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Colorado Tax Law Questions & Answers
1 Answer | Asked in Family Law and Tax Law for Colorado on
Q: I believe my baby’s father claimed our kid this year for taxes and my tax form was rejected by the IRS

It was also my year to claim our kid upon the court ordered agreements.

Sabra M. Janko
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answered on Mar 21, 2020

I am sorry to hear about your situation. You could ask your ex to amend the tax return and if not , then you can file a motion for contempt of court for a failure to comply with the court order.

1 Answer | Asked in Tax Law for Colorado on
Q: Is the cost basis 4 the 2019 sale of vacant land in Fed schedule D, purchase price plus property taxes paid 1995-2018?

The vacant land is located in Colorado. The property taxes were itemized deductions 1995 through 2016.

David Ostrove
David Ostrove
answered on Feb 24, 2020

Your cost BASIS is what you paid for the land.

You do NOT add the property taxes.

2 Answers | Asked in Tax Law, Civil Rights and Constitutional Law for Colorado on
Q: Lyft claims that drivers are to pay income tax on the amount the passenger pays, not the amount the driver receives.

How is this legal, given the fact that Lyft does not disclose the full fare amount to the driver? Drivers are "agreeing by contract" to pay taxes on an unknown amount? How is this even close to legal? If state tax is included, a driver can pay more than 50% of their actual income to... View More

David Ostrove
David Ostrove
answered on Feb 23, 2020

It all depends on what is being deducted from the Lyft driver's gross income. If it is something that the employer is required by law to deduct, then most likely the Lyft driver will need to report the gross amount, not just the net amount received by the driver. That of course is true of all... View More

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1 Answer | Asked in Immigration Law and Tax Law for Colorado on
Q: Can I claim my wife and child who are waiting for i765 & i485 papers to process on my taxes using the 9 digit USCIS #

Married, no ead card yet but I do have an uscis alien number from paper work.

Svetlana Kats
Svetlana Kats
answered on Feb 14, 2020

No, you can't use USCIS number for the purpose of your federal tax return. You have to apply for tax ID with the IRS for your wife and child or just wait until their I-765 are approved so they can receive SSN.

2 Answers | Asked in Tax Law for Colorado on
Q: Frozen tax return

We filed our taxes and the IRS said we needed more proof of address an relationship to our kids. We sent it it in and we received a notice of denial for rest of tax refund prematurely on the IRS end . We notify the IRS and they have never responded to 3 seperate faxes all papers requested and now... View More

Andrew M Steiger
Andrew M Steiger
answered on Feb 4, 2020

You should speak with a tax lawyer who can clearly explain the law to the IRS and provide proper documentation to obtain your refund, assuming you qualify. That’s a lot of money to leave on the table. Hire someone who will do the work on a fixed fee, contingency basis so you get that money.

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1 Answer | Asked in Tax Law for Colorado on
Q: If I take out a home equity loan to pay off my 1st mortgage and make minor improvements, do I loose all tax benefits?

I was looking to take cash out and avoid the closing costs. All cash out would be for home improvements, but minor improvements like new countertops, carpet, appliance replacement, paint. If I do this, I would not be able to claim any tax benefit from the interest paid over the life of the loan?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 30, 2020

Interest on the amount you borrow to pay off the mortgage would nit be deductible. Interest on the amount that is used to "substantially improve" the property would be deductible.

1 Answer | Asked in Tax Law for Colorado on
Q: State tax obligation for K-1 form 1041

We have to amend our 2018 taxes because we received a schedule K1 form 1041 after we had already filed our tax returns and received our refund. ( my husband’s mother passed away and she had a trust out of New York) The question I have is since we are Colorado residents do we have to pay Colorado... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 29, 2020

A distribution from a trust is not an inheritance. The K-1 should only include your allocable trust income, not a distribution of trust corpus. The amounts originally placed in trust are not taxable on distribution; only the income of the trust distributed to you is taxable to you. Most accountants... View More

1 Answer | Asked in Estate Planning, Probate and Tax Law for Colorado on
Q: I had shares in my family farm that has been handed down for 4 generations. My brother bought my shares of the farm.

Do I have to pay taxes on the money I got from my farm inheritance?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 24, 2020

You don't pay tax on inherited property. But it sounds as if you inherited the property then sold it which is different.

You would need to determine the basis in the shares when you received them and compare that to the sales price to determine if any gain exists.

1 Answer | Asked in Tax Law for Colorado on
Q: Hello, can I be notified of a case filing via VM?

Ive been called two times now by an "Unknown number" who is leaving voicemails and leaving a case number as well as saying my place of residence and living is known and if I do not return the call. They will come to me? Can I be notified of something like this Via voice mail? Does this... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 10, 2020

Probably a scam. I'd call the El Paso Sheriff's dept and ask if there's a warrant out for you just to be sure.

If they identify who the are, police, IRS, CDOR, etc..., look up the number form a verified source and call in and tell them what happened and see if they are...
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1 Answer | Asked in Real Estate Law, Tax Law and Foreclosure for Colorado on
Q: I bought some land through a county tax sale and I thought I got it free and clear from the county.

The county issued a new deed of trust to me. After 4 months I started getting a bill showing that I also owed over $4,000 of the past persons bill as well, before I even requested billing from the water company. The water company is saying that they have a perpetual lien against my property. How is... View More

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Dec 19, 2019

Your unfortunate situation is a textbook example why non-lawyers should always ask an experienced lawyer before they do something they have never done before. Unless you can somehow convince the water company to let you off their very sharp-barbed hook you are stuck. And no one else (who has a... View More

1 Answer | Asked in Tax Law for Colorado on
Q: IRS debt after death, are life insurance beneficiaries responsible if there is no other property/savings?

No property or savings except a vehicle. Can we donate that vehicle to offset the tax debt?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Nov 18, 2019

The IRS can't go after life insurance paid directly to heirs for taxes due by the deceased or the estate. This is why it's very important to never name your estate as a beneficiary of a policy.

You can donate the vehicle to reduce the estate income tax on Form 1041. This is...
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1 Answer | Asked in Tax Law for Colorado on
Q: What is the maximum Finance interest rate in Colorado
D. Mathew Blackburn
D. Mathew Blackburn
answered on Sep 23, 2019

Consumer criminal usury is more than 45% under CRS 18-15-104.

No cap on business rates.

1 Answer | Asked in Tax Law for Colorado on
Q: A client of mine was given an $80,000 car from a charitable foundation. Will she have to pay taxes on it?
Andrew B. Gordon
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Andrew B. Gordon
answered on Aug 26, 2019

Yes, prize winnings are general taxable to the recipient.

1 Answer | Asked in Tax Law for Colorado on
Q: Receiving car from Charity and taxes

I have a client who was given an $80,000 car from a charitable organization. Will she have to pay taxes on it?

Bruce Alexander Minnick
Bruce Alexander Minnick
answered on Aug 14, 2019

Yes.

1 Answer | Asked in Tax Law for Colorado on
Q: CO is trying to collect a $3600 underpayment from 2012. I filed bankruptcy earlier this year - doesn't that pre-empt it?
D. Mathew Blackburn
D. Mathew Blackburn
answered on Aug 12, 2019

State income tax can be discharged in certain circumstances. First step is to send them a copy of the discharge.

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
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... View More

Bruce Alexander Minnick
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
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... View More

D. Mathew Blackburn
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
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.

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