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Your current state is Ohio
I recently discovered that the size of my newly constructed house, closed in September 2022, is incorrectly listed by about 400 square feet less on the county tax appraisal document. I have not yet contacted the county tax appraisal office about this discrepancy and am unsure if it has affected my... View More 
answered on Apr 23, 2025
You may be including an enclosed garage in your own calculation of square footage. I'm just making an educated guess because a standard size two-car garage is 400 sq. feet. For appraisal purposes, "living area" only includes an enclosed garage if it has been converted into a room.
If I purchased a tax lien certificate on a property in Maryland and the owner allows the home to go into foreclosure, will I be responsible for the mortgage if I decide to redeem the property? There are no other liens on the property.
answered on Apr 22, 2025
Liens have different "priority" depending on the circumstances and what you're asking is basically a question of priority. Tax liens generally have priority IF all proper procedures are followed in the tax sale foreclosure case. However, merely purchasing at tax sale in Maryland... View More
Can my mother purchase a house in Maryland using cash for about $1 million, with the title/deed only in my name as a gift? We plan to file a gift tax return for 2025 given the amount exceeds the annual limit, but we don't anticipate actual taxes due because she'll remain under the... View More
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answered on Apr 22, 2025
You can also avoid probate using a trust, which is a better solution. Your mother should consult with an attorney about the adverse consequences to her of the outright gift method if she ever needs to go into a nursing home. You should consult an attorney regarding the adverse tax consequences to... View More
Can my mother purchase a house in Maryland using cash for about $1 million, with the title/deed only in my name as a gift? We plan to file a gift tax return for 2025 given the amount exceeds the annual limit, but we don't anticipate actual taxes due because she'll remain under the... View More
answered on Apr 22, 2025
It sounds right, but you would be well served to plan her estate at once instead of piecemeal. For example, you write of a Maryland house, but the question is posted from DC. The state estate and inheritance tax is different in those two places. And, Ms. Whitehurst is correct that a trust does this... View More
Can my mother purchase a house in Maryland using cash for about $1 million, with the title/deed only in my name as a gift? We plan to file a gift tax return for 2025 given the amount exceeds the annual limit, but we don't anticipate actual taxes due because she'll remain under the... View More
answered on Apr 22, 2025
I agree with the other two answers. Setting aside the question of qualifing for Medicaid for longterm nursing home care (assuming she would even qualify for Medicaid given her assets), from your financial standpoint it would make more sense if she purchased the house in the name of her existing... View More
Can my mother purchase a house in Maryland using cash for about $1 million, with the title/deed only in my name as a gift? We plan to file a gift tax return for 2025 given the amount exceeds the annual limit, but we don't anticipate actual taxes due because she'll remain under the... View More
answered on Apr 22, 2025
At least 2 other options would avoid probate without triggering the need for a gift tax return and without losing the stepped up basis as would happen with an outright gift purchase. One such option is to hold the property in a Revocable Living Trust, the other would be to hold through a life... View More
In California, my father recently passed away, and the house is held in a revocable trust established in 2015, with my dad and my stepmom as co-grantors. The property is held in joint tenancy, and the house goes to my stepmom according to the trust, eventually passing to my brother and me upon her... View More
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answered on Apr 12, 2025
In California, when property held in joint tenancy is transferred into a revocable trust, the joint tenancy is generally severed unless the transfer occurred during a limited window between November 13, 2003, and September 30, 2013, and specific conditions were met. Since the trust in question was... View More
My wife's mother passed away last year, and her trust includes a home near Solomons Island, Maryland, with five beneficiaries. The executor managing the estate, along with all beneficiaries, agrees to give the home to a single beneficiary. We want to ensure that this transfer happens smoothly... View More
answered on Apr 12, 2025
The post mentions both an executor, an estate and a trust. While it might be tempting to think of all of these things as the same (they all help pass property from the person who died to the beneficiaries), from a legal standpoint they are quite different. If the property is in a Trust, it will... View More
My wife's mother passed away last year, and her trust includes a home near Solomons Island, Maryland, with five beneficiaries. The executor managing the estate, along with all beneficiaries, agrees to give the home to a single beneficiary. We want to ensure that this transfer happens smoothly... View More
answered on Apr 12, 2025
Maryland’s 10% Inheritance tax only applies to non-spouses, non-lineal heirs and ancestors, and non-siblings. So, for instance, if the beneficiary receiving title to the house is a child of the deceased grantor of the trust, then there is no inheritance tax. In addition, assuming the grantor of... View More
I am a successful owner of an Amazon automation store and would like to transition to a limited partner role while someone else manages the store. I am considering forming an MMLLC and either having a manager as a partner or setting up the MMLLC to be taxed as an S corporation and hiring a manager.... View More
answered on Apr 12, 2025
Forming an LLC and then electing Subchapter S status offers advantages over forming a corporation and then electing S status, particularly in terms of flexibility, ease of formation, and potentially lower overall administrative costs. While both structures provide similar tax benefits (pass-through... View More
My parents passed away 5 years ago and owned a home in Riverside County, CA. My sister moved into the home, and I assumed they left it to her. Recently, my brother presented me with a signed and notarized document stating the home was left to me. After this, my sister moved out, and I moved in.... View More
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answered on Apr 10, 2025
There is no easy answer to your predicament. The classic solution is to obtain a new loan to pay the taxes, but you will not be able to do that without title to the property. To obtain title you will need the help of a probate attorney. You might try calling your local legal aid society to see if... View More
My parents passed away 5 years ago and owned a home in Riverside County, CA. My sister moved into the home, and I assumed they left it to her. Recently, my brother presented me with a signed and notarized document stating the home was left to me. After this, my sister moved out, and I moved in.... View More
answered on Apr 11, 2025
You need to file a petition for probate with the Riverside County Superior Court. Once you are appointed as administrator of your father's estate, you should be able to borrow money on behalf of the estate to pay the back taxes. You can also borrow as a beneficiary. Back taxes must be paid... View More
I have a retail business in California under an LLC with four members. We deferred sales tax payments from previous quarters due to the business not generating any revenue and have a payment plan set up with the CDTFA. If we have to shut down the business, will the sales tax balance affect the... View More
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answered on Apr 9, 2025
The sales tax liability is usually considered a debt of the LLC, not the individual members, as long as the LLC has been properly maintained (e.g., keeping business and personal finances separate, filing required paperwork, etc.) However, there are situations where the CDTFA could attempt to hold... View More
I purchased my home in Texas in October 2023. My mortgage company estimated MUD property taxes based on the land value instead of the newly completed home and the selling price. I discovered this issue in March 2025 when I received a statement showing an escrow shortage of over $1,200, resulting in... View More
answered on Apr 9, 2025
No this is not a RESPA violation. Property taxes are the legal responsibility of the owner (YOU). Lenders almost always require a borrower-owner to timely pay their property taxes. Sometimes, lenders require the borrower-lender to escrow money by paying an additional sum each month with the loan... View More
I'm the executor of a testate estate with a probate court providing letters of testamentary. The estate includes gold half eagle coins minted in 1880, 1901, 1911, and some silver coins. Before distribution, does selling these coins by the executor affect the step-up in cost basis?
answered on Apr 2, 2025
Generally, anything that passes upon the death gets an adjusted basis. So, as the executor, your legal requirement is to distribute the decedent's property pursuant to his/her will. For anything substantial, I would recommend that you provide a detailed inventory with as much detail as... View More
I need to find the correct citation for the Maryland Code that exempts property transfers from transfer and recordation tax when moving a property from a grantor to a revocable trust where the grantor and the trustee are the same person. This information is needed for inclusion in a warranty deed.... View More
answered on Apr 2, 2025
State transfer tax exemptions are contained in section 12-108 of the Tax Property article of the Maryland Annotated Code. State recordation tax exemptions are contained in section 13-207 of the same article. Local transfer tax codes will vary from county to county. Yes, some jurisdictions in MD... View More
I live abroad and I'm interested in wholesaling real estate in Texas. Is it possible for non-U.S. residents to engage in this business? What kind of paperwork or legal requirements should I be aware of? Additionally, there may be situations where I enter into joint ventures (JVs) with other... View More
answered on Apr 1, 2025
Most non-US citizens can buy and sell land and otherwise speculate on the same. However, if you are a Chinese National, or are from a "Terrorist State" country, that type of business is NOT available for you in Texas.
The key is to manage your properties and taxes correctly. Get... View More
I have two separate properties under the same revocable trust, and currently, one of the properties has an EIN. Can I use the same EIN for both properties within the trust? What would the tax benefits of this be, and are separate EINs necessary for each property?
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answered on Apr 1, 2025
Properties do not have EINs. If the Trust is a revocable trust, you may use your SSN or my apply for, and receive, a separate EIN. When transferring properties to or from a Trust, the Trust must be identified by either a SSN or EIN on transfer documents. So, to answer your question, you must use... View More
My father passed away intestate in Arizona and owned a small manufacturing business that makes cabinets and does epoxy floor coatings. He had an unspecified tax liability and no other significant assets, except for a small personal bank account. How should I proceed with handling his estate and... View More
answered on Apr 1, 2025
The first step is to determine the value of the assets in your father's estate and also the amount of the debts. Your father's CPA may be able to help. Or you may need to hire a business appraiser or business broker to determine the business value. If there is no real property and the... View More
I am considering selling my home to my daughter and continuing to live in it. What are the potential legal and tax implications for both me and my daughter? Would selling the house and then paying rent to stay there be a viable option?
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answered on Apr 1, 2025
This question raises many issues. First, whether the exclusion applies to minimize capital gains tax on the transaction. There are requirements.
Secondly, if the property is sold for less than its fair market value, part of the transaction might be subject to gift tax implications.... View More
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