It is a matter of what the parties agreed to at the time of divorce. Your decree should indicate how the children would be claimed on taxes. If there is no provision for child support for the adult child, then you would be entitled to claim the adult child... View More

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Utah on
Q: I have estate with it’s own EIN. We are selling a house. Does the estate pay takes and what rate?

At time of death it was valued at $270,800. Selling at 373k. It’s the only asset. Do we pay capital gains tax? What rate? Or does each descendant get a 1099 and pay their own taxes?

Wesley Winsor
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Wesley Winsor
answered on Feb 10, 2022

This is a better question for your accountant, but normally the estate will issue a K1 to each beneficiary that received cash distributions from the sale of the house that year. The house appreciation from the date of death will be attributable to the beneficiaries to whom it was distributed to at... View More

1 Answer | Asked in Business Formation, Business Law and Tax Law for Utah on
Q: I want to register an anonymous business in Wy, then in Ut where I live. When I register in Ut, will I lose anonymity?

I have an e-learning business. I want it to remain as anonymous as possible. So I plan on registering in Wy. I do all the work out of Ut, which means I probably need to register here as well.

1. Do I need to register in both states if I do all the work in Utah, or can I just register in... View More

Kenneth Prigmore
Kenneth Prigmore
answered on Jan 25, 2022

It is not necessary to register in two states. In Utah, you can register a new business without revealing the names of the owners. To do this, you will need help from a third party like an attorney or registered agent services.

The newly created company will need an address, contact info,...
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1 Answer | Asked in Estate Planning, Tax Law and Probate for Utah on
Q: What kind of tax is applicable (estate or income) on the dividend distributions made to decedent after his death?

Decedent received dividend distributions after his death. Does Estate have to pay estate tax or income tax?

Wesley Winsor
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Wesley Winsor
answered on Aug 13, 2021

Hi, dividend income would be considered income tax. The estate tax has to deal with the total amount of value passing from the decedent to others. So, it can be counted as both--income when received by the estate and an amount chipping away at the estate tax exemption credit. Most people are not... View More

1 Answer | Asked in Estate Planning, Tax Law and Probate for Utah on
Q: Is cash in the savings account of the non resident alien decedent taxable by the federal estate tax?

IRS states as follows in their website

The property includible in the U.S.-situated gross estate for a nonresident not a citizen includes only assets “situated” in the United States, such as:

1. U.S. real estate,

2. All tangible property located in the United States,... View More

Wesley Winsor
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Wesley Winsor
answered on Aug 13, 2021

Cash is considered tangible personal property. In your case, money held in the bank would either be deemed "cash" or "intangible" property.

I hope this helps.

1 Answer | Asked in Business Law, Estate Planning and Tax Law for Utah on
Q: What price of the stock should be used for estate tax valuation? At the date of death or at the date of collection?

The father died in 2012, but due to personal circumstances, the probate was opened in 2020. Now the stock value increased. Which price of the stocks should be considered for estate taxation: at the date of death or at the date i collected it?

Wesley Winsor
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Wesley Winsor
answered on Oct 12, 2020

The date of death value. Even though the stock didn't transfer, your right to the stock activated at his death.

I hope this helps.

Wes

1 Answer | Asked in Estate Planning and Tax Law for Utah on
Q: What will be the estate tax exemption amount if my father passed away in 2011, but I collected inheritance in 2020?

There was a change in the exemption amount between 2011-2020. In 2018 Trump increased it from $5.6MM to $11MM

Eric  Day
Eric Day
answered on Sep 18, 2020

The estate tax is determined at the time of death. Therefore, if there is an exemption on the tax it would be at the time of death, not at the time you actually receive the property.

1 Answer | Asked in Tax Law for Utah on
Q: Letter came today of unpaid/filed taxes from 2013-2017 totaling around $11,000 28 days to pay, I need a lawyer right?

I'm in the service industry and yeah, I was irresponsible and never filed knowing I'd owe a reasonable amount since most my employers didn't take taxes out. I received 7 liens & pretty positive I need a lawyer before they start garnishing, but if there's something I can... View More

Wesley Winsor
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Wesley Winsor
answered on Jul 20, 2020

Hello,

Getting one of those nasty letters from the IRS is never fun. You can certainly hire a lawyer, but if you agree that you are responsible for the taxes and you full intend to pay, it might be worth your time to contact the IRS and get on a payment plan. You will spend a bunch of time...
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1 Answer | Asked in Consumer Law, Personal Injury, Tax Law and Stockbroker Fraud for Utah on
Q: Law suit or cash payment..HELOC check acceptable?

My boyfriend wanted to help me invest my portfolio. I gave him access but with stipulations that we were to talk about each position and I would okay them. I also told him I did not want to lose more than 2500$ of the original 10 k we talked about. He was to always put stops or trailing stops to... View More

Wesley Winsor
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Wesley Winsor
answered on Apr 7, 2020

He basically gave you a gift. Don't worry about taxes. Gifts are not taxed. You do not need to worry about taxes.

Wes

1 Answer | Asked in Tax Law for Utah on
Q: I have a question about Generation Skipping Transfer tax.

If a dynasty trust has been created and all of the applicable GST exemption has already been allocated, what can a beneficiary do to increase this exemption for future generations? Could the beneficiaries pull out the corpus that isn't GST exempt and put it back into the trust using THEIR GST... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Sep 19, 2019

You use a power of appointment to include a portion of the trust corpus in the skip-person's estate subjecting it to estate tax and using their lifetime exemption.

or you can create a current gift through a sub-trust and lock in the current lifetime exemption before it drops in 2025....
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2 Answers | Asked in Employment Law and Tax Law for Utah on
Q: I was overpaid by my employer, the DOD, and ended up losing $7k that I was told would come back through taxes. It didn't

I work for Hill AFB and I have a rather interesting problem that I am not sure how to resolve. My problem is not with the IRS but with DFAS (Defense Finance and Accounting Service).

When I started working for Hill, in 2017, I was guaranteed an 11k bonus. I received this bonus. The problem... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on May 23, 2019

You said you received $11,000, as promised. Then you said you received another bonus--without telling us how much. Bottom line: If you received a second bonus you did not deserve (under your employment contract) then you must repay it.

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1 Answer | Asked in Tax Law for Utah on
Q: Can I stop my house from auction due to owing 5 years property tax if I pay off at least 1+ yrs of what is owed?

I took the home over when my father passed away, my father owed back property tax already at this time. I did pay on some of the past due but wasn't able to pay off completely. Well I got notice that due State Utah law if someone is delinquent on property tax for 5 years they can put the home... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on May 10, 2019

Yes that will probably work; but you MUST keep paying the overdue taxes--and the current taxes when they come due--or you will probably get to watch your house disappear soon.

1 Answer | Asked in Tax Law for Utah on
Q: Will I have to pay taxes on the sale of my house?

I have lived in my house for the last 20 years. For the last year, I have lived with my daughter and her husband at their house in the same town. The reason I have not lived in my house is that I allowed my son and his family to live there for a short period while he transitions from Texas to Idaho... View More

Eric  Day
Eric Day
answered on Jul 20, 2018

You will not have to pay taxes on the income of the sale of a personal residence for up to $250,000 (single taxpayer)/$500,000 (married filing joint taxpayer) of income. However, you must meet the ownership and use test:

During the 5-year period prior to the sale of the home, you must...
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1 Answer | Asked in Tax Law for Utah on
Q: If you are selling a property, how long must you have lived there in order to not pay taxes on the profit?

I've seen the "2 out of 5 years" rule floating around, but I'm not sure I fully understand it. It sounds like you must have lived there for 5 years total, but at least 2 of them had to be your primary residence...The home in question was my primary residence for almost 3 years... View More

Wesley Winsor
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Wesley Winsor
answered on Mar 15, 2018

There are two independent tests that you have to meet: the "use test" and the "ownership" test. You have to meet both of them in order to claim the exemption.

Ownership Test: This means that you have to have owned your home for at least 2 out of the last 5 years....
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1 Answer | Asked in Tax Law for Utah on
Q: I am the executor of my fathers estate and have been paying the mortgage payment can I claim the mortgage on my taxes?

When I get correspondence from the mortgage company It says the estate of.....

Wesley Winsor
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Wesley Winsor
answered on Jan 31, 2018

Hi,

No, you can't deduct mortgage payments or interest on mortgage payments from your own personal taxes. If you are paying the mortgage out of your own pocket make sure you keep good records because you are entitled to reimbursement for all expenses you front the estate. So if you...
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