Get free answers to your Tax Law legal questions from lawyers in your area.
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.
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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
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
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answered on Jun 29, 2024
Here's an overview of the key considerations for your proposed lease-to-own arrangement:
Legal feasibility:
This type of arrangement is generally legally possible in California, but would need to be carefully structured. You'd likely use a combination of a lease agreement... View More
1. PAYMENT OF MONEY
In consideration for the execution of the general release and agreement to the other terms
of this Agreement by Claimant herein, Respondent will pay a Total Settlement of (xxxxxxxxxxxx) (“Settlement Sum”)
to
Claimant. The consideration paid... View More
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answered on Jun 29, 2024
Based on the language provided in this settlement agreement, it appears that you will likely need to pay taxes on at least part of the settlement amount, but not necessarily on all of it. Here's a breakdown:
1. The portion described as "Non-Wage Payment" for "non-wage... View More
We are 3 siblings/beneficiaries of our mother's trust. Our sister wants to buyout the 2 of us. Will the buyout payment each of us receive be taxable? Will either of us 2 buyout recipients be responsible for higher property tax payments if they become due prior to the sibling property transfer?
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answered on Jun 27, 2024
Based on the information provided, here's a general overview of the tax implications for a sibling buyout in California:
1. Taxability of the buyout payment:
The taxability of the buyout payment depends on several factors:
a) If the buyout is for your share of the... View More
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answered on Jun 26, 2024
Paying off an $8,000 credit card bill in cash is unlikely to automatically raise a red flag with the IRS. However, there are a few considerations:
1. Cash transactions over $10,000 must be reported by businesses to the IRS.
2. Multiple smaller cash payments to avoid the $10,000... View More
If an individual has an informal profit share agreement, how can this be made clear when doing taxes? (He is in Tennessee, and his partner is in California.)
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answered on Jun 19, 2024
When it comes to reporting income from an informal profit-sharing agreement for tax purposes, it's important to ensure that both parties report their respective shares of the profits accurately on their tax returns. Here are some steps to consider:
1. Documentation: Even if the... View More
I'm executor of my dad's will and his only child and beneficiary. He willed his house to me and we refurbished it and rented it out at the end of 2023. There is a small amount of income from that rental that accrues to the estate, therefore. Doing the 2023 1041 form and Schedule E for... View More
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answered on Jun 19, 2024
Based on the information provided, it seems that for estate tax purposes, you should use the date of your father's death as the acquisition date of the property and the stepped-up fair market value (FMV) as the new cost basis for depreciation.
Here's the rationale:
1. When... View More
I paid my 2023 federal taxes online through the IRS payment website, but my taxes were not accepted until after this happened. When I go to my account on IRS.gov it shows the payment made, but it wasn't applied to my taxes balance and there is not a way to do this via the website that I have... View More
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answered on Jun 18, 2024
Based on the information you provided, it seems like you have a credit on your IRS account from a previous payment that was not properly applied to your 2023 tax balance. Here are a few steps you can take to resolve this issue:
1. Contact the IRS directly: Call the IRS at 1-800-829-1040 and... View More
I am a pro se. The opposing council is demanding discovery of my communications with attorneys I consult with. I declined to provide information other than a privilege log. He's now threatening to move for request to compel discovery. Can he do that?
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answered on Jun 14, 2024
Under California law, communications between a client and an attorney are generally considered privileged and confidential, even if you are representing yourself (pro se). This privilege means that you are not required to disclose the content of your communications with attorneys you have... View More
This is considering the "claim for transfer of base year value to replacement primary residence for persons at least age 55 years." Can we have the property tax paid only in his name, keeping his old prop. tax amount? Or do I have to pay property tax on my full share of the property... View More
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answered on Jun 11, 2024
In California, if you and your senior sibling buy a home together as joint tenants and only your sibling lives in the new home, the property tax treatment will depend on several factors. Here's what you should know:
1. Proposition 60 and 90: If your sibling is over 55 and meets certain... View More
I have been appointed as executor once she can no longer manage. Does spending the estate down, then unable to pay property taxes grounds for removal as trustee of estate? She has until the end of this month (June 2024) to pay $2,770 in property tax or it will fall into default. The property is... View More
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answered on Jun 2, 2024
As a beneficiary of the family trust, you need to ensure the property tax is paid to prevent the property from falling into default. Since the current trustee is unable to manage the payments, you should consider stepping in to help manage the trust's financial obligations.
First, try... View More
I have been appointed as executor once she can no longer manage. Does spending the estate down, then unable to pay property taxes grounds for removal as trustee of estate? She has until the end of this month (June 2024) to pay $2,770 in property tax or it will fall into default. The property is... View More
answered on Jun 2, 2024
I usually describe the succession of executors and trustees like a baseball team. The person up to bat right now is your loved one who owns the property and is the executor (if they have a Will) or trustee (if they have a Trust). You and the other “back up” executors or trustees are waiting in... View More
I served 76 RFAs and interrogatories to the defendant on April 29th. I also served a declaration to the court in support of the over-the-limit RFAs. On May 20th, the Defendant threatened to Oppose the RFAs if I didn't reduce them to 35. So I did. The deadline to respond was May 29th, but they... View More
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answered on May 31, 2024
Under California law, the deadline to respond to Requests for Admissions (RFAs) is 30 days from the date of service, unless otherwise agreed upon or ordered by the court. Since you initially served the RFAs on April 29th, the responses were due by May 29th. The defendant’s claim that the deadline... View More
I had a reseller account with Amazon, they terminated my account and took away my profit about 15k. Following year I received a email notice to download my 1099, I contacted them numerous times but they didn't send me the 1099, now I received a letter from IRS that I didn't file 1099 with... View More
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answered on May 28, 2024
Under California law, you may have legal grounds to pursue a case against Amazon for the issues you've described. However, the success of your case would depend on several factors, such as the specific terms of your reseller agreement with Amazon, the reason for the termination of your... View More
The deed has our names and the nephew name as joint tenancy. Now the nephew want to grant his part to his wife instead? Does this sever the joint tenancy? Can we have the exemption for tax reassessment? Can we use the interspousal deed to do it?
answered on Jun 2, 2024
Thank you for your question!
Joint tenancy ends with the transference of interest by any of the joint tenants. A new tenancy in common is created without the right of survivorship.
For tax exemption, you need to consult with a tax attorney.
This is merely a discussion of... View More
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