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Tax Law Questions & Answers
Q: are you responsible for paying taxes on home not in your name and you never lived in. Husband who owned it died.
James Richard Yandle's answer
I assume you are talking about state INCOME tax (not local county property tax, or other type of tax). And, i'm guessing the issue arose from a 1099-C Cancellation of Debt, to the now deceased husband, from the foreclosure, (tax year 2016, based on timing?). Further, I'm guessing you filed a joint return for that year with the decedent.
The likely route to resolve such a matter, at this stage, is seek a competent, professional income tax return preparer, preferably a CPA, and file...
I assume you are talking about state INCOME tax (not local county property tax, or other type of tax). And, i'm guessing the issue arose from a 1099-C Cancellation of Debt, to the now deceased husband, from the foreclosure, (tax year 2016, based on timing?). Further, I'm guessing you filed a joint return for that year with the decedent.
The likely route to resolve such a matter, at this stage, is seek a competent, professional income tax return preparer, preferably a CPA, and file...
Q: I am not making much but enough to go out of medicaid can i open a c corp and get paid from the corp until the threshold
Linda Simmons Campbell's answer
When you set up a corporation you have to pay yourself at least the average rate for your job in your area. So no it is likely that everything you make would need to be paid as income.
When you set up a corporation you have to pay yourself at least the average rate for your job in your area. So no it is likely that everything you make would need to be paid as income.
Q: Is it legal to ask a beneficiary to claim money from distributions he never received, for taxes, through Schedule K-1s?
Bruce Adrian Last's answer
Quail Valley:
From what you describe, something does not sound right. In some instances a trust or estate will "pass though" tax liability to the beneficiary but only where that liability is connected to a distribution. For example, if a trust makes a distribution to a beneficiary that consists of income and capital gains earned by the trust, it may pass the tax liability to the beneficiary. This is done because the beneficiary, as a general rule, has a lower tax rate than the trust....
Quail Valley:
From what you describe, something does not sound right. In some instances a trust or estate will "pass though" tax liability to the beneficiary but only where that liability is connected to a distribution. For example, if a trust makes a distribution to a beneficiary that consists of income and capital gains earned by the trust, it may pass the tax liability to the beneficiary. This is done because the beneficiary, as a general rule, has a lower tax rate than the trust....
Q: Divorce 2/2018. Ex has rec'd notices re: taxes owed for 15 & 17. he is self employed, i'm not. He says i'm liable.
Neil Colman's answer
What does your Judgment provide? If they were joint returns and not addressed in the Judgment, you may have to go back to court in an attempt to get clarification. The government is not a party to your divorce. Therefore, both taxpayers are liable if not addressed in the Judgment.
What does your Judgment provide? If they were joint returns and not addressed in the Judgment, you may have to go back to court in an attempt to get clarification. The government is not a party to your divorce. Therefore, both taxpayers are liable if not addressed in the Judgment.
Q: If I receive money from sale of parent's home after their death, can I claim it on next years taxes
Jon Dowat's answer
Your are dealing with about three issues here and it is not that simple. First, income should be reported in the year it was received. Even if you do not cash the check the IRS treats it as if you received it, that is called "constructive receipt," which means we will pretend you received it so we can tax it.
Second, if the proceeds of the sale of the home are paid to you the lender or title company will issue a Form 1099-S to you and they will send a copy to the IRS. Even if the...
Your are dealing with about three issues here and it is not that simple. First, income should be reported in the year it was received. Even if you do not cash the check the IRS treats it as if you received it, that is called "constructive receipt," which means we will pretend you received it so we can tax it.
Second, if the proceeds of the sale of the home are paid to you the lender or title company will issue a Form 1099-S to you and they will send a copy to the IRS. Even if the...
Q: Question regarding business taxes, amount possibly owed, student loans, garnishment and payment plans
Trent Harris' answer
Estimates without documentation are not good enough for the IRS. You need to work with a tax accountant or CPA to reconstruct some sort of paper trail for your expenses. Otherwise, your eligibility for a student loan is going to be the least of your problems. If the IRS denies your deductions for your business expenses, you are going to end up owing tax on the entire amount of the income, and you will owe the IRS a ton of money you don’t have. Contact a CPA or tax accountant to help get you...
Estimates without documentation are not good enough for the IRS. You need to work with a tax accountant or CPA to reconstruct some sort of paper trail for your expenses. Otherwise, your eligibility for a student loan is going to be the least of your problems. If the IRS denies your deductions for your business expenses, you are going to end up owing tax on the entire amount of the income, and you will owe the IRS a ton of money you don’t have. Contact a CPA or tax accountant to help get you...
Q: I pay at least 98% support for grandson n daughter. Can I claim my grandson on income tax?
Reece B. Morrel Jr's answer
According to the IRS, you can claim someone as a dependent if you provide for more than half of their support. But, this rule can be modified if there is a divorce decree or some other governing document.
Assuming that you meet the requirements, I should warn you that it gets more complicated the 2018 tax year. We no longer keep track of how many personal exemptions we get for each person (i.e. the taxpayer, spouse, and dependents). This got changed in December 2017.
But, it is...
According to the IRS, you can claim someone as a dependent if you provide for more than half of their support. But, this rule can be modified if there is a divorce decree or some other governing document.
Assuming that you meet the requirements, I should warn you that it gets more complicated the 2018 tax year. We no longer keep track of how many personal exemptions we get for each person (i.e. the taxpayer, spouse, and dependents). This got changed in December 2017.
But, it is...
Q: If I live in TX and telecommute for a company in OK as a 1099 contractor, am I responsible for OK income tax?
Reece B. Morrel Jr's answer
Congratulations, you have landed on a real "hot-button" topic - especially when Oklahoma is suffering from a budget crisis.
To be honest, I really need more facts to be able to advise you properly.
But let me give you something to consider. The statute-of-limitations starts to run when the tax return is filed. If a return is never filed, the statute-of-limitations never starts. So, if no return has been filed then the state of Oklahoma can assess tax, interest, penalties...
Congratulations, you have landed on a real "hot-button" topic - especially when Oklahoma is suffering from a budget crisis.
To be honest, I really need more facts to be able to advise you properly.
But let me give you something to consider. The statute-of-limitations starts to run when the tax return is filed. If a return is never filed, the statute-of-limitations never starts. So, if no return has been filed then the state of Oklahoma can assess tax, interest, penalties...
Q: Do the taxes I'll be filing next April reflect the government's new tax law?
D. Mathew Blackburn's answer
Yes, the majority of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) took effect 1.1.2018. Some did not, most notably accelerated depreciation took effect 9.27.17 and the ACA penalty is removed 1.1.19.
Yes, the majority of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) took effect 1.1.2018. Some did not, most notably accelerated depreciation took effect 9.27.17 and the ACA penalty is removed 1.1.19.
Q: i still owe obamacare penalty from 2015. will trump tax reform eliminate that penalty in 2019?
Linda Simmons Campbell's answer
It is not retroactive so you will still owe the penalty. Did you look into whether you were exempt?
It is not retroactive so you will still owe the penalty. Did you look into whether you were exempt?
Q: Will my property taxes increase if I add heat to a previously unconditioned outbuilding on my property?
1 Answer
| Asked
in
Land Use & Zoning, Real Estate Law and Tax Law
for
Massachusetts
on
Answered on Dec 10, 2018
Answered on Dec 10, 2018
Christopher Tolley's answer
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 the outbuilding with heat as opposed to unheated, whether, as a result of installation of heating, it is usable for residential or commercial purposes, etc. I suggest you call the tax assessor in your...
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 the outbuilding with heat as opposed to unheated, whether, as a result of installation of heating, it is usable for residential or commercial purposes, etc. I suggest you call the tax assessor in your...
Q: Is there a way to word an Easement Agreement so that the Dominant Tenant is responsible for County taxes in that area?
1 Answer
| Asked
in
Land Use & Zoning, Real Estate Law, Tax Law and Contracts
for
Florida
on
Answered on Dec 10, 2018
Answered on Dec 10, 2018
Terrence H Thorgaard's answer
Yes, it appears that all of this can be done in a properly-worded agreement. But you need an attorney to be sure that it is done properly.
Yes, it appears that all of this can be done in a properly-worded agreement. But you need an attorney to be sure that it is done properly.
Q: Hello I am a student at William Paterson University I have a project where I have to interview a lawyer.
1 Answer
| Asked
in
Divorce, Family Law, Tax Law and Communications Law
for
New Jersey
on
Answered on Dec 5, 2018
Answered on Dec 5, 2018
Leonard R. Boyer's answer
This is not the purpose of this forum. Call an attorney during their business hours.
This is not the purpose of this forum. Call an attorney during their business hours.
Q: If I believe my boss is skimming money from his business, who would I report this to? The IRS?
Eric Steven Day's answer
You could report this to the IRS if he is not reporting all the income he is making to the IRS for tax purposes. The IRS has a whistleblower program, where you can turn in individuals or businesses for evading taxes and take a percentage of whatever the IRS is going to collect from the taxpayer. However, the IRS usually is looking for the big cases that has potential to collect in the millions of dollars because they have to use a certain amount of resources to prove it. Additionally, you...
You could report this to the IRS if he is not reporting all the income he is making to the IRS for tax purposes. The IRS has a whistleblower program, where you can turn in individuals or businesses for evading taxes and take a percentage of whatever the IRS is going to collect from the taxpayer. However, the IRS usually is looking for the big cases that has potential to collect in the millions of dollars because they have to use a certain amount of resources to prove it. Additionally, you...
Q: Can you go to jail for tax evasion?
Eric Steven Day's answer
Yes, it is possible to go to prison for tax evasion. Tax fraud is punishable by prison time.
Yes, it is possible to go to prison for tax evasion. Tax fraud is punishable by prison time.
Q: What happens if I get a tax audit? Do I have to go to court?
Linda Simmons Campbell's answer
Not if you are in agreement with the results of your audit. I recommend hiring a good tax attorney unless you are sure you can provide everything the IRS is requesting with ease.
Not if you are in agreement with the results of your audit. I recommend hiring a good tax attorney unless you are sure you can provide everything the IRS is requesting with ease.
Q: Can you go to jail for filing an incorrect number on your business's tax returns if it was an honest mistake?
Linda Simmons Campbell's answer
File an amended return. The IRS does not criminally prosecute for honest mistakes. They are looking for cases of fraud or tax evasion. If you file and amend your return, you can request a one-time penalty abatement if you end up owing. It is a one-time abatement so I would not use it for a small amount. If you wait until you are audited you will get hit with higher penalties and it is more difficult to get the abatement.
File an amended return. The IRS does not criminally prosecute for honest mistakes. They are looking for cases of fraud or tax evasion. If you file and amend your return, you can request a one-time penalty abatement if you end up owing. It is a one-time abatement so I would not use it for a small amount. If you wait until you are audited you will get hit with higher penalties and it is more difficult to get the abatement.
Q: How can I get the tax refund Intercepted by state of FL 6 months ago?
Rand Scott Lieber's answer
You need to contact the court that ordered the child support to straighten this out.
You need to contact the court that ordered the child support to straighten this out.
Q: With a tax levy will the IRS take my whole paycheck or will they only take a portion of it every pay period
Linda Simmons Campbell's answer
Your human resources department will be sent a formula to follow to determine what they can take. You are usually left with a small amount. Without more information I cannot tell you what you will be left with after the levy. Frequently a tax attorney can set up an installment agreement that will have a lower monthly payment amount then what you will pay through a levy. We can also advice you as to whether you are eligible for an Offer or some other collection alternative. Stay away from...
Your human resources department will be sent a formula to follow to determine what they can take. You are usually left with a small amount. Without more information I cannot tell you what you will be left with after the levy. Frequently a tax attorney can set up an installment agreement that will have a lower monthly payment amount then what you will pay through a levy. We can also advice you as to whether you are eligible for an Offer or some other collection alternative. Stay away from...
Q: what is the best way to report unreported income for small business that has gone for many years. what kind of lawyer?
Chad Silver's answer
A Tax Attorney would be the best professional to guide you through this process. It is very important the matter is handled with someone you have an Attorney Client privilege with. You can contact our office at 855-900-1040.
A Tax Attorney would be the best professional to guide you through this process. It is very important the matter is handled with someone you have an Attorney Client privilege with. You can contact our office at 855-900-1040.
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