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Massachusetts Tax Law Questions & Answers
1 Answer | Asked in Estate Planning and Tax Law for Massachusetts on
Q: Can remainderman living in home 5 years as a care giver get the capital gains exemption if house is sold prior to death

I am a remainderman on my mom's life estate. She sold the house to my brother and I 17 years ago for $1 and kept a life estate. I have lived here for 5 years as her caregiver until she went into a nursing home. We have to sell the house prior to her passing because we can't keep it. So, if it... Read more »

Nina Whitehurst
Nina Whitehurst answered on Sep 24, 2019

Yes, the Section 121 capital gains exclusion applies to remainder interests. Here is an excerpt from that statute:

(8) Sales of remainder interests For purposes of this section—

(A) In general

At the election of the taxpayer, this section shall not fail to apply to...
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1 Answer | Asked in Tax Law for Massachusetts on
Q: What would Massachusetts State tax, Federal Tax and any fines and fees be on early withdrawal of a retirement fund?

I am disabled and collecting SSDI in Massachusetts. My spouse has offered an out of court divorce settlement of a TIAA in with four accounts totaling $110,000 (Qualified Retirement Plan, Tax sheltered annuity plan, Tax-deferred annuity Plan, Define Contribution retirement plan).

I would... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Aug 26, 2019

Federal would be ~24% depending on other income and deductions and 5.05% for Mass.

Because the transfer is pursuant to a divorce your spouse doesn't have any tax ramifications for withdrawing the funds and you only have to pay tax on taxable withdrawals, no early withdrawal penalty. You...
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2 Answers | Asked in Tax Law for Massachusetts on
Q: Hello. I need to write a letter of Compromise to IRS. I owe around $36K and want to know if I can offer to pay nothing

I don't work, have a CORI, no assets i.e. real estate, 401K or pension. Have an Autistic son and a wife. We live with our parents so they support us. My Net Worth is at ( -36,000 plus I'm on the hook for another $70K that company is suing me for equipment I bought and the machines all broke down... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Jul 21, 2019

An Offer in Compromise is not submitted via a letter. You have to fill out a financial statement and submit supporting documentation for your expenses, as well as Form 656. Without more details we cannot tell you if you are eligible or not. You can try submitting an Offer on your own, hire an... Read more »

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3 Answers | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: After receiving money from a house sale do i have to pay taxes on it in april or can i gift it to my wife?

My grandparents house was sold and it will be split 5 ways. After taxes and fees ill receive 42,800, will i have to pay taxes at the end of the year for it or can i gift it to my wife or use most of it as a down payment for my first house ?

If i do have to pay taxes how do i figure out... Read more »

Christopher Tolley
Christopher Tolley answered on Jun 7, 2019

The answer to your questions requires more time and expertise than an online forum like this can provide. You really need to consult with a tax professional like a CPA on this. It will be well worth the money you spend in fees to them.

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2 Answers | Asked in Tax Law for Massachusetts on
Q: It was sales tax I bought it cash and thought the tax was included
D. Mathew Blackburn
D. Mathew Blackburn answered on May 7, 2019

http://www.chompchomp.com/terms/completesentence.htm

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1 Answer | Asked in Tax Law for Massachusetts on
Q: How can I find out if a 1099 form to my ex-husband is phony or real, and if it was sent to IRS and DoR?
Linda Simmons Campbell
Linda Simmons Campbell answered on Apr 20, 2019

Towards the end of May it should be on file with the IRS. You would not be able to get any information but your ex-husband would be able to call.

2 Answers | Asked in Divorce and Tax Law for Massachusetts on
Q: If wife asks for divorce,both parties still live home with 3 kids, can husband to file taxes and claim 3 kids secretly

Nothing has been filed, not separated. He told her after he filed. He also changed his ira & life insurance and took wife off of it all.

Lillian J. LaRosa
Lillian J. LaRosa answered on Mar 25, 2019

If there are no Court Orders nor is there even a divorce complaint filed, there is no impediment to husband doing so. Your friend should file for Divorce and engage counsel to protect her rights as she seems to be in the dark on same.

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1 Answer | Asked in Tax Law for Massachusetts on
Q: Am i liable for capital gains tax if i am selling my first home less than 2 years after purchasing it?

I purchased my house in June 2017. If i sell prior to June 2019 am i liable to pay federal and state of Massachusetts capital gains tax?

D. Mathew Blackburn
D. Mathew Blackburn answered on Mar 1, 2019

Yes.

1 Answer | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: If I receive a 1099-A representing a loss of $13k for ditching a timeshare can I claim this as a loss? Will it help me?

I was sold a timeshare with false accusations. I have the ability to hire an atty to get the time share nullified and they are saying I will receive a 1099-A to declare the loss. Will this actually provide me any cash savings during the tax process? I have no cap. gains or stock - just basic... Read more »

Michael Hales
Michael Hales answered on Jan 17, 2019

I'd be wary of any attorney that tells you this. I've practiced law in Florida for many years and when I've helped clients get out of a timeshare, they will often receive a 1099 when the timeshare cancels the loan/mortgage. However, if the loan that was cancelled was $13k, the form will also report... Read more »

2 Answers | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: Will my property taxes increase if I add heat to a previously unconditioned outbuilding on my property?
Christopher Tolley
Christopher Tolley answered on Dec 10, 2018

Massachusetts towns assess value annually. They calculate property values based on the market activity as well as certain property-specific attributes such as location, size, construction quality, style, and condition. These include the status of outbuildings. Factors may include the usefulness of... Read more »

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1 Answer | Asked in Tax Law for Massachusetts on
Q: My daughter received a settlement from a personal injury lawsuit when she was a minor. We put it in a trust for her.

Will she have to pay taxes on it when she is able to access it at age 18?

Eric Steven Day
Eric Steven Day answered on Oct 29, 2018

If the awarded damages were the result of physical injury, then she will not have to pay any taxes related to the judgment award. The only time you will have to pay taxes on the judgment is if there is any part of the judgment that is related to non-physical type pain and suffering damages. (ie.... Read more »

1 Answer | Asked in Social Security and Tax Law for Massachusetts on
Q: If on disability can the IRS and state DOR continue to accrue penalties and interest from the agreement I went into?

I became disabled in 2014. During which time I was already in a payment plan with both the IRS and Massachusetts DOR. I have since paid both in full. Can they continue to accrue both penalties and interest and make me pay those once my only income was ssdi?

Linda Simmons Campbell
Linda Simmons Campbell answered on Sep 7, 2018

Once you have paid your liability in full no more interest or penalties should accrue. If you still owe taxes and can no longer afford to pay your installment agreements due to your only source of income being SSDI, you may need the assistance of an attorney to help you set up a collection... Read more »

1 Answer | Asked in Tax Law for Massachusetts on
Q: I read it's illegal to file separate taxes if I'm married - is that true?
Eric Steven Day
Eric Steven Day answered on Aug 17, 2018

It's not illegal to file separate, if you file Married Filing Separately. You would just need to indicate who the spouse is on the return that is filed. There are some rules that you would also need to follow when filing separately, so make sure you file under the guidance of a tax professional.

1 Answer | Asked in Tax Law for Massachusetts on
Q: Is the $10,000 limit for state and property tax deductions really the same for a single filer as for joint filers?
Eric Steven Day
Eric Steven Day answered on Jul 3, 2018

The deduction is limited to $10,000 regardless of married or single status

1 Answer | Asked in Tax Law for Massachusetts on
Q: I was out of town on tax day and forgot to file on time. What should I do now?
Frank Huerta Jr
Frank Huerta Jr answered on Apr 20, 2018

If you owe taxes, file as soon as possible. If you are entitled to a refund you can file within 3 years of the due date, but I would still recommend you file as soon as possible.

1 Answer | Asked in Collections, Consumer Law and Tax Law for Massachusetts on
Q: If I owed money to my college, they sent it to collections and garnished my taxes, legally can they still collect the $?
Christopher Tolley
Christopher Tolley answered on Apr 6, 2018

Usually a creditor can only collect what it is owed, so if the tax offset paid your debt in full, they should not be able to further offset any more refunds. The Department of Education has a good website that is easy to navigate and has a lot of information on questions like these:... Read more »

1 Answer | Asked in Tax Law for Massachusetts on
Q: I have an irs question

regarding 433b-----during the period that the IRS is looking at---my business sales has increased significantly -but my business expense----marketing has increased also---dollar for dollar. The 433b is being used as part of a oic or possibly payment plan. Will the irs have an issue if in view of... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Mar 21, 2018

If you ask your question we may be able to answer.

1 Answer | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: Under general laws chapter 59 section 38D can they charge me 50 dollars if I do not have info to them in sixty days?

Above ? Is on real estate I purchased recently. Do I need to let assessor come into my home to inspect? All my years in buying and selling I never encountered this infringement on my privacy before or been threatened to be charged money if I don’t comply with the asssessor request.

John Espinosa
John Espinosa answered on Feb 21, 2018

Under the plain language of the law itself, they do have the authority to charge a $50 penalty if you do not provide them the information required for them to assess the residential property: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter59/Section38D

1 Answer | Asked in Child Custody, Divorce, Family Law and Tax Law for Massachusetts on
Q: By the judge altering the custody of my children to me. Does that change the divorce agreement to allow me to claim kids

If the divorce agreement we split the tax exemption on the 2 kids. By getting full custody and the visitation up to me for the ex. Does that allow me to claim both kids on taxes for the exemption? I'm from mass and she pays no child support

Lillian J. LaRosa
Lillian J. LaRosa answered on Feb 15, 2018

You will either need to have a Modification Agreement on that issue which can be filed with the Court as an uncontested proceeding. otherwise you will need to have a Modification on that issue and also should have an appropriate Motion before the Court if this custodial change happened in 2017, to... Read more »

1 Answer | Asked in Tax Law for Massachusetts on
Q: What is the fine if I claim exempt on my federal taxes with the intention of paying them at the end of the year?

So no federal taxes will be withheld and I would send a check when I file at the end of the year.

Linda Simmons Campbell
Linda Simmons Campbell answered on Jan 25, 2018

If you do not have taxes withheld or pay estimated taxes you may be charged an underwithholding penalty. If you owe less than $1,000 then you will not be charged the penalty. If you make some payments but not all then you must have paid at least 90% of the tax for the current year or 100% of the... Read more »

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