Treasury Decision 9884 contains the final regulations on this issue, and include a special rule allowing the estate to figure its estate tax credit using the higher of the basic exclusion amount (BEA) applicable to gifts made during life or the BEA applicable on the date of death. So, if you give...Read more »
First, understand what is taxed and what portion of a taxable gain may be exempt from taxation: You can sell your primary residence exempt of capital gains taxes on the first $250,000 if you are single, and $500,000 if married and the property is jointly owed. This exemption is only allowable once...Read more »
Maryland does not tax inheritance of lineal heirs, parents or spouses. A lineal heir is the the direct descendant of the decedent (son, daughter, granddaughter, etc.). Maryland also does not tax a named beneficiary's receipt of funds from a financial account or life insurance policy under a...Read more »
13 year old daughter lives with me in Maryland 10 months a year full time. Michigan denied me taking child tax credit for 3 years because I tool ex's 2019 year for filing. Judge "said" this in court hearing in October 2020 but there's no written order or judge's signature.... Read more »
You risk being held in contempt of court, fined, paying your ex wife’s attorneys fees, reimbursing her for the credit, incurring your own legal fees and costs traveling back for court, and jail. But if the principle is worth that much to you, feel free to thumb your nose at the judge. I cannot...Read more »
I inherited a house in Maryland. The estate is in probate and I'm the executor and sole heir (I will be filling for modified administration). As I understand it, the house can be sold either by the estate or deeded to me first before the sale. For both options, when exactly in the probate... Read more »
You can amend the inventory value based either on the tax assessed value or an appraisal by a certified real estate appraiser (not just a real estate agent doing a valuation—must be a certified appraisal). The tax basis in the Property is fixed as of the date of death regardless of whether the...Read more »
House was legally auctioned off at tax sale and the plaintiff is in the process of foreclosing the right to redemption. Current owner (defendant) of the house has no mortgage; the deed is in their name alone. This house/owner has a child support lien on it by the State of Maryland for over $30,000... Read more »
Property tax liens tend to have super priority, meaning they stand first in line before most other kinds of liens. This means that in most cases, if proper notice is given, a tax sale foreclosure case wipes out the other liens and transfers the property free and clear of lesser liens....Read more »
my fiancee and i live in baltimore and we are planning to marry and buy a house in georgia. He owes taxes of $51, 000 and he pays each month. If we marry, buy a house and he dies am i responsible for his debt and If i file taxes for a refund will they take that away.
No, you will not personally owe your husband's tax debt, but you may want to consult a CPA before filing joint tax returns as a married couple, as opposed to married filing separately. When you purchase your house, title it under your name alone, as the IRS can attach any property in which...Read more »
A gift tax return should be filed by Person B for the gift of their interest in the property to person A, but at person B's option, no estimated gift tax need be paid at this time, since the amount will be added back into Person B's gross estate when Person B dies for purposes of...Read more »
To get an ITIN one needs to fill out IRS Form w-7. The form can be found at the IRS website (irs.gov) An attorney may not be needed since this is mostly a matter of gathering your key documents (e.g., passport, birth certificate) and bringing or sending them to the IRS.
I have been living in the US for just a year now. I entered with a b1 visa and overstayed it. I am aware that it is illegal but as an African, I didn't have any real chances of obtaining a residency in the US.
That said, I work hard every day hoping my American... Read more »
Yes. Maryland repealed the requirement to prove legal status in the US in order to obtain a driver’s license; however, a license obtained by an illegal immigrant is not the same as a license obtained by someone with legal status. They look similar, but it is not a legal form of identification for...Read more »
The definitions indicate that "property" is basically anything owned. I'm understanding that to include one's home. Additional reading indicates that the transfer of ownership can be handle by including the beneficiary's name and POD, TOD, etc., allowing ownership control... Read more »
Real property deeds do not have TOD beneficiary designations, but there are possible ways to re-deed the property to accomplish similar results (life estate deeds, or adding the name to the deed as joint tenant with right of survivorship, for example), but these methods grant an interest in the...Read more »
So in January my mom got a letter from her financial advisor which was from the IRS telling her that she had to fill out a W-9 because the social security she had in her account was wrong. My mom immediately took action and we went to our financial advisor office to correct the social security... Read more »
The IRS has 10 years to collect on any tax due from the date of the last assessment. For instance, if you filed in 2007 and they audited the return in 2009, making changes to the return and assessing a new balance, they would have until 2019 to collect the taxes because that is the new assessment...Read more »
When the IRS places a lien on an individual, it places a general lien on that individual which then is supposed to attach to all personal property that individual owns. If the house is owned by two unrelated individuals and you go to sell the house, the title company will not be allowed to clear...Read more »
According to the decision of Bailey v. State of North Carolina, you are correct, the state cannot collect tax on your FERS as long as you have the eligible number of years as of 1989. In your case, 1983. If you would like to read more, there is a wonderful explanation here:...Read more »
The contract dictates who pays the closing costs and settlement fees and the title company should follow those instructions. Note that in most cases the Seller will pay the cost of the deed preparation and the cost of recording the release for any mortgage, even if the Buyer will pay the...Read more »
I was a partner with an LLC startup & it converted to a C-Corp in Jan 2019. At that point, I had been vested 33% of my LLC units/C-Corp Shares. In Apr 2019, my total number of shares (vested + unvested) were reduced from 125k to 48k. In Jul 2019, I vested another 33% of the new amount (half of... Read more »
There are several different types of restricted equity that can be provided to an employee. Each is taxed in a different way. To review your particular situation is going to require the documents for the equity grant and the conversation documents to be reviewed.
Is it legal for me to rent out my Maryland state home to my LLC (Registered in FL)? My LLC's principle address is the same as my Maryland home, but now I want to rent the home entirely to the LLC and move out. I would live somewhere else, but use the home for business purposes only. Given the... Read more »
I agree with Mr. Blackburn that it is perfectly legal, but I don't think it accomplishes what you are trying to accomplish. If the LLC you form is a passthrough entity with partnership taxation, then the formation is a wash. The rental income passes through to you after writing off the...Read more »
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