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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 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 am considering being added to my brother's home title and mortgage for a property located in Fremont, California. We plan to share financial responsibility for the mortgage equally (50-50). Will this trigger a gift tax for my brother? Additionally, are there any complications in getting this... View More
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answered on Mar 24, 2025
Yes, being added you to your brother's home title will likely trigger a gift tax for your brother, as it constitutes a transfer of property interest. The value of the gift will be based on the fair market value of the 50% interest in the property. If the value exceeds the annual exclusion... View More
I have been receiving alimony for 12 years following a divorce agreement that stated it was for life since I was a stay-at-home mom for 27 years. My ex-spouse is retiring and wants to terminate alimony payments. We discussed a lump sum payment to end alimony, but the amount offered does not account... View More
answered on Mar 22, 2025
You keep using words like "divorce", "agreement". and "alimony". You then say there is no "court involvement" Is there a Judgment? A court order re support? Or not? A court order/Judgment is enforceable until it is modified or terminated by another... View More
I've been using an accountant recommended by my ex-wife since 2014 to handle the taxes of my small business, a C Corp/Electrical Contractor. After recently filing an extension for 2023, she suddenly informed me she's too busy and I should find another accountant. I suspect financial... View More
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answered on Mar 22, 2025
First, I would suggest gathering all the documentation you have—tax returns, bank statements, invoices, payroll records, and anything else tied to your Corp’s finances since 2014. Make digital backups and store them somewhere safe.
Next, find a new independent accountant. A forensic... View More
My mother passed away in November 2023, and her will specified that her house would be split 50/50 between my sister and me. As she did not have a living trust, we went through the probate process and sold the house in September 2024. The probate process is not officially closed because the final... View More
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answered on Mar 16, 2025
If the estate sold the house then the sale is reported on the 2024 estate tax return.
If you and your sister sold the house then the sale is reported on your 2024 income tax return and her 2024 income tax return.
Does my ex have to continue paying alimony if he lost his job but has several million in stocks, savings, etc., while I make $16,000 per month? The divorce and alimony agreement were finalized in California.
answered on Mar 14, 2025
A court order is a court order and must be complied with until it is modified or otherwise replaced with a new court order. When someone who is subject to a support order loses their job, it is their burden to go to court to get relief; to get a new court order that reflects their current... View More
I am inheriting money and would like to help my daughter by putting money towards her mortgage. However, my sister mentioned that someone in financial aid said I might not be able to gift my money away. Are there legal restrictions that could prevent me from using my inheritance to assist my... View More
answered on Feb 18, 2025
This is a tax question. Gifts of cash can trigger a gift tax and require the filing of a gift tax return according to the IRS website. One possibly end around may be for the inheritance to pass directly through to your daughter. I would consult with a tax adviser and the estate attorney regarding... View More
In 2013 the tax authority began garnishing my paycheck for ‘unpaid income taxes’ that were paid by check TWICE. They continued through 2015, stopping at just over $25,000.
I called them and they stated that they have no record that i even filed for those years. They said dont worry... View More
answered on Jan 17, 2025
Look for a tax lawyer who is also a CPA. You may also need to work with a good civil rights lawyer, if you can't find a law firm which has both.
However, I should warn you that the statute of limitations has probably already expired, because you say that the garnishments ended in... View More
scorp has been suspended. I want to completely terminate the scorp, but all fees must be paid to do this. FTB is threatening legal action against the s corp. what happens if they proceed? am I personally liable in any way? I only own a couple cheap cars. no real estate. no $ in bank. all credit... View More
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answered on Jan 14, 2025
The S corp is a separate legal entity, so its debts typically belong to the corporation. Since your S corp is suspended and likely has minimal to no assets, FTB might find it challenging to collect on the debt through typical means. However, legal actions can complicate the process of formally... View More
They filled my taxes without my permission as a business owner who lost $108
answered on Dec 6, 2024
You have a few issues here. First, and maybe most important is it's generally illegal to sign another's original tax return without proper authorization. You may wish to contact the IRS and the identity theft department regarding another filing your tax return, or speak to an attorney... View More
house. Can I avoid property tax? Both of our name is on the grant deed.
answered on Dec 3, 2024
Unfortunately, almost all exchanges of real estate in California will cause the property tax rate to increase. There are VERY FEW exceptions (one such exception applies when a person transfers real estate to their spouse.) There are no exceptions for property transfers to siblings, cousins,... View More
Living trust has stocks worth 1.5 million. The financial institution wants to divide all stocks and move into beneficiaries account. When beneficiaries sell stock do they pay capital gains from stocks original purpose or from date received forward? Or is it better to sell all stocks and distribute... View More
answered on Nov 4, 2024
The legal term “Trustee” is the title of the person with the right to handle assets in the trust and who must fulfill all the legal duties associated with that right. The word “Co-Trustee” means there are two people serving together as Trustees. They may have to do everything together or... View More
My wife and I were 25% each and my sister 50% owner's and officer's. Couldn't afford business BK, filed personal CH 7. CDTFA is liening my home for the debt.
answered on Sep 19, 2024
A person may be held personally liable for a business’ unpaid sales tax if the elements of California Revenue & Taxation Code (RTC) § 6829 and Regulation § 1702 are met. Section 6829 requires that the person subject to dual responsibility for the taxes is both a “responsible person” and... View More
My wife and I were 25% each and my sister 50% owner's and officer's. Couldn't afford business BK, filed personal CH 7. CDTFA is liening my home for the debt.
answered on Sep 19, 2024
You can be held liable for the tax debt, and it appears that the CDTFA may have already made a dual determination if they placed a lien on your house.
A dual determination holds a person liable for a tax obligation shared with another, here, the corporation.
Under Revenue and... View More
my Brother sister and I inherited a house from our dad who passed away. He did not live in that house as his primary residence. We are selling the house. It is in escrow. Do we have to pay California tax on the sales price?
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answered on Jul 26, 2024
When you sell an inherited house in California, the key factor for tax purposes is the stepped-up basis. The stepped-up basis is the property's fair market value at the date of your father's death. This value is used to determine the gain or loss when you sell the house.
If the... View More
Essentially I did work at a company and got paid by the company. I also want to give a gift to a friend. Would it raise any flags that the friend I want to give the gift to is also the owner of the company I worked for?
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answered on Jul 2, 2024
To answer this question, we need to consider several aspects of tax law and potential implications. Here's a breakdown of the key points:
1. Legitimate income:
First, it's important that the paycheck you received for work at your friend's company is legitimate income.... View More
Hello,
I need advice on a potential lease-to-own arrangement. I invested in a person who can’t pay me back. He owns several properties but has low equity (around 25%). I’m considering renting the properties from him, making the mortgage payments directly to the bank, and taking... View More
answered on Jun 29, 2024
Thank you for your question!
You need an attorney to draft a lease agreement for you to protect your rights. If you are paying directly to the bank, you do not have to worry about the landlord's defaults.
You need to record the lease in the country recorder to protect your... View More
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