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California Tax Law Questions & Answers
1 Answer | Asked in Elder Law, Estate Planning, Real Estate Law and Tax Law for California on
Q: CA Prop 19: After parent-child transfer, if child uses home as principal res. for years, is it reassessed if he leaves?

I have a question about CA Prop 19 that I haven’t seen addressed anywhere yet, and was hoping someone from this Q&A forum might have an answer.

Prop 19 for the most part repeals Prop 58, which allowed parents to transfer a house to their children, without the house being reassessed... Read more »

Zaher Fallahi
Zaher Fallahi answered on Oct 25, 2020

Congratulation, you sound like a tax pro and seek speculation on I believe a proposed new law. That may be tough one. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).

Disclaimer: No solicitation is intended by answering general questions in this forum. This is for information purposes,...
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1 Answer | Asked in Business Law and Tax Law for California on
Q: If i invest 20k in a company LLC partnership Sub S Filing and and i enjoy 60 % interest in said company.

The Company suffers a 100K loss and my share means 60k loss is past to me... would I be affecting my personal AGI by 20k or 60k? If I had 50k actual income would my AGI tax liability be zero 0 or would it be 30k??? Thank you for this service and your input.

Zaher Fallahi
Zaher Fallahi answered on Oct 25, 2020

You should consult a tax attorney to advise you on the LLC being taxed as an S corporation with the LLC terms and potential legal peril of an S Corp having two types of stock. Generally, your loss is limited to your basis. I hope this helps. Good luck. Zaher Fallahi, Esq, CPA (CA &D.C.).... Read more »

2 Answers | Asked in Real Estate Law and Tax Law for California on
Q: Would my father be responsible for Capital Gains tax if he were to sell his House?

My dad owns his house in Cupertino, it was reappraised after my mom passed a little over a year ago for 2.5 million. If he were to sell it today for say 3.0 million, would he need to pay Capital Gains? I was under the impression, that from the 2.5 appraisal and 250K exclusion for my dad and 250k... Read more »

Maurice Mandel II
Maurice Mandel II answered on Oct 19, 2020

Tax questions are very complex and a public forum such as this is not the place to find an answer to rely on. You need to take all the information and documents to a tax attorney or tax accountant for an opinion. There is also something called a 1031 exchange, which you can transfer the excess... Read more »

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3 Answers | Asked in Estate Planning, Real Estate Law, Tax Law and Probate for California on
Q: If I inherited my father's house after he passes, and I sell it, do I get hit with capital gains tax?

My father owns a house outright in California. I am the only child, and the house is in trust to be inherited down to me. My mother passed 2 years ago. If I in turn sell the house after my dad passes, do I get hit with capital gains tax?

Sally Bergman
Sally Bergman answered on Oct 18, 2020

When your mother passed two years ago, the property received a "step-up" in basis to market value at that time. When your father dies, the property will get a second step-up in basis to the then market value. This assumes the property was community property and that the trust did not... Read more »

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2 Answers | Asked in Tax Law and Real Estate Law for California on
Q: capital gains tax

My dad is 83 owns a house outright here in california. My mother passed 2 years ago. The house is in trust to me (only son) if he were to pass. If he does pass, and the house is inherited by me, and I sell it after that, do I get hit with capital gains tax?

David S. Greenberg
David S. Greenberg answered on Oct 18, 2020

When your dad passes, the basis is stepped up to then current market value. If there is no increase in value by the time you sell it, there will be no capital gains tax exposure.

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3 Answers | Asked in Legal Malpractice and Tax Law for California on
Q: If I am a Personal Injury Lawyer and win a case do I pay taxes on the money I got from the case

I am in California

Haleh Shekarchian
Haleh Shekarchian answered on Oct 17, 2020

Taxes would have to be paid on attorney’s fees the attorney is charging since that is an earring.

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1 Answer | Asked in Tax Law for California on
Q: Recently, I received in my mailbox a sizable check from a class settlement of a joint car purchase made many years ago.

Please delete. Thanks

Maurice Mandel II
Maurice Mandel II answered on Sep 12, 2020

Very good to see that you are planning ahead on this. My question is why is this taxable in the first instance, if this was for a recovery in litigation over a defective vehicle? But apparently you satisfied yourself on that issue. Why go with a cashier's check? You could have a personal... Read more »

1 Answer | Asked in Banking, Business Law and Tax Law for California on
Q: Federal & State taxes paid monthly or annually? And finally, the funds collected in crowdfunding services include taxes?
Maurice Mandel II
Maurice Mandel II answered on Sep 8, 2020

Yes to Question 1. Look at the contract for Q2. You used up all your questions. Taxes? Which Taxes? Sales Tax? Property Tax? Income tax? Employment Tax? Perhaps you need to discuss your matters with a Tax attorney or an accountant.

Justia disclaimers below, incorporated herein.

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for California on
Q: Prop 13 question regarding selling my Father's house I inherited.

When my dad passes, and I inherit his house, I have been informed that under Prop 58 I can keep the Prop 13 benefit that my dad has. However, if I were to sell the house, can I therefore transfer that Prop 13 benefit to another residence in a reciprocal county? If so, do I need to be a resident... Read more »

James Edward Berge
James Edward Berge answered on Sep 2, 2020

You're referring to California Prop 60 and Prop 90. Here's a link to the California Board of Equalization website which explains the requirements of the law: https://www.boe.ca.gov/proptaxes/prop60-90_55over.htm

1 Answer | Asked in Estate Planning and Tax Law for California on
Q: If my dad passes, and house is in trust to me, can i resume the prop 13 property taxes?

My father owns his house outright, and wants to put the house in my name now. First, is this a good idea? The house is in a trust to me in case he passes. Second, if and when I become the owner of the house, can I resume the prop 13 taxes? If I can resume those prop 13 taxes, if I were to sell... Read more »

Jeffrey Louis Gaffney
Jeffrey Louis Gaffney answered on Sep 2, 2020

Terrible idea!

If you inherit the house instead of having it gifted, you save a ton of money on taxes. If you inherit then your tax basis is stepped up to the current value; if dad gifts it then you also get his tax basis. That means a huge difference in the taxable gain when you sell....
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3 Answers | Asked in Consumer Law and Tax Law for California on
Q: Can I get around the California car use tax by gifting the car to a relative and having them gift it back to me after?

I bought a used car back in May, when I lived in a different state. I moved to California now and noticed they charge a use tax (the difference in sales tax paid at my original state and the CA sales tax) if I bought the car within the past year of moving to California. Is it possible to circumvent... Read more »

William John Light
William John Light answered on Aug 31, 2020

Anything done fraudulently is a problem. Tax fraud is a crime. If you are caught, it's a problem.

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2 Answers | Asked in Civil Litigation, Employment Law, Tax Law and Small Claims for California on
Q: Employer hasn't paid full wages for a year. Recently, business became LLC. Can employee get past wages still?

Employee was working "under the table" but is still paid by company check at times. July 2019 to Jan. 2020 unpaid hours are 336.75 hours. Employers reason for not paying is he is waiting for final job payment. In good faith employee accepted excuse. Employer has given token payment... Read more »

Donald M Barker
Donald M Barker answered on Aug 18, 2020

Original employer, whether a Corp, LLC, sole proprietorship, or partnership is always liable for wages, even if company dissolves or goes out of business--then owner or shareholders can be liable.

If a business "converts" from sole proprietorship to Corp, LLC etc., the...
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1 Answer | Asked in Estate Planning, Real Estate Law, Tax Law and Public Benefits for California on
Q: Can the state/government take a house that was left to me by parents if I've collected welfare?

My parents are planning to make a will but unsure if state/government will be able to seize it after its in my name because ive collected welfare (cash, food stamps, medical)

James Edward Berge
James Edward Berge answered on Aug 18, 2020

No. If you receive Medi-Cal, SSI, TANF, SSDI, VA or IHSS benefits, a house in which you reside is considered a non-countable resource in your benefits determination. If you receive Section 8 housing however, a house will jeopardize those benefits. Food stamps are based on income, not assets,... Read more »

5 Answers | Asked in Bankruptcy and Tax Law for California on
Q: Can I do a Bankruptcy for Property Taxes if paying it will cause Financial Burden to family and get a fresh start?

Five years behind waited because I didnt know what to do and pay for it but I understand to pay now but its like cant get a loan due to bad credit not working due to Covid.

Peter Maurice Lively
Peter Maurice Lively answered on Aug 10, 2020

You can repay real property taxes through a 5 year chapter 13 plan.

You can allow the tax collector to auction the real property to pay the property taxes, so that you don't owe the property taxes individually.

You can NOT keep title to the real property and discharge the...
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1 Answer | Asked in Tax Law for California on
Q: How to add currently DBA with the new S corp

I got my DBA name 9 months ago for my new Insurance Agency, but I just finished to form the business to S corporation, but incfile never tells me what should I do to merge DBA name with my new S corp. I hope you are able to help me Thanks. They told me to call the security of state, but I feel... Read more »

Maurice Mandel II
Maurice Mandel II answered on Jul 23, 2020

File a new DBA with the Corporation doing business as the fictitious name.

Justia disclaimers below, incorporated herein.

1 Answer | Asked in Estate Planning, Tax Law and Banking for California on
Q: Transferring large sums of money to US citizen spouse

Here is the situations. Husband and wife are both US residents. Husband is a Green Card holder, wife is a US Citizen. Do we need to file any tax form when the husband transfer large assets assets (e.g. money and stocks for $300K) to the US citizen wife? is it best to use a joint account or can the... Read more »

Shawna Murray
Shawna Murray answered on Jul 22, 2020

This question would be best answered by a tax expert so that they can advise you of any possible gift tax repercussions.

Tax advice disclosure: To ensure compliance with Treasury Department Circular 230, we inform you that unless otherwise specified, any federal tax advice contained in this...
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1 Answer | Asked in Real Estate Law and Tax Law for California on
Q: I have a house that I inherited that is in a trust, it still has a mortgage but I want to start using it as a rental.

I'm the trustee, Will I pay more in taxes if I claim it on my taxes, or should i get a ein for the trust and file it's own taxes and leave the house in the trust

Jonathan Purcell
Jonathan Purcell answered on Jul 20, 2020

Federal income tax rates for trusts are compressed. In 2020, trust net income that exceeds $12,950 is taxed at a rate of 37%.

Jonathan Purcell is a California Attorney. This posting does not create any attorney-client relationship. The information presented here is general in nature and...
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1 Answer | Asked in Tax Law for California on
Q: Do I still pay California income tax if I move to Washington state during pandemic since everyone is remote working?

My company (everything is digital since it's a marketing company) is HQ'd in California but has remote employees in most states. I am moving from CA to Washington state soon to be with family since everyone at my company will be working remote until the pandemic is close over (perhaps... Read more »

Maurice Mandel II
Maurice Mandel II answered on Jul 8, 2020

This will create a difficult tax situation for you, and you should hire an accountant to handle your tax returns. First, there is the issue of state income tax. You only pay income tax to one state but you may have 2 states claiming it. The state where the income is earned is the state with the... Read more »

1 Answer | Asked in Tax Law for California on
Q: Hello, I settled with my former employer for $5000 in penalties. Which tax form should I sign? They sent a W9.
Maurice Mandel II
Maurice Mandel II answered on Jul 8, 2020

You want to provide them a W-9 so they report the payment to the IRS on a 1099. Then you do not pay employee share of employment taxes like SS/ FICA.

Justia disclaimers below, incorporated herein.

2 Answers | Asked in Criminal Law, Tax Law and Federal Crimes for California on
Q: What happens when somebody spends somebody else's unemployment benefits that where obtained fraudulently?

Let's say a Person A files for unemployment benefits but doesn't have an address so he has them sent to Person B's address. Well then when the unemployment benefits arrive in the form of a debit card to Person B's address, Person B decides to go ahead and activate the card and... Read more »

Maurice Mandel II
Maurice Mandel II answered on Jul 3, 2020

It is against the law for an attorney to counsel someone on how to evade the law or commit a crime. Perjury is a crime as is subornation of perjury. In your scenario, A has committed a crime by falsely applying for benefits, but if he never worked then he did not amass the required quarters of... Read more »

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