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I am in the process of a divorce and want to know if I can transfer my half of the house deed ownership to my ex-husband. There is no existing divorce agreement or court order regarding property division, but there is a tax lien on the property, and disputes regarding property division exist. The... View More

answered on Apr 12, 2025
It sounds like you're in a complicated situation with your property and divorce. Since there is no court order yet regarding the division of the property, transferring your half of the deed could be tricky, especially with the tax lien and ongoing disputes. You would likely need to work out an... View More
I operate a boat rental business registered as an LLC in Virginia. We launch from Gravelly Point, Arlington, VA, utilizing the Potomac River under DC jurisdiction, and sometimes use the Occoquan River. The business is personally operated by me, without employees, primarily during weekends. Although... View More

answered on Apr 12, 2025
Operating your Virginia-based boat rental business on the Potomac River, which is under the jurisdiction of the District of Columbia (DC), introduces certain tax obligations. Even though your business is registered in Virginia and primarily operates from Virginia locations, utilizing DC waters for... View More
My wife and I have unpaid back taxes exceeding $165,000, but there's a hold on our passports from the IRS. We haven't applied for hardship status yet. We hired a company to help with an offer in compromise, but it seems to be a scam—they delayed submitting it last month. This passport... View More

answered on Apr 5, 2025
To get the IRS passport hold lifted, you’ll need to resolve the “seriously delinquent tax debt” status. That means either paying the balance down below the threshold (around $62,000 for 2025) or entering into an official agreement like an installment plan or accepted Offer in Compromise.... View More
I finalized my divorce in September 2024 and was awarded a rental house in Virginia through the court order. I started paying the mortgage in August 2024, but my ex-spouse continued making payments from his bank account, and I reimbursed him since my loan assumption attempt was denied. He is now... View More

answered on Apr 12, 2025
Since you were awarded the rental house in your divorce and have been making mortgage payments since August 2024, you are likely the one entitled to claim the property on your taxes for the year. Even though your ex-spouse continued making payments temporarily and you reimbursed him, the IRS... View More
I recently discovered that the Social Security Administration has the wrong date of birth for me, which caused my tax return to be rejected. I found out about this issue a month ago when I applied for my tax return and confirmed it with the Social Security office. Since I am undocumented, I have no... View More

answered on Apr 1, 2025
Your situation presents a challenging intersection of tax compliance and immigration status. When the Social Security Administration (SSA) has incorrect biographical information for an undocumented individual, it creates complications for tax filing that require careful navigation. The request for... View More
My husband and I previously filed taxes jointly and entered a payment plan with the IRS. We are now separated due to abuse, and I'm filing taxes separately. He has failed to pay his portion of our agreed tax payment plan. I've been unable to contact the IRS for guidance and have an audio... View More

answered on Apr 12, 2025
It’s understandable that you’re facing a difficult situation, especially given the financial and emotional stress of your separation. Since the IRS payment plan is in both of your names, you're still responsible for the full amount owed, even if your spouse is not contributing. The first... View More
I have been a green card holder for five years, obtained through marriage, and we have been married for six years. We have reliably filed joint tax returns each year. When applying for citizenship, will previous years’ tax forms be reviewed, or do they just check that joint returns were filed?

answered on Mar 28, 2025
The citizenship application asks if you owe any overdue taxes, and you may be asked about tax filing history, as part of the good moral character determination. Depending on the officer you may also be asked to provide copies of your taxes/tax transcripts for the past 5 years and the officer may... View More
I have an LLC with two businesses under it, including a YouTube channel focused on home remodeling and construction. My wife has a decorating background, and I am a general contractor. The channel is not monetized yet, and I recently purchased a house that needs extensive work, which will be... View More

answered on Apr 12, 2025
Since the home you’re renovating is your primary residence, the IRS typically does not allow deductions for personal home renovation expenses, even if you're documenting them for business content. Because the property is not used exclusively for business purposes, expenses like materials and... View More
My parents and I bought a house together, and all three of our names are on the deed. I am the only one who took out the mortgage, while they paid for the down payment. There are no formal agreements about ownership or expense sharing. I'm concerned about the tax implications of this... View More

answered on Apr 12, 2025
Owning a home jointly with your parents in Virginia does create a few potential tax considerations, but many of them depend on how you all manage the property financially and how the ownership is reflected on tax documents. Since your name is on the mortgage and you’re responsible for the loan... View More
I am a small one-person LLC online startup retail business owner. I started the business in July 2024, and my sales have been growing since then. I plan to file taxes for the first time for FY 2024, and I have never previously filed any H1B petition. I'm interested in hiring an H1B-sponsored... View More

answered on Mar 3, 2025
This is not an area that I am familiar with, but I wanted you to have some general information about this.
An H-1B employee is a foreign professional who works in the United States on a temporary visa in a specialty occupation. The H-1B is a nonimmigrant visa category.
Eligibility:... View More
I'm looking to start a digital product business with Kindle Direct Publishing (KDP) and Print on Demand (POD). I plan to form an LLC and am considering the legal and tax benefits. I temporarily reside in Virginia, have a CDL license in Ohio where I plan to return soon, but am also considering... View More

answered on Feb 24, 2025
You have several options which take a lot of explanation and more questions about your business and its reach. You could initially file under Virginia law and when you move to Ohio transfer the LLC to Ohio. If there are tax advantages and/or state filing advantages to form your LLC in Wyoming or... View More
I am looking to purchase a home with a family member, however we are looking to split the total purchase cost where they are paying their half up front and I am getting a mortgage. We both will be on the title, but I would be the sole holder of the mortgage. From the IRS' perspective, is their... View More

answered on Feb 12, 2025
Based on the details provided, this situation would not be considered a gift. The other family member is paying for their half of the property upfront, and you are using debt to pay for your half. There is no transfer of assets between you and the other family member. Your ongoing mortgage payments... View More

answered on Feb 10, 2025
If you open a foreign LLC to do business in Virginia by owning and renting property in the state, you will need to register the foreign corporation or LLC in Virginia. You will not be exempt from Virginia sales or other taxes on the Virginia income. So, you will pay corporate franchise tax in both... View More
A lien was placed on my bank account for personal pretty taxes, to which the communication was sent to an address I am not associated with at all so I had no knowledge of the lien being placed against me.
The car also hasn’t been registered in VA since 2022 and was unregistered for two... View More

answered on Oct 7, 2024
To dispute the personal property taxes, you need to gather all relevant documentation that shows the vehicle was not registered during the period in question. This could include proof of non-registration, your current residence outside Virginia, and any relevant records showing the car was not in... View More
Hi, I'm in a confusing situation that I hope you can help me with. I just sold my house last month and I'm trying to figure out if I qualify for the $250k capital gains exemption for a single tax payer. Now I should qualify since I lived in this house for a decade. The situation here is... View More

answered on Oct 3, 2024
The capital gains exemption you're referring to—$250,000 for a single taxpayer—generally applies if you have owned and lived in the home for at least two of the last five years before selling it. Since you've lived in the house for a decade, you likely meet the residency requirement.... View More
Tax consequences on sale of completely depreciated rental property

answered on Sep 14, 2024
When you sell a completely depreciated rental property, there are several tax consequences to consider. Since the property has been fully depreciated, you must recapture all the depreciation taken during the ownership period as "depreciation recapture." This recaptured amount is taxed at... View More
Real estate question: basic now but will elaborate when connected. Note: will type words in a form of 3rd person so its less emotional for me, stay on logic.
Also, a lawyer that was the office for Legalaide stated that it does not matter the Foreclosure the property was sold, there is no... View More

answered on Sep 13, 2024
When you sell a home just a few days before a scheduled foreclosure, the sale can have important consequences on the foreclosure process. First, make sure that the sale of the property is fully finalized and that all necessary documents have been recorded. Once the house is sold, the foreclosure... View More
I am completing form 306 for federal employment. It asks if I am delinquent on any federal debt. I am on an installment plan for last year’s tax. Do I say yes or no?

answered on Aug 13, 2024
When completing Form 306 for federal employment, it's important to understand what the term "delinquent" means in this context. Being on an installment plan with the IRS does not automatically mean you are delinquent. As long as you are current on your payments and adhering to the... View More
I am a single mother of 5, my coworker is a young single adult male with no dependents, another is married with a wife who works and a toddler, another is a single adult male no dependents, and lastly a senior veteran is married and no dependents but the exact same amount of taxes were withheld... View More

answered on Jul 18, 2024
It's important to address the issue of incorrect tax withholding immediately. You can start by discussing the matter with your employer, explaining the discrepancies and providing the tax forms you completed when you were hired. Ensure they understand the legal requirement to withhold taxes... View More
I just opened a single member LLC and got a contract as 1099 independent consultant. In my W9 form, I shared both SSN and EIN to the company.
I want to know if teh company decides to use my SSN to make 1099 payments to me and issues me a 1099 form with my SSN at the end of teh year, can I... View More

answered on Jul 18, 2024
Yes, you can have 1099 payments made to your SSN deposited into your Single Member LLC's bank account. The IRS allows this because, for tax purposes, a Single Member LLC is treated as a disregarded entity, meaning the LLC and the individual owner are considered the same entity. This means that... View More
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