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California Tax Law Questions & Answers

2 Answers | Asked in Tax Law and Collections for California on

Q: I cancelled an inactive LLC but still have back-tax/penalty notices coming in. What can happen/what is my best recourse?

The notices were going to a location where I do not live (went to my ex-partner's parents house), and I just got my hands on the notices that say we owe thousands. This LLC was only active for a few years, as a production-company shooting a series, and unfortunately, the entity wasn't cancelled in... Read more »

David S. Greenberg answered on Aug 14, 2019

It is quite possible that you will be insulated from personal liability for the tax obligations of the LLC.

If you would like to discuss this in detail, please call my office to schedule a free initial consultation.

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1 Answer | Asked in Tax Law for California on

Q: Tax law on private ownership of a boat mooring...

I own a boat mooring (property) within the estuary of the City of Morro Bay, CA. The bottom land of the estuary on which my cement block sits belongs to the State of California which has granted the City of Morro Bay responsibility to manage (under a City/State tidelands agreement). I am billed... Read more »

D. Mathew Blackburn answered on Aug 12, 2019

That's a pretty specific issue, you're going to have to hire a professional.

2 Answers | Asked in Contracts, Estate Planning, Real Estate Law and Tax Law for California on

Q: My father died with out a will in CA> The house was in my brothers name. Do the other siblings have any control

Father stated before his death that he wanted his youngest daughter to live in his house because the other siblings were out of the state and already well established, Home owners , with good jobs. Literally on his death bed he told everyone that he wanted his youngest daughter to live in his... Read more »

D. Mathew Blackburn answered on Aug 11, 2019

Estate planning is important. The documents control the disposition of the property unless there are specific circumstances that require a different treatment. You should consult a California Probate attorney to see if any of the exemptions apply.

Best of luck.

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1 Answer | Asked in Tax Law for California on

Q: Can the $250,000 capital gain free tax exclusion from my home sale be directly deposited into my Roth?

D. Mathew Blackburn answered on Jul 29, 2019

That question doesn't make any sense.

The personal residence exemption excludes tax on the gain of a personal residence up to $250k unrelated to the transfer of the money.

Contributions to a Roth IRA are capped based on age and income.

If you sell your home you can't just...
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1 Answer | Asked in Tax Law for California on

Q: I know this question is asked a lot but I have a variation of it.

I have an 100% online business (no shipping or physical products). I live in California but I am originally from Florida. For tax purposes, should I LLC in Florida and file as a foreign entity in California? Will this help me save on taxes? How would home based business deductions work if I opt for... Read more »

Bruce Alexander Minnick answered on Jul 24, 2019

This is not a legal question. This is a small business question that should be asked to your small business lawyer.

If you do not have a small business lawyer you should get one--before you make mistakes that cannot be corrected without spending lots of money.

Here is some free...
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1 Answer | Asked in Tax Law for California on

Q: a friend did my taxes as a self prepare and she added school and i didnt go to school and i liable or is she

she did my taxes through turbo as a self prepare, and messed my taxes up

D. Mathew Blackburn answered on Jul 23, 2019

She;s subject to preparer penalties, you're subject to negligence penalties.

You'll need to amend your return.

2 Answers | Asked in Tax Law for California on

Q: I got a letter from the IRS that I owe $2000 because the tax place I went to did my taxes wrong. What do I do?

The place that did my taxes filled my taxes out wrong.

I provided documents that I went to school at DVC and contra costa medical career college and they put Sacramento state and the wrong education credit. I am suppose to be getting lifetime student opportunity credit.

They put... Read more »

Andrew M Steiger answered on Jul 12, 2019

You can start by going back to that tax provider and explain what they did wrong and ask them to file an amended return for you to correct their mistake. If you still owe tax, and are assessed a penalty and interest, there are steps you may be able to take to avoid the penalty and interest.

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3 Answers | Asked in Employment Law, Tax Law and Workers' Compensation for California on

Q: My ex employer misclassified me and all employees as independent contractors . Repeatedly would not pay on schedule.

Recently terminated for demanding paycheck which consistently was late 3-4weeks. what steps do I take to report employer and clarifying to tax board the misclassification

Neil Pedersen answered on Jun 12, 2019

You should quickly find an employment law attorney to discuss these issues. You may well have a valuable claim, depending on what kind of employee rights were denied you as a result of the misclassification. You may also have a claim that would allow you to raise the misclassification and other... Read more »

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1 Answer | Asked in Contracts, Tax Law, Admiralty / Maritime and Business Law for California on

Q: Does buyer of 'boat' LLC have to register ownership immediately after acquistion? And whom is responsible for taxes?

In October 2018, I sold my California LLC which only asset was a boat (wholly owned by my single owner/manager CA S corp).  Licensed yacht brokers handled the sale through a maritime attorney.  The deal was a straight up deal, llc for cash.  The same maritime attorney represented both buyer and... Read more »

Bruce Alexander Minnick answered on Jun 11, 2019

You are sailing in unchartered waters--at least for me. In addition, there are some important facts missing from you question that prevent lawyers from advising you. Finally, competent lawyers do not answer questions about what might happen in the future. Too many possibilities.

1 Answer | Asked in Tax Law for California on

Q: Are taxes paid owed for a previous year fully deductible in year paid?

I am a disabled senior and my wife works part time. We were notified we owe taxes to IRS & CA FTB for 2014. Both tax agencies have tacked on penalty's and interest. If we pay them both off this year in full, what can we deduct off this years taxes? All of it? Just the tax that was owed and the... Read more »

Bruce Alexander Minnick answered on Jun 3, 2019

Real estate taxes paid are deductible in the year paid. Late fees, penalties and intertest charges are generally not deductible. Talk to a California tax lawyer.

1 Answer | Asked in Real Estate Law and Tax Law for California on

Q: If I bought my home in 2009 and rented it out for 11 months in 2011, will I owe property gains tax if I sell it?

I originally purchased the home for 228000, now we are selling for 349000. It has been our primary residence since 2009 except for the 11 months in 2011.

Andrew M Steiger answered on May 31, 2019

Take a look at IRS Publication 523 to review the US tax treatment. The gain can be exempt if you meet the requirements and the dollar thresholds. That publication mentions that the prior use of space for rental does not disqualify exemption treatment if at the time of sale the property is used as... Read more »

1 Answer | Asked in Tax Law for California on

Q: If I am a non profit applying for 501(c)(3) tax exemption do I have to apply twice? Once for state and once for federal?

Assuming we meet the requirement for tax exemption

Bruce Alexander Minnick answered on May 29, 2019

Free practical advice offered for the last 41 years to people starting their own small businesses:

The main difference between successful small businesses and those that fail within a relatively short period of time is good legal advice. The owners of most successful small businesses...
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2 Answers | Asked in Tax Law for California on

Q: I took a hardship withdrawal from my 401K while living in TX.

I moved to CA in the same year but after receipt of the money. Do I have to pay tax on the withdrawal to CA?

I am being audited from CA for 2015

Bruce Alexander Minnick answered on May 28, 2019

IMPO you should not rely upon free online advice when the issue involves potential tax liability. Contact a tax lawyer in California and ask them to help you.

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1 Answer | Asked in Employment Law, Business Law and Tax Law for California on

Q: If my business' cofounder and I elect to stop receiving compensation for months, must I file state payroll reports?

The two of us are currently the only employees of our business, and only took a single paycheck of $100 each to set up the payroll system so it would be in place when we have employees in the future. We have since decided to delay any hiring, and will not be taking any compensation ourselves, for... Read more »

Neil Pedersen answered on May 24, 2019

This is a question best answered by your tax accountant. While owners can agree to not take a salary from the business there are tax consequences associated with that decision that you need to measure against the relatively small administrative charges you wish to avoid paying. Get in contact... Read more »

1 Answer | Asked in Real Estate Law, Tax Law and Estate Planning for California on

Q: CAN A LIZ PENENCE BE FILED AGAINST PROPERTY IN AN LLC THAT IS IN DISPUTE

A LAWSUIT HAS BEEN FILED FOR ELDER FINANCIAL ABUSE. IF THE PROPERTY ASSETS ARE FROZEN WHO DO THE TENENTS PAY RENT TO

Thomas A. Grossman answered on May 23, 2019

Without knowing all the facts, I would assume that rent payments should be put in a trust at the bank, to be released when the final results of the court hearing are known.

3 Answers | Asked in Consumer Law and Tax Law for California on

Q: I need advice on the course of action I should now take to straighten out a tax issue

An EA was paid to file for tax forgiveness on my behalf. He did not. I am now being garnished. He is not answering my inquiries. I also want to initiate legal action against him; but the tax issue first!

Bruce Alexander Minnick answered on May 16, 2019

Use the tab called "Find a Lawyer" at the top of every page here on Justia to find competent experienced business or tax lawyers who might be able to help you. If the tax issue is a federal tax issue you may not need a California lawyer.

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1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for California on

Q: Can HOA dues be collected after death?

My mother has property in California that is essentially worthless (no house, just land), but she is still paying her HOA dues and taxes. When she passes, can I close out her estate and abandon the property completely, or can the HOA and tax collector force me to pay dues and taxes? If so, do I... Read more »

Bruce Alexander Minnick answered on May 15, 2019

If you do not want to keep your mother's land your plan to let it go will work just fine. Or she can sell it now.

1 Answer | Asked in Real Estate Law and Tax Law for California on

Q: How are my capital gaines determined on a property I purchased in 1989 in CA?

How are capital gaines determined when property i owned jointly and you are the last surviving owner

Jonathan Purcell answered on Apr 24, 2019

1. In general, basis is the purchase price of property plus capital improvements, less accumulated depreciation.

2. On death, basis is revalued at the date of death fair market value (DOD FMV), usually by appraisal.

see, 26 U.S. Code § 1014

3. If the spouses each held...
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1 Answer | Asked in International Law, Admiralty / Maritime and Tax Law for California on

Q: Can duties & tariff be added 5-months after the shipment arrived at US port and merchandise sold.

Thomas A. Grossman answered on Apr 24, 2019

I assume there was a shipping receipt or written contract somewhere in this transaction. Reading the contract may answer your question. Transfer of title is a very complicated subject. I would seek help from a Maritime attorney in your area.

2 Answers | Asked in Tax Law and Construction Law for California on

Q: If someone fraudulently got my ssn and 1099 me but never had a signed w9 from me, can i fight this lie?

I worked for the person contracted to do this job and he couldnt contact them at tax time so he pretended to be someone else to get my ssn. I did cash some checks from him cause he claimed he couldnt withdraw the money and i had acheck cashing account. i cashed them for him to pay the people... Read more »

David S. Greenberg answered on Apr 24, 2019

I have represented a taxpayer in a situation quite similar to yours. My approach led to the IRS completely exonerating my client.

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