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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.
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.
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... View More 
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... View More
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... View More
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... View More
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.
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.... View More
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... View More
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... View More
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,... View More
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.
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.).... View More
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... View More
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... View More
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?
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... View More
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?
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.
I am in California
answered on Oct 17, 2020
Taxes would have to be paid on attorney’s fees the attorney is charging since that is an earring.
Please delete. Thanks
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... View More
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.
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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... View More
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
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... View More
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.... View More
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... View More
answered on Aug 31, 2020
Anything done fraudulently is a problem. Tax fraud is a crime. If you are caught, it's a problem.
Employee was working "under the table" but is still paid by company check at times. July 2019 to Jan. 2020 unpaid hours are 336.75 hours. Employers reason for not paying is he is waiting for final job payment. In good faith employee accepted excuse. Employer has given token payment... View More
answered on Aug 18, 2020
Original employer, whether a Corp, LLC, sole proprietorship, or partnership is always liable for wages, even if company dissolves or goes out of business--then owner or shareholders can be liable.
If a business "converts" from sole proprietorship to Corp, LLC etc., the... View More
My parents are planning to make a will but unsure if state/government will be able to seize it after its in my name because ive collected welfare (cash, food stamps, medical)
answered on Aug 18, 2020
No. If you receive Medi-Cal, SSI, TANF, SSDI, VA or IHSS benefits, a house in which you reside is considered a non-countable resource in your benefits determination. If you receive Section 8 housing however, a house will jeopardize those benefits. Food stamps are based on income, not assets,... View More
Five years behind waited because I didnt know what to do and pay for it but I understand to pay now but its like cant get a loan due to bad credit not working due to Covid.
answered on Aug 10, 2020
You can repay real property taxes through a 5 year chapter 13 plan.
You can allow the tax collector to auction the real property to pay the property taxes, so that you don't owe the property taxes individually.
You can NOT keep title to the real property and discharge the... View More
I got my DBA name 9 months ago for my new Insurance Agency, but I just finished to form the business to S corporation, but incfile never tells me what should I do to merge DBA name with my new S corp. I hope you are able to help me Thanks. They told me to call the security of state, but I feel... View More
answered on Jul 23, 2020
File a new DBA with the Corporation doing business as the fictitious name.
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