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California Tax Law Questions & Answers
2 Answers | Asked in Tax Law, Civil Rights and Gov & Administrative Law for California on
Q: Are my rights being violated by not been able to contact anybody at the IRS about my taxes

I filed my taxes on February 21st 2020 I haven't received any stimulus and nor my tax return and I can't contact anybody at the IRS business going against my civil rights

D. Mathew Blackburn
D. Mathew Blackburn
answered on May 13, 2020

Probably not. If you think they are you can file a lawsuit once the courts reopen.

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1 Answer | Asked in Tax Law for California on
Q: My divorce was final in 2019. We filed taxes jointly for 2018. The taxes were paid with joint funds. My ex now says I

owe him for half of those paid taxes, which is quite a bit. Is he correct? It came out of left field. I'm in California.

D. Mathew Blackburn
D. Mathew Blackburn
answered on May 11, 2020

What does the separation agreement say?

If the taxes were paid from marital funds and there was no provision i the final orders of the domestic court addressing the matter then he doesn't have a claim. if he disagrees his recourse is to file a motion for contempt of court for breach...
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1 Answer | Asked in Tax Law and Business Law for California on
Q: Filing State taxes with Franchise tax board when annual taxes have not been paid for LLC?

This is a two part question.

I started a single member LLC in California in 2017. The LLC never conducted any business however, I have not yet dissolved it. Currently, it is suspended with the Sectary of State. Every year, I file a schedule C federal tax return and no state return (The... View More

Kenneth Sisco
Kenneth Sisco
answered on May 10, 2020

I am not advising you not to pay your annual minimum tax, or not to dissolve your LLC; only what will happen if you don't. If set up properly, the minimum tax is assessed against the LLC, not you. If it is not paid, the LLC will be suspended. If you do not dissolve the LLC and do not pay... View More

2 Answers | Asked in Employment Law and Tax Law for California on
Q: Was I deducted the correct amount of federal tax on my final check?

I received my last paycheck and my company deducted 22% from my federal tax instead of the usual 12%. When I asked the payroll employee she said that it was because manual checks some how have a higher tax. Does that sound correct? I live in California and am an hourly employee.

Neil Pedersen
Neil Pedersen
answered on May 6, 2020

There is not a higher tax rate applied to final checks because they are final checks. However, if the final check was larger than a normal pay period check, such as including all remaining PTO, the rate applied to the larger amount could be higher for a couple of reasons. It could be that the... View More

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1 Answer | Asked in Tax Law for California on
Q: My CPA is asking what IRS code determines the tax incentive of a solar system contracted, purchased and paid in 2019?

My accountant believes it is when the system comes on-line, not when it is contracted or paid. Is this true? I need the tax credit for 2019, not 2021. Even though it was paid, contracted and installed in 2019, but because of construction will not be in service until next year.

D. Mathew Blackburn
D. Mathew Blackburn
answered on May 6, 2020

CPA is probably right.

See Notice 2013-70. https://www.irs.gov/pub/irs-drop/n-13-70.pdf

There may be additional facts and circumstances that would allow a credit in 2019 but generally you have to be making power to get the credit that year.

1 Answer | Asked in Elder Law and Tax Law for California on
Q: We sold our home in 2019 to retire. We bought a fixer and paid for solar. Can we use the 2019 tax credit of 30%?

We are living on the property, Still renovating the house and it may not be habitable for some time. Does placed-in-service apply to us? We need the credit for 2019, as we no longer have income for 2020.

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on May 5, 2020

If you bought the fixer in 2019 and either contracted for solar in that tax year or had it installed that year you can probably deduct it in you 2019 taxes (I say "probably" because I have not read the controlling statute or the contract).

2 Answers | Asked in Tax Law for California on
Q: Consulting project coming up, corporation registered in WA, living in CA, how to save tax?

I have registered a corporation in WA (C-CORP). I have a consulting project coming up. I tried to use the WA corporation to do the consulting because the consulting fee is not taxable in WA. The consulting project is to help a bank in California but it will be done remotely---I do not need to visit... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on May 2, 2020

Move out of California.

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1 Answer | Asked in Tax Law for California on
Q: If you are not married. But live with the father of your four children. He claimed kids on 2019 taxes. He didn't

Support the kids the full calendar year and he owes child support from previous relationships can they take my kids stimulus money? Franchise tax board sent him letter for child tax credit refund pending.

Zaher Fallahi
Zaher Fallahi
answered on Apr 29, 2020

You and you partner should talk to a tax prepare to advise you about calming the children, based on reviewing your tax records. your partner You may present the POA to the bank. I hope this helps. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).

Disclaimer: This is for information...
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2 Answers | Asked in Tax Law for California on
Q: Pro or Con of filing separately or jointly for 2019 taxes. She has properties. We have house to be sold. Also tax bill
David S. Greenberg
PREMIUM
David S. Greenberg
answered on Apr 23, 2020

In community property states such as California, all income earned by either spouse belongs equally to both. Therefore, if you file separate married returns, you must total all marital income then divide it down the middle, with each of you reporting half.

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2 Answers | Asked in Tax Law for California on
Q: if my parents owe taxes can they file now and don't have to pay until july 15?

My parents owe taxes, and they want to wait till july 15 to file because they owe money, but if they file now, they won't have to pay until july 15, right? The reason I'm asking is be causse on the 2018 taxes they put me as a dependant, and 2019 their not going to put me down?

Paul Martin Vargas
Paul Martin Vargas
answered on Apr 15, 2020

Hi. Yes, they can file now and wait until July 15 to pay what is owed on the return.

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1 Answer | Asked in Tax Law for California on
Q: Hello, I would like you to further explain and dissect the "Wholesale cost” definition whether it is less ambiguous.
Paul Martin Vargas
Paul Martin Vargas
answered on Apr 15, 2020

Hi. The wholesale cost is the cost of the product at a price when sold in bulk, which more often than not is cheaper than the retail price. The cost is usually the price charged from vendor to vendor. Retail price is vendor/retailer to consumer. I hope I am answering your question.

2 Answers | Asked in Tax Law and Business Law for California on
Q: How will an EIDL Advance be reported for an S Corp? (NOT the loan, NOT the PPP -- the advance that isn't owed back)

The SBA gives out 1k per employee (up to 10k max) to each small business that applies for the EIDL. This advance is not a loan, it's an advance that is NOT owed back. (Also, this is NOT the PPP loan through banks often focused on in the media, this is the EIDL directly from the SBA.)... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Apr 15, 2020

Before I respond to your specific tax question I feel compelled to advise you that--if you want to be sure you do not ever do anything stupid that adversely affects either you or your subchapter s corporation--you should now consider retaining an experienced business lawyer as general... View More

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1 Answer | Asked in Small Claims and Tax Law for California on
Q: My 2020 tax refund was intercepted in the sum of approximately $4000 for a student loan but it was not my loan . I

I need my money back it was incorrectly intercepted by a student loan that was not mine . I have a police report that states it .

Paul Martin Vargas
Paul Martin Vargas
answered on Apr 13, 2020

Hi. I would start by calling both the tax authority (Franchise Tax Board maybe) and the agency (Student Loan) that are the center of this issue. If it is a FTB mistake, they may be able to return the funds intercepted.

2 Answers | Asked in Tax Law and Gov & Administrative Law for California on
Q: MY dad used me as a dependent for 2018,and he is not going to use me as a dependent 2019,can I qualify for stimulus 2020

My app got rejected by the stimulus program because my Dad use me for 2018 and I won't be dependent for 2019, But does he need to file 2019 without as a me as a dependant, in order for me to qualify for new stimulus?

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Apr 11, 2020

No one knows because the IRS rules are still in flux. I do know that unless you are over 18 you will not be eligible.

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1 Answer | Asked in Tax Law for California on
Q: If someone was incarcerated for 2 years can they receive the stimulus check?
Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Apr 9, 2020

As far as I have heard (on the legal grapevine) the only criteria being used by the government when giving people a $1,200 stimulus check is whether they filed a federal income tax return for 2019 or 2018.

1 Answer | Asked in Tax Law for California on
Q: Alimony tax law.Sign divorce agreement on 12/18/19,filed and stamped by judge on 12/20/19 decree says 1/1/20 dissolution

Am I liable for taxes on the alimony since new law is in affect 2019. The above dates are incorrect in my question. Divorce agreement signed on 12/18/18 and filed date and stamped by judge on 12/20/18. But the divorce decree states 1/1/2019 as dissolution of marriage.

Which party is... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Apr 8, 2020

The legal date of your divorce is January 1, 2020. That means alimony payments will begin in January 2020, which means they do not have to be reported as income until 2020 taxes are due in April 2021.

1 Answer | Asked in Tax Law for California on
Q: For tax attorney: A multi-unit owner occupied apartment, how to calculate the owner occupied interest percentage?

-> Alice and Frank (both +55 Years old) sell a 9 unit apartment complex in Los Angeles, CA for $1,900,000. They have lived and owner occupied 2 of the 9 units and estimate 28% of the apartment should be claimed as their principle residence.

-> They have lived 10+ Years and owner... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Apr 5, 2020

You're going to have to hire someone to get that level of analysis.

1 Answer | Asked in Tax Law for California on
Q: I have a question regarding living in a home for 2 out of the last 5 years, then selling it and claiming a capital gains

. . . exemption. We want to sell the house, but the realtor wants us not to live in the house, while it is being renovated and on the market for 3 about months from April 16 - July 16, 2020 (This completes our 2 year ownership of the house.) If we maintain the house as our legal residence for those... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Apr 4, 2020

You should hire a tax attorney or a CPA to advise you.

1 Answer | Asked in Business Law, Tax Law and Gov & Administrative Law for California on
Q: Can a labor union continue collecting dues when it is suspended, and unable to legally conduct business?

Labor union, a non-profit, was suspended in California by the FTB, from October 2018 to May 2019. During this time they continued collecting dues without informing members of suspension status. Union was reinstated, or revived, in May 2019. Was this legal? Are dues collected during this time... View More

David Ostrove
David Ostrove
answered on Apr 4, 2020

A suspended corporation cannot conduct business in California. Such corporation has lost all of its right to conduct business during suspension Once reinstated, it may again conduct business.

1 Answer | Asked in Tax Law for California on
Q: Would the FTB process a wage garnishment during the Covid crisis?

owe a balance. working out an installment agreement (owe just over 25k, so the installment was for 600/month pending payment of the 2018 balance that I have not yet been able to pay).

Paul Martin Vargas
Paul Martin Vargas
answered on Mar 30, 2020

Hi. Yes, they will process a wage garnishment

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