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Maryland Tax Law Questions & Answers
1 Answer | Asked in Tax Law for Maryland on
Q: Are there tax advantages to our beneficiaries placing our assets, including our homes in a trust
Mark Oakley
Mark Oakley answered on Sep 3, 2021

Most tax advantages can be obtained with or without a trust, as the primary benefit of a trust is to adress other management and estate plannng purposes (such as avoiding the probate process, but in Maryland that is not always that significant of a reason). There are two types of trusts: revocable... Read more »

1 Answer | Asked in Contracts, Criminal Law, Real Estate Law and Tax Law for Maryland on
Q: Hi. I bough a house for $265,000 inn November 2014 with a girlfriend. Her Father actually bought the house outright.

However, he was not put on the deed then or ever. Only myself and girlfriend were on the deed. I was hesitant in buying the house this was as I didn't feel like I was buying the house and didn't have the pride in buying my first home myself. Plus, I did not qualify for the first time home... Read more »

Richard Sternberg
Richard Sternberg answered on Jul 27, 2021

Didn’t I answer this yesterday. When you sign papers, they matter. Let a lawyer review what you sighed… ya’know… like the grown ups. You will likely pay for the review.

1 Answer | Asked in Contracts, Criminal Law, Real Estate Law and Tax Law for Maryland on
Q: I bought a house with a girlfriend in November of 2014. On a side note concerning my girlfriend paying utilities.

Every envelope on the outside in bold all caps red letters read the following, "DELINQUENT NOTICE, PAY IMMEDIATELY OR FACE POTENTIAL UTILITY TURN OFF". One month I finally opened one and there was a substantial amount due because she had not been paying the bill. This similar thing... Read more »

Richard Sternberg
Richard Sternberg answered on Jul 26, 2021

To recap, you need to review the real documents with a real lawyer. And, the next time you "signed a document her Father wrote that stated my signature signified I was off the deed" without reviewing it with a lawyer, you'll get exactly what the document might or might not say. What... Read more »

2 Answers | Asked in Tax Law for Maryland on
Q: Tax advice for inheriting half a condo

In 1998 my parents helped me buy a condo. The deed has my name and my father's name on it. I was told at the time that when he died I would automatically inherit his share of the condo, with no taxes owed. He died in 2011 and I have not tried to change the deed and I'm worried about any... Read more »

Theodore David Vicknair Sr.
Theodore David Vicknair Sr. answered on Jul 20, 2021

So this is clear under federal income tax law: inheritances are not income. States that have an income tax *generally* piggy back the federal law. So, generally, the only income tax implications that may be tangentially applicable is the "step-up" in income tax basis for the eventual... Read more »

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1 Answer | Asked in Tax Law, Business Formation and Business Law for Maryland on
Q: Hello, I am looking into getting a few vending machines that might span a few counties in MD, and I can't find answers

on what will be required. The state site does not help any either. I am military if that helps with anything. Thank you in advance.

Mark Oakley
Mark Oakley answered on Jul 15, 2021

A vending machine license is not required if the following items are offered for sale:

Cigarettes - (Special laws govern the sales of cigarettes through a vending machine. For more information, contact the State License Bureau or the Clerk of the Circuit Court in the county in which the...
Read more »

2 Answers | Asked in Tax Law for Maryland on
Q: Haven't received a letter regarding back MD taxes from 2015-2017 in over a year. Should I inquire?

Moved to NC in 2018 and received some letters from MD regarding audit and back taxes. My new NC address is on file with them, but I haven't received any letters in over a year. Currently taking care of my federal back taxes from that time period. Should I reach out to MD Comptroller,... Read more »

Mark Oakley
Mark Oakley answered on Jun 23, 2021

Maryland has 20 years to collect back income taxes, and they past due balance earns more than 13% annual interest, so the amount you owe is growing. They accept payment plans.

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1 Answer | Asked in Tax Law for Maryland on
Q: Hi Under the new gift tax laws 2018-2025 with a cap of 11.57 million lifetime gift exclusion amount...

If an estate is worth 10 million now, would it be better to gift half of the estate to avoid the 47% estate tax on anything over 5 million which the new law reverts to in 2026...or possibly sooner

Mark Oakley
Mark Oakley answered on Mar 16, 2021

Treasury Decision 9884 contains the final regulations on this issue, and include a special rule allowing the estate to figure its estate tax credit using the higher of the basic exclusion amount (BEA) applicable to gifts made during life or the BEA applicable on the date of death. So, if you give... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: My mother and I own a house. She wants to sell. I plan not to take any of the proceeds. Do I have a tax liability?
Mark Oakley
Mark Oakley answered on Mar 14, 2021

First, understand what is taxed and what portion of a taxable gain may be exempt from taxation: You can sell your primary residence exempt of capital gains taxes on the first $250,000 if you are single, and $500,000 if married and the property is jointly owed. This exemption is only allowable once... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: If I am inheriting money from a parent’s retail account with Merril Lynch, will I owe Maryland tax on that money?

I was told there is no federal tax but I know Maryland can be tricky with inheritance and taxes.

Mark Oakley
Mark Oakley answered on Mar 3, 2021

Maryland does not tax inheritance of lineal heirs, parents or spouses. A lineal heir is the the direct descendant of the decedent (son, daughter, granddaughter, etc.). Maryland also does not tax a named beneficiary's receipt of funds from a financial account or life insurance policy under a... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: I received a tax lien notification from North Carolina for 2013 In 2021?

I didn’t live in NC during that tax period

I never received notification that taxes were owed

I’ve always completed an official change of address

Scott Scherr
Scott Scherr answered on Mar 1, 2021

You should consult with an attorney in North Carolina since that is where the tax lien was reported. They can help you straighten it out in North Carolina.

1 Answer | Asked in Family Law and Tax Law for Maryland on
Q: Can I take child tax credit for daughter who lives with me full time 10 months a year in MD? MI judge denied request.

13 year old daughter lives with me in Maryland 10 months a year full time. Michigan denied me taking child tax credit for 3 years because I tool ex's 2019 year for filing. Judge "said" this in court hearing in October 2020 but there's no written order or judge's signature.... Read more »

Mark Oakley
Mark Oakley answered on Feb 8, 2021

You risk being held in contempt of court, fined, paying your ex wife’s attorneys fees, reimbursing her for the credit, incurring your own legal fees and costs traveling back for court, and jail. But if the principle is worth that much to you, feel free to thumb your nose at the judge. I cannot... Read more »

3 Answers | Asked in Estate Planning, Real Estate Law, Tax Law and Probate for Maryland on
Q: Questions about selling an inherited house

I inherited a house in Maryland. The estate is in probate and I'm the executor and sole heir (I will be filling for modified administration). As I understand it, the house can be sold either by the estate or deeded to me first before the sale. For both options, when exactly in the probate... Read more »

Mark Oakley
Mark Oakley answered on Feb 6, 2021

You can amend the inventory value based either on the tax assessed value or an appraisal by a certified real estate appraiser (not just a real estate agent doing a valuation—must be a certified appraisal). The tax basis in the Property is fixed as of the date of death regardless of whether the... Read more »

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2 Answers | Asked in Tax Law, Family Law, Real Estate Law and Child Support for Maryland on
Q: If a house is sold in a tax auction in Maryland, what happens to the liens on the house?

House was legally auctioned off at tax sale and the plaintiff is in the process of foreclosing the right to redemption. Current owner (defendant) of the house has no mortgage; the deed is in their name alone. This house/owner has a child support lien on it by the State of Maryland for over $30,000... Read more »

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Jan 5, 2021

Property tax liens tend to have super priority, meaning they stand first in line before most other kinds of liens. This means that in most cases, if proper notice is given, a tax sale foreclosure case wipes out the other liens and transfers the property free and clear of lesser liens.... Read more »

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1 Answer | Asked in Tax Law for Maryland on
Q: if i marry someone who owes taxes & he dies will i be respondable for those taxes .

my fiancee and i live in baltimore and we are planning to marry and buy a house in georgia. He owes taxes of $51, 000 and he pays each month. If we marry, buy a house and he dies am i responsible for his debt and If i file taxes for a refund will they take that away.

Mark Oakley
Mark Oakley answered on Dec 13, 2020

No, you will not personally owe your husband's tax debt, but you may want to consult a CPA before filing joint tax returns as a married couple, as opposed to married filing separately. When you purchase your house, title it under your name alone, as the IRS can attach any property in which... Read more »

3 Answers | Asked in Estate Planning, Real Estate Law and Tax Law for Maryland on
Q: Can disclaiming inheritance from a Trust be used as a method of tax avoidance between beneficiaries of that trust?

Person A and B are tenants in common in a property that is valued at $1,000,000 and has a basis of $200,000.

Their mother dies leaving them $2,000,000 in a trust to be distributed equally.

Person A disclaims $500,000 of his inheritance from the trust.

Person B signs a... Read more »

Mark Oakley
Mark Oakley answered on Nov 11, 2020

A gift tax return should be filed by Person B for the gift of their interest in the property to person A, but at person B's option, no estimated gift tax need be paid at this time, since the amount will be added back into Person B's gross estate when Person B dies for purposes of... Read more »

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1 Answer | Asked in Tax Law for Maryland on
Q: I need a tax Attorney in Baltimore who can help me apply for an ITIN number. Thanks.
Cedulie Renee Laumann
Cedulie Renee Laumann answered on Oct 6, 2020

To get an ITIN one needs to fill out IRS Form w-7. The form can be found at the IRS website (irs.gov) An attorney may not be needed since this is mostly a matter of gathering your key documents (e.g., passport, birth certificate) and bringing or sending them to the IRS.

That form requires...
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1 Answer | Asked in DUI / DWI, Immigration Law and Tax Law for Maryland on
Q: Can I get a driver's license in Maryland as an illegal alien who has been in the US only for a year?

Hello everyone,

I have been living in the US for just a year now. I entered with a b1 visa and overstayed it. I am aware that it is illegal but as an African, I didn't have any real chances of obtaining a residency in the US.

That said, I work hard every day hoping my American... Read more »

Mark Oakley
Mark Oakley answered on Oct 3, 2020

Yes. Maryland repealed the requirement to prove legal status in the US in order to obtain a driver’s license; however, a license obtained by an illegal immigrant is not the same as a license obtained by someone with legal status. They look similar, but it is not a legal form of identification for... Read more »

2 Answers | Asked in Tax Law for Maryland on
Q: Does this mean we simply have the beneficiary name added to the property deed with "TOD" after it?

The definitions indicate that "property" is basically anything owned. I'm understanding that to include one's home. Additional reading indicates that the transfer of ownership can be handle by including the beneficiary's name and POD, TOD, etc., allowing ownership control... Read more »

Mark Oakley
Mark Oakley answered on Sep 29, 2020

Real property deeds do not have TOD beneficiary designations, but there are possible ways to re-deed the property to accomplish similar results (life estate deeds, or adding the name to the deed as joint tenant with right of survivorship, for example), but these methods grant an interest in the... Read more »

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1 Answer | Asked in Consumer Law, Small Claims, Tax Law and Banking for Maryland on
Q: Can I take legal actions towards my financial advisor for being dishonest?

So in January my mom got a letter from her financial advisor which was from the IRS telling her that she had to fill out a W-9 because the social security she had in her account was wrong. My mom immediately took action and we went to our financial advisor office to correct the social security... Read more »

Marie-Yves Nadine Jean-Baptiste
Marie-Yves Nadine Jean-Baptiste answered on Sep 19, 2020

Contact the IRS to verify.

1 Answer | Asked in Tax Law for Maryland on
Q: IRS says I owe personal income tax from 2006 but I read that IRS has only 10 years to collect. Do I owe or not?
Eric Steven Day
Eric Steven Day answered on Sep 14, 2020

The IRS has 10 years to collect on any tax due from the date of the last assessment. For instance, if you filed in 2007 and they audited the return in 2009, making changes to the return and assessing a new balance, they would have until 2019 to collect the taxes because that is the new assessment... Read more »

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