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California Tax Law Questions & Answers
2 Answers | Asked in Real Estate Law and Tax Law for California on
Q: Refinance residential loan application home purchase value question

I am in process of refinancing. In application, I put the home purchase value less by ~$700, this happened as I rounded the numbers (560k vs 560.7k). In fact all that was from memory. I requested the change, but the loan officer again missed it. Now the closing is scheduled and I am little... Read more »

Maurice Mandel II
Maurice Mandel II answered on Nov 17, 2020

If the lender says the $700 misquote is not a problem, then it isn't a problem. Your taxes don't change with a refi. Recording fees are per document. There is no taxable transfer. Chill, it isn't a problem.

Justia disclaimers below, incorporated herein.

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5 Answers | Asked in Bankruptcy and Tax Law for California on
Q: I need to file for bankruptcy and my husband is in a Nursing Home (I have his power of attorney) and I’m retired.

Yes I’m retired, can’t receive my unemployment and the IRS, Franchise Tax Board is coming after me.

I need to file for bankruptcy.

Timothy Denison
Timothy Denison answered on Nov 16, 2020

Contact your local bar association or legal aid society for a referral.

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3 Answers | Asked in Real Estate Law and Tax Law for California on
Q: Transfer home from grandma, to dad, to me without prop tax impact in CA?

Was planning on purchasing the home but wanted to figure this out first. Would it be possible for grandma to transfer deed to dad, then dad to me, all at the same time to avoid reassessment? Would I then be able to cash-out refi to pay grandma the amount I would have paid for the home?

The... Read more »

Maurice Mandel II
Maurice Mandel II answered on Nov 15, 2020

You really need to hire a Real Property attorney in your local area to assist you with this because of the complexity of what you want to do and if you mess it up, it could cost you thousands in taxes on capital gains and increased property taxes going forward for years to come. You have too many... Read more »

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1 Answer | Asked in Real Estate Law and Tax Law for California on
Q: Passing home from grandma to son, and then to grandchild without property tax reassessment in CA.

Was going to purchase the home, but now considering whether this is possible:

Grandma transfers to my dad, who then immediately (same day) transfers to me, and then I do cash-out refinance to pay grandma the amount I was going to pay her in the first place.

Are there rules around... Read more »

Maurice Mandel II
Maurice Mandel II answered on Nov 15, 2020

Yes, you are definitely missing, or not hearing the advice that you should not be trying to handle this yourself. You really need to hire a Real Property attorney in your local area to assist you with this because of the complexity of what you want to do and if you mess it up, it could cost you... Read more »

1 Answer | Asked in Tax Law for California on
Q: I plan to live abroad for some months. Can I use a commercial mailbox as my address in the US?

I am employed by a California company and can work remotely. I don't own a residence in the US. Should the commercial mailbox be in California so I continue paying California taxes? Is it okay to choose it to be elsewhere? I don't plan to return to California.

David S. Greenberg
David S. Greenberg answered on Nov 11, 2020

California can tax you on all of your California-source income even if you are not a resident of the state.

That being said, it's nonetheless best to cut all ties with California to the extent possible, i.e., do not maintain a commercial mailbox within California.

1 Answer | Asked in Real Estate Law and Tax Law for California on
Q: Can I rent a house (to purchase later) and keep my primary residence as rental property and take advantage of prop 19?

I live in my current primary residence, now 22 years. I moved my folks into memory care. I want to purchase their home but can't do so now due to capital gain issues. My thought is to move into their home and rent from estate, but I fear I lose my PROP 19 benefits by doing so. And, by them... Read more »

Maurice Mandel II
Maurice Mandel II answered on Nov 9, 2020

It sounds like you need to discuss matters with an elder law attorney. You may need to set up a conservatorship of the property for your parents, if you do that consider creating a trust to own the house until it can pass to you on their deaths. You can rent from the Trust which is a separate... Read more »

2 Answers | Asked in Real Estate Law, Tax Law, Estate Planning and Landlord - Tenant for California on
Q: May my father legally declare on taxes rental income from renting out rooms in his house, if he transfers house to me?

My widowed elderly father and I live together in his house. He isn't doing well healthwise. Without going into detail, he will be seeing a lawyer to transfer the house to me. Ownership will go from 100% in his name to 100% in my name.

After the transfer, I will be in the unusual... Read more »

Maurice Mandel II
Maurice Mandel II answered on Nov 8, 2020

You are definitely jumping the gun with this transfer which will result in potential re-assessment, increased property taxes and potential capital gains taxes to your father. Additionally there is the loan. The lender may call the loan balance if your father transfers the property out of his... Read more »

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1 Answer | Asked in Divorce and Tax Law for California on
Q: I am receiving an inheritance and legally still married but separated for 1+years.

If inheritance is intercepted by IRS for taxes (filed jointly for one year and still owe) will all of the inheritance be considered co mingled? Or just the specific amount needed to pay off taxes.

Zaher Fallahi
Zaher Fallahi answered on Nov 5, 2020

They should not intercept more than taxes owed. You may have a claim against your spouse for ½ the tax liabilities. I hope this helps. Zaher Fallahi, Esq, CPA (CA &D.C.).

If my answer is "BEST ANSWER" and/or "HELPFUL" please acknowledge and mark it so....
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2 Answers | Asked in Estate Planning, Real Estate Law and Tax Law for California on
Q: Can a husband leave real estate to an adult child instead of his spouse so it can be sold without capital gains taxes?
Jeffrey Louis Gaffney
Jeffrey Louis Gaffney answered on Oct 31, 2020

The husband can leave his half of the community property and all of his separate property to whomever he wants.

It won't matter for capital gains who he leaves it to though. That person, spouse or stranger, will inherit the property at a stepped up basis (erasing the capital gain...
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1 Answer | Asked in Elder Law, Estate Planning, Real Estate Law and Tax Law for California on
Q: CA Prop 19: After parent-child transfer, if child uses home as principal res. for years, is it reassessed if he leaves?

I have a question about CA Prop 19 that I haven’t seen addressed anywhere yet, and was hoping someone from this Q&A forum might have an answer.

Prop 19 for the most part repeals Prop 58, which allowed parents to transfer a house to their children, without the house being reassessed... Read more »

Zaher Fallahi
Zaher Fallahi answered on Oct 25, 2020

Congratulation, you sound like a tax pro and seek speculation on I believe a proposed new law. That may be tough one. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).

Disclaimer: No solicitation is intended by answering general questions in this forum. This is for information purposes,...
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1 Answer | Asked in Business Law and Tax Law for California on
Q: If i invest 20k in a company LLC partnership Sub S Filing and and i enjoy 60 % interest in said company.

The Company suffers a 100K loss and my share means 60k loss is past to me... would I be affecting my personal AGI by 20k or 60k? If I had 50k actual income would my AGI tax liability be zero 0 or would it be 30k??? Thank you for this service and your input.

Zaher Fallahi
Zaher Fallahi answered on Oct 25, 2020

You should consult a tax attorney to advise you on the LLC being taxed as an S corporation with the LLC terms and potential legal peril of an S Corp having two types of stock. Generally, your loss is limited to your basis. I hope this helps. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).... Read more »

2 Answers | Asked in Real Estate Law and Tax Law for California on
Q: Would my father be responsible for Capital Gains tax if he were to sell his House?

My dad owns his house in Cupertino, it was reappraised after my mom passed a little over a year ago for 2.5 million. If he were to sell it today for say 3.0 million, would he need to pay Capital Gains? I was under the impression, that from the 2.5 appraisal and 250K exclusion for my dad and 250k... Read more »

Maurice Mandel II
Maurice Mandel II answered on Oct 19, 2020

Tax questions are very complex and a public forum such as this is not the place to find an answer to rely on. You need to take all the information and documents to a tax attorney or tax accountant for an opinion. There is also something called a 1031 exchange, which you can transfer the excess... Read more »

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3 Answers | Asked in Estate Planning, Real Estate Law, Tax Law and Probate for California on
Q: If I inherited my father's house after he passes, and I sell it, do I get hit with capital gains tax?

My father owns a house outright in California. I am the only child, and the house is in trust to be inherited down to me. My mother passed 2 years ago. If I in turn sell the house after my dad passes, do I get hit with capital gains tax?

Sally Bergman
Sally Bergman answered on Oct 18, 2020

When your mother passed two years ago, the property received a "step-up" in basis to market value at that time. When your father dies, the property will get a second step-up in basis to the then market value. This assumes the property was community property and that the trust did not... Read more »

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2 Answers | Asked in Tax Law and Real Estate Law for California on
Q: capital gains tax

My dad is 83 owns a house outright here in california. My mother passed 2 years ago. The house is in trust to me (only son) if he were to pass. If he does pass, and the house is inherited by me, and I sell it after that, do I get hit with capital gains tax?

David S. Greenberg
David S. Greenberg answered on Oct 18, 2020

When your dad passes, the basis is stepped up to then current market value. If there is no increase in value by the time you sell it, there will be no capital gains tax exposure.

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3 Answers | Asked in Legal Malpractice and Tax Law for California on
Q: If I am a Personal Injury Lawyer and win a case do I pay taxes on the money I got from the case

I am in California

Haleh Shekarchian
Haleh Shekarchian answered on Oct 17, 2020

Taxes would have to be paid on attorney’s fees the attorney is charging since that is an earring.

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1 Answer | Asked in Tax Law for California on
Q: Recently, I received in my mailbox a sizable check from a class settlement of a joint car purchase made many years ago.

Please delete. Thanks

Maurice Mandel II
Maurice Mandel II answered on Sep 12, 2020

Very good to see that you are planning ahead on this. My question is why is this taxable in the first instance, if this was for a recovery in litigation over a defective vehicle? But apparently you satisfied yourself on that issue. Why go with a cashier's check? You could have a personal... Read more »

1 Answer | Asked in Banking, Business Law and Tax Law for California on
Q: Federal & State taxes paid monthly or annually? And finally, the funds collected in crowdfunding services include taxes?
Maurice Mandel II
Maurice Mandel II answered on Sep 8, 2020

Yes to Question 1. Look at the contract for Q2. You used up all your questions. Taxes? Which Taxes? Sales Tax? Property Tax? Income tax? Employment Tax? Perhaps you need to discuss your matters with a Tax attorney or an accountant.

Justia disclaimers below, incorporated herein.

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for California on
Q: Prop 13 question regarding selling my Father's house I inherited.

When my dad passes, and I inherit his house, I have been informed that under Prop 58 I can keep the Prop 13 benefit that my dad has. However, if I were to sell the house, can I therefore transfer that Prop 13 benefit to another residence in a reciprocal county? If so, do I need to be a resident... Read more »

James Edward Berge
James Edward Berge answered on Sep 2, 2020

You're referring to California Prop 60 and Prop 90. Here's a link to the California Board of Equalization website which explains the requirements of the law: https://www.boe.ca.gov/proptaxes/prop60-90_55over.htm

1 Answer | Asked in Estate Planning and Tax Law for California on
Q: If my dad passes, and house is in trust to me, can i resume the prop 13 property taxes?

My father owns his house outright, and wants to put the house in my name now. First, is this a good idea? The house is in a trust to me in case he passes. Second, if and when I become the owner of the house, can I resume the prop 13 taxes? If I can resume those prop 13 taxes, if I were to sell... Read more »

Jeffrey Louis Gaffney
Jeffrey Louis Gaffney answered on Sep 2, 2020

Terrible idea!

If you inherit the house instead of having it gifted, you save a ton of money on taxes. If you inherit then your tax basis is stepped up to the current value; if dad gifts it then you also get his tax basis. That means a huge difference in the taxable gain when you sell....
Read more »

3 Answers | Asked in Consumer Law and Tax Law for California on
Q: Can I get around the California car use tax by gifting the car to a relative and having them gift it back to me after?

I bought a used car back in May, when I lived in a different state. I moved to California now and noticed they charge a use tax (the difference in sales tax paid at my original state and the CA sales tax) if I bought the car within the past year of moving to California. Is it possible to circumvent... Read more »

William John Light
William John Light answered on Aug 31, 2020

Anything done fraudulently is a problem. Tax fraud is a crime. If you are caught, it's a problem.

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