Maryland Tax Law Questions & Answers

Q: I got my green card in 2012 but didn't move to the US until 2015. Do I owe taxes for 2012-2014?

2 Answers | Asked in Immigration Law and Tax Law for Maryland on
Answered on Jan 26, 2019
Kyndra Mulder's answer
I suggest you speak with a tax attorney or CPA.

Q: Can the sale of a willed house be held due to a recipient having a fed tax lien. The recipients name is not on the pro.

1 Answer | Asked in Tax Law for Maryland on
Answered on Jan 24, 2019
Mark Oakley's answer
No. So long as the house is in the name of the estate, not the names of the heirs, then the estate sells the house and distributes the proceeds to each individual heir entitled to receive a share. If, however, the PR of the estate decides to issue a deed transferring the house to all the children as joint owners or tenants in common, then the federal lien would attach to that heir's interest (but not to the other owners' separate interests). But if the plan is to sell the house and divide...

Q: what is the proper written code for a quit claim deed from father to daughter for tax exemptions

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Maryland on
Answered on Jan 10, 2019
Mark Oakley's answer
The recording office of the county where you file will know and allow you to fill in the cited section that applies. They are the authority who has to approve whether you have a tax exempt transfer. However, the list of exempt transactions generally appears in the Maryland Tax-Property Article, Section 13-207, and the provision having to do with exempt transfers between a parent and a child is found in Section 12-108(c)--but the latter exemption only applies to the portion of any principal...

Q: Does my sons father have the right to claim him as a dependent on taxes without my consent?

1 Answer | Asked in Family Law, Tax Law and Child Custody for Maryland on
Answered on Dec 19, 2018
Mark Oakley's answer
He can claim him, but he will not be doing so legally. Your son does not live with him the requisite number of overnights per year to claim him; only you have the right. If you both claim him, the IRS will inquire as to these facts. Parties can, by agreement, split or alternate, by year, claiming their child on their taxes, so if you have signed such an agreement, you may be bound to it. In the absence of an agreement, you are the only parent with the right to claim the deduction based on...

Q: Is there a law that says the Comptroller of Maryland can revoke driving privileges?

1 Answer | Asked in Tax Law for Maryland on
Answered on Dec 17, 2018
Mark Oakley's answer
In Maryland, your driving privilege can be suspended for multiple reasons unrelated to traffic violations, among which are unpaid state taxes, unpaid child support, civil judgments from an automobile accident for which you did not have the required auto insurance required by law, etc. When the Comptroller suspends, it is generally for unpaid tax debt. The way to address that is to set up a payment plan (typically cannot be longer than 60 months) to pay off the debt. Upon setting up such a...

Q: If a deed of trust has 3 people on it and it is being transferred to one person on the deed, does the transfer tax apply

1 Answer | Asked in Tax Law for Maryland on
Answered on Sep 18, 2018
Cedulie Renee Laumann's answer
Unfortunately the answer is very locale and fact specific.

There are 3 different taxes that come into play with a deed. Transfers to/from a spouse, where property is encumbered by a mortgage, are exempt from both state & county transfer/recordation tax. Transfers to/from a sibling are GENERALLY tax exempt, at least from state tax, but in some locales (counties) the clerks may try to impose a county transfer tax based on the value of the assumed mortgage. In other counties, the...

Q: I’m having a baby by a man who is fully supported by his mom. Can I sue his mom if she claims him on her taxes?

1 Answer | Asked in Family Law, Tax Law and Child Support for Maryland on
Answered on Aug 11, 2018
Elizabeth Pugliese's answer
All of the support provided to him by his mother can be considered income. Also if he is physically capable of working but does not, the court can impute income to him. You will need an attorney to help you pursue him for child support.

Q: Is it illegal to pursue a tax delinquent property owner for the sale of their house if the foreclosure wasn't filed?

1 Answer | Asked in Foreclosure, Real Estate Law and Tax Law for Maryland on
Answered on Jul 27, 2018
Cedulie Renee Laumann's answer
You essentially ask about tax sales. Each county has different dates and specific process for the sales/bidding, but in Maryland if the taxes are ~6 months or so past due, the county holds an auction. The county will advertise the auction in advance. The property owner can pay up the taxes, in which case it won't go to tax sale and the record owner will keep their ownership. If it does go to tax sale, an investor can bid on the property. The winning bidder receives a tax sale certificate....

Q: Do I HAVE to pay taxes on large capital gain (through estimated tax payments or withholding) before filing tax return?

1 Answer | Asked in Tax Law for Maryland on
Answered on May 16, 2018
Eric Steven Day's answer
You don't have to pay estimated taxes on the large capital gains you incurred in 2018. It is a good idea to pay estimated taxes or have them withhold some of the gains to pay taxes, but it is not a requirement. If you did not owe taxes the prior year, then you are likely not required to make estimated tax payments. If you were required to make estimated tax payments (based off 2017 tax filings), then you can be penalized for not doing so if you owe in 2018, but you are not required. Realize...

Q: we just received notice from credit report about a maryland tax lien

1 Answer | Asked in Tax Law and Collections for Maryland on
Answered on May 14, 2018
Linda Simmons Campbell's answer
If Maryland (I am not licensed in Maryland) is like every other state I am familiar with then they are only required to send you a notice at your last know address. This means the last address known to them so either the address on your last return or on the change of address form if you filled one out. Try requesting a penalty abatement to lessen your penalties.

Q: The state is telling me to pay sales and use tax that was due to be paid by the person that I bought the business from.

2 Answers | Asked in Business Law and Tax Law for Maryland on
Answered on May 8, 2018
Benton R Patterson III's answer
Generally, if you purchase the entire business, the business remains liable for its obligations incurred under prior ownership. I would have an attorney review the sale documents. There may be representations and warranties in the purchase agreement that the business taxes were paid. If so, you may have recourse against the seller. If there are no purchase documents, it is unlikely you will get out of paying the taxes. Although, I would still recommend discussing the situation with a local...

Q: What are some LLC to LLC Real estate Recordation and Transfer Tax loopholes / exemptions in the state of Maryland?

1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Answered on Apr 16, 2018
Cedulie Renee Laumann's answer
Generally, there is no "LLC to LLC" exemption.

However, Maryland law enumerates about 26 or so different situations exempt from transfer/recordation tax, some of which may potentially apply when an LLC is involved. Each one is heavily fact dependent. You can find these in the Annotated Code, Tax Property article, sections 12 & 13 or consult with a real estate lawyer.

Q: Can I rectify an unintentional fraudulent mistake on past tax returns?

1 Answer | Asked in Tax Law, Business Law and White Collar Crime for Maryland on
Answered on Feb 28, 2018
Mark Oakley's answer
Criminal or civil fraud requires knowledge of the fraud and intentional conduct to perpetrate the fraud, so honest mistake is a complete defense. Stop worrying. Hire a CPA to review your past returns and file any corrected or amended returns for the affected years, as necessary. Any penalties or late fees can be paid or negotiated through your CPA. If you overpaid taxes or mistakenly paid taxes to the wrong taxing authority, you can request a refund, but you may be limited to the past three...

Q: Is the sale of an after death inheritance homeTaxable to the siblings that benefited from the gift?

2 Answers | Asked in Tax Law and Probate for Maryland on
Answered on Feb 27, 2018
Cedulie Renee Laumann's answer
There are at least 5 different taxes that can come into play when someone dies and transfers property. These include inheritance tax, estate/gift tax, income taxes and transfer/recordation taxes.

In Maryland, property going to a child does not have state inheritance tax. State and federal estate/gift (or death) taxes are different than inheritance tax and only apply for estates over a certain threshold although the estate includes both probate and non-probate taxes. For many years...

Q: I received cash for keys last year. I got a 1099 from lender w/a chk in box 3. Do I have to claim this on my taxes?

1 Answer | Asked in Tax Law and Real Estate Law for Maryland on
Answered on Feb 23, 2018
Richard Sternberg's answer
Income is "Income from any source." If the income could be a settlement for a foreclosure, you might treat it was a return of equity. Consult your tax advisor. But, if this was the normal cash for keys, and you were a tenant, it is income.

Q: How long after 2017-2018 unpaid taxes due can your lien be auctioned My taxes are due 3/1/18. Not sure what to do.

1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Answered on Feb 17, 2018
Richard Sternberg's answer
Get a tax lawyer, and not one of those shady, dishonest fix-your-debt thieves who advertise on TV, and work out a payment plan with the IRS. The IRS tiger turns into a pussycat when you work out a plan for paying off back taxes. They will often eliminate crippling penalties and just leave the interest charges. But, if you ignore them, they eventually bite.

Q: I have past due federal student loans and past due IRS taxes. What is the maximum garnishment total % from my SSN check?

1 Answer | Asked in Consumer Law and Tax Law for Maryland on
Answered on Feb 17, 2018
Mark Oakley's answer
No more than 15% of social security income may be garnished at a time from all creditors who are legally allowed to garnish such income. So, that’s the limit. Both past due federal taxes and federal student loans can be collected in this way. Both debts are possible to be discharged in bankruptcy, but the rules are more complicated than regular debts. Federal taxes that came due more than three years ago, and for which all tax returns (but not payment, obviously) have been filed, may be...

Q: Can I claim siblings on tax return...?

1 Answer | Asked in Tax Law for Maryland on
Answered on Feb 6, 2018
Cedulie Renee Laumann's answer
I am sorry to hear of your loss.

Most estates do not need to file an estate tax return. An estate tax return is different than an individual tax return. The person who died does typically have a final 1040 income tax return filed in the year they died (which may or may not have dependents depending on the circumstances).

You are strongly encouraged to sit down with a tax professional to go over your return, and if you are the Personal Representative for your parent, go...

Q: If I worked a total of 3 jobs in 2017 Can I only input 1 W2 then file an amended return after I receive the return?

1 Answer | Asked in Tax Law for Maryland on
Answered on Feb 2, 2018
Linda Simmons Campbell's answer
If you intentionally file an incorrect return you are committing tax fraud.

Q: Maryland Income Tax Law regarding Social Security income. I understand that any amount received over $44,000 is taxable

1 Answer | Asked in Tax Law for Maryland on
Answered on Jan 31, 2018
Linda Simmons Campbell's answer
I would have an accountant prepare your returns for this tax year. They can determine the best way to file your taxes. If you end up owing taxes that you cannot pay, filing separately would make you solely responsible and your wife would not have to worry about the IRS coming after her for your tax liability. That being said, you can end up paying more in taxes by filing separately. It is impossible to tell without all of your financial information and that kind of detail would be...

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