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... View More

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... View More

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... View More

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... View More

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.

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... View More

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... View More

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... View More

If you intentionally file an incorrect return you are committing tax fraud.

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... View More

Your best bet would be to contact a tax professional to see what exactly is being taken out of your paycheck. Just because you are here on a visa should have no bearing on what is taken out.

If there is not an agreement in place then generally the parent that has the child for more than 6 months can claim the child.

If your wife is going to be in the US for enough of the year that she is treated as a US tax resident (which can be based solely on time spent in the country rather than citizenship) then she would need to declare her EU income on a US tax return. In addition, she would be subject to US income tax... View More

You should consult a tax advisor and not a lawyer for this question, but the answer you will probably get is that: "If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a... View More

It depends on the nature of the business and what type of "business taxes."

A sole proprietor who files on a Schedule C and has no employees may elect to use their own social security number for their estimated tax payments, but most small businesses would benefit from forming an... View More

A donor may need to get a qualified appraisal of the property. The instructions to Form 8283 give more details. Determining entitlement to a deduction in a particular case will be quite fact-specific and is best raised with your accountant or tax professional.

Capital gain is calculated and paid when a home is sold for profit, not when it is transferred without consideration. To figure out your potential capital gains liability you would need to talk to an accountant or tax professional and know the basis in the property and the anticipated future sale... View More

Monies in escrow should have absolutely no bearing on an attorney's tax liability. A retainer should be held in a lawyer's escrow account and not be withdrawn until earned. Once money is earned, it becomes income subject to tax. Any unearned portion should be refunded when the... View More

First, businesses should be very sure that any independent contractors are truly independent. This is an area where the IRS seeks verification that the independent contractors are not mis-classified employees. If they are correctly classified, then they would receive a 1099 at the end of the tax... View More

Generally speaking, how a bank account will be disbursed will depend on how the account was titled. If, for instance, an account is titled as tenants in common, then a portion (typically 1/2) will need to go through an estate while the remaining portion would not. On the other hand, bank accounts... View More