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Maryland Tax Law Questions & Answers
1 Answer | Asked in Consumer Law, Contracts, Family Law and Tax Law for Maryland on
Q: I terminated services with a daycare provider and the provider is refusing to provide a receipt. What should I do?

The licensed provider did not require a contract however just the required forms to be completed for state regulation. However there are emails and text messages showing the business relationship for an 8 month period.

James L. Arrasmith
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answered on Sep 14, 2023

If the daycare provider is refusing to provide a receipt, you can take the following steps:

1. Communicate Clearly: Send a polite and formal written request, preferably via email or text message, asking for the receipt. Mention any relevant details like the dates of service and payment...
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1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Q: Hi, Md. gen. family partnership wants to trans. land into an LLC, said LLC to be owned by two corps.

Two corps. owned by same family members in same percentages.

LLC would be owned by corps., not the exact same people, but those same people own same respective percentage of shares.

Does partnership have to consolidate or dissolve?

What exceptions to transfer and recordation... View More

Cedulie Renee Laumann
Cedulie Renee Laumann
answered on Jun 16, 2023

Most real estate lawyers should be able to assist with such a transfer and the applicable deed affidavits and forms.

The transfer you describe (from a general partnership to 2 corporations owned by different owners than the general partnership) sounds like it would be subject to...
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2 Answers | Asked in Tax Law and Criminal Law for Maryland on
Q: Hi i own a store in Maryland and we didn’t know about tobacco products tax

we have got 2 tickets there code

TG.13.1014.b

BR 16.5-218

Mark Oakley
Mark Oakley
answered on Jun 11, 2023

The Tax-General code citation is a criminal misdemeanor that carries up to 90 days in jail and a $500 fine, and the Business Regulation code citation is a criminal misdemeanor that carries up to 30 days in jail and a $1,000 fine. Both are "must appear" charges, meaning you can't... View More

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1 Answer | Asked in Tax Law and Real Estate Law for Maryland on
Q: If a land parcel is owned by the same parties equally but a portion is held in a llc and other held as individuals.

Can the all the sales proceeds be just allocated to the LlC and just zero proceeds to the Individuals so no 1099 will be issued ?

Mark Oakley
Mark Oakley
answered on May 8, 2023

The individual owners should have deeded their interest to the LLC before the sale, if they wanted the proceeds all deemed income to the LLC. While the individual owners may be able to direct payment to the LLC, or deposit their checks into the LLC bank account, I believe at this point that will... View More

1 Answer | Asked in Business Formation, Business Law and Tax Law for Maryland on
Q: Can someone abandon their LLC business and debt to then open a fresh new LLC offering and providing the same services

What is it called when someone abandons their LLC business, which is deeply in debt and owes back taxes, to then have someone else open a new LLC for them and that new LLC offer the very same services? Is it legal? It is essentially a one person business and without that person the new business... View More

Mark Oakley
Mark Oakley
answered on Mar 23, 2023

More facts would be needed, but it is possible to pierce the corporate veil of the new company and go after the owner personally, or unwind the transfers of assets to the new company, under the theory of fraudulent conveyance, as well as violation of the Limited Liability Company Act that requires... View More

1 Answer | Asked in Tax Law and Estate Planning for Maryland on
Q: My wife and I have a revocable trust that holds the deed for our primary residence and an investment rental property.

My wife and her son bought an additional rental property with the deed in their names. What are the tax considerations of leaving that property separate from the trust vs transferring the deed to the trust. Her son is the executor of the revocable trust.

James L. Arrasmith
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answered on Mar 4, 2023

The tax considerations of leaving the rental property in your wife and her son's names versus transferring the deed to the revocable trust will depend on several factors, including the ownership percentage, rental income, and capital gains implications. Here are some general tax... View More

2 Answers | Asked in Tax Law, Real Estate Law and Probate for Maryland on
Q: Maryland Inheritance tax calculation. Based on amount before or after federal and state tax deductions?

I think I understand the "death" taxes in Maryland, but I am not positive on the calculations.

Are all taxes based on the value of the gross estate, or are some calculated based on the value after other taxes have been deducted?

For example:

Gross value of estate... View More

Mark Oakley
Mark Oakley
answered on Feb 26, 2023

Taxes are imposed on the gross estate. There are exemptions, credits and deductions that are/may be applicable. You absolutely need to pay a CPA to do these taxes for this size of an estate, as well as have estate counsel for the estate administration (or trust distribution). There are too many... View More

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2 Answers | Asked in Tax Law, Real Estate Law and Probate for Maryland on
Q: Maryland Inheritance tax calculation. Based on amount before or after federal and state tax deductions?

I think I understand the "death" taxes in Maryland, but I am not positive on the calculations.

Are all taxes based on the value of the gross estate, or are some calculated based on the value after other taxes have been deducted?

For example:

Gross value of estate... View More

Cedulie Renee Laumann
Cedulie Renee Laumann
answered on Feb 27, 2023

Maryland inheritance tax is based on the relationship of the giver to the recipient, and is not tied to other death taxes, so on a $20M estate this could be $2M, $0 or nearly anything in between. (And if the tax is paid "outside" of the gift, Maryland will "tax the tax" and... View More

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2 Answers | Asked in Real Estate Law and Tax Law for Maryland on
Q: I bought a property in a tax sale, there is no mortgage do I have to pay a transfer tax
Daniel Staeven
Daniel Staeven
answered on Sep 14, 2022

It is likely that you will have to pay transfer tax on the money paid to obtain the tax sale. A tax sale deed is obtained from the Director of Finance or some similar official at the county where you purchased the tax sale. You will need a title company to record the deed and pay the appropriate... View More

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2 Answers | Asked in Real Estate Law and Tax Law for Maryland on
Q: I bought a property in a tax sale, there is no mortgage do I have to pay a transfer tax
Cedulie Renee Laumann
Cedulie Renee Laumann
answered on Sep 14, 2022

Yes, transfer and recordation tax are due when the deed gets recorded.

Note that tax sales in MD require a foreclosure lawsuit before the county issues a deed. Purchasing at the tax sale auction is only the first step.

While not legal advice I hope this general information helps.

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1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Q: In the state of Maryland, if my neighbor is claims adverse possession on piece of my land. Who pays the taxes?
Richard Sternberg
Richard Sternberg
answered on Sep 13, 2022

You are completely confused about the concept of adverse possession, and your confusion is very likely to deprive you of your property. Get a lawyer!

Adverse possession is a defense. Think: Statute of Limitations. If you've let someone possess your property openly and adversely...
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1 Answer | Asked in Bankruptcy and Tax Law for Maryland on
Q: Should you file jointly or separately for taxes when one of the spouses has Chapter 13 bankruptcy?

I have done my taxes both jointly and separately-

Jointly the total refund = $3063, Separately: Spouse #1: $1100 refund and Spouse #2/Debtor: $950 refund

I see in the Chapter 13 Plan- that if I "file jointly Debtor may retain $1500"- is that of the total $3063 or do... View More

Timothy Denison
Timothy Denison
answered on Apr 9, 2023

File separately.

2 Answers | Asked in Real Estate Law, Tax Law and Probate for Maryland on
Q: Can the beneficiary get the stepped-up basis if an executor sells the house through the estate?

I am executor and beneficiary to a rental house. I want to sell it to the current tenant. I want to avoid capital gains liability. If I sell the house through the estate now as executor versus waiting for it to be transfered into my name and then sell it, will the estate then be liable for the... View More

Nina Whitehurst
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answered on Apr 6, 2022

The estate has a stepped up basis and can sell it and avoid capital gains assuming the net sale proceeds are equal to or less than the date of death value. If instead the estate distributes the house to you and then you sell it, the result is the same. You will get that same stepped up basis.... View More

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1 Answer | Asked in Tax Law for Maryland on
Q: I've been paying taxes on property for 60 years.. How can I get a reimbursement as they say I no longer own it?

We have been paying taxes for years and just found out the property is no longer ours. We've been paying taxes every year for over 60 years since the death of our father. How can I get my money back from the state of Maryland.. They sent me statements and accepted my money for property taxes... View More

Cedulie Renee Laumann
Cedulie Renee Laumann
answered on Apr 1, 2022

Generally speaking anyone can pay anyone else's property taxes... the state will not reimburse someone for paying taxes on property they do not own.

However, the question prompts another - how was there confusion on the ownership of the property? Tax bills show the name of the...
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1 Answer | Asked in Estate Planning and Tax Law for Maryland on
Q: I'm settling my mom's estate in Maryland and gave the grandchildren her furniture. Do I need to hire an appraiser?

Used furniture - not antique.

Cedulie Renee Laumann
Cedulie Renee Laumann
answered on Apr 1, 2022

An appraisal is required for most tangible personal property that the decedent dies owning. Under Maryland law a Personal Representative can only value certain kinds of personal property (e.g., automobiles with a blue book value). Unfortunately furniture is not in the list of items a Personal... View More

1 Answer | Asked in Estate Planning, Tax Law and Probate for Maryland on
Q: I am the sole beneficiary of an estate. Can I assign my interest in the estate to a non-family member?

This includes real property. The non-family member is not related to me or the deceased. In addition, what are the tax implications?

Mark Oakley
Mark Oakley
answered on Mar 18, 2022

Yes, it is possible to assign your interest, but it will be treated as a gift from you to the other person. You should be careful not to "disclaim" your inheritance, as that would prevent your ability to direct the inheritance to anyone (the disclaimed inheritance would go to the next... View More

1 Answer | Asked in Tax Law and Civil Litigation for Maryland on
Q: Could someone regret his/her gift and take it back?

Someone gives a certain amount of cash as a gift unconditionally and voluntary*, but later he regrets and asks the receiver to return it. The receiver initially, as a courtesy shows willingness to return it**, but later he changes his mind due to very rude attitude of gift's giver. He wants to... View More

Mark Oakley
Mark Oakley
answered on Feb 10, 2022

A gift is a gift, unconditional and complete upon transfer to the recipient. There are no "take-backs." If the giver now claims it was a loan, then it's a dispute of fact. Your word versus theirs, plus any evidence that supports your claim that it was a gift and not a loan. You... View More

2 Answers | Asked in Estate Planning, Real Estate Law, Tax Law and Probate for Maryland on
Q: Valuation for inheritance tax and buyout in Maryland for a house inherited by two siblings

My brother and I inherited our aunt's house, and I want to buy him out. We are trying to determine a value for the buyout and the estate lawyer recommended an appraiser. His appraised value came in considerably higher than the last tax assessment (by about $200k) as well as the approximate... View More

Mark Oakley
Mark Oakley
answered on Jan 27, 2022

Yes. Make a lower offer. If refused, when the house is put up for sale, bid on on it like anyone else. You may end up being the higher bidder, but don’t bid more than you think it’s worth.

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1 Answer | Asked in Tax Law for Maryland on
Q: Our mom died in March 2021, are her children required to file her taxes?

No one had power of attorney. My sister obtained letter of administration to handle the selling of her house.

Mark Oakley
Mark Oakley
answered on Sep 28, 2021

Your sister, as Personal Representative of your mother's estate, has the legal obligations that go along with that office. One of those obligations is to file your mother's and the estate's tax returns, including any past years returns not filed. She can use the house proceeds... View More

1 Answer | Asked in Tax Law for Maryland on
Q: Are there tax advantages to our beneficiaries placing our assets, including our homes in a trust
Mark Oakley
Mark Oakley
answered on Sep 3, 2021

Most tax advantages can be obtained with or without a trust, as the primary benefit of a trust is to adress other management and estate plannng purposes (such as avoiding the probate process, but in Maryland that is not always that significant of a reason). There are two types of trusts: revocable... View More

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