Get free answers to your Tax Law legal questions from lawyers in your area.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
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
I plan to petition for default divorce since my spouse is in agreement and we do not have any major assets or properties to settle. If we choose to not have a marital agreement, how does our tax liability settle after the divorce? Would we still be equally liable for the joint taxes on our incomes... View More
Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Nov 21, 2023
In a default divorce in California, without a specific marital agreement addressing tax liabilities, the court does not automatically settle issues related to joint tax liability. If your divorce petition does not address tax matters, the court typically won't make specific orders about them.... View More
I recently immigrated to the US this year and have only had a part-time job so far. I've never filed taxes yet. In sharing my financial information with my spouse for the divorce process, is it okay if I don't have any tax returns to provide?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Nov 18, 2023
In California, during a divorce, both parties are required to disclose all financial information, including income, regardless of whether they have filed taxes. If you haven't filed taxes due to recent immigration or limited income, you should still provide any relevant financial documentation... View More
Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Nov 17, 2023
Under California law, sales tax is generally applicable to retail sales of tangible personal property, which includes baked goods. As the operator of an e-commerce platform connecting buyers and sellers, your responsibility to collect sales tax depends on whether your business is considered a... View More
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
