Lawyers, Answer Questions  & Get Points Log In
Minnesota Tax Law Questions & Answers
1 Answer | Asked in Tax Law for Minnesota on
Q: Is it legal for a 501c(3) Director to pay himself a non taxed W2 as a housing allowance?

The sole revenue for the 501c(3) is Consulting Fees from the Directors solely owned Scorp, and it's sole expense is the Directors salary. Is this legal or tax evasion?

Bruce Alexander Minnick
Bruce Alexander Minnick answered on May 28, 2019

FYI, it is not unlawful for a 501c3 corporation to own a for profit corporation. However, revenue from any source must be reported to the IRS. The 501c3's gross revenue can be offset by deductions if the deductions are actually related to the charitable (or educational or religious) purpose(s) or... Read more »

1 Answer | Asked in Tax Law and Gaming for Minnesota on
Q: Is there a way to determine slot machine wins within a session rather than reporting $1,000 wins on w-2g to IRS?

W-2g wins within same day came to over 50,000 even though I had losses to cover this. It was still considered income now my social security disability is taxable at 85%

D. Mathew Blackburn
D. Mathew Blackburn answered on Feb 22, 2019

You have to report the W-2gs and reduce the amount of the winnings by your losses.

You cannot take those losses against any other income.

1 Answer | Asked in Tax Law for Minnesota on
Q: i still owe obamacare penalty from 2015. will trump tax reform eliminate that penalty in 2019?

i still owe a "shared responsibility" from 2015, when i made barely enough to afford rent, but could not afford groceries, let alone health insurance. I am still getting harassed about it this year. With the individual mandate penalty being eliminated with this new tax bill, will that penalty for... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Dec 10, 2018

It is not retroactive so you will still owe the penalty. Did you look into whether you were exempt?

1 Answer | Asked in Banking, Consumer Law and Tax Law for Minnesota on
Q: I had gotten an inheritance in 2011 and havent filed taxes since or worked and Minnesota seized 28k from my bank

Assuming I had 255k of taxable income, but they cleaned me out is there a possible law suit

Eric Steven Day
Eric Steven Day answered on Jun 6, 2018

The IRS has the right to file what is called an SFR - substitute for return on your behalf. If they see a substantial amount of income that was reported to them from third-parties, they will likely conduct an audit of your account and force the preparation of a tax return. Once there is an... Read more »

1 Answer | Asked in Consumer Law and Tax Law for Minnesota on
Q: Can I withdraw from my 401k or must I take a loan?

I am 100% owner of my 1120-S corporation and am 71 years of age. My 401K is company sponsored.

Eric Steven Day
Eric Steven Day answered on May 24, 2018

You can withdraw from your 401k anytime, in fact, you should have an amount that is required to be distributed from the plan once you have reached 70 1/2. The distribution will be taxable to you upon distribution, but once you’re of age it will not be a early distribution and therefore won’t... Read more »

1 Answer | Asked in Tax Law for Minnesota on
Q: We have a tax attorney who filed an OIC for us. Our OIC was returned because we didn’t file everything. I feel like the

Tax attorney should have caught all that before we sent in the OIC. They never said if everything wasn’t complete the IRS would take the 20% payment we had to send in and we’d have to pay another 20% to resend in the OIC once all papers were filed.

Linda Simmons Campbell
Linda Simmons Campbell answered on Apr 8, 2018

It is difficult without seeing what was submitted to tell you whether this should have happened or not. If you neglected to tell the attorney that you had an asset, for example, and did not provide the attorney the proper documents that is not their fault. If it is something that the attorney... Read more »

1 Answer | Asked in Tax Law and Business Formation for Minnesota on
Q: Right now I operate multiple eCommerce websites under one LLC . I want separate each into their own LLC. is that a good?
Lucas Wynne
Lucas Wynne answered on Mar 7, 2017

There is too little information to provide you advice on this matter.

1 Answer | Asked in Tax Law for Minnesota on
Q: I pd 250000 for farm . I now will sell part of land for 130000, is there cap gain tax or do u recover the 250000 first?
Jennifer Long
Jennifer Long answered on Sep 29, 2013

When property is sold or exchanged you may be taxed on the gain. A gain is the amount you realize from a sale or exchange of property that is more than its adjusted basis. Generally, the adjusted basis is the cost of the property. The amount you realize is defined as the money you receive plus the... 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.