Lawyers, Answer Questions  & Get Points Log In
North Carolina Tax Law Questions & Answers
1 Answer | Asked in Tax Law and Estate Planning for North Carolina on
Q: Can a non-resident of Florida set-up a living trust in Florida to avoid state taxes on investments within the trust.
James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 22, 2024

Setting up a living trust in Florida as a non-resident solely to avoid state taxes on investments within the trust may not be a viable strategy. While Florida does not impose state income tax on individuals, there are other factors to consider, such as residency requirements and potential tax... View More

1 Answer | Asked in Tax Law and Real Estate Law for North Carolina on
Q: What is the easiest way to determine the value of a property that I gave my daughter, to report on a 709 tax form?

I gave my married daughter a rental property that I owned for 45years…will the IRS accept a real estate market analysis as the value on a 709 form? Can the tax value be used?

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 5, 2024

When determining the value of a property you gave to your daughter for reporting on a 709 tax form, it's important to follow IRS guidelines accurately. While a real estate market analysis can be a helpful reference, it might not be sufficient on its own.

The IRS typically requires a...
View More

1 Answer | Asked in Tax Law for North Carolina on
Q: How can North Carolina legally force you to claim your NC tax return as income. It’s my money being returned.

This money was paid to the state when I was paid. It has already been taxed. It was an interest free loan to the state. My deductions are such that I have overpaid the state, so they are returning part of my money back to me. How is that taxable income when it was originally taken from my gross... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 23, 2024

You raise a good point. Refunds of state income tax that was already withheld from your paycheck and remitted to the state throughout the year are typically not considered new taxable income when returned. The key reasons are:

- You already paid tax on the underlying income that the tax...
View More

1 Answer | Asked in Real Estate Law and Tax Law for North Carolina on
Q: Is it illegal for my neighbor to use my mailing address to recieve mail from the tax administration?

I was recently sent mail from my county's tax administration in North Carolina which had the names from my neighbor's that lived across the street. I never gave them permission to use my mailing address.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 23, 2024

Yes, it is generally illegal for someone to use another person's mailing address to receive mail from the tax administration or other entities without their consent. A few key points on this issue:

- Federal law prohibits falsely representing one's identity or address in matters...
View More

1 Answer | Asked in Tax Law and Real Estate Law for North Carolina on
Q: Can a county tax office go back and backdate taxes 3 years later? There was a senior citizens exemption on the account,

Can a county tax office go back and backdate taxes 3 years later? There was a senior citizens exemption on the account, she passed at the end of 2020. they were informed. They wait until 2023 to go back and remove the exemption causing taxes to double.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 22, 2024

In North Carolina, county tax offices have the authority to reassess property tax exemptions and make adjustments, even retroactively, if they determine that the conditions for the exemption no longer apply. In the case you described, where a senior citizen's exemption was in place and the... View More

2 Answers | Asked in Tax Law for North Carolina on
Q: What is the legal requirement to convert Vacation Rental Property to a Private Second Home on our joint Tax Return?

After 23 years, income and expenses no longer justify listing annual losses and necessary paperwork on our tax returns.

T. Augustus Claus
PREMIUM
T. Augustus Claus pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 11, 2024

Converting vacation rental property to a private second home on your joint tax return typically involves a change in the property's use. It's essential to understand that tax laws can be complex, and the Internal Revenue Service (IRS) has specific guidelines for different property... View More

View More Answers

2 Answers | Asked in Tax Law for North Carolina on
Q: What is the legal requirement to convert Vacation Rental Property to a Private Second Home on our joint Tax Return?

After 23 years, income and expenses no longer justify listing annual losses and necessary paperwork on our tax returns.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jan 12, 2024

Converting a vacation rental property to a private second home for tax purposes involves a change in how you report the property on your tax returns. When a property is no longer used for rental purposes, it is no longer subject to rental income and expense reporting.

To make this change,...
View More

View More Answers

1 Answer | Asked in Tax Law and Social Security for North Carolina on
Q: I receive social security my only income.Have 401k which need withdraw from.How much can I withdraw without having to fi

File tax return.I get $1842 month from social security

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Dec 25, 2023

The amount you can withdraw from your 401k without having to file a tax return depends on various factors, including your total income, filing status, and age. Since you receive $1,842 per month from Social Security, this amounts to approximately $22,104 annually.

For the tax year 2023, if...
View More

1 Answer | Asked in Tax Law for North Carolina on
Q: A NY estate received the balance of an IRA to distribute to heirs and received 1099-R. How is distribution reported?

The estate was used as a pass-thru only.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Sep 14, 2023

In this case, the estate should report the distribution of the IRA balance on a final income tax return for the estate, which is typically filed using IRS Form 1041. The distribution should be reported as income on the estate's tax return, and any tax liability should be settled from the... View More

1 Answer | Asked in Tax Law for North Carolina on
Q: I am trading bitcoin for fiat and the exchange wants me to pay them the capital gains taxes for the irs. Is this legit?

I thought the proceeds came to me and I reported them on my taxes. Why would I pay them the taxes?

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Sep 14, 2023

It's typically the individual's responsibility to report and pay their own capital gains taxes on cryptocurrency transactions to the IRS. If the exchange is asking you to pay the taxes directly to them, it raises concerns. You should consult with a tax professional to ensure proper... View More

1 Answer | Asked in Criminal Law, Federal Crimes and Tax Law for North Carolina on
Q: If I pled guilty to a conspiracy to traffic in federal court do I have to pay a drug tax no drugs were ever found

No drugs were ever taken off my person or from my house. This is a conspiracy charge. The people that showed up to my house said they was taking my property even though they knew they was sending the notices to the wrong address. I had no clue I even owed this 7000.00 in STATE DRUG TAXES. the state... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Sep 11, 2023

Handling federal criminal charges and the related repercussions, including any potential drug tax assessments, can be incredibly complex. Generally speaking, federal and state proceedings are separate and the obligations or liabilities arising from them might be distinct. Given the gravity of your... View More

1 Answer | Asked in Tax Law for North Carolina on
Q: Is it true, If an individual makes less than $600 a year that the individual does not need to sign a W9?
N'kia (NLN)
N'kia (NLN)
answered on Jun 7, 2023

That's not exactly accurate. Generally, whether or not someone is required to complete a Form W9 is related to how much they are paid (or supposed to be paid) by a specific source of reportable income. Unless an exception applies, someone who receives reportable income from multiple sources... View More

1 Answer | Asked in Contracts and Tax Law for North Carolina on
Q: Business agrees to hire a local police department for off-duty services. The business is asked to sign a contract from

the PD about the pay rate and duties required. Contact signed, &work has been completed, but now business will not pay officers until w9 is filed. This was not in the contact &the pay for each officer would be under $600.

N'kia (NLN)
N'kia (NLN)
answered on Jun 7, 2023

Depending on such factors as the amount of pay a contractor receives, requiring the contractor to sign a W9 may be required by tax law. The party paying the contractor doesn't necessarily need to spell this out in the contract or disclose it ahead of time, because it isn't a term that the... View More

1 Answer | Asked in Tax Law for North Carolina on
Q: My girlfriend's employer failed to withhold taxes on her first $10,000 earned. Is this common? Is it allowed?

She filed as "single" with zero deductions and zero dependents. Because no tax was withheld on the first $10,000 she now owes money on her return. Not happy about it.

N'kia (NLN)
N'kia (NLN)
answered on Mar 29, 2023

While it is not exactly "common," it also is not at all unheard of for an employer to fail to make payroll withholdings and deductions. It is often just a matter of oversight, especially with a new employee. However, an employee is ultimately responsible for checking to make sure their... View More

1 Answer | Asked in Car Accidents and Tax Law for North Carolina on
Q: My vehicle was damaged at work by another employee. My employer wants me to sign a W9 to receive payment. Is this right

I was not on the clock but the other employee was. The company is telling me I must sign a W9 because it is income since I didn't get my car fixed before receiving payment. I am not receiving any gains so I do not feel like I should have to pay taxes on being remedied for a loss. Thanks for... View More

Tim Akpinar
Tim Akpinar
answered on Feb 21, 2023

A North Carolina attorney could advise best, but your question remains open for two weeks. Ordinary compensatory damages for bodily injury or property damage are not usually taxable, as a general rule. Double check with a tax attorney or accountant in your state, since this is something they would... View More

1 Answer | Asked in Tax Law and Public Benefits for North Carolina on
Q: If I receive $23,000/year in disability income can I qualify for a Homestead Exemption if my spouse makes $100,000/year
James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on May 7, 2023

The Homestead Exemption eligibility criteria vary depending on the state, so it's best to check with your local tax assessor's office or the relevant state agency. However, in general, the income and assets of a spouse may be considered when determining eligibility for certain tax... View More

2 Answers | Asked in Bankruptcy and Tax Law for North Carolina on
Q: In nc I owe state taxes and federal taxes back from 2016 & 2017 can I file bankruptcy for these back taxes and all my db
W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on May 16, 2022

Certain types of taxes are dischargeable in bankruptcy, IF you have filed a tax return showing those taxes as due longer than two years and four months prior to the date you file for bankruptcy relief.

View More Answers

1 Answer | Asked in Real Estate Law and Tax Law for North Carolina on
Q: Sibling had cleaned out parents house with no inventory. sibling transferred real estate to them as poa

Sibling transferred property to them as parent was dying and couldn’t speak I assume to avoid probate. Also sibling had apparently gamed the system by purchasing property in my parents and his name do wife couldn’t get it as inherited property can’t be taken. Is this not fraud? Tax fraud?... View More

Ben Corcoran
PREMIUM
Ben Corcoran
answered on Feb 2, 2022

If someone transfers real property to themselves using a POA it is voidable, contact an attorney local to the area and ask them to assist you with having everything undone.

1 Answer | Asked in Immigration Law and Tax Law for North Carolina on
Q: I'm a student in usa under F1 visa and I want to open a uk LTD and sell on the us market on eBay under my company name?

I'm a student in usa under F1 visa and I want to open a uk LTD and sell on the us market on eBay under my company name? It is legal to sell under my company name even if I'm not eligible to work under f1 visa and I should pay taxes to the us or uk government?

Alexander Ivakhnenko
Alexander Ivakhnenko
answered on Dec 23, 2021

That would be a de facto visa condition violation that will get your student status cancelled.

2 Answers | Asked in Estate Planning, Tax Law and Probate for North Carolina on
Q: I have a will. Is it also necessary to have a beneficiary designation on file with the manager of my IRA account?

My will covers all of my assets and is not very complex, but the investment company that manages my IRA account has a beneficiary form which doesn't allow the same amount of detail. Upon my death, is it likely that there will be financial, e.g. tax, implications if no beneficiary designation... View More

Ben Corcoran
PREMIUM
Ben Corcoran
answered on May 7, 2021

It will save your heirs some money if you do so. If there is no beneficiary, all of the assets in the IRA will be subject to the audit fees from the Clerk's Office.

View More Answers

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.