answered on Nov 17, 2020
You will have a taxable gain based on the sales proceeds less your basis in the property. If the property was subject to depreciation, then you would have "recapture" income. This recapture income would be taxed as ordinary income and not as capital gain income. Any amount of gain in... View More 
My son receives SSI and I receive SSDI, does this affect the timing of his deposit or should it have been deposited at the same time if I was going to receive it? I filled out the form online prior to the SSDI deadline to include my dependants.
answered on Apr 30, 2020
You'll need to update your information via the Get My Payment website before May 5.
I have a business that is set up as a C Corporation. Last year, I took a personal loan from the company of $10,000. Can the corporation forgive that loan as long as I show it as income on my personal return? It seems it might be looked at as a way to circumvent Social Security taxes. Is it better... View More
answered on Apr 2, 2020
It creates a dividend when forgiven. You also add interest at a minimum of the applicable federal rate for the period.
Dividends are not subject to employment taxes, but they are taxed twice. Once at the corporate level and once a dividend. If you're trying to minimize taxes an... View More
One lawyer says that due to the nisi period, we have to file married or married/separately. The other and my ex's tax guy says we file single. Which is correct?
answered on Feb 1, 2020
Your marital Status is determined as of year end. If you're divorce was finalized by the issuance of a decree on 11.30.19 you would file Single for the year assuming no dependents and you did not remarry prior to the end of the year (yes, I've seen it).
Don't take tax advice... View More
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.... View More
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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... View More
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... View More
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.... View More
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... View More
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... View More
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... View More
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.
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.
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.
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.
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?
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... View More
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... View More
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... View More
Will she have to pay taxes on it when she is able to access it at age 18?
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.... View More
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?
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... View More
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.
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.
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:... View More
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