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Tax Law Questions & Answers
1 Answer | Asked in Tax Law, Estate Planning and Probate on
Q: What happens if beneficiary of a $150,000 RRIF don’t want to pay the taxes due on a deceased relative tax account?

I am the Executor of a family members estate. Our uncle indicated in his will that all moneys, assets will be equally distributed to his 3 nieces. He also had three RRIF’s naming each niece a beneficiary to each RRIF. The uncle died with dementia before changing the beneficiary of the only... Read more »

Nina Whitehurst
Nina Whitehurst answered on Apr 8, 2021

That may have been poor planning on your uncle’s part, but the niece who was the designated beneficiary has no legal obligation to share. The presumption is that is what your uncle intended. If she is inclined to voluntarily share, she should first consult with an attorney about possible tax... Read more »

2 Answers | Asked in Tax Law and Probate for Pennsylvania on
Q: Pa inheritance tax method? Mom died. the 100 acre farm(Pa) in clean and green will be sold outside of family.

One person said to use C & G assessment value instead of fair market value to compute inheritance tax. True?

W. J. Winterstein Jr.
W. J. Winterstein Jr. answered on Apr 8, 2021

PA inheritance tax on bequests to child/children is five percent. When that is paid, the property enjoys a "stepped up basis", so that on a subsequent sale of the property, any capital gain is computed as the difference between the stepped up basis and the sale price, both for PA and... Read more »

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1 Answer | Asked in Family Law and Tax Law for Texas on
Q: Filled 2019 jointly w/ ex +claimed her child as dependent, divorced in 2020 Do I have to give her the stimulus check?

What happens if I don't give her the 3rd stimulus check?

Amir Tavakkoli
Amir Tavakkoli answered on Apr 5, 2021

If the check is in her name and you don’t give it to her, you can face criminal charges and civil penalties. Unless your divorce decree awarded you her check, which it doesn’t sound like.

1 Answer | Asked in Tax Law and Real Estate Law for Florida on
Q: If property sold , and State was not noticed will buyer be liable for tax, tax was payed up when bought. Wanted private

I did not register wanted it as private property.can man own private property? Thanks

Barbara Billiot Stage
Barbara Billiot Stage answered on Apr 5, 2021

I'm not sure if I completely understand your question. Whether or not you record a deed or notify the property appraiser's office of your ownership does not make property "private" as in no one can trespass. If you mean you do not want anyone to know you own the property you... Read more »

2 Answers | Asked in Real Estate Law and Tax Law for Michigan on
Q: I'm listed as a resident at an address I've never lived at.

I just did a search online and found that I'm listed as a resident at an address in Michigan. But - here's the fly in the ointment - I've never lived in Michigan. I've never even lived in the USA (I was born in and have been a citizen/resident of another country for my entire... Read more »

David Soble
David Soble answered on Apr 5, 2021

You can try to record an Affidavit of Suspected Fraud related to the property with the Register of Deeds. It would put anyone who was interested in the property on notice that you have no relationship to the home. Additionally, if you have a credit report, notify the credit reporting agencies that... Read more »

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1 Answer | Asked in Tax Law for Texas on
Q: Tax evasion or tax avoidance?

I have paid to have a nonprofit created for me from a trusted source. If it was formed incorrectly and I get audited for not paying the correct amount of taxes... Would this be considered tax evasion(jail time?) or just tax avoidance (legal, so just an extra fine)

Daniel W. Layton
Daniel W. Layton answered on Mar 31, 2021

It isn't possible to answer your question based on the limited information provided and, because of the sensitive nature, I would recommend having a confidential consultation with an attorney subject to attorney-client privilege. When something is done wrong on your tax return, it not lawful... Read more »

1 Answer | Asked in Divorce and Tax Law for Wisconsin on
Q: Do refundable tax credits (e.g. EIC) or the ongoing stimulus credits related to COVID-19 count as gross income in WI?

DCF 150 has a broad definition of income and it's not clear if these would count as gross income for either the calculation of child support or any existing order that requires a reconciliation of support based on gross income.

David N. Iancu
David N. Iancu answered on Mar 29, 2021

I do not believe tax refunds or federal stimulus payments would count as "income" for support calcuation purposes. Government benefits like food stamps, daycare assitsance, etc. typically do not either. This obviously isn't settled law as the stimulus payments are novel.

1 Answer | Asked in Tax Law for Florida on
Q: Past 5 yr not paid taxes Employer wants me on the books what sort of problems will this cause

For the past 5 yrs have not been on the books now they want me on payroll what sort of trouble would this cause

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Mar 26, 2021

Who knows? All you need to decide is whether you want a legitimate job or not.

1 Answer | Asked in Tax Law and Identity Theft for Arkansas on
Q: My sister did Instacart under my name after they kicked her off it. Instacart drivers are considered independent

contractors. I just received a 1099 for her earnings (approx $17,000) this additional income, put me over $50,000, disqualified me for the EIC, the addt'l CTC, reduced my CTC & will reduce my tax return by about $7,000. Is there anything she or I can do to get the 1099 transferred to her,... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Mar 26, 2021

Based on your story, IMO you and your sister have committed a fraudulent act--and are about to make it worse. Advice: Do not make it worse by involving the IRS. If you are unhappy that your sister got $17,000 tax free while leaving you holding the bag and making you pay an additional $7,000 to the... Read more »

1 Answer | Asked in Business Formation, Business Law and Tax Law for California on
Q: I have a vending machine business, can I have freelancers?

I know there some ab 5 law now but I want to hire freelancers to stock my machines. I will purchase the food products for the machines. They will stock the machines once or twice a week. Meaning 1- 2 hours a week. I am giving them a set payment amount for each month they help me. Do I have to... Read more »

Julie King
Julie King answered on Mar 21, 2021

The chances are very high that those workers would be classified as employees. In today’s world, it is harder than ever to successfully classify a worker as an independent contractor. But a lawyer would need to ask a lot of questions before giving an opinion. For example, will the workers have... Read more »

1 Answer | Asked in Tax Law for California on
Q: Me and my wife is not divorced or legally separated she is kept all the stimulus checks is there anything I do

as married and I'm always ahead of household she always thinks you can just do whatever she wants and get away with it all I want is what is mine my portion not the kids and not hers what can I do to get my portion

Maurice Mandel II
Maurice Mandel II answered on Mar 19, 2021

Take her to Small Claims court.

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1 Answer | Asked in Tax Law and Real Estate Law for California on
Q: Can anyone pay the taxes on a property that has not been lived in for several years and gain rights to the property?

If a property tax becomes delinquent on a property which I do not own and which is uninhabited, and I pay that tax, do I then have a right to entry on to that property?

Maurice Mandel II
Maurice Mandel II answered on Mar 19, 2021

Not unless you buy the property at a tax lien sale. You should contact a local RE attorney.

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1 Answer | Asked in Tax Law for California on
Q: Started a new religion; got an EIN. Should I apply for tax exemption in the (no members) beginning or wait?

I'm thinking I should apply for the 501(c) (3) status in the very beginning with no members or place to "worship" because in the beginning the IRS won't see me as anything that could be taking monies they could otherwise be taxing.

For example, if I'm just... Read more »

Maurice Mandel II
Maurice Mandel II answered on Mar 19, 2021

The earlier the better. Then you have time to work out any snags.

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1 Answer | Asked in Criminal Law and Tax Law for California on
Q: My ex spouse used my social security number on her 1099s. What can I do?

My ex spouse receives payments from a company that pays both of us. I just learned that she used my social security number for her payments. We are currently in court for another matter. Through discovery I was able to see years of her 1099s. All of hers have my social security number instead of... Read more »

Dale S. Gribow
Dale S. Gribow answered on Mar 18, 2021

if you are in court you must have a lawyer.

direct that question to him/her.

if you have kids, you probably want to consider carefully whether you want any potential criminal action against her.

1 Answer | Asked in Business Law and Tax Law for Minnesota on
Q: What are the steps to establishing a small business in Minnesota?

The business would be massage therapy and I would be renting space from a salon in town. I want to make sure I am establishing the business correctly and charging the right amounts for tax purposes and filing my taxes appropriately.

William Bailey
William Bailey answered on Mar 17, 2021

You should consult directly with a business law firm as this is much more complicated than can be fully answered on an internet forum like this.

1 Answer | Asked in Family Law, Tax Law and Child Support for Michigan on
Q: My children's father the non-custodial parent filed for my children at tax time even though they don't live with him

I'm worried he's going to get all of their stimulus money plus the child tax credit that will soon to come out every month he owes at least 5,000 in back child support all three of our children live with me full time I'm worried that he's going to be getting all of their money... Read more »

Brent T. Geers
Brent T. Geers answered on Mar 17, 2021

Is there a child support order? If so, you may need to address some of this with the friend of the court. You may also need to make a motion in court about the stimulus money and to make clear who can claim the children for taxes.

1 Answer | Asked in Tax Law for Maryland on
Q: Hi Under the new gift tax laws 2018-2025 with a cap of 11.57 million lifetime gift exclusion amount...

If an estate is worth 10 million now, would it be better to gift half of the estate to avoid the 47% estate tax on anything over 5 million which the new law reverts to in 2026...or possibly sooner

Mark Oakley
Mark Oakley answered on Mar 16, 2021

Treasury Decision 9884 contains the final regulations on this issue, and include a special rule allowing the estate to figure its estate tax credit using the higher of the basic exclusion amount (BEA) applicable to gifts made during life or the BEA applicable on the date of death. So, if you give... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: My mother and I own a house. She wants to sell. I plan not to take any of the proceeds. Do I have a tax liability?
Mark Oakley
Mark Oakley answered on Mar 14, 2021

First, understand what is taxed and what portion of a taxable gain may be exempt from taxation: You can sell your primary residence exempt of capital gains taxes on the first $250,000 if you are single, and $500,000 if married and the property is jointly owed. This exemption is only allowable once... Read more »

1 Answer | Asked in Real Estate Law and Tax Law for Florida on
Q: can real estate, which is part of a trust, be transferred out of the trust to the surviving member/co-owner (my mom)?

Mom and dad had a trust

Included in the trust is a farm/land/equipment etc.

Dad has died and mom wants the farm out of the trust, transferred to her name, and then moved from her name to the family LLC which is already setup for the farm

We have already moved two other... Read more »

Terrence H Thorgaard
Terrence H Thorgaard answered on Mar 11, 2021

It would depend on the wording of the trust document. And just because you conveyed property from the trust to the LLC by a quitclaim deed doesn't mean that the LLC has good title.

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