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North Carolina Tax Law Questions & Answers
1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for North Carolina on
Q: GirlFriend and I bought a house for 280K. Paid 50-50, joint ownership 50-50. If I gift house to GF is there tax issue?

1) Will there be tax liability if I gift the house to GF? Tax liability for either GF or me?

2) Is it possible to gift part of the house annually? For example 10% first year, 20% second year and so on and 5 years later, she owns the complete house?

Nina Whitehurst
Nina Whitehurst answered on Oct 17, 2020

At the present time the gift tax exemption is more than $11 million per person. You could gift your entire share to her all at once and not incur any gift tax as long as that gift plus prior gifts made by you in the past do not exceed $11 million in the aggregate.

1 Answer | Asked in Tax Law for North Carolina on
Q: I owe 17,000 in back taxes for my county, what can I do to keep from losing my home?
Ben Corcoran
Ben Corcoran answered on Oct 15, 2020

Speak to the county and see if they are willing to set up a payment plan. If foreclosure proceedings have begun, it is likely too late for you to do anything.

1 Answer | Asked in Tax Law and Real Estate Law for North Carolina on
Q: If one home owner abandoned Are both owners inturned to pay the property taxes and mortgage payments? Who owns home now

Bf and I bought place together. Then he may someone else, and left me to pay for the mortgage on the property, and the property taxes. I paid the home off alone and now he claims he owns this house

Ben Corcoran
Ben Corcoran answered on Oct 5, 2020

Because you and your BF are on the deed, you both own the house. This means that both you and him have the right to use the property, and it can only be sold with both of your signatures.

Your best option to recover your BF's portion of the mortgage is to refuse to sell unless he...
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1 Answer | Asked in Tax Law for North Carolina on
Q: How is "Principal Residence" defined for the purposes of getting the $250k tax exemption when selling a home?

I am living in two different homes in two different states depending on season etc. I typically live a few monhts in one of the two homes, and then I move to the other and live there for a while. This has been my situation for 10 years. I own one of the homes (State A) but the other home (State B)... Read more »

Ty Czapla
Ty Czapla answered on Sep 23, 2020

My partner, Kacie wrote on article in the Tax Adviser on this topic. See here https://www.thetaxadviser.com/issues/2019/apr/involuntary-conversion-principal-residence.html#:~:text=A%20direct%20involuntary%20conversion%20of,does%20not%20recognize%20a%20gain.

1 Answer | Asked in Tax Law for North Carolina on
Q: I purchased a church in Scotland Neck I pastor the church now I am told I have to pay taxes, aren't churches tax exempt?

It was a church when I purchased it and it still has been until this very day I don't know what to do, a member on the Halifax county board owns the property right beside it and he was interested in buying my church however I didn't want to sell it seems to me as a manipulative way to... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Sep 21, 2020

Every city and county and state I have ever heard of requires churches and nonprofit businesses to register and apply for tax exemptions.

1 Answer | Asked in Land Use & Zoning, Real Estate Law and Tax Law for North Carolina on
Q: I have property that was left to my family. I want to Put the property in my name.

The property wasnt left to one person so there is no clear way to use the property. I have been the onlyh person to pay taxes on this property for 15 years and i would like to put it in my name so i can live on it. What do i do?

Anthony M. Avery
Anthony M. Avery answered on Sep 14, 2020

Cannot understand your facts stated. But hire a competent attorney to draft an Affidavit of Heirship, which will record a source of title. Then you need a Quit Claim Deed from the other heirs over to you. If they will not convey, you may have to file a Partition Suit.

1 Answer | Asked in Real Estate Law and Tax Law for North Carolina on
Q: Am I responsible for NC taxes on a house that my deceased husband lived in as a life tenant or are the remaindermen?

My husband died in June and taxes came out in August.

Anthony M. Avery
Anthony M. Avery answered on Aug 6, 2020

If you are the remainderman, then you are the sole titled owner. It would then be your responsibility to pay taxes, but the property stands for the county taxes and is not the owner's personal obligation. It is in rem, so if taxes are not paid the County sells the property and does not sue you.

1 Answer | Asked in Tax Law and Banking for North Carolina on
Q: My 2nd bank account was closed to fraud (Not on my end) I was scammed and someone tried to deposit bad checks

I wasn’t held liable because I received no money nor was in in the state where these checks were deposited. I currently have another bank and have been there for 8+ years

The bank account that was closed I opened during college because I thought the deal seemed fishy and didn’t want... Read more »

Ana Maria Del Valle-Aguilera
Ana Maria Del Valle-Aguilera answered on Jul 6, 2020

If the bank did not find that you were involved in the fraud it should not affect a credit card application.

My response provides only general information and is not intended to provide you with specific legal advice, nor create an attorney-client relationship. You should not use or rely on...
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1 Answer | Asked in Tax Law for North Carolina on
Q: If there is back taxes of $20,000 owed but have not received income tax in 2 years

Can that be considered at least partially so If you made at least $7,000 in income tax?

Linda Simmons Campbell
Linda Simmons Campbell answered on Jun 10, 2020

I am not sure what you are trying to ask. Clarify your question and hopefully someone will be able to answer your question.

3 Answers | Asked in Tax Law, Divorce and Family Law for North Carolina on
Q: I live in NC I do not work I’m a homemaker my husband and I file married joint tax returns. If we get a refund 50/50

Do we split it 50/50 or Im I not intitled to any of it.

Katlyn Ashley Reh
Katlyn Ashley Reh answered on May 23, 2020

If you and your husband are married and file your tax returns jointly, any refund received will be in both spouses names, and it should be divided equally.

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2 Answers | Asked in Tax Law for North Carolina on
Q: Tax law... Married filing separately husband left home for 6 months made no contributions to home can he claim kids

He moved out the home, provided no financial support , moved back into the home, and is now living in the garage. We filed joint tax returns for 2018 he filed separately and claimed the kids because he made more money is that legal? Even though the kids and I never left the home and I provided all... Read more »

David Ostrove
David Ostrove answered on Apr 11, 2020

Whoever pays more than one half of the support may claim a child as a dependent.

Whoever proves that he/she provided more than 1/2 of the support of the child.

It's a matter of proof, by documents.

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1 Answer | Asked in Real Estate Law and Tax Law for North Carolina on
Q: Mama and Daddy passed with no will the house is still in Mama's name. There are 3 grown children there are back taxes

What can we do

David Ostrove
David Ostrove answered on Feb 23, 2020

NO WILL, then typically all assets go to the children in equal shares.

All liabilities, including taxes must be paid FIRST. Then, the remaining assets go to the children. If there are any predeceased children, then typically their heirs at law take their shares. Every state is not exactly...
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1 Answer | Asked in Tax Law and Social Security for North Carolina on
Q: My company had my social security number wrong for a number of years. Do I need a lawyer to fix this?
D. Mathew Blackburn
D. Mathew Blackburn answered on Jan 22, 2020

You are not required to hire an attorney to fix the problem but it would be a lot simpler.

1 Answer | Asked in Tax Law for North Carolina on
Q: Is it legal for NC to tax me on income I earned in a different state . I lived and worked in different state.

I did contact both offices.

James Richard Yandle
James Richard Yandle answered on Nov 22, 2019

Your resident state will tax your nationwide/worldwide income. You can claim a tax credit for taxes paid to the other state (or country). You end up, in effect, paying the higher of the two rates. Be careful of the expiring statute of limitations on claiming the credits, or you will end up... Read more »

1 Answer | Asked in Tax Law for North Carolina on
Q: I'm in 2 LLPs with income in WI. Both filed composite returns for investors. How to handle, since you can't be in two.

I'm a limited partner in two real estate partnerships that file composite returns for the investors.  I opted into the composite return, and then realized that I have income in WI from both partnerships (I'm a non-resident).  I don't think WI allows an individual to be included in... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Oct 13, 2019

Put both k-1s on your individual return. Include all withholding.

1 Answer | Asked in Tax Law for North Carolina on
Q: GS 105-164.13(35) provides for exemptions for qualified non-profit organizations from paying sales tax on donated goods

Our organization has an annual Spring Sale and an annual Fall Sale. Are one or both of these annual sales exempt?

James Richard Yandle
James Richard Yandle answered on Sep 20, 2019

The statute reads "only upon an annual basis." A quick review does not reveal any NC cases or regulations interpreting the language further. I think you'd be going out on a limb applying an alternate interpretation to what a court would likely consider a 'plain meaning'... Read more »

1 Answer | Asked in Personal Injury, Tax Law, Banking and Civil Rights for North Carolina on
Q: Need ethical law firm that can process the evidence of dishonor against a bank for internal document fraud, Fudiary duty

I am involved as the victim of an identity theft operation called ghosting. My bank altered the tax ID # and my date of birth on the internal documents that are associated with my business accounts, overriding my social security number and date of birth with the identifiers belonging to somebody... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Jul 15, 2019

This free legal advice forum is intended to help consumers better understand common legal terms and to explain general legal principals and procedures to non-lawyers interested in understanding more about the law. Accordingly,

this forum is not the place to seek free legal representation...
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2 Answers | Asked in Entertainment / Sports, Gaming and Tax Law for North Carolina on
Q: NC shot down a 2017 bill to legalize and tax Daily Fantasy Sports winnnings. Do i have to pay tax on winnings then?

I havent been able to get a clear answer on this. If DFS is not regulated and taxed in NC then i shouldn't have to pay state taxes on my yearly winnings right? Only Federal taxes. If so what is it taxed under and at what %

James Richard Yandle
James Richard Yandle answered on Jun 17, 2019

Wrong. The income is taxable, whether legal or not. Same as for income from embezzlement, illegal drug sales, or racketeering.

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1 Answer | Asked in Tax Law for North Carolina on
Q: When you transfer a UGMA account to a joint Tenants in Common account - are there any tax penalties for the joint owner?

Transferring a UGMA account to the now of-age beneficiary. We have the option of transferring to a joint Tenants in Common account with 80% ownership to the primary beneficiary and 20% to joint account holder (former custodian). Would there be any tax penalties or tax ramifications for the 20%... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Jun 17, 2019

The person who set up the UGMA (grantor) and put money into the account--for the benefit of a minor--can withdraw any or all of the money at any time. If the account drew interest over the time it existed, the interest will be (or perhaps already has been) reported to the IRS as interest received... Read more »

1 Answer | Asked in Tax Law for North Carolina on
Q: I live in North Carolina but I receive a Civil Servant pension from another state. Do I have to pay NC income taxes?

I keep reading different rules about civil pensions rules in North Carolina and wanted clarity.

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Jun 10, 2019

Call the state taxing authority or agency and ask for clarification.

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