Tax Law Questions & Answers

Q: Does real estate transfer tax apply to joint tenancy survivor if sold to lineal descendant of deceased joint tenant?

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Pennsylvania on
Answered on May 24, 2017

When your father died, the property automatically passed to you by right of survivorship, if you have correctly stated that you and your father owned the property as joint tenants, not as tenants in common. The fact that his name is still on the deed is irrelevant. Therefore, the conveyance to your nephew is a conveyance from you, alone, and the entire conveyance would be subject to transfer tax since a conveyance to one's nephew is not an exempt transfer.
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Q: IRS has a lien on house because of owed taxes in 2000-04; lien filed 2008. Is lien active or expired?

1 Answer | Asked in Tax Law for North Carolina on
Answered on May 24, 2017

The short answer is: in general, the lien stays on. In other words, the heirs take the property subject to an IRS lien. This is really the only way that the IRS can still collect on the back taxes that they are owed.

With that said, you should probably do a consultation with a representative (Tax Attorney or Enrolled Agent or a CPA (that specializes in tax controversy/resolution)) to help you because there may be a statute of limitations issue. That will depend heavily on some...
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Q: Colorado health insurance question

1 Answer | Asked in Tax Law and Health Care Law for Colorado on
Answered on May 22, 2017

Based on your facts, the two 1095s show that you were doubly insured (which you now already know). The IRS does not consider insurance options--they only compute the penalties. Colorado will likely demur because you acted on your own behalf (even if based on confusion). As a result, the dual insurance will likely stand.

You can appeal the determination with the IRS, but you will need to contact (and pay for) a tax attorney's assessment. There may be grounds for an abatement of the tax,...
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Q: Mother passed away in 1999, left no will. I had 3 siblings. Hubby and I pay the taxes on the home. Who owns the home?

1 Answer | Asked in Real Estate Law and Tax Law for North Carolina on
Answered on May 22, 2017

You and your siblings own the home, and you cannot transfer it to yourself without consent of your siblings and their spouses, if any.
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Q: Etrade issued form 1042-S instead of 1099 for US resident

1 Answer | Asked in Tax Law for California on
Answered on May 21, 2017

Ask for their answer in writing, and include it in your amended tax return for justification. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Business and Tax Attorney, CPA.
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Q: What tax consequences occur when 3 people on title go to one?Parents want to transfer their ownership share to daughter.

1 Answer | Asked in Real Estate Law and Tax Law for California on
Answered on May 21, 2017

Parents may use the sale or gift concept and either way the daughter may be eligible for the property re-assessment exemption. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Estate Planning and Tax Attorney, CPA.
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Q: I am 1099 independent contractor. My broker takes out a city tax from my commission. Is that legal?

1 Answer | Asked in Tax Law for California on
Answered on May 21, 2017

If you are required to pay city tax, then they may be required to deduct it from your pay, unless you make other arrangement. Ask the broker for their reason. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Business and Tax Attorney, CPA.
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Q: My question is I had a accident/sickness policy I took out in the 90s and after 20 yrs it was returned. Is it income

1 Answer | Asked in Tax Law for California on
Answered on May 21, 2017

Generally, refunds in excess of your cumulative premiums may be taxable. This is a very tricky area of the tax law and you should ask the distributor or a counsel for assistance. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Estate Planning and Tax...
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Q: My wife and i are selling our home, but she's not on the title- do I need to add her to claim the joint exemption?

1 Answer | Asked in Tax Law and Real Estate Law for California on
Answered on May 21, 2017

Generally, if you meet the qualifications for the PR exclusion, her name doesn’t need to be on the title. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Estate Planning and Tax Attorney, CPA.
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Q: Do I have to respond to a request to confirm tax return filing form FTB 3904 california? I already have my refund.

1 Answer | Asked in Tax Law for California on
Answered on May 21, 2017

Yes, this is a new fraud related form and you are required to answer the question and fax the specified documents to them. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Estate Planning and Tax Attorney, CPA.
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Q: How to use an exclusion from short sale in 2016 that has a 1099-c?

1 Answer | Asked in Tax Law for California on
Answered on May 21, 2017

You may consider BK, Primary Residence exclusion or insolvency, where applicable. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Estate Planning and Tax Attorney, CPA.
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Q: How can i gift property to a sibling without raising the property tax?

1 Answer | Asked in Tax Law, Family Law and Real Estate Law for California on
Answered on May 21, 2017

Generally, you cannot and the exemption is reserved for parent-child, etc, unless there a special clause in the parent’s estate plan with the right of first refusal to one child. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Estate Planning and Tax...
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Q: If I decided to sell/make things as a hobby, and it doesn't earn me a lot cash to live off of,do I get a licence

2 Answers | Asked in Business Law, Tax Law and Business Formation for California on
Answered on May 21, 2017

If you sell products or service, you may be required to obtain a business license from the city you conduct your business in, regardless of your profit. Contact your city. The way you described your operation, the IRS may not allow you deduct your expenses, unless profit motive and proof thereof, if questioned. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation...
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Q: can I as a independant living home owner write off on my taxes the groceries I spend on my clients?

1 Answer | Asked in Tax Law for California on
Answered on May 21, 2017

If the groceries are “ordinary and necessary” expenses for running your business, you can deduct them as business expenses. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Business and Tax Attorney, CPA.
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Q: Mom added me to all bank accounts. Are the monies still considered inheritance when she passes or will I owe taxes

1 Answer | Asked in Tax Law and Probate for Florida on
Answered on May 21, 2017

It would probably be subject to either the federal gift tax or inheritance tax, and possibly state taxes as well. But with that kind of money involved it would be foolish for you to rely upon advice received here. Hire a professional knowledgeable in estate planning and gift/estate/inheritance taxation.
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Q: I noticed my tax lady has omitted and reported smaller amount that what I have actually paid. what can i do?

1 Answer | Asked in Civil Litigation and Tax Law for California on
Answered on May 20, 2017

Depending on the type of tax returns she prepares for you; the tax preparation fee may not have a material impact on the tax liability. Ask her to determine the tax impact of all the items left out, and amend the returns accordingly. On a separate note; why would you work with someone you described? The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes....
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Q: Is the California's Vehicle License Fee a personal property tax OR an excise tax? Thank you.

1 Answer | Asked in Tax Law for California on
Answered on May 19, 2017

Generally, it is personal property tax and deductible. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Tax Attorney, CPA.
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Q: Do I need to do an amendment?

1 Answer | Asked in Tax Law for California on
Answered on May 19, 2017

Generally, disability incomes are non-taxable and you may amend the returns in consultation with a tax professional. . The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Tax Attorney, CPA.
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Q: What is the time limit for the federal government to penalize you for a past year in which you underpaid?

1 Answer | Asked in Tax Law for Massachusetts on
Answered on May 19, 2017

That depends. If you filed a return the IRS normally has three years to audit the return. If there is a substantial understatement of tax (25% or more) the IRS has six years. If any fraud is involved there is no time limit.
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Q: What is the the first thing you should do if you find out you're being audited?

1 Answer | Asked in Tax Law for Colorado on
Answered on May 19, 2017

In most cases you should hire an experienced tax attorney. That being said if the IRS sends you an audit letter for something relatively simple i.e. they want proof of one or two expenses and you can easily provide documentation, you may be able to handle the audit on your own. It is impossible to give you a complete answer without additional details.

At any point in the audit process you can tell the IRS that you want to hire a tax attorney and they will grant you a short hold....
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