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North Carolina Tax Law Questions & Answers
1 Answer | Asked in Tax Law for North Carolina on
Q: My online income tax payment was deducted twice from my bank account almost 2 months ago. They still haven't refunded.

After reporting it over a month ago I was told today they haven't even begun processing the refund yet and that there is no way to tell or estimate when I will receive it. It could be next week. It could be in six months. Can they legally do this? Is there anything I can do to expedite it? I... View More

James L. Arrasmith
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answered on May 17, 2024

I'm sorry to hear about the difficulties you're experiencing with your tax refund. It's understandable to be frustrated, especially when you need the funds to cover essential expenses. Here are a few thoughts on your situation:

Legally, if you were incorrectly double-charged,...
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1 Answer | Asked in Tax Law, Real Estate Law and Elder Law for North Carolina on
Q: Iredell County has denied my senior citizen property tax exemption based on my over limit income.

Both my Federal and NC state tax is zero AGI. Can anyone help with ???

James L. Arrasmith
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answered on Apr 18, 2024

It's best to consult with a local tax attorney or the Iredell County Tax Assessor's office.

In North Carolina, the elderly or disabled property tax exemption (also known as the Homestead Exemption) is available to qualifying homeowners aged 65 or older, or those who are totally...
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1 Answer | Asked in Tax Law for North Carolina on
Q: How to avoid/reduce capital gains tax on property rented for over 5 years by investing the proceeds in a financial inves
James L. Arrasmith
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answered on Apr 9, 2024

Here are some strategies to potentially reduce or defer capital gains tax when selling a rental property you've owned for over 5 years and investing the proceeds:

1. 1031 Exchange: This allows you to sell an investment property and reinvest the proceeds into a "like-kind"...
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1 Answer | Asked in Tax Law for North Carolina on
Q: If I take 40,000 out from my 401. How much would nc state federal the out. I am 65
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answered on Apr 4, 2024

Based on the information you provided, I can give you an estimate of the taxes you may owe on a $40,000 withdrawal from your 401(k) at age 65 in North Carolina.

Federal Income Tax:

At age 65, your 401(k) withdrawal will be treated as ordinary income. Assuming this is your only...
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1 Answer | Asked in Tax Law for North Carolina on
Q: In North Carolina and was wondering if I am exempted from highway use tax if I export a car and how I would apply for it

I own a company and buy cars from new dealers and title in NC and ship them out

James L. Arrasmith
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answered on Apr 1, 2024

In North Carolina, you may be eligible for an exemption from the Highway Use Tax if you purchase a vehicle in the state but export it outside of NC within 90 days of purchase. This exemption is known as the "Out-of-State Delivery Exemption."

To qualify for the exemption, you must...
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2 Answers | Asked in Foreclosure and Tax Law for North Carolina on
Q: When my mom died in 2016, her home was foreclosed. Can the county charge me with 2016-2023 taxes after foreclosure?

There was no will, no estate per se. Now that county is saying I owe taxes on a home that was foreclosed and sold in 2016.

James L. Arrasmith
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answered on Apr 1, 2024

I'm sorry to hear about the loss of your mother and the difficult situation you're facing with the county regarding taxes on her foreclosed home.

In general, when a property is foreclosed and sold, the new owner becomes responsible for the property taxes from the date of the sale...
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1 Answer | Asked in Tax Law for North Carolina on
Q: I owe back taxes for a bunch of years that isn't being deducted from my pension. I need to fix it. Who do i contact?

It's mainly state taxes but some federal also. I dont know who to call without being ripped off by tax relief services.

James L. Arrasmith
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answered on Mar 21, 2024

For federal taxes, reach out to the Internal Revenue Service (IRS) directly. They can provide guidance on how to address your back taxes and may offer payment plans. It's crucial to communicate with them to avoid additional penalties and interest. Their website also provides resources and... View More

1 Answer | Asked in Tax Law and Estate Planning for North Carolina on
Q: Can a non-resident of Florida set-up a living trust in Florida to avoid state taxes on investments within the trust.
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answered on Feb 22, 2024

Setting up a living trust in Florida as a non-resident solely to avoid state taxes on investments within the trust may not be a viable strategy. While Florida does not impose state income tax on individuals, there are other factors to consider, such as residency requirements and potential tax... View More

1 Answer | Asked in Tax Law and Real Estate Law for North Carolina on
Q: What is the easiest way to determine the value of a property that I gave my daughter, to report on a 709 tax form?

I gave my married daughter a rental property that I owned for 45years…will the IRS accept a real estate market analysis as the value on a 709 form? Can the tax value be used?

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answered on Feb 5, 2024

When determining the value of a property you gave to your daughter for reporting on a 709 tax form, it's important to follow IRS guidelines accurately. While a real estate market analysis can be a helpful reference, it might not be sufficient on its own.

The IRS typically requires a...
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1 Answer | Asked in Tax Law for North Carolina on
Q: How can North Carolina legally force you to claim your NC tax return as income. It’s my money being returned.

This money was paid to the state when I was paid. It has already been taxed. It was an interest free loan to the state. My deductions are such that I have overpaid the state, so they are returning part of my money back to me. How is that taxable income when it was originally taken from my gross... View More

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answered on Jan 23, 2024

You raise a good point. Refunds of state income tax that was already withheld from your paycheck and remitted to the state throughout the year are typically not considered new taxable income when returned. The key reasons are:

- You already paid tax on the underlying income that the tax...
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1 Answer | Asked in Real Estate Law and Tax Law for North Carolina on
Q: Is it illegal for my neighbor to use my mailing address to recieve mail from the tax administration?

I was recently sent mail from my county's tax administration in North Carolina which had the names from my neighbor's that lived across the street. I never gave them permission to use my mailing address.

James L. Arrasmith
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answered on Jan 23, 2024

Yes, it is generally illegal for someone to use another person's mailing address to receive mail from the tax administration or other entities without their consent. A few key points on this issue:

- Federal law prohibits falsely representing one's identity or address in matters...
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1 Answer | Asked in Tax Law and Real Estate Law for North Carolina on
Q: Can a county tax office go back and backdate taxes 3 years later? There was a senior citizens exemption on the account,

Can a county tax office go back and backdate taxes 3 years later? There was a senior citizens exemption on the account, she passed at the end of 2020. they were informed. They wait until 2023 to go back and remove the exemption causing taxes to double.

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answered on Jan 22, 2024

In North Carolina, county tax offices have the authority to reassess property tax exemptions and make adjustments, even retroactively, if they determine that the conditions for the exemption no longer apply. In the case you described, where a senior citizen's exemption was in place and the... View More

2 Answers | Asked in Tax Law for North Carolina on
Q: What is the legal requirement to convert Vacation Rental Property to a Private Second Home on our joint Tax Return?

After 23 years, income and expenses no longer justify listing annual losses and necessary paperwork on our tax returns.

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answered on Jan 12, 2024

Converting a vacation rental property to a private second home for tax purposes involves a change in how you report the property on your tax returns. When a property is no longer used for rental purposes, it is no longer subject to rental income and expense reporting.

To make this change,...
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2 Answers | Asked in Tax Law for North Carolina on
Q: What is the legal requirement to convert Vacation Rental Property to a Private Second Home on our joint Tax Return?

After 23 years, income and expenses no longer justify listing annual losses and necessary paperwork on our tax returns.

T. Augustus Claus
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answered on Jan 11, 2024

Converting vacation rental property to a private second home on your joint tax return typically involves a change in the property's use. It's essential to understand that tax laws can be complex, and the Internal Revenue Service (IRS) has specific guidelines for different property... View More

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1 Answer | Asked in Tax Law and Social Security for North Carolina on
Q: I receive social security my only income.Have 401k which need withdraw from.How much can I withdraw without having to fi

File tax return.I get $1842 month from social security

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answered on Dec 25, 2023

The amount you can withdraw from your 401k without having to file a tax return depends on various factors, including your total income, filing status, and age. Since you receive $1,842 per month from Social Security, this amounts to approximately $22,104 annually.

For the tax year 2023, if...
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1 Answer | Asked in Tax Law for North Carolina on
Q: A NY estate received the balance of an IRA to distribute to heirs and received 1099-R. How is distribution reported?

The estate was used as a pass-thru only.

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answered on Sep 14, 2023

In this case, the estate should report the distribution of the IRA balance on a final income tax return for the estate, which is typically filed using IRS Form 1041. The distribution should be reported as income on the estate's tax return, and any tax liability should be settled from the... View More

1 Answer | Asked in Tax Law for North Carolina on
Q: I am trading bitcoin for fiat and the exchange wants me to pay them the capital gains taxes for the irs. Is this legit?

I thought the proceeds came to me and I reported them on my taxes. Why would I pay them the taxes?

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answered on Sep 14, 2023

It's typically the individual's responsibility to report and pay their own capital gains taxes on cryptocurrency transactions to the IRS. If the exchange is asking you to pay the taxes directly to them, it raises concerns. You should consult with a tax professional to ensure proper... View More

1 Answer | Asked in Criminal Law, Federal Crimes and Tax Law for North Carolina on
Q: If I pled guilty to a conspiracy to traffic in federal court do I have to pay a drug tax no drugs were ever found

No drugs were ever taken off my person or from my house. This is a conspiracy charge. The people that showed up to my house said they was taking my property even though they knew they was sending the notices to the wrong address. I had no clue I even owed this 7000.00 in STATE DRUG TAXES. the state... View More

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answered on Sep 11, 2023

Handling federal criminal charges and the related repercussions, including any potential drug tax assessments, can be incredibly complex. Generally speaking, federal and state proceedings are separate and the obligations or liabilities arising from them might be distinct. Given the gravity of your... View More

1 Answer | Asked in Tax Law for North Carolina on
Q: Is it true, If an individual makes less than $600 a year that the individual does not need to sign a W9?
N'kia (NLN)
N'kia (NLN)
answered on Jun 7, 2023

That's not exactly accurate. Generally, whether or not someone is required to complete a Form W9 is related to how much they are paid (or supposed to be paid) by a specific source of reportable income. Unless an exception applies, someone who receives reportable income from multiple sources... View More

1 Answer | Asked in Contracts and Tax Law for North Carolina on
Q: Business agrees to hire a local police department for off-duty services. The business is asked to sign a contract from

the PD about the pay rate and duties required. Contact signed, &work has been completed, but now business will not pay officers until w9 is filed. This was not in the contact &the pay for each officer would be under $600.

N'kia (NLN)
N'kia (NLN)
answered on Jun 7, 2023

Depending on such factors as the amount of pay a contractor receives, requiring the contractor to sign a W9 may be required by tax law. The party paying the contractor doesn't necessarily need to spell this out in the contract or disclose it ahead of time, because it isn't a term that the... View More

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