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I am a developer planning to launch a taxi-hailing platform in New York, partnering with driver cooperatives. What should I consider legally regarding capital income exchange and structuring the cash split with the cooperatives?
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answered on Mar 27, 2025
This is a great question with a lot of moving parts. Structuring a platform like this—especially in New York—raises regulatory, tax, and contractual considerations. You’ll want to think through how revenue flows between you and the cooperatives, how profits and risks are shared, and whether... View More 
I'm a tutor planning to file my taxes but haven't done so yet. Most of my earnings are on a 1099-K, but I also earned about $3,000 in cash last year from a single student through regular weekly payments. I didn't deposit this cash into a bank account and have no formal records of the... View More
answered on Mar 7, 2025
The $3,000 you earned would be considered as a self-employment income. When filing you tax return, you must report the $3,000 on line 8 of the 1040 Form. For line 8, you must include Schedule 1 in your tax return filings. Schedule 1 will also assist you in determining how much you might owe the... View More
In our 2023 divorce decree, we agreed that each of us would claim one child on our taxes. Last year, we filed accordingly without any issues. This year, my ex-spouse filed first and claimed both children for the Earned Income Credit (EIC), stating his lawyer advised it was permissible because he is... View More
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answered on Mar 13, 2025
I understand how frustrating this situation must be, especially when you have a clear agreement in your divorce decree regarding claiming the children for tax benefits. The issue you’ve encountered involves the Earned Income Credit (EIC), which is a valuable tax benefit for custodial parents.... View More
I own a business and need to report my income on a 1099-K. My total income includes $7,000 from the 1099-K and an additional $3,000 in cash earnings not on the 1099-K. If I report both amounts together on my tax return, will my return get flagged due to the discrepancy between my total income and... View More
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answered on Mar 4, 2025
This should not be considered legal advice and you should definitely consult an attorney who understands these issues but your tax return is unlikely to be flagged just because your total income exceeds the 1099-K amount. The IRS expects all income to be reported, including cash earnings. The lack... View More
Will we also benefit from the single $250,000 capital gains exemption. His trust was a grantor , Medicaid asset protection trust and considered part of his estate at death. He lived in the house for 45 years and died in it as well. He maintained some control of the trust with limited power of... View More
answered on Feb 19, 2025
The good news is that since the house was held in a Medicaid Asset Protection Trust (MAPT) that was a grantor trust for income tax purposes and included in your father’s estate for estate tax purposes, it should qualify for a step-up in basis upon his death. This means that the basis of the house... View More
Will we also benefit from the single $250,000 capital gains exemption. His trust was a grantor , Medicaid asset protection trust and considered part of his estate at death. He lived in the house for 45 years and died in it as well. He maintained some control of the trust with limited power of... View More
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answered on Feb 12, 2025
It is common for the grantor of a Medicaid Asset Protection Trust (MAPT) to retain just enough controls to trigger estate inclusion at the death of the grantor and, therefore, to cause the assets in the MAPT to obtain a step up in basis at the death of the grantor.
If a residence is owned... View More
tax issue: Failure to return calls in a timely manner, making a mistake and billing to remedy it, failure to properly inform IRS of POA for my parents (This is their issue, not mine), and the inability to properly access the account to keep me informed.
Is there anything I should know? In... View More
answered on Feb 11, 2025
Hi!
Few things, if you requested access to the case file and had authorization, being your parents’ issue not yours, then an attorney must provide access.
When it comes to submitting POAs to the IRS I would confirm whether the issue was on the attorney’s end or the IRS’.... View More
I didn't file federal and NY State for several years due to cancer treatment. I'm now cancer-free and wondering should I file 2024 and wait for a response, do I need to file all previous years before anything, or if I should do something else? Thank you!
answered on Feb 11, 2025
Thank you for the question, the law states you only have to file for the last 6 years. In addition, you can seek penalty abatement for reasonable cause. Lastly, for your state returns, you can file missing returns through the Voluntary Disclosure program. Voluntary Disclosure program, if approved... View More
I didn't file federal and NY State for several years due to cancer treatment. I'm now cancer-free and wondering should I file 2024 and wait for a response, do I need to file all previous years before anything, or if I should do something else? Thank you!
answered on Feb 11, 2025
If you possess a filing requirement then you will need to file your back taxes. This will depend on income earned and filing status (single, married filing joint, etc). If you are unsure of the income earned for your missing tax periods you can request a wage and income transcript from the irs.... View More
He billed $500 and just left a message. I am thinking of suing him.
answered on Feb 10, 2025
An Attorney can bill for their hold time if it is considered a part of their working time.
Within my firm, we often call the IRS and experience very long hold times even when using the particular practitioner line. We bill for the hold time unless we are disconnected during that hold and... View More
I am a non-US citizen. I own a condo in NYC which is not my primary residence. I want to transfer this condo into my revocable living trust (domestic). My attorney filled out form TP584 as a conveyance without consideration. Therefore, no transfer tax is due. At the end of this form, it states that... View More
answered on Feb 7, 2025
A revocable trust's assets are still your tax responsiblity, e.g. property taxes, because it is revocable. The form you are filing suggests you are getting income from the property and that is taxable. If you have no confidence in your atorney, you should obtain another one. Do so or take... View More
answered on Feb 7, 2025
According to Publication 525 (2024), Taxable and Nontaxable Income, property one receives as a gift isn't included in his income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. The obligation to the donor... View More
answered on Feb 3, 2025
You will likely have a gift tax reporting issue, and depending on the size of your estate, you might be subject to tax liabilities as the person giving the gift.
That said, depending on the intent and desired timing, there might be more tax-efficient ways to achieve a similar outcome.... View More
He downloaded his earnings from his Russian TikTok account into my United States bank account, via PayPal. It was then transferred back to him via bitcoin I have a 1099 – K from PayPal looking like I earned that money, when I didn’t.
answered on Feb 2, 2025
Hello,
This situation seems to occur more frequently than you might think. You could be violating US sanctions, which could land you in some trouble.
Firstly, this could appear to be money laundering. You've received money, likely because the original recipient can't... View More
And school taxes that are behind, the house is still caught in probate court and i cannot make a payment plan since it isnt in my name, and i cannot afford to pay it all upfront. How do i stop the house from going into foreclosure?
answered on Dec 11, 2024
I'm sorry for your loss and the challenges you're facing. If probate is delaying your ability to act, consider filing a motion requesting the court to grant temporary authority to address urgent matters, like paying property taxes. An attorney can assist with this.
Possibly, you... View More
And school taxes that are behind, the house is still caught in probate court and i cannot make a payment plan since it isnt in my name, and i cannot afford to pay it all upfront. How do i stop the house from going into foreclosure?
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answered on Dec 11, 2024
First of all, don't panic. I am not sure where the property or the probate court are located, but as a sole practitioner, I see this many times a year. Find a small law local firm to probate the will or administer the estate. Nothing is going to move quickly. Gather up all of the... View More
Owner and failed to notify record owner of deed
answered on Nov 25, 2024
If your real property was transferred due to errors by the county (e.g., assigning the wrong owner or failing to notify you of changes to the deed) contact the county recorder or assessor's office in writing to dispute the error. Include copies of your tax payment records, the deed, and other... View More
A parent has a trust with 2 beneficiaries. We would like to move a house into a separate trust with only one beneficiary. So the house is being given to one child but the other should get half of the 2024 value somehow
Not sure the best way to do this so the other child gets half the 2024... View More
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answered on Aug 30, 2024
Giving the house to one beneficiary now could have many unintended negative consequences such as loss of step up in basis at the death of the gift giver and a hefty Medicaid penalty period assessed against the gift giver on account of the lifetime uncompensated transfer.
This is not the... View More
Hi i am abroad of U.S my father is in new york city he wants me to go there now he wants to file 130 petition and also he is a green card holder and also wants to applay for citizenship ( want to neutralize) but he didnt give tax for 2 or 3 year( because of some reasons) will this effect on his... View More
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answered on Jul 2, 2024
To address this situation, there are a few key points to consider:
1. Tax obligations:
Not filing taxes for 2-3 years could potentially affect your father's naturalization application. When applying for citizenship, USCIS (U.S. Citizenship and Immigration Services) looks at... View More
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answered on May 15, 2024
I understand your concern about the old tax debt from 2007 still appearing on your record despite the statute of limitations expiring after 10 years. Here are a few key things to know and steps you can take:
The IRS has 10 years from the date of assessment to collect back taxes before the... View More
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