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Maryland Tax Law Questions & Answers
1 Answer | Asked in Tax Law for Maryland on
Q: If a house in Maryland is given to your child via a quick claim deed are there taxes that have to be paid?
D. Mathew Blackburn
D. Mathew Blackburn answered on Sep 12, 2019

Generally there is no transfer tax on a gift. There will be recording fees. For gift tax it will depend on the value of the property. If the value exceeds $15,000 ($30,000 if both parents are gifting) then a gift tax return is required to be filed. However, no tax will be due if you have enough of... Read more »

2 Answers | Asked in Tax Law for Maryland on
Q: I sold a home that I’ve occupied as my primary residence for the last four years. Do I have to pay taxes on the profit?

The home was sold in Maryland, the home was my primary residence and I occupied the home continuously from 2015-2019

D. Mathew Blackburn
D. Mathew Blackburn answered on Sep 7, 2019

Assuming the other requirements of the personal residence exclusion are met. You exclude the first $250,000 ($500,000 if you are married) in gain on the sale. If you bought the property for $100,000 and you sell it for $350,000 you would have $250,000 in gain and that would be excluded from tax and... Read more »

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1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Q: how does a lender handle supplementary tax at closing on a new constructio

I am in Charles County Md

Bruce Alexander Minnick
Bruce Alexander Minnick answered on May 13, 2019

Your Realtor will explain this to you.

2 Answers | Asked in Real Estate Law and Tax Law for Maryland on
Q: In case adult child added to house deed, should he/she pay taxes on house?
Bruce Alexander Minnick
Bruce Alexander Minnick answered on May 6, 2019

There is no legal requirement for all owners named in the deed to pay all or any portion of the real estate taxes. On the other hand, there is no reason why all owners should not share in the tax burden either.

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2 Answers | Asked in Tax Law for Maryland on
Q: Hello, Is money awarded in a wrongful death case taxable on the state(MD) and Federal level? Thank you.Tom

I am soon to receive settlement money for a civil case I brought against a medical provider in the death of my wife.

Mark Oakley
Mark Oakley answered on May 1, 2019

No, it is not. It is not defined as income because it is compensation for a loss. Sometimes a jury verdict will separate out lost income (past or future) that a party has suffered as a component of damages, and when that is done, that portion is subject to income tax. Otherwise, in a lump sum... Read more »

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1 Answer | Asked in Child Support and Tax Law for Maryland on
Q: Will my "other pay" that my employer provides me go towards my gross income when calculating for child support?

My employer used to provide my health insurance and it did not show up on my pay check. When I got married it was a cheaper and a better health plan for me to switch to my husbands insurance; so my boss requested I get on my husbands plan and he pay me a monthly premium to make up for what is being... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Apr 1, 2019

This question should be addressed to the lawyer who handled your divorce because there may be other information not available to lawyers who have not been involved, and who have never seen the underlying divorce papers.

2 Answers | Asked in Real Estate Law and Tax Law for Maryland on
Q: Could this lien be for a house sale because I did not live in Md. In 2015. Grounds and authorities: section 13-805 -

13-809 tax general general article annotated code of Md.

Is this a property tax lien?

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Mar 22, 2019

While an attorney cannot analyze a purported lien without looking at it, property tax liens for failing to pay annual property taxes usually fall under the tax PROPERTY article, title 14 (not the tax GENERAL article).

The code section you cited in the general tax article usually...
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2 Answers | Asked in Immigration Law and Tax Law for Maryland on
Q: I got my green card in 2012 but didn't move to the US until 2015. Do I owe taxes for 2012-2014?
Kyndra Mulder
Kyndra Mulder answered on Jan 26, 2019

I suggest you speak with a tax attorney or CPA.

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1 Answer | Asked in Tax Law for Maryland on
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.

Parents pass away, will the house to the grown children. One has a federal tax lien in her name. Her name is not on the house. Can this affect the sale of the house?

Mark Oakley
Mark Oakley answered on Jan 24, 2019

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... Read more »

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Maryland on
Q: what is the proper written code for a quit claim deed from father to daughter for tax exemptions

I live in MD. My father is transferring the house to me. I need to site the code to exempt me from the state and fed taxes

Mark Oakley
Mark Oakley answered on Jan 10, 2019

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,... Read more »

1 Answer | Asked in Family Law, Tax Law and Child Custody for Maryland on
Q: Does my sons father have the right to claim him as a dependent on taxes without my consent?

My son lives with me and goes to his fathers house every other weekend(Friday night and returns home Sundays) he has threaten to claim him as a dependent he also pays child support and we split child care expenses

Mark Oakley
Mark Oakley answered on Dec 19, 2018

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,... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: Is there a law that says the Comptroller of Maryland can revoke driving privileges?

Shouldn't driving privileges only be revoked due to motor vehicle offenses?

Mark Oakley
Mark Oakley answered on Dec 17, 2018

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... Read more »

1 Answer | Asked in Tax Law for Maryland on
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

I am in the process of assuming my mortgage and will have the deed updated as well. Myself, my ex-husband and brother are on the deed. The deed will be transferred to only myself. I just want to make sure I'm reading the exemptions to the transfer tax correctly, stating that the tax doesn't apply... Read more »

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Sep 18, 2018

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...
Read more »

1 Answer | Asked in Family Law, Tax Law and Child Support for Maryland on
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?

He intentionally avoids child support by not working, his mom lets him live Scott free in her house and buys him everything. He only works maybe Christmas time and summertime, maybe. His mom claims him on her taxes. Can I sue her? How can I get support from a man who is hardly ever employed but... Read more »

Elizabeth Pugliese
Elizabeth Pugliese answered on Aug 11, 2018

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.

1 Answer | Asked in Foreclosure, Real Estate Law and Tax Law for Maryland on
Q: Is it illegal to pursue a tax delinquent property owner for the sale of their house if the foreclosure wasn't filed?

As a real estate investor, I target tax delinquent properties. those who are behind on their property taxes. From what I know there is a default time where the home owner goes behind on the property taxes and then I believe it goes to auction and you have to bid for them? I want to pursue the... Read more »

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Jul 27, 2018

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... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: Do I HAVE to pay taxes on large capital gain (through estimated tax payments or withholding) before filing tax return?

Apparently, the IRS is not equipped to answer "tax law" questions outside of the January 1 - April 18, 2018 window. Maybe someone here can help me. I recently sold several long-held shares in stocks and mutual funds, realizing a large capital gain. To avoid any penalties, do I HAVE to pay taxes on... Read more »

Eric Steven Day
Eric Steven Day answered on May 16, 2018

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... Read more »

1 Answer | Asked in Tax Law and Collections for Maryland on
Q: we just received notice from credit report about a maryland tax lien

i was finally able to locate the lien and called comptroller collection to find out it was from 2007 individual tax return unpaid. we moved from maryland in 6/08 leaving a forwarding address. never received any notification from them. i had to research several days to locate this. can they place a... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on May 14, 2018

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... Read more »

2 Answers | Asked in Business Law and Tax Law for Maryland on
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.

He did not file that he owed taxes and now they say I must pay them. Is there a way out.

Benton R Patterson III
Benton R Patterson III answered on May 8, 2018

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... Read more »

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1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Q: What are some LLC to LLC Real estate Recordation and Transfer Tax loopholes / exemptions in the state of Maryland?

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

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Apr 16, 2018

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...
Read more »

1 Answer | Asked in Tax Law, Business Law and White Collar Crime for Maryland on
Q: Can I rectify an unintentional fraudulent mistake on past tax returns?

I moved out of the US and file my own taxes and just realized I've been filing my taxes incorrectly the past couple of years and fear that if the IRS finds out, I'll be charged with a felony. I thought I had to file based on where I practice business (I still work remotely for US clients) and not... Read more »

Mark Oakley
Mark Oakley answered on Feb 28, 2018

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... Read more »

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