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Maryland Tax Law Questions & Answers
1 Answer | Asked in Tax Law for Maryland on
Q: I filed my federal taxes as "Married filing jointly" can I file my MD state taxes as "married filing separately"?

My spouse and I live in different states, so it would be easier to file state taxes separately.

D. Mathew Blackburn
D. Mathew Blackburn answered on May 19, 2020

No, Maryland doe not allow you to file MFJ federal and MFS for state.

However you can list your spouse as a Part-Year / Non-resident.

See https://www.marylandtaxes.gov/individual/income/filing/index.php

Under "If Lived in Maryland Only Part of the Year" starts at Section 7.

1 Answer | Asked in Tax Law and Business Law for Maryland on
Q: Schedule K-1 Taxes on Conversion from LLC to C-Corp on unvested shares?

I was a partner with an LLC startup & it converted to a C-Corp in Jan 2019. At that point, I had been vested 33% of my LLC units/C-Corp Shares. In Apr 2019, my total number of shares (vested + unvested) were reduced from 125k to 48k. In Jul 2019, I vested another 33% of the new amount (half of... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 17, 2020

There are several different types of restricted equity that can be provided to an employee. Each is taxed in a different way. To review your particular situation is going to require the documents for the equity grant and the conversation documents to be reviewed.

Without a thorough...
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3 Answers | Asked in Real Estate Law, Tax Law and Business Law for Maryland on
Q: I own a sngl-mbr LLC (reg'd in FL). I own a home in MD. I want to rent it entirely to my LLC to operate business. Legal?

Is it legal for me to rent out my Maryland state home to my LLC (Registered in FL)? My LLC's principle address is the same as my Maryland home, but now I want to rent the home entirely to the LLC and move out. I would live somewhere else, but use the home for business purposes only. Given the... Read more »

Richard Sternberg
Richard Sternberg answered on May 1, 2020

I agree with Mr. Blackburn that it is perfectly legal, but I don't think it accomplishes what you are trying to accomplish. If the LLC you form is a passthrough entity with partnership taxation, then the formation is a wash. The rental income passes through to you after writing off the... Read more »

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2 Answers | Asked in Tax Law for Maryland on
Q: Had been married for 48 years. Always filed married filing jointly. My husband passed away in August 2019. Yesterday,

the check arrived. It is made out to both my husband and me. Am I entitled to the entire $2,400.00? Can the executor sign on behalf of my husband so I can deposit the check into my account?

D. Mathew Blackburn
D. Mathew Blackburn answered on Apr 30, 2020

There is not currently guidance on this matter from the IRS. However, if the individual passed in 2019 and the payment was based on the 2019 return there is a string argument that he payment is proper. Second, the IRS has made clear that outside fraud on the part of an individual these payment will... Read more »

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1 Answer | Asked in Tax Law for Maryland on
Q: The irs is taking about 300 a month out of my social security check, can I claim this money on my taxes as a deduction
Mark Oakley
Mark Oakley answered on Apr 5, 2020

No, but you may be able to discharge your tax debt in bankruptcy. Call a bankruptcy lawyer to discuss your options.

1 Answer | Asked in Criminal Law, Tax Law, Traffic Tickets and Civil Litigation for Maryland on
Q: Can I be sued for emailing a company factual statements about about their future employee?

I emailed the company about this person’s character

Eric Todd Kirk
Eric Todd Kirk answered on Mar 30, 2020

The essence of defamation is spreading untrue things about individuals that harm them. Truth is always a defense in any defamation action.

1 Answer | Asked in Tax Law and Collections for Maryland on
Q: I owe a debt to a local community college in Maryland.

I owe a debt to a local community college in Maryland. I never paid the school and the state sent me a letter last year telling me they would take my taxes if I didn’t pay. I called and set up a payment arrangement through the states debt collection systems. Although I have not kept up with these... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Feb 7, 2020

Yes, of course they can take your tax refunds; every year as long as the debt remains unpaid.

1 Answer | Asked in Tax Law for Maryland on
Q: IS A PSE ABLE TO REPORT INCOME ON A 1099-K THAT THEY DID NOT TRANSFER TO YOU IN A PAYMENT SETTLEMENT YET?

I AM A SINGLE OWNER LLC SMALL BUSINESS FILING AS DIREGARDED ENTITIY WHO RECEIVES A 1099-K FROM AMAZON FOR RETAIL SALES TRANSACTIONS. AMAZON "A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Jan 28, 2020

Yes. They're your funds, even though you haven't received them yet you have a right to them so they're reportable.

1 Answer | Asked in Tax Law for Maryland on
Q: If I purchased a tax sale certificate and foreclose am I liable to repay the original purchser state and fedetax liens.
Cedulie Renee Laumann
Cedulie Renee Laumann answered on Nov 26, 2019

It is strongly advised to use an attorney to initiate foreclosure proceedings. Maryland law allows for reimbursement of the tax sale purchaser's attorney fees up to a specified dollar amount upon redemption, so nearly all of the time a certificate holder will use an attorney who can help... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: If a house in Maryland is given to your child via a quick claim deed are there taxes that have to be paid?
D. Mathew Blackburn
D. Mathew Blackburn answered on Sep 12, 2019

Generally there is no transfer tax on a gift. There will be recording fees. For gift tax it will depend on the value of the property. If the value exceeds $15,000 ($30,000 if both parents are gifting) then a gift tax return is required to be filed. However, no tax will be due if you have enough of... Read more »

2 Answers | Asked in Tax Law for Maryland on
Q: I sold a home that I’ve occupied as my primary residence for the last four years. Do I have to pay taxes on the profit?

The home was sold in Maryland, the home was my primary residence and I occupied the home continuously from 2015-2019

D. Mathew Blackburn
D. Mathew Blackburn answered on Sep 7, 2019

Assuming the other requirements of the personal residence exclusion are met. You exclude the first $250,000 ($500,000 if you are married) in gain on the sale. If you bought the property for $100,000 and you sell it for $350,000 you would have $250,000 in gain and that would be excluded from tax and... Read more »

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1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Q: how does a lender handle supplementary tax at closing on a new constructio

I am in Charles County Md

Bruce Alexander Minnick
Bruce Alexander Minnick answered on May 13, 2019

Your Realtor will explain this to you.

2 Answers | Asked in Real Estate Law and Tax Law for Maryland on
Q: In case adult child added to house deed, should he/she pay taxes on house?
Bruce Alexander Minnick
Bruce Alexander Minnick answered on May 6, 2019

There is no legal requirement for all owners named in the deed to pay all or any portion of the real estate taxes. On the other hand, there is no reason why all owners should not share in the tax burden either.

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2 Answers | Asked in Tax Law for Maryland on
Q: Hello, Is money awarded in a wrongful death case taxable on the state(MD) and Federal level? Thank you.Tom

I am soon to receive settlement money for a civil case I brought against a medical provider in the death of my wife.

Mark Oakley
Mark Oakley answered on May 1, 2019

No, it is not. It is not defined as income because it is compensation for a loss. Sometimes a jury verdict will separate out lost income (past or future) that a party has suffered as a component of damages, and when that is done, that portion is subject to income tax. Otherwise, in a lump sum... Read more »

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1 Answer | Asked in Child Support and Tax Law for Maryland on
Q: Will my "other pay" that my employer provides me go towards my gross income when calculating for child support?

My employer used to provide my health insurance and it did not show up on my pay check. When I got married it was a cheaper and a better health plan for me to switch to my husbands insurance; so my boss requested I get on my husbands plan and he pay me a monthly premium to make up for what is being... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Apr 1, 2019

This question should be addressed to the lawyer who handled your divorce because there may be other information not available to lawyers who have not been involved, and who have never seen the underlying divorce papers.

2 Answers | Asked in Real Estate Law and Tax Law for Maryland on
Q: Could this lien be for a house sale because I did not live in Md. In 2015. Grounds and authorities: section 13-805 -

13-809 tax general general article annotated code of Md.

Is this a property tax lien?

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Mar 22, 2019

While an attorney cannot analyze a purported lien without looking at it, property tax liens for failing to pay annual property taxes usually fall under the tax PROPERTY article, title 14 (not the tax GENERAL article).

The code section you cited in the general tax article usually...
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2 Answers | Asked in Immigration Law and Tax Law for Maryland on
Q: I got my green card in 2012 but didn't move to the US until 2015. Do I owe taxes for 2012-2014?
Kyndra Mulder
Kyndra Mulder answered on Jan 26, 2019

I suggest you speak with a tax attorney or CPA.

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1 Answer | Asked in Tax Law for Maryland on
Q: Can the sale of a willed house be held due to a recipient having a fed tax lien. The recipients name is not on the pro.

Parents pass away, will the house to the grown children. One has a federal tax lien in her name. Her name is not on the house. Can this affect the sale of the house?

Mark Oakley
Mark Oakley answered on Jan 24, 2019

No. So long as the house is in the name of the estate, not the names of the heirs, then the estate sells the house and distributes the proceeds to each individual heir entitled to receive a share. If, however, the PR of the estate decides to issue a deed transferring the house to all the children... Read more »

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Maryland on
Q: what is the proper written code for a quit claim deed from father to daughter for tax exemptions

I live in MD. My father is transferring the house to me. I need to site the code to exempt me from the state and fed taxes

Mark Oakley
Mark Oakley answered on Jan 10, 2019

The recording office of the county where you file will know and allow you to fill in the cited section that applies. They are the authority who has to approve whether you have a tax exempt transfer. However, the list of exempt transactions generally appears in the Maryland Tax-Property Article,... Read more »

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