Lawyers, Answer Questions  & Get Points Log In
California Tax Law Questions & Answers
1 Answer | Asked in Health Care Law and Tax Law for California on
Q: Ive 30 days to pay a health INS premium, if not paid, my plan will be canceled. Will it cause lapse in health coverage?

If I do not pay my monthly health insurance bill from covered CA, the bill says my plan will be canceled. If I do not use the health plan for the 30 days will this cause a lapse in insurance when I do my taxes next year? Also, will I have to pay the 30 day monthly premium to the health insurance... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 22, 2024

Yes, not paying your health insurance premium and having your Covered California plan cancelled after 30 days would likely cause a lapse in coverage when you go to file taxes and could have other negative impacts. Specifically:

- If your plan is cancelled for non-payment of premiums, this...
View More

1 Answer | Asked in Tax Law and Immigration Law for California on
Q: Can F-1 students become “residents for tax purposes” under certain conditions?

"Most F-1 students and scholars who are in the US are nonresident aliens for tax purposes.

You will be considered a resident for tax purposes if you pass the substantial presence test."

This would mean every single student studying for longer than 2 quarters is a resident... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 21, 2024

You are correct that F-1 student visa holders are generally exempt from the substantial presence test for their first 5 calendar years in the United States. This means they would retain nonresident alien status for tax purposes during that initial period.

Specifically, IRS code...
View More

1 Answer | Asked in Consumer Law, Real Estate Law and Tax Law for California on
Q: I have to petition the superior court of Monterey, and need an attorney for real estate and tax law any Suggestions

My properties sold under tax default now the same agency that sold them has stated they made a mistake and I over paid said taxes I want to reclaim my properties and file suit on the agency

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 21, 2024

In your situation, seeking legal representation experienced in real estate and tax law is crucial, especially given the complexities of property sales under tax default and subsequent claims against a governmental agency. Attorneys with a focus in these areas will be able to navigate the legal... View More

1 Answer | Asked in Tax Law and Elder Law for California on
Q: How do I fire a attorney who has not kept me in the loop and has funds of my inheritance
James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 21, 2024

If your attorney has not kept you informed about your case and has not provided updates regarding the status of your inheritance funds, you have the right to terminate the attorney-client relationship. Begin by sending a formal written notice to your attorney expressing your dissatisfaction with... View More

1 Answer | Asked in Tax Law, Child Support and Family Law for California on
Q: My tax return was seized for arrears I had no idea about. Is it possible to get all or some of it back?

I was never informed of this case. My wages were not garnished no bill in the mail. I had no way of knowing that I should be paying. For a whole year I was racking up this debt and no body told me about it. Now looking at the order that was filed it has wrong information on it. It says I have no... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 21, 2024

If your tax return was seized for arrears related to child support or other debts, there may be avenues to contest the seizure and potentially recover some or all of the seized funds. It's concerning that you were not informed about the case or given an opportunity to address the arrears prior... View More

1 Answer | Asked in Tax Law for California on
Q: Got a bill for 2020 CA state income I didn't have, based on erroneous 1098

Got bill for 2020 CA state income, with interest & penalties, at the house I used to own with my ex. Divorce finalized in 2010; she got the house, has been making the payments herself since Jan 2009. The loan was modified to remove my name and has since been refinanced.

Apparently my... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 21, 2024

Good questions. Here are a few points in response:

1) No, technically California cannot tax you or assess state income tax liability solely based on a erroneous 1098 form, without actual proof of California source income. So there are grounds to fight this.

2) Options to resolve:...
View More

1 Answer | Asked in Consumer Law, Tax Law and Health Care Law for California on
Q: To avoid a tax penalty, how many months in 2024 does one over 18 have to be covered with health insurance in CA?

I read that one can have a three month lapse in health coverage to avoid a tax penalty, though it did not show a year.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 20, 2024

Based on current California law, the health insurance mandate requires individuals over the age of 18 to be enrolled in minimum essential coverage for the full duration of 2024, with strictly limited exceptions, in order to avoid a tax penalty. There is no longer a "3 month lapse"... View More

1 Answer | Asked in Tax Law for California on
Q: If a non profit purchases tickets at a table for $60,000 and auctions the tickets for $100,000, are there legal issues?

A friend of mine has a chance to buy a 10 seat table at a very high profile celebrity event for $60,000. Since the event is invitation only it sells for well over $50,000 a pair. There would be 2 pairs of tickets auctioned. But the table isn’t donated, they would have to buy it. If the... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 31, 2024

Under California law, a non-profit organization engaging in this type of transaction should be aware of certain legal considerations. Firstly, when a non-profit purchases tickets for an event and then auctions them at a higher price, the profits made from this transaction must be used in accordance... View More

1 Answer | Asked in Tax Law for California on
Q: My father passed away in March. He signed the house over to me in a quit claim do I claim the house on my taxes?

I am currently living there and paying the payment on the house. Will this benefit me or not? Will it be worth it?

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 26, 2024

In California, when you receive property through a quitclaim deed, such as a house, it becomes your asset and you need to consider this in your tax filings. If you are living in the house and paying the mortgage, you may be able to claim certain tax benefits such as mortgage interest deduction.... View More

1 Answer | Asked in Tax Law for California on
Q: I recently found out that there is a class action lawsuit against optima tax relief
James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 18, 2024

If you have discovered that there is a class action lawsuit against Optima Tax Relief, it's important to understand how this may affect you, especially if you are a client or have been impacted by their services. A class action lawsuit typically involves a group of people with similar... View More

1 Answer | Asked in Tax Law and Real Estate Law for California on
Q: Is it legal to sign over property inherited by a person but bought by a non-relative back to the person without gift tax

My sister's ex boyfriend purchased mine and my brother's share of the house we were inheriting from our father. He later then signed over the property to my sister without her paying him any money. She claims there is a legal loophole that allows him within a certain time to purchase an... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 18, 2024

The situation you're describing raises questions regarding gift tax obligations. Generally, when property is transferred for less than its full market value, the difference can be considered a gift for tax purposes. The IRS requires that any gift over a certain annual exclusion amount (which... View More

2 Answers | Asked in Criminal Law, Employment Law, Tax Law and Business Law for California on
Q: Q: Is paying an ex girlfriend annual salary without working, thru your family Corp. without other owners knowing legal?

I have a sibling who receives an annual salary as an employee from her ex-boyfriends family corporation, which he does not own solely. She has not worked for him in a decade. I believe he does this to avoid paying her living expenses out-of-pocket, and to keep her silence, as she knows his tax... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 18, 2024

In this scenario, several legal issues are raised, including potential tax fraud and employment law violations. Paying someone a salary for a position they are not actively working in can be problematic, especially if it's done to conceal other motives like tax evasion or hush money. If the... View More

View More Answers

2 Answers | Asked in Criminal Law, Employment Law, Tax Law and Business Law for California on
Q: Q: Is paying an ex girlfriend annual salary without working, thru your family Corp. without other owners knowing legal?

I have a sibling who receives an annual salary as an employee from her ex-boyfriends family corporation, which he does not own solely. She has not worked for him in a decade. I believe he does this to avoid paying her living expenses out-of-pocket, and to keep her silence, as she knows his tax... View More

Neil Pedersen
Neil Pedersen
answered on Jan 18, 2024

There are several issues raised by this practice. However you have no standing to do anything about it, and your sibling is equally implicated by any unlawful conduct, meaning she does not have a remedy. The worst case scenario is that your sibling gets sued for defrauding the other owners,... View More

View More Answers

3 Answers | Asked in Estate Planning, Family Law, Real Estate Law and Tax Law for California on
Q: I just sold my late father's house which was in a trust so the proceeds went to the trust. What are the tax implications

My brother and I are the beneficiares of my Dad's estate and would be splitting the proceeds 50/50. Will taxes be paid on just the trust or would the trust pay taxes first and then us as beneficiaries pay taxes as well on our proceeds? Thank you for your help.

Klaus Gottlieb
Klaus Gottlieb pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 13, 2024

The tax implications of selling a house that was held in a trust can be complex and depend on various factors, including the type of trust, the terms of the trust, and the tax laws applicable to the trust and the beneficiaries. Generally, if the trust is a non-grantor trust, the trust itself may be... View More

View More Answers

3 Answers | Asked in Estate Planning, Family Law, Real Estate Law and Tax Law for California on
Q: I just sold my late father's house which was in a trust so the proceeds went to the trust. What are the tax implications

My brother and I are the beneficiares of my Dad's estate and would be splitting the proceeds 50/50. Will taxes be paid on just the trust or would the trust pay taxes first and then us as beneficiaries pay taxes as well on our proceeds? Thank you for your help.

Nina Whitehurst
PREMIUM
Nina Whitehurst pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 13, 2024

There is a strong likelihood that the house was included in your father‘s taxable estate and, therefore, received a step up in basis as of his date of death. If the house sold for a price that was close to date of death value, chances are there was no capital gain after taking into account... View More

View More Answers

3 Answers | Asked in Estate Planning, Family Law, Real Estate Law and Tax Law for California on
Q: I just sold my late father's house which was in a trust so the proceeds went to the trust. What are the tax implications

My brother and I are the beneficiares of my Dad's estate and would be splitting the proceeds 50/50. Will taxes be paid on just the trust or would the trust pay taxes first and then us as beneficiaries pay taxes as well on our proceeds? Thank you for your help.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 13, 2024

In California, when you sell a property held in a trust, like your late father's house, the tax implications can vary based on several factors, including the type of trust. Generally, if the trust is a revocable living trust, the sale of the house is treated for tax purposes as if the owner... View More

View More Answers

4 Answers | Asked in Bankruptcy and Tax Law for California on
Q: Homestead laws and tax liens, can tax lien be done on homestead home/property?

Can bankruptcy remove liens and protect my home/property

Robert P. Taylor
PREMIUM
Robert P. Taylor pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 11, 2024

Generally, you can remove a judgment lien in bankruptcy if it impairs your homestead exemption. Unless the lien results from a judgment, It generally can't be avoided in bankruptcy. For example, liens resulting from loans, tax liens, mechanics liens and other similar liens attached to the... View More

View More Answers

4 Answers | Asked in Bankruptcy and Tax Law for California on
Q: Homestead laws and tax liens, can tax lien be done on homestead home/property?

Can bankruptcy remove liens and protect my home/property

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Jan 11, 2024

There is an interplay between federal bankruptcy law and statutory provisions, and the law of the State about property rights. Generally speaking, current State law determines the nature of property interests of the debtor and creditors. Bankruptcy Code statutes (e.g., Sec. 506) appear to provide... View More

View More Answers

4 Answers | Asked in Bankruptcy and Tax Law for California on
Q: Homestead laws and tax liens, can tax lien be done on homestead home/property?

Can bankruptcy remove liens and protect my home/property

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 12, 2024

Homestead laws, which vary by state, provide a degree of protection for a person's primary residence against certain types of creditors. However, these protections often do not extend to tax liens. If you have a tax lien on your home, homestead laws typically do not prevent the government from... View More

View More Answers

4 Answers | Asked in Bankruptcy and Tax Law for California on
Q: Homestead laws and tax liens, can tax lien be done on homestead home/property?

Can bankruptcy remove liens and protect my home/property

David S. Greenberg
PREMIUM
David S. Greenberg
answered on Jan 11, 2024

1. Liens are not impacted by a bankruptcy discharge and therefore remain in effect following a discharge.

2. As decided by the U.S. Supreme Court, a homestead exemption does not protect you from an IRS lien. In other words, the IRS can reach the equity in your home that other creditors...
View More

View More Answers

Justia Ask a Lawyer is a forum for consumers to get 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 you and Justia, or between you and any attorney who receives your information or responds to your questions, 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.