California Tax Law Questions & Answers

Q: How do I proceed with signing up for a law apprenticeship in Los Angeles California Are any attorney’s accepting stude

2 Answers | Asked in Consumer Law, Criminal Law, Personal Injury and Tax Law for California on
Answered on Apr 16, 2019
Bruce Alexander Minnick's answer
Although you have mentioned several legal terms commonly used in the legal profession, this is not a legal question; it is a personal question involving education.

You might want to use Google to locate one or more law firms or other places that might offer the kinds of educational services you are looking for.

Q: I am joint owner with my nephew (age 54)of a family home. I want to sell, he doesn't. Can I gift him my half?

1 Answer | Asked in Contracts, Real Estate Law and Tax Law for California on
Answered on Apr 16, 2019
Bruce Alexander Minnick's answer
Yes, you can give your interest in the property to whomever you desire. However, you can also sue your nephew and probably force a sale that way. This might be the best way to sever ties with your nephew because the net amount of money received from the forced sale would then be divided equally between you and your nephew. Hire a lawyer.

Q: How are property taxes reassessed if only half of the house is sold?

1 Answer | Asked in Tax Law, Estate Planning and Real Estate Law for California on
Answered on Apr 3, 2019
Bruce Alexander Minnick's answer
Although I do not practice in California, unless I miss my guess the taxing authorities will continue assessing taxes on the entire piece of property because they are only interested in collecting the taxes and do not care who owns it. You might want to engage the services of a real estate lawyer in the county where the property is.

Q: Is money given or used as personal Education loan tax deductible?

2 Answers | Asked in Tax Law for California on
Answered on Mar 31, 2019
D. Mathew Blackburn's answer
Your question doesn't really make sense.

If you're loaning someone money to pay for school that would not be deductible. Neither would gifting the person money.

If you're the person borrowing money for education it may or may not be deductible. The deduction comes from the educational program attended not the source of the funds.

Q: How to claim CA County vs City sales tax difference?

1 Answer | Asked in Tax Law for California on
Answered on Mar 28, 2019
Bruce Alexander Minnick's answer
No. ZIP codes have nothing to do with county and city physical jurisdictions. So, unless you actually live within the city limits (get a map and look, or call the city and ask) you cannot (lawfully) claim the extra 1% sales tax.

BTW, is cheating really worth it? Think: If the car cost $35,000, the additional 1% would only give you a $350 deduction. When multiplied by your marginal tax rate (your marginal rate is probably about 15%), your tax "savings" would only be $52.50. Hardly...

Q: How do I best give (or sell for a nominal amount) my house to one of my daughters?

2 Answers | Asked in Estate Planning, Real Estate Law, Tax Law and Elder Law for California on
Answered on Mar 19, 2019
Sally Bergman's answer
I recommend you talk with an Elder Law Attorney as you raise many important issues very specific to elder law.

Q: the word income means profet and if only corporations can make a profit so i have to show 0 income and never pay tax

1 Answer | Asked in Tax Law for California on
Answered on Mar 17, 2019
D. Mathew Blackburn's answer
Your premise is faulty.

Income does not only mean profit, it's not true that only corporations can make profits.

Falsifying tax return documents is a felony and you'll end up owing way more and possibly in prison.

If you want to take that risk it's your choice, but don't pretend you've figured out a technicality.

Q: i purchased a condo which I now rent and want to sell it to buy a house to live in. Do I have to pay capitol gains tax

2 Answers | Asked in Tax Law and Real Estate Law for California on
Answered on Mar 6, 2019
D. Mathew Blackburn's answer
Yes. It's a business asset so the net gains would be taxed at long-term capital gains rates.

You can't use the like kind exchange rules to go from rental to personal.

Q: Can I sign a quitclaim deed or interspousal transfer deed to give up my ownership in a rental property to my husband?

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for California on
Answered on Feb 21, 2019
Jeffrey Louis Gaffney's answer
Can you? Yes.

Should you? Maybe not. Why all the trouble? You might be hurting yourself on taxes.

You can change ("gift" or "transmute") things from Community to Separate Property at will any time. You are correct that it is currently Community Property. You should make a writing of some sort for your records indicating that you have changed the character of the property. Then just Quitclaim the deed to into a Trust.

This process does not require a separate trust...

Q: Hi my name is Melissa I really need help trying to find out what tax law allows a taxpayer to have a escrow company put

1 Answer | Asked in Real Estate Law and Tax Law for California on
Answered on Jan 31, 2019
Frank Huerta Jr's answer
You should really determine if you owe the money. You want to find out what tax years the lien covers. Call the IRS or State to ask for a record of your account. If you have already paid it off then fill out a lien discharge request. If you are disputing the underlying debt you can either file an audit reconsideration or in some cases file an offer in compromise doubt as to liability. If you do owe the money, then contact the IRS lien unit about paying off the balance and ask for the lien...

Q: Can an employer who pays his employees cash money under the table ask his helpers to help him pay tax on his contract

1 Answer | Asked in Tax Law for California on
Answered on Jan 14, 2019
Ali Shahrestani, Esq.'s answer
You may want to report him to the IRS and FTB for tax fraud. If he owes you money, you may want to sue him for that in court. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney such as myself. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website, www.AliEsq.com. I practice law in CA, NY, MA, WA, and DC in the following...

Q: i am a heir to my aunts trust,i inherited $90K. the lawyer is requesting my ss# number. must i give it 2 him?

1 Answer | Asked in Estate Planning and Tax Law for California on
Answered on Jan 11, 2019
Ben F Meek III's answer
Ask him the purpose for his needing to know. Most likely it is so the Trust can report the distribution of funds to you on IRS Form 1099. That would be a legit reason for needing to know.

Q: Do we need to file a CA tax return in 2018?

1 Answer | Asked in Tax Law for California on
Answered on Jan 8, 2019
Victor J. Yoo's answer
CA Franchise Tax Board requires all individuals who are domiciled in California to file a state tax return. There may be several factors to consider whether or not you need to file your tax return in California including but not limited to: was there a source of income earned in California, how long you lived in California, your driver's license status, your voting status, do you own a home in California, are you attending schools in California, are covered under medical insurance for "Covered...

Q: If the TP denies tax liability, does the IRS always send a final notice-right to hearing notice after the CP-504?

2 Answers | Asked in Tax Law for California on
Answered on Jan 7, 2019
David S. Greenberg's answer
In the usual course, the IRS automated collection system [ACS] will issue either a CP90 or LT11 Final notice of intent to levy with a notice of your right to a collection due process hearing within about 5 weeks after issuance of the CP504.

However, I have encountered several situations whereby the final notice does not issue within the predictable time frame. This usually occurs when the account is being transferred from ACS to a local revenue officer.

It would be in your...

Q: Will the government shutdown extend or toll the statute of limitations for the IRS for an due process hearing?

1 Answer | Asked in Tax Law for California on
Answered on Jan 6, 2019
David S. Greenberg's answer
The 30 day period during which a timely request for a Collection Due Process Hearing is not impacted by the shutdown.

The shutdown can and in all likelihood will delay the scheduling of the hearing.

Q: We live in California. Would we have to pay fed/state gifting taxes if gifting a second home to our daughter in 2019?

1 Answer | Asked in Estate Planning and Tax Law for California on
Answered on Jan 2, 2019
Frank Huerta Jr's answer
No you do not have to file an additional tax form for California. However if you are gifting the home to your daughter, you should also fill out the Primary Change of Ownership Form (PCOR) with you county.

Q: Is it legal to ask a beneficiary to claim money from distributions he never received, for taxes, through Schedule K-1s?

1 Answer | Asked in Tax Law and Estate Planning for California on
Answered on Dec 13, 2018
Bruce Adrian Last's answer
Quail Valley:

From what you describe, something does not sound right. In some instances a trust or estate will "pass though" tax liability to the beneficiary but only where that liability is connected to a distribution. For example, if a trust makes a distribution to a beneficiary that consists of income and capital gains earned by the trust, it may pass the tax liability to the beneficiary. This is done because the beneficiary, as a general rule, has a lower tax rate than the trust....

Q: What happens if I get a tax audit? Do I have to go to court?

2 Answers | Asked in Tax Law for California on
Answered on Dec 4, 2018
Linda Simmons Campbell's answer
Not if you are in agreement with the results of your audit. I recommend hiring a good tax attorney unless you are sure you can provide everything the IRS is requesting with ease.

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