I read that one can have a three month lapse in health coverage to avoid a tax penalty, though it did not show a year.
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answered on Feb 20, 2024
Based on current California law, the health insurance mandate requires individuals over the age of 18 to be enrolled in minimum essential coverage for the full duration of 2024, with strictly limited exceptions, in order to avoid a tax penalty. There is no longer a "3 month lapse"... View More 
A friend of mine has a chance to buy a 10 seat table at a very high profile celebrity event for $60,000. Since the event is invitation only it sells for well over $50,000 a pair. There would be 2 pairs of tickets auctioned. But the table isn’t donated, they would have to buy it. If the... View More
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answered on Jan 31, 2024
Under California law, a non-profit organization engaging in this type of transaction should be aware of certain legal considerations. Firstly, when a non-profit purchases tickets for an event and then auctions them at a higher price, the profits made from this transaction must be used in accordance... View More
I am currently living there and paying the payment on the house. Will this benefit me or not? Will it be worth it?
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answered on Jan 26, 2024
In California, when you receive property through a quitclaim deed, such as a house, it becomes your asset and you need to consider this in your tax filings. If you are living in the house and paying the mortgage, you may be able to claim certain tax benefits such as mortgage interest deduction.... View More
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answered on Jan 18, 2024
If you have discovered that there is a class action lawsuit against Optima Tax Relief, it's important to understand how this may affect you, especially if you are a client or have been impacted by their services. A class action lawsuit typically involves a group of people with similar... View More
My sister's ex boyfriend purchased mine and my brother's share of the house we were inheriting from our father. He later then signed over the property to my sister without her paying him any money. She claims there is a legal loophole that allows him within a certain time to purchase an... View More
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answered on Jan 18, 2024
The situation you're describing raises questions regarding gift tax obligations. Generally, when property is transferred for less than its full market value, the difference can be considered a gift for tax purposes. The IRS requires that any gift over a certain annual exclusion amount (which... View More
I have a sibling who receives an annual salary as an employee from her ex-boyfriends family corporation, which he does not own solely. She has not worked for him in a decade. I believe he does this to avoid paying her living expenses out-of-pocket, and to keep her silence, as she knows his tax... View More
answered on Jan 18, 2024
There are several issues raised by this practice. However you have no standing to do anything about it, and your sibling is equally implicated by any unlawful conduct, meaning she does not have a remedy. The worst case scenario is that your sibling gets sued for defrauding the other owners,... View More
I have a sibling who receives an annual salary as an employee from her ex-boyfriends family corporation, which he does not own solely. She has not worked for him in a decade. I believe he does this to avoid paying her living expenses out-of-pocket, and to keep her silence, as she knows his tax... View More
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answered on Jan 18, 2024
In this scenario, several legal issues are raised, including potential tax fraud and employment law violations. Paying someone a salary for a position they are not actively working in can be problematic, especially if it's done to conceal other motives like tax evasion or hush money. If the... View More
My brother and I are the beneficiares of my Dad's estate and would be splitting the proceeds 50/50. Will taxes be paid on just the trust or would the trust pay taxes first and then us as beneficiaries pay taxes as well on our proceeds? Thank you for your help.
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answered on Jan 13, 2024
There is a strong likelihood that the house was included in your father‘s taxable estate and, therefore, received a step up in basis as of his date of death. If the house sold for a price that was close to date of death value, chances are there was no capital gain after taking into account... View More
My brother and I are the beneficiares of my Dad's estate and would be splitting the proceeds 50/50. Will taxes be paid on just the trust or would the trust pay taxes first and then us as beneficiaries pay taxes as well on our proceeds? Thank you for your help.
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answered on Jan 13, 2024
In California, when you sell a property held in a trust, like your late father's house, the tax implications can vary based on several factors, including the type of trust. Generally, if the trust is a revocable living trust, the sale of the house is treated for tax purposes as if the owner... View More
My brother and I are the beneficiares of my Dad's estate and would be splitting the proceeds 50/50. Will taxes be paid on just the trust or would the trust pay taxes first and then us as beneficiaries pay taxes as well on our proceeds? Thank you for your help.
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answered on Jan 13, 2024
The tax implications of selling a house that was held in a trust can be complex and depend on various factors, including the type of trust, the terms of the trust, and the tax laws applicable to the trust and the beneficiaries. Generally, if the trust is a non-grantor trust, the trust itself may be... View More
Can bankruptcy remove liens and protect my home/property
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answered on Jan 11, 2024
Generally, you can remove a judgment lien in bankruptcy if it impairs your homestead exemption. Unless the lien results from a judgment, It generally can't be avoided in bankruptcy. For example, liens resulting from loans, tax liens, mechanics liens and other similar liens attached to the... View More
Can bankruptcy remove liens and protect my home/property
answered on Jan 11, 2024
There is an interplay between federal bankruptcy law and statutory provisions, and the law of the State about property rights. Generally speaking, current State law determines the nature of property interests of the debtor and creditors. Bankruptcy Code statutes (e.g., Sec. 506) appear to provide... View More
Can bankruptcy remove liens and protect my home/property
answered on Jan 11, 2024
1. Liens are not impacted by a bankruptcy discharge and therefore remain in effect following a discharge.
2. As decided by the U.S. Supreme Court, a homestead exemption does not protect you from an IRS lien. In other words, the IRS can reach the equity in your home that other creditors... View More
Can bankruptcy remove liens and protect my home/property
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answered on Jan 12, 2024
Homestead laws, which vary by state, provide a degree of protection for a person's primary residence against certain types of creditors. However, these protections often do not extend to tax liens. If you have a tax lien on your home, homestead laws typically do not prevent the government from... View More
My brother will be signing over ownership of a property to me (my current residence). It is currently valued at $400K. I need to pay off the $200K outstanding mortgage on it (to be obtained through a home loan). I want to turn around and sell it for down payment on a new home in NV. I will pay off... View More
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answered on Jan 8, 2024
In your situation, dealing with capital gains tax in California when acquiring and selling a property requires careful consideration. When your brother signs over the property to you, it's important to understand the tax implications of this transfer. Generally, the transfer of property... View More
I am attempting for apply online for an EIN for a irrevocable trust. My mother is the grantor and I am the successor trustee. I have tried several options and it always lists either myself or my mother as both grantor and trustee. Is there a way to do this online or do I need to mail/fax the form... View More
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answered on Jan 4, 2024
When applying for an EIN for an irrevocable trust online using IRS Form SS-4, it's not uncommon to encounter limitations in how the form handles the roles of grantor and trustee. The online system may have restrictions or default settings that do not easily accommodate different individuals in... View More
I am on F-1 visa earning passive income of approximately over $2000 annually from dividends. I am not eligible for social security given I am not currently working and I have already obtained a letter of denial from the social security office.
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answered on Jan 3, 2024
Based on your situation as an F-1 visa holder with passive income from dividends, it's likely that you will need an Individual Taxpayer Identification Number (ITIN) since you're not eligible for a Social Security Number (SSN). The ITIN is used by the IRS to process taxes for individuals... View More
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answered on Dec 4, 2023
Under California law, when you win a jackpot at a casino, it is considered taxable income. The IRS requires you to report all gambling winnings as income on your tax return. If you decide to gift a portion of your jackpot to a family member, the tax implications can be complex.
Firstly, the... View More
The jackpot is over $5,000 I know if I keep the money for myself I will have to report it to the IRS and they will get a percentage of it but if I gift it to my family member and it is under $17,000 does it still need to be reported?
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answered on Dec 4, 2023
Hi there,
If you win a casino jackpot over $5,000, this income must be reported to the IRS, regardless of your decision to keep it or gift it to a family member. When you gift it to someone, such as your mom, and the amount is under the annual gift tax exclusion (which was $17,000 as of... View More
Country. Is there a (Free) state website I can go to and find out the REAL value of my property?
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answered on Nov 28, 2023
Assessing the value of property in South Carolina can be approached in several ways, although there's no specific state website that provides an exact "real value" for your property.
One option is to check the county assessor's website where your property is located in... View More
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