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Massachusetts Tax Law Questions & Answers
1 Answer | Asked in Contracts, Tax Law and Arbitration / Mediation Law for Massachusetts on
Q: Hired Tax attorney in Massachusetts. How can we avoid paying more than 8K due to engagement letter not followed by him.

engagement doc signed & advance 8kpaid in Apr. He didn’t send monthly invoices as per engagement doc. Didn’t tell us when the cost of services exceeded 8k. He sent invoice of 23k in Aug. Engagement doc excerepts - The firm’s charges are hourly.Invoices will be sent on monthly basis for... View More

John Michael Frick
John Michael Frick
answered on Sep 4, 2023

You can dispute whether the attorney actually performed the services described in the invoice and whether they are reasonable and necessary with the Fee Arbitration Board.

Nothing you quoted requires the attorney to receive prior approval by you to exceed the initial retainer of $8k....
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1 Answer | Asked in Employment Law, Tax Law and Business Law for Massachusetts on
Q: If I am appointed as a manager for a single member LLC my spouse owns, am I considered an employee that needs a salary?

My wife and I are planning on creating a single member LLC in Massachusetts where she would be the sole member and would be managing day-to-day operations for the business. I would be helping manage the business operations, such as finance, bookkeeping, and administrative items such as managing a... View More

William J. Amann
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answered on Jun 8, 2023

No, you don't both need to listed as co-managers. Whether you are a co-manager or manger has little to no bearing on whether you are considered an employee. Employee status analysis is best done under IRS rules. You also don't need to be paid but being paid would bear on employee... View More

1 Answer | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: How do I get a redemption for a real estate tax taking in Massachusetts?

My local tax collectors office filed a tax taking back in 2008 for outstanding real estate taxes due on an investment property? The delinquent taxes were paid by my mortgage servicer from my escrow account.

A recent title search shows the 2008 tax taking lien recorded, but a redemption or... View More

Christopher Tolley
Christopher Tolley
answered on Apr 12, 2023

If the tax title amount has been paid, the town is required to issue a redemption. The town is permitted, but not required , to request the recording fee for recording the certificate as a condition of providing the certificate, and then must record the certificate. I believe the recording fee for... View More

1 Answer | Asked in Tax Law for Massachusetts on
Q: I paid income tax to the state last year, but then received a refund check in November due to a late change in the law

to address a surplus. I also received a tax form for the refund to enter on this year's state return. The amount I paid does not equal the refund. How do I enter these values on my state return?

James L. Arrasmith
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answered on Mar 4, 2023

When reporting your state income taxes on your tax return, you should enter the amount of state income tax that you actually paid during the tax year, which would be the amount that you paid before receiving the refund check in November. You should not include the refund amount as part of the state... View More

1 Answer | Asked in Tax Law for Massachusetts on
Q: My mother passed away 6 years ago. Now, I am retaining a lawyer to transfer property to me. Do I have to pay taxes for

the 7 years since my mother passed? Or am I only responsible from the date the property is legally transferred to me? The house is in Puerto Rico! Thank you!

James L. Arrasmith
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answered on Mar 4, 2023

The tax implications of inheriting property in Puerto Rico can be complex and may depend on several factors, including the value of the property, the length of time it has been held, and any applicable tax exemptions or exclusions. Here are some general guidelines that may be helpful:... View More

2 Answers | Asked in Land Use & Zoning, Real Estate Law, Tax Law and Municipal Law for Massachusetts on
Q: Why would a town restrict occupancy of my home from year round to 6 months if I sell the property? Is there a loophole?

I would like to buy the home but I fear upon purchase, the house would go into a 6 month occupancy (required by the town). I would prefer to keep the house year round. Is there a workaround? Has new legislation opened things up?

James L. Arrasmith
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answered on Mar 4, 2023

The reasons for a town to restrict the occupancy of a home from year-round to 6 months may vary depending on the specific regulations and zoning laws in that area. However, it is often done to preserve the character of the community, maintain the quality of life for residents, and prevent... View More

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2 Answers | Asked in Tax Law and Contracts for Massachusetts on
Q: Is certificate required for septic repair?

Spent $5k on septic repair when wastewater flooded the yard from the leach field. I wasn't given a certificate. Is one always needed to claim the credit? This wasn't a simple drain clog and the entire leech field was dug up, cleaned up, and soil replaced. I have a detailed invoice and... View More

Christopher Tolley
Christopher Tolley
answered on Feb 23, 2023

I don't think you need a new Title V cert. unless you are selling the house. The system has to have 'failed' in order for you to claim the credit. https://www.mass.gov/service-details/view-residential-property-tax-credits. I would contact the DEP or ask your accountant when you file... View More

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2 Answers | Asked in Tax Law and Contracts for Massachusetts on
Q: Is certificate required for septic repair?

Spent $5k on septic repair when wastewater flooded the yard from the leach field. I wasn't given a certificate. Is one always needed to claim the credit? This wasn't a simple drain clog and the entire leech field was dug up, cleaned up, and soil replaced. I have a detailed invoice and... View More

James L. Arrasmith
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answered on Mar 4, 2023

In general, a certificate is not always required for septic repairs in order to claim a tax credit or deduction. However, the specific requirements may vary depending on the state or municipality where the property is located.

In Massachusetts, for example, a Title 5 inspection and...
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1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Massachusetts on
Q: Is it possible to avoid estate or gift taxes on a house jointly owned by a father and son after father’s death?

Father and son jointly acquired a home with funds provided by the father. They memorialized an investment agreement/promissory note whereby the son was permitted to live in the house while repaying his half of the initial cost. Additionally, the son was responsible for all utilities, insurance and... View More

Christopher Tolley
Christopher Tolley
answered on Mar 6, 2023

The issue of whether a third party's improvements to real property reduce its value for estate tax valuation purposes is not straightforward. This question should be directed to a tax professional or your estate attorney.

1 Answer | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: I am a trustee of an HOA development where all the owners in the development jointly own a HOA amenity property. Our HOA

files its taxes as a non profit. Recently we learned the town asseses the amenity as comercially zoned eventhough its a comunity garden. is this correct?

Lillian J. LaRosa
Lillian J. LaRosa
answered on Feb 8, 2023

Your organization needs to have counsel review this issue which does not appear to be a general question suitable for a forum.

1 Answer | Asked in Divorce and Tax Law for Massachusetts on
Q: Divorce is final on 3/28 in Ma. We filed married but separate on taxes last year. Does that change my tax info for 2023?

My ex and i were married, in massachusetts, for five years. 2022 we decided to file our taxes "married filing separate." With the divorce final on 3/28/2023, would i still have to give my ex half my tax return? Does the divorce mean i should consult a tax specialist to file my taxes for me?

Lillian J. LaRosa
Lillian J. LaRosa
answered on Jan 23, 2023

The method of filing and the disposition of refunds or monies owed to tax authorities is usually dealt with in the body of the Separation Agreement. You should review the document preferably with the attorney who represented you on this issue.

1 Answer | Asked in Real Estate Law, Tax Law and Municipal Law for Massachusetts on
Q: Can one town foreclose if the property is in two separate communities and other town's taxes are current?

I bought a home that's 1/2 in 1 town and 1/2 in another - the dwelling is > 80% in Town A. Original mortgagee escrowed & paid property tax only to Town A. The mortgage has been transferred twice & modified once, & still the error wasn't discovered. Now, over 10 years in, I... View More

Christopher Tolley
Christopher Tolley
answered on Aug 19, 2022

I think Town B probably has a right to foreclose on its lien but my guess is it has not done so because of the issues you raised. Whether Town B does or does not foreclose, I do not see any alternative but your #1. I do not see the value of ignoring Town B. You already have no equity in the... View More

2 Answers | Asked in Estate Planning, Land Use & Zoning, Real Estate Law and Tax Law for Massachusetts on
Q: I owe real state taxes for the city of Methuen MA Can I set up a payment plan are there any options

The total real state taxes with fees and penalties is around 30000, can a payment plan be in placed so I don’t loose my home and also be on time with my current tax bill

Christopher Tolley
Christopher Tolley
answered on Jan 7, 2022

Contact the tax collector, explain your situation, and see if you can arrive at a payment plan.

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1 Answer | Asked in Land Use & Zoning, Real Estate Law and Tax Law for Massachusetts on
Q: Can a deal be made with the city of Methuen if you owe taxes on real state

I was having a rough couple years domestic violence, health ,unfortunately , I owe real state taxes for the city of Methuen they want to foreclose on my property can I make a payment plan is there anything I can do , my situation has change and I’m able to pay the taxes moving forward and setting... View More

Christopher Tolley
Christopher Tolley
answered on Jan 7, 2022

Contact the tax collector, explain theyour situation, and see if you can arrive at a payment plan.

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Massachusetts on
Q: If I am setting up a irrevocable living trust with 2 properties do I just complete and sign in front of a notary?

I was wondering if the properties in Mass have to be reregistered at some point or is there anything about the trust setup thats common I have never done this before. Any help is greatly appreciated.

Christopher Tolley
Christopher Tolley
answered on May 18, 2021

If the plan is for the irrevocable trust to own the properties, and the properties are real property, you need to convey the properties by deed from whoever owns them to the trust.

1 Answer | Asked in Tax Law for Massachusetts on
Q: What should someone do who owes taxes from 2019 but has no income and is on state funded health plan?

My sister-in law owes taxes from 2019. She is currently on MassHealth (since 2020) and in a nursing home where all her income goes too. She is also dying of stage 4 cancer and is only expected to last another month or two. She has no income to pay the taxes. She has no assets, husband, or children.... View More

Linda Simmons Campbell
Linda Simmons Campbell
answered on Feb 24, 2021

If your sister does not have any assets then there is nothing for the IRS to get. She should be eligible to be marked currently not collectible. Contact your local taxpayer advocate and ask for help. Here is the link to find your local taxpayer advocate... View More

1 Answer | Asked in Divorce and Tax Law for Massachusetts on
Q: Do I have to claim as income a cash settlement that is part of the divorce agreement?

The money is from half the equity from the sale of our house. My spouse was required to sell within 5 years. I let her live there until she retired, but it has been 15 years since the divorce. I also signed the deed over to her a few years ago. She died last year, and our children now own the... View More

Lillian J. LaRosa
Lillian J. LaRosa
answered on Feb 17, 2021

This is really a taxation question. Waiting and not filing a Modification Agreement to change the sale date may be problematic for enforcement purposes as well. The creditor claim period is one year from the date of death also.

1 Answer | Asked in Divorce, Family Law, Tax Law and Child Support for Massachusetts on
Q: Can owner change her S-Corp to be taxed as C-corp so her income for support will be lower based on W2 only in divorce?

She is paying high alimony & child support now due to high income from W2 + K1( from business income reported on her tax return). Is it legal for her to change her S corp to C-corp so her future income from C corp will be far lower that is based on W2 only? Her company is growing and needs to... View More

Lillian J. LaRosa
Lillian J. LaRosa
answered on Feb 9, 2021

It depends upon the terms of the Separation Agreement/Divorce Judgment and the Judge's perspective on the level of income available for alimony and child support.

1 Answer | Asked in Business Formation, Business Law, Contracts and Tax Law for Massachusetts on
Q: I am trying to start my own business and I honestly have no clue where to start. Some advice would be appreciated! Tkyou
Joanne Belasco
Joanne Belasco
answered on Feb 2, 2021

Congratulations! There really isn't an easy way to answer this question. A lot depends on what kind of business you are starting and what form of business is right for you. You would need to make sure the name is available. As to the form of business, an LLC might be perfect for one person... View More

2 Answers | Asked in Divorce, Estate Planning and Tax Law for Massachusetts on
Q: My spouse's dad passed away in May and the estate is being questioned by my wife and her 3 siblings.

My spouse refuses to tell me anything and has also told her lawyer to tell her siblings tell me nothing about what is going on. My question what rights do I have to be included in the outcome of the estate distribution among my wife and her siblings ?

Anthony C. Adamopoulos
Anthony C. Adamopoulos
answered on Dec 29, 2020

Your question: "My question what rights do I have to be included in the outcome of the estate distribution among my wife and her siblings ?"

Based only on what you write, none.

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