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Colorado Tax Law Questions & Answers

1 Answer | Asked in Tax Law for Colorado on

Q: Sold house in CO. live in Tx. Signed saying I was a resident, agent said thats fine. Did not pay 2% tax. Can I pay now.

Called the title company back 3 days later when I realized I needed to pay the 2% tax. They had already sent in the paper work in. They said get with your tax adviser. Did not want to get in trouble for signing saying I live there & not paying 2% right now.

Bruce Alexander Minnick answered on May 28, 2019

There are several different ways to solve this problem--all of which should be documented as fully as possible. Any tax advisor should be able to help you.

1 Answer | Asked in Tax Law for Colorado on

Q: Is a POA allowed to hold executive sessions before the monthly open meetings to discuss purchase of new water equipment?

Our board is trying to purchase new water meters for everyone in our community. We are trying to upgrade our water system in Falcon Heights. We have a member in our community who was a past president who wants to be at our executive sessions. So he is bringing up the Sunshine Law. And says we... Read more »

Bruce Alexander Minnick answered on May 20, 2019

Executive sessions are normally just that: not open to the general membership. Look at the C&Rs and bylaws.

1 Answer | Asked in Gov & Administrative Law and Tax Law for Colorado on

Q: Can Colorado State take my federal tax refund for an offset

That I might owe Colorado student loan or court cost I'm not getting a Colorado refund but I'm getting a federal refund can can Colorado take my federal refund

D. Mathew Blackburn answered on Apr 20, 2019

Yes. It'll depend on who exactly you owe and what stage the collections activity is at but they can intercept at a certain point.

I would suggest proactively resolving the matter prior to an intercept.

1 Answer | Asked in Contracts and Tax Law for Colorado on

Q: Can my company put moving expenses that they paid for into my yearly income for tax purposes?

At the beginning of the year, I accepted a job for a company that offered to relocate me. I moved from San Diego to Denver. They paid for everything: household goods, vehicle transportation, temporary lodging, etc. I did not see a single contract or receipt for any of those expenses. They were paid... Read more »

D. Mathew Blackburn answered on Dec 27, 2018

Yes, under the Tax Cuts and Jobs Act relocation expenses are now taxable to the recipient whether paid on their behalf or given to the employee in cash.

You also cannot deduct these expenses on your personal return unless you fall within a specific military exemption. This all went into...
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1 Answer | Asked in Tax Law for Colorado on

Q: Do the taxes I'll be filing next April reflect the government's new tax law?

D. Mathew Blackburn answered on Dec 11, 2018

Yes, the majority of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) took effect 1.1.2018. Some did not, most notably accelerated depreciation took effect 9.27.17 and the ACA penalty is removed 1.1.19.

2 Answers | Asked in Consumer Law, Criminal Law, Personal Injury and Tax Law for Colorado on

Q: How would I go about having a lawyer ready to use in case i every needed one.

D. Mathew Blackburn answered on Nov 24, 2018

It's always better if you can build a professional relationship before the disaster strikes.

My suggestions would be to call them up and talk to them. Sign an agreement. Put down a retainer of an agreed upon amount. If anything happens you have a lawyer retained and they know they'll get...
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2 Answers | Asked in Child Support and Tax Law for Colorado on

Q: I have a signed 8332 and divorce decree grants me to claim child on taxes. Can I still claim if I have arrears balance?

The 8332 is for all years and states the same in our divorce decree. I am in arrears from 2016 and 2017 that just got a judgement on it. I understand they will take my return, but can I still claim my child?

D. Mathew Blackburn answered on Nov 16, 2018

If the arrearages are for child support, no you can't claim the child. If it's for taxes then yes, but they'll apply any refund against the arrearages.

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1 Answer | Asked in Tax Law for Colorado on

Q: Is there a law that specifically says you have to pay income tax in Colorado?

D. Mathew Blackburn answered on Nov 5, 2018

Colorado Revised Statutes 39-22-104.

1 Answer | Asked in Tax Law, Business Formation and Business Law for Colorado on

Q: ISO: business/tax lawyer

Back taxes for 2 separate corporations that were started in Montana. Seeking a lawyer in Denver Colorado as that is where the i currently reside. Does the sought out lawyer in Colorado need to have jurisdiction in Montana in order to help me?

D. Mathew Blackburn answered on Oct 20, 2018

Tax is not restricted to only attorneys that are licensed in the state. I have cases in about 10-11 different states. I'd have to go count them to be sure.

A Colorado attorney can help you with this issue.

1 Answer | Asked in International Law and Tax Law for Colorado on

Q: Do international companies located outside the USA have to pay Sales tax in colorado for goods purchased.

Company is not located in USA. Another company office is used as delivery. All vendor invoices are invoiced to the international entity. Do we have to pay the Vendor Colorado Sales tax?

Richard Sternberg answered on Oct 6, 2018

Unlike VAT, sales tax is paid by the vendor at point of sale. So, if the purchase was in Colorado, the vendor must report and pay sales tax on the sale unless there is an exemption under state law. Such exemptions often exist for non-profit charitable entities with § 501(c) status, but the... Read more »

1 Answer | Asked in Tax Law for Colorado on

Q: Do International Business's pay state taxes in colorado if the vendor supplied to an international company not located

Printed goods supplied, invoiced paid by an international company located outside the USA. Goods delivered to another company located in Colorado. Does the International Company have to pay state tax for the goods?

D. Mathew Blackburn answered on Oct 5, 2018

It's going to depend on the goods and services provided. Is the company paying for a service or a good? Services are not subject to sales tax, goods are. If I have my brakes changed am I buying brakes, the installation service, or both? The first step would be an analysis of what was purchased and... Read more »

1 Answer | Asked in Tax Law for Colorado on

Q: Colorado is claiming that I own them back taxes for a year that I didn't live there or earn any income there.

On September 15th 2014 I moved out of Colorado to Utah and have resided there ever sense. 2014 tax year I simited a partial year tax return to both the state of Colorado and Utah. Now Colorado is claiming that I own them back taxes for the tax your 2015 of just over $4,000. All of my income for... Read more »

D. Mathew Blackburn answered on Sep 20, 2018

Colorado is incredibly aggressive regarding residency for income tax purposes. You're going to have to provide evidence that you were not physically in Colorado and that you had changed your residency to Utah. Here's a CO Dept. of Revenue ("CDOR") FYI publication explaining resident/non-resident... Read more »

1 Answer | Asked in Tax Law for Colorado on

Q: I'd like to give stock in my will -- how would that get taxed?

D. Mathew Blackburn answered on Sep 14, 2018

When an individual passes their property receives a step-up in basis to the current Fair Market Value either on the date of death or what's call the alternative valuation date. There are reasons to pick either I won't go into that right now.

What is basis? It's what you paid for the stock....
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2 Answers | Asked in Tax Law for Colorado on

Q: What kind of deduction can I take on rental property improvements?

D. Mathew Blackburn answered on Aug 23, 2018

If it's a repair you deduct it in the year it's incurred. If it's an improvement you adjust basis and depreciation.

Any expense that is incurred under the ordinary and normal course of a trade or business is deductible. 26 USC 162.

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1 Answer | Asked in Tax Law for Colorado on

Q: What happens if an individual fails to report a foreign bank account?

Linda Simmons Campbell answered on Aug 3, 2018

If the IRS finds out you will face stiff penalties and interest and possible criminal charges. If this was nonwillfull then your best option is to file via the offshore voluntary disclosure program. You only have until September 28th. The paperwork can be difficult and confusing and you may... Read more »

1 Answer | Asked in Tax Law for Colorado on

Q: A local bookkeeper prepared our taxes this year. She made mistakes and we want to know what legal actions we can take.

We are active duty military. We have already paid for her services. Instead of receiving a full refund, we only received partial amount.

D. Mathew Blackburn answered on Aug 3, 2018

The costs of pursuing legal action for negligence, fraud, etc... are rarely worth the time and costs. You would have to file in the county where you signed the service agreement, or where the BK's place of business is. Filing fee will probably be more than you paid for the return.

If you...
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1 Answer | Asked in Tax Law for Colorado on

Q: Are life insurance and jointly-held property considered part of the deceased's estate, and thus subject to taxes?

D. Mathew Blackburn answered on Jul 5, 2018

Usually not, but can't be sure until I've seen the docs.

1 Answer | Asked in Tax Law for Colorado on

Q: Are there any Colorado penalties for withdrawing from a 401a account early and when does the IRS assess it's 10% penalty

Live in Colorado full time. Quit a job that had a 401a instead of paying into S.S. There's not a lot of money in the account and I could use the money to fix somethings around the house. My current job uses PERA for retirement instead of S.S. I know that the IRS will impose a 10% penalty for... Read more »

D. Mathew Blackburn answered on Jul 3, 2018

There's no state level penalty, but you can generally exclude income as taxable to CO if you wait. Colorado FYI Publication 25 https://www.colorado.gov/pacific/sites/default/files/Income25.pdf

The federal penalty is imposed on your F1040 so you'll incur it when you file your return....
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1 Answer | Asked in Tax Law for Colorado on

Q: Today I received a Letter from the city of Lansing, Income tax ordinance, section 99,

I have not Lived in Michigan since 2009, I have never received notices before, Now I have 30 days to pay $264.41 for the years of 2013 to 2014

D. Mathew Blackburn answered on Jun 16, 2018

If you believe the notices are in error you would need to respond and provide evidence that the assessment is incorrect.

1 Answer | Asked in Tax Law for Colorado on

Q: Do I pay incomes taxes on "criminal restitution"?

A realtor told me my house was worthless -said buyer gave me 215,000. Colo Real Estate Comm and Denver DA figured out that invisible buyer bought my house for 305,000 and then turned and sold it for 1,100,000. To avoid going to trial, I was given "criminal restitution" of $75,000. Do I pay taxes on... Read more »

Eric Steven Day answered on Jun 8, 2018

Yes, you would have to pay taxes on the restitution you received. Any accession to wealth is taxable unless that judgment is in the form of physical pain and suffering.

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