Lawyers, Answer Questions  & Get Points Log In
Massachusetts Tax Law Questions & Answers
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... 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 »

View More Answers

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  Day
PREMIUM
Eric 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  Day
PREMIUM
Eric 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  Day
PREMIUM
Eric 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 »

1 Answer | Asked in Employment Discrimination, Employment Law and Tax Law for Massachusetts on
Q: I settled an employer age discrimination/retaliation complaint in 2017...can I claim fees 2015-17 on my taxes

I filed a legal complaint shortly after quitting in 2015, and filed a MCAD complaint in 2016. The case was settled out of court in 2017

John Espinosa
John Espinosa
answered on Jan 12, 2018

This irs does allow you to deduct attorney fees paid to recover in a discrimination claim on line 36 of form 1040

https://www.irs.gov/publications/p525#en_US_2016_publink100041600

1 Answer | Asked in Tax Law and Business Formation for Massachusetts on
Q: Where should I register the company in terms of taxes?

Hi,

I live in Boston, and I'm about to start a consulting firm, an LLC. My first customer is in Norway. Should I form an LLC in MA or in Delaware? since my business is purely international.

Jonathan R. Roth
Jonathan R. Roth
answered on Jan 5, 2018

You should register it in MA as you are a MA resident. There is no tax advantage in being a DE LLC if you are the sole member of the LLC and reside in MA. Moreover, if you have a dispute and want to engage the MA courts, you will have to register the DE LLC in MA to do so and the cost will wind-up... Read more »

1 Answer | Asked in Tax Law for Massachusetts on
Q: Am I required to pay taxes on gains earned from cyptocurrency like Bitcoin if I sell it?
Matthew M Montoya
Matthew M Montoya
answered on Dec 2, 2017

Yes. See https://www.irs.gov/newsroom/irs-virtual-currency-guidance

1 Answer | Asked in Civil Litigation, Tax Law and Divorce for Massachusetts on
Q: Do I need to give a copy of my LLC 1065 to ex-spouse or just my K-1, re exchange of tax return docs annually

If I understand correctly, the 1065 is an informational filing for the partnership. I receive a K-1 from this to use on my individual return to report my income, losses etc. Is my ex-spouse entitled to see the partnership's 1065 informational filing or is it even relevant to my return? He is... Read more »

Lillian J. LaRosa
Lillian J. LaRosa
answered on Aug 8, 2017

You should review your Separation Agreement with your divorce attorney as soon as possible to make sure that you haven't obligated yourself to include this form in the exchange process.

1 Answer | Asked in Tax Law for Massachusetts on
Q: What is the time limit for the federal government to penalize you for a past year in which you underpaid?
Linda Simmons Campbell
Linda Simmons Campbell
answered on May 19, 2017

That depends. If you filed a return the IRS normally has three years to audit the return. If there is a substantial understatement of tax (25% or more) the IRS has six years. If any fraud is involved there is no time limit.

1 Answer | Asked in Tax Law for Massachusetts on
Q: Can IRS take my money from my savings account even if its the only money I have to live because of a levy on 2012 taxes?

Im unemployed since 2011, and practically homeless, and that money was the only thing left for me to survive until I find a job. They had already withdrawn the money in september of 2016,

Linda Simmons Campbell
Linda Simmons Campbell
answered on May 10, 2017

If the bank has not sent the money to the IRS then you can call the IRS and ask to be marked Currently Not Collectible based on your unemployment status. If they agree they will release all or part of the levy. You can also contact your local Taxpayer Advocate for assistance or a Low Income... Read more »

1 Answer | Asked in Admiralty / Maritime, Consumer Law, Gov & Administrative Law and Tax Law for Massachusetts on
Q: How can a state demand boat taxes and fee's from a boat owner who is not a citizen or legal resident of the state?

Massachusetts demands a boat excise tax and several fee's for using their waterways. Regardless the boat owner is not a citizen or legal resident of the state. This also means one cannot vote in the state because the person is not a citizen or legal resident. Examples Here: Boat excise tax; a... Read more »

Ali Shahrestani, Esq.
Ali Shahrestani, Esq.
answered on Apr 18, 2017

In the same way you have to pay a highway toll when you're driving on the state roads, you'd have to pay boat taxes and fees for using the state's waters, regardless of residency/ citizenship. The state government is, proverbially, king of its castle. This is the basis of sovereign... Read more »

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.