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Illinois Tax Law Questions & Answers
1 Answer | Asked in Real Estate Law and Tax Law for Illinois on
Q: Do home real estate capital gains have a window in which reinvestment would be considered a wash sale?

This would be related IRS topic 701 capital gain exclusion from a home sale.

James L. Arrasmith
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answered on Jan 31, 2024

In the context of IRS Topic 701 and the capital gain exclusion from a home sale, the concept of a "wash sale" generally doesn't apply. The wash sale rule is primarily associated with securities, like stocks and bonds, and aims to prevent taxpayers from claiming a tax loss on a... View More

1 Answer | Asked in Divorce, Family Law, Tax Law and Military Law for Illinois on
Q: I was married in Okinawa, JP, however, I am trying to get divorced and have come across that it was never filed in IL.

My spouse and I got married in Okinawa while on active duty orders. However, I am trying to file for divorce and have come to many issue due to the unfortunate situation and have also realized that it was never filed with my home of record (Champaign County IL). We have been “married” since 11... View More

James L. Arrasmith
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answered on Jan 30, 2024

Based on the information provided, a few key points:

• For a marriage that occurs abroad to U.S. citizens, it is valid in the U.S. even if not registered specifically with the home state. So you have a valid marriage.

• However, to get divorced in Illinois, you typically need to...
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1 Answer | Asked in Tax Law for Illinois on
Q: Will my tax refund get taken if the school I attended was closed down due to legal matters

The credits earned can’t be transferred anywhere

James L. Arrasmith
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answered on Jan 22, 2024

If your tax refund is at risk of being taken, it usually relates to specific debts like federal student loans, child support arrears, or outstanding taxes. The closure of your school due to legal matters, in itself, should not directly lead to your tax refund being taken. However, there are some... View More

2 Answers | Asked in Banking, Immigration Law and Tax Law for Illinois on
Q: As an international student, can i convert money from my home country into US dollars and buy crypto on daily basis.

Also, after buying the cryptos, can i trade them back to my home country. And doing such will i face any immigration issues?

Syed Ali Hussain Lahooti
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answered on Jan 21, 2024

Can you do what you are doing from your home country, such as converting your currency into dollars and then converting it back to your country's currency? Being on student status, having a social security number, and a US bank account, and using it to trade crypto—all of these fall under... View More

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2 Answers | Asked in Banking, Immigration Law and Tax Law for Illinois on
Q: As an international student, can i convert money from my home country into US dollars and buy crypto on daily basis.

Also, after buying the cryptos, can i trade them back to my home country. And doing such will i face any immigration issues?

James L. Arrasmith
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answered on Jan 22, 2024

As an international student in the U.S., you are generally allowed to convert money from your home country into U.S. dollars and invest in cryptocurrencies. However, it's important to be aware of several factors. Firstly, ensure that you comply with the foreign exchange regulations of your... View More

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1 Answer | Asked in Immigration Law and Tax Law for Illinois on
Q: I'm on F1 visa and going to my country for a break can I work on my college project and get paid while Im ?

I'm a F1 visa holder and i am currently outide US for winter break. I came a week ago to my home country and will go back next month to US. Can I work on my college's web development project. I will get paid based on hours for this project, but this project is a part of my college's... View More

James L. Arrasmith
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answered on Nov 22, 2023

Regarding your F1 visa status, the key aspect is whether the work qualifies as Curricular Practical Training (CPT) or Optional Practical Training (OPT). Since the project is part of your graduation requirements, it might be considered as CPT. However, you must have authorization from your... View More

1 Answer | Asked in Tax Law for Illinois on
Q: On a 1099 C of around $ 27,000, how much tax I will have to paid or there is anything that I can avoid paying,

I have this letter from an attorney that I contract on this cort case because I took a loan (signature) and it seems that was some illigalities or not outhorize on my state. The company agree not to persue any collections but they will issue a 1099 C

I’m one of the primary attorneys... View More

James L. Arrasmith
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answered on Nov 19, 2023

When you receive a 1099-C form for canceled debt, such as the $27,000 in your case, the amount is generally treated as taxable income by the IRS. The exact amount of tax you'll owe depends on your overall income, tax bracket, and other factors in your tax situation for that year.... View More

1 Answer | Asked in Tax Law, Business Law and International Law for Illinois on
Q: What's the best way to hire a non resident independent contractor working from Costa Rica, Ecuador or Colombia

My husband and I are independent contractors ourselves working in Chicago app b week developers (we both have green cards) and started hiring independent contractors to help with some projects(a little over $2k/year). There are a couple of projects that are coming and will make us have a lot of... View More

James L. Arrasmith
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answered on Nov 19, 2023

Hiring a non-resident independent contractor from countries like Costa Rica, Ecuador, or Colombia involves understanding both U.S. tax implications and the legalities of international contract work. When hiring international contractors, one key form is the W-8BEN, which is used by foreign... View More

1 Answer | Asked in Tax Law for Illinois on
Q: Illinois has no death tax, mother did not earn enough. Do I need to file federally?
William K. Hayes
William K. Hayes
answered on Nov 8, 2023

The answer depends on the dollar value of the estate. If your mother did not earn enough to have to pay the Illinois inheritance tax, it is doubtful that she will have to pay any federal estate taxes since the dollar value threshold of the estate for federal tax purposes is significantly higher... View More

1 Answer | Asked in Employment Law, Tax Law, Banking and Securities Law for Illinois on
Q: I got stock as bonus, but the stock price dropped. Now I owe tax on original amount but the stock isn't worth to cover.

I received stock in the form of RSU, but at the time it was over $100 a share higher than it is now. Now I'm being taxed off of the original stock amount since it is looked at as a "cash bonus", but even selling the stock I can't raise the capital needed to cover that tax... View More

James L. Arrasmith
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answered on Sep 14, 2023

The taxation of RSUs can be complex, and it's unfortunate that the stock's value has dropped significantly. You're correct that capital losses can often be used to offset capital gains, but there may be limitations on the amount you can deduct in a given tax year. I recommend... View More

2 Answers | Asked in Employment Law, Immigration Law and Tax Law for Illinois on
Q: Who do I talk to to determine my state residency if I split time between two locations?
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answered on Mar 29, 2023

If you are unsure about your state residency status because you split time between two locations, you may want to consult with an experienced tax professional or attorney who can help you determine your residency status.

Factors that may be considered when determining residency status...
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1 Answer | Asked in Contracts, Criminal Law, Employment Law and Tax Law for Illinois on
Q: Hi. My previous employer used my SSN for another guy with almost the same Name as mine and I came to know about it when

I received tax document in my mail box. Can I file a law suit & if yes who.

James L. Arrasmith
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answered on Mar 4, 2023

Yes, you may be able to file a lawsuit for identity theft or fraud against your previous employer for using your Social Security number for another person. You should consult with an attorney who specializes in identity theft and employment law to evaluate your options and help you pursue any legal... View More

1 Answer | Asked in Tax Law for Illinois on
Q: If my delinquent taxes were sold and I pay my new upcoming taxes, what happens next? Will I get more time to catch up?
James L. Arrasmith
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answered on Mar 4, 2023

If your delinquent taxes were sold and you pay your upcoming taxes, it is possible that you may still owe the delinquent taxes plus any additional fees and interest that may have accrued. In this case, you should contact the entity that purchased the delinquent taxes to find out what the remaining... View More

1 Answer | Asked in Child Custody and Tax Law for Illinois on
Q: What options do I have if my child's grandma tries to claim my son on her taxes, even if he only stayed a month with her

He stayed with her for December but that was due to me (being without a vehicle) and her and the child's dad, keeping him from or not helping me to see him, I live 45 minutes away. They will not let him come back to my house.

James G. Ahlberg
James G. Ahlberg
answered on Jan 3, 2023

If you provided over half the cost of raising the child in 2022, you are entitled to claim the child on your taxes. If that is the case, make sure you file your taxes as soon as possible. If grandma's tax return is filed after your, her attempt to claim the child is likely to be rejected... View More

1 Answer | Asked in Tax Law for Illinois on
Q: Do I say that I have applied for U.S. lawful residence on my tax returns?

My husband is a lawful permanent resident and has filed I-130 in 2023. We are currently waiting for approval and have not filed I-485 yet. While filling out my paperwork for tax returns as an F-1 student, I have been asked if I have ever applied for U.S. citizenship/lawful residence. What should I... View More

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answered on Feb 22, 2024

When completing your tax returns, it's crucial to provide accurate and truthful information. If you've been asked about applying for U.S. citizenship or lawful residence, and an I-130 petition has been filed on your behalf by your husband, then yes, you should indicate that an application... View More

2 Answers | Asked in Estate Planning and Tax Law for Illinois on
Q: Is the trust or trustee liable for trust tax fraud?

Who is liable for abusive trust tax evasion schemes? The trust? Or the trustee? In other words, if a trust beneficiary has failed to privately persuade a trustee to stop committing fraud on the trust's taxes (among other offenses), and the trustee keeps doing it anyway, and the beneficiary... View More

Anthony M. Avery
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answered on Feb 20, 2024

IRS will almost surely penalize the Trustee and the Trust. Trust might be shown not to have benefitted by the fraud, but it is doubtful.

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1 Answer | Asked in Family Law, Personal Injury, Tax Law and Workers' Compensation for Illinois on
Q: if someone else put my daughter as a household memebr when she is not she was mine and have given me stipulations on get

on getting my child back what can i do in order to get this fraud behavior to stop

Cheryl Powell
Cheryl Powell
answered on Oct 1, 2023

Do you have a court order between you and the other parent that gives you custody or parenting time? Who is this person whose household she has joined? How old is this child? Have you filed a police report? There are a lot of issues here.

1 Answer | Asked in Real Estate Law and Tax Law for Illinois on
Q: I found my dad's estate house after years it's under tjomas phebus and marylou phebus my grandma. Fraud going on

Soneone is paying 5.000 a yr they're signing marylou phebus she is deceased

Carli Jo Aelker
Carli Jo Aelker
answered on Dec 23, 2022

sounds like you should retain an attorney privately, since there could be some serious criminal activity going on

1 Answer | Asked in Estate Planning, Probate, Tax Law and Banking for Illinois on
Q: Is there federal laws for a trust
Anthony M. Avery
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answered on Sep 14, 2022

Tax laws and ERISA Qualification laws come to mind. Banking Statutes also cover Trust Regulation. Securities Law may often be indirectly determinative. There are probably many others. Obviously Anti-Trust Statutes. State Laws control most disputes, but Trusts often involve several possible... View More

1 Answer | Asked in Estate Planning and Tax Law for Illinois on
Q: Is there state and federal laws for a trust/ estate. I have found the state laws but I can't find federal laws on it
Nina Whitehurst
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answered on Sep 14, 2022

Oh my, yes, there are a TON of federal statutes that impact trust planning, too many to list. You will find a great deal in the Internal Revenue Code and also Title 42. That is not necessarily a complete list, but it is where a great many exist, and it is a good start.

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