Tax Law Questions & Answers by State
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Tax Law Questions & Answers
Q: Paid my acct $1500, owe $900 balance. He refuses to Efile until I pay him in full. Can I mail in without his signature
Eric Steven Day's answer
You can sign the return and send it in but you are still legally obligated to pay him for the services he provided.
You can sign the return and send it in but you are still legally obligated to pay him for the services he provided.
Q: I have a land contracted house that my mom purchased 8 yrs ago. If we sell will she have to pay capital gains tax?
Joseph Jaap's answer
Whether there is a capital gain, and whether she pays tax on it, depends on all the facts and her financial circumstances. She should consult a tax professional who can review the facts and advise her.
Whether there is a capital gain, and whether she pays tax on it, depends on all the facts and her financial circumstances. She should consult a tax professional who can review the facts and advise her.
Q: I am looking for a lawyer who can help with a transient tax situation I have with the City of Oceanside.
David S. Greenberg's answer
Although I am in private practice now with regard to tax matters, I at one time represented the City of Oceanside.
I invite you to contact my office to schedule a free consultation . The meeting will afford the opportunity to discuss how my services may be of substantial benefit to you.
Although I am in private practice now with regard to tax matters, I at one time represented the City of Oceanside.
I invite you to contact my office to schedule a free consultation . The meeting will afford the opportunity to discuss how my services may be of substantial benefit to you.
Q: As an independent contractor, can my employer require that I pursue continuing education "training?"
V. Jonas Urba's answer
Firstly, are you sure that you are an "independent contractor"? How much control does your employer exercise over you? You may actually be an employee. And if you are not paid at least minimum wages, after accounting for the cost of training, all the hours you are required to be available for or work, etc... that might be unlawful?
Independent contractor status is not determined by or subject exclusively to the language of your contract. It's determined by the IRS for tax purposes, by...
Firstly, are you sure that you are an "independent contractor"? How much control does your employer exercise over you? You may actually be an employee. And if you are not paid at least minimum wages, after accounting for the cost of training, all the hours you are required to be available for or work, etc... that might be unlawful?
Independent contractor status is not determined by or subject exclusively to the language of your contract. It's determined by the IRS for tax purposes, by...
Q: Should I let IRS debt expire?
Linda Simmons Campbell's answer
It is impossible to answer the question with the limited facts you have provided. If, for example, you are eligible for currently not collectible status, then that may be the best option for you since there is limited time left on the statute of limitations. It may not be an option to just let the debt expire. If you are working or receiving some type of income that the IRS can levy, they likely at this point have the right to do so and likely will if they can.
I suggest calling the...
It is impossible to answer the question with the limited facts you have provided. If, for example, you are eligible for currently not collectible status, then that may be the best option for you since there is limited time left on the statute of limitations. It may not be an option to just let the debt expire. If you are working or receiving some type of income that the IRS can levy, they likely at this point have the right to do so and likely will if they can.
I suggest calling the...
Q: Today I received a Letter from the city of Lansing, Income tax ordinance, section 99,
D. Mathew Blackburn's answer
If you believe the notices are in error you would need to respond and provide evidence that the assessment is incorrect.
If you believe the notices are in error you would need to respond and provide evidence that the assessment is incorrect.
Q: Can I live in a foreclosure house jointly bought by me and my checkbook self-directed IRA during renovation?
Eric Steven Day's answer
You cannot live in the house. Anything that you use IRA money to buy cannot be for the benefit of the IRA member. You can manage the LLC that you set up, but you cannot work on the house yourself nor live in it during renovation. That is a prohibited transaction and will cause the IRS to potentially shut down your IRA
You cannot live in the house. Anything that you use IRA money to buy cannot be for the benefit of the IRA member. You can manage the LLC that you set up, but you cannot work on the house yourself nor live in it during renovation. That is a prohibited transaction and will cause the IRS to potentially shut down your IRA
Q: I got billed for CA LLC taxes that I do not owe.
David S. Greenberg's answer
The FTB Taxpayer Advocate can provide you with assistance in resolving the issue.
Contact information appears at:
https://www.ftb.ca.gov/Contact_Us/tpa_problems.asp
The FTB Taxpayer Advocate can provide you with assistance in resolving the issue.
Contact information appears at:
https://www.ftb.ca.gov/Contact_Us/tpa_problems.asp
Q: We want to use funds from my IRA to pay a $5000 medical bill. What are the tax consequences
Eric Steven Day's answer
If you distribute from your IRA to pay medical bills, the distribution would be considered taxable income and be subject to income taxes at your normal income tax rate. You don't have to pay a 10% penalty for the early withdrawal once you have reached the age of 59 1/2. However, even if you were going to be penalized for the withdrawal, there is also an exemption from the 10% penalty if you distribute from the IRA for medical purposes. It would be important to know whether the IRA was a...
If you distribute from your IRA to pay medical bills, the distribution would be considered taxable income and be subject to income taxes at your normal income tax rate. You don't have to pay a 10% penalty for the early withdrawal once you have reached the age of 59 1/2. However, even if you were going to be penalized for the withdrawal, there is also an exemption from the 10% penalty if you distribute from the IRA for medical purposes. It would be important to know whether the IRA was a...
Q: If father is co-signer in car lease will his prop be st risk if a fed tax lien is placed on me during off in comp proces
Eric Steven Day's answer
The IRS will place liens on all property owned by the tax debtor. Therefore, if your father does not owe the IRS money and has other property, that other property will not be at risk of having a lien filed on it, nor will they be able to levy or seize that property. The vehicle in which your name is attached to the title will be subject to any liens and levys because you are the ultimate tax debtor.
The IRS will place liens on all property owned by the tax debtor. Therefore, if your father does not owe the IRS money and has other property, that other property will not be at risk of having a lien filed on it, nor will they be able to levy or seize that property. The vehicle in which your name is attached to the title will be subject to any liens and levys because you are the ultimate tax debtor.
Q: My grandmother wants to sign the deed for her property over to me in Puerto Rico. what complications may I face?
1 Answer
| Asked
in
Mergers & Acquisitions, Real Estate Law, Tax Law and Estate Planning
for
Puerto Rico
on
Answered on Jun 11, 2018
Answered on Jun 11, 2018
Nelson Jose Francisco Alvarez-Aponte's answer
Good evening and thank you for using JUSTIA. There are various questions you need to be answered before you accept such as is there a mortgage, is this her only property, are there any children (future inheritors), is it tax free, any liens, ect. The first thing you should do is have a title search done to find answers to your questions. Once this has been done you will then know the economical burden if any and if the deed is free and clear of any claim. The next step is to verify the future...
Good evening and thank you for using JUSTIA. There are various questions you need to be answered before you accept such as is there a mortgage, is this her only property, are there any children (future inheritors), is it tax free, any liens, ect. The first thing you should do is have a title search done to find answers to your questions. Once this has been done you will then know the economical burden if any and if the deed is free and clear of any claim. The next step is to verify the future...
Q: Can I deduct child support payments on my taxes?
Linda Simmons Campbell's answer
You cannot deduct child support payments. You can only deduct alimony, which is in turn taxable to the person receiving the alimony. I have seen some divorce agreements set up as unallocated alimony and child support. That means that you may be able to deduct almost all of the payments as alimony, however, this is rare.
You cannot deduct child support payments. You can only deduct alimony, which is in turn taxable to the person receiving the alimony. I have seen some divorce agreements set up as unallocated alimony and child support. That means that you may be able to deduct almost all of the payments as alimony, however, this is rare.
Q: Woman sells property, paid taxes, wishes to divide proceeds, do children owe tax on that
Eric Steven Day's answer
If she is simply gifting the proceeds to the children they would not have to pay tax on the proceeds. If her name was on the deed and she paid the taxes associated with the sale, she can distribute when she feels. She may however have to file another tax return if the gifted amount is more than $14,000 each child.
If she is simply gifting the proceeds to the children they would not have to pay tax on the proceeds. If her name was on the deed and she paid the taxes associated with the sale, she can distribute when she feels. She may however have to file another tax return if the gifted amount is more than $14,000 each child.
Q: Need help figuring out 401k distribution options ( separated from work age 55)?
Eric Steven Day's answer
It just depends on what type of work you are doing now. For instance, if you are working for another company, you might roll it into their 401k plan. If you are in retirement, the IRA might be a good option because you are just waiting on distributions. If you are running your own business, you may consider starting a management company in the form of a C Corporation and sponsoring a solo 401k with that Corporation. This will allow you to contribute much more money and use the capital in...
It just depends on what type of work you are doing now. For instance, if you are working for another company, you might roll it into their 401k plan. If you are in retirement, the IRA might be a good option because you are just waiting on distributions. If you are running your own business, you may consider starting a management company in the form of a C Corporation and sponsoring a solo 401k with that Corporation. This will allow you to contribute much more money and use the capital in...
Q: Which people do not have to file income taxes?
Terrence H Thorgaard's answer
People who don't have taxable income above a certain amount don't have to file.
People who don't have taxable income above a certain amount don't have to file.
Q: I am on social security (age -86), in CA and will be receiving a monetary inheritance from Norway. Do I owe tax?
David S. Greenberg's answer
Funds that you receive as an inheritance do not constitute taxable income.
Funds that you receive as an inheritance do not constitute taxable income.
Q: Can "Entertainment Inc." Purchase property? Multiple Properties?
2 Answers
| Asked
in
Entertainment / Sports, Real Estate Law and Tax Law
for
Arizona
on
Answered on Jun 8, 2018
Answered on Jun 8, 2018
Peter H. Westby's answer
Provided your corporation's governing documents allow it, your corporation can purchase real estate. Check with a lawyer in each state where you plan to purchase property. You may need to register your corporation as a foreign corporation doing business in each state. Your local lawyer will know.
Provided your corporation's governing documents allow it, your corporation can purchase real estate. Check with a lawyer in each state where you plan to purchase property. You may need to register your corporation as a foreign corporation doing business in each state. Your local lawyer will know.
Q: Do I pay incomes taxes on "criminal restitution"?
Eric Steven Day's answer
Yes, you would have to pay taxes on the restitution you received. Any accession to wealth is taxable unless that judgment is in the form of physical pain and suffering.
Yes, you would have to pay taxes on the restitution you received. Any accession to wealth is taxable unless that judgment is in the form of physical pain and suffering.
Q: IRS tax question. The CSED for one of my tax years is coming up this July. Would getting a 120 day pay in full be good.
David S. Greenberg's answer
If you can obtain the 120 day hold, it will not impact the running of the CSED.
It's therefore quite appropriate to see if you can get the IRS to agree to the hold.
If you can obtain the 120 day hold, it will not impact the running of the CSED.
It's therefore quite appropriate to see if you can get the IRS to agree to the hold.
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