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South Carolina Tax Law Questions & Answers
1 Answer | Asked in Tax Law for South Carolina on
Q: What are ways to avoid having to pay tax upon the amount of debt written off or forgiven when you receive a 1099-C?
James L. Arrasmith
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answered on Feb 4, 2024

When you receive a Form 1099-C for cancellation of debt, it typically means you need to report this amount as income on your tax return, potentially increasing your tax liability. However, there are several strategies that may help you avoid or minimize the tax impact of forgiven debt.... View More

1 Answer | Asked in Tax Law for South Carolina on
Q: I am a 1099 subcontractor. I get paid cash. I do not deposit the cash in the bank. Is that ok?

I am asking because my accountant is looking for bank deposits, and I don’t have any.

James L. Arrasmith
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answered on Jan 28, 2024

No, being paid cash as a 1099 subcontractor and not depositing that cash into a bank account is generally not advisable or okay from a tax and legal perspective. Here are a few key reasons why:

1. Tax reporting requirements - As a 1099 worker, you are still required to pay taxes on that...
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1 Answer | Asked in Tax Law for South Carolina on
Q: I inherited my Dad's home when he passed away in 2002. His spouse was given a "Life Estate," with no Life Estate Deed.

I was notified in 2023 that his spouse had deceased. I sold the house in 2023. Do I have to pay capital gains from the fair value of the house in 2002 when my Dad died or when I was able to sell the house last year after his spouse with the Life estate passed?

James L. Arrasmith
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answered on Jan 26, 2024

In the United States, the basis for calculating capital gains on inherited property is typically the fair market value of the property at the time of the original owner's death. In your case, this would be the value of the home in 2002 when your father passed away. This is known as the... View More

1 Answer | Asked in Tax Law for South Carolina on
Q: If my property was sold at an auction this month due to delinquent taxes, do I have to move out right now?
James L. Arrasmith
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answered on Nov 19, 2023

In cases where your property has been sold at an auction due to delinquent taxes, the immediate need to move out isn't always a given. The specific rules and timelines can vary based on local laws and the terms of the tax sale. Generally, there is a redemption period after the sale during... View More

1 Answer | Asked in Child Support and Tax Law for South Carolina on
Q: What’s the best way to keep finances separated if you are about to marry a man with child support

Do I have to file married with him or can I keep it as head of household?

Megan Hunt Dell
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Megan Hunt Dell
answered on Jan 30, 2023

This is actually a question about taxes. Married couples can file taxes in one of two ways: "married filing jointly" or "married filing separately."

Filing your taxes as a married person, either jointly with your spouse or separately, does not affect your fiance's...
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1 Answer | Asked in Family Law, Real Estate Law, Tax Law and Probate for South Carolina on
Q: Ex and I are JTROS on our paid for home. Partition default judgement months ago, but delinquent tax sale does what to us

What happens with the partition during the redemption period of the delinquent tax sale?

Anthony M. Avery
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answered on Dec 6, 2022

Any Partition Action will be subject to the Tax Sale, which should have been part of the Partition Sale Order. Apparently the Partition Action is incomplete and erroneous. High tax bidder will ignore the Partition action.

1 Answer | Asked in Foreclosure and Tax Law for South Carolina on
Q: Does a delinquent property tax sale go on your record as a foreclosure?
D. Nathan Davis
D. Nathan Davis
answered on Dec 6, 2022

Which record are you referring to? I assume you are referring to property records. Of course, when the sale is completed, the property records will reflect that the property was sold and who the buyer was who purchased the property at tax sale.

The credit report will reflect that the...
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1 Answer | Asked in Employment Law, Tax Law and Collections for South Carolina on
Q: When does the collection of NON-fraudulent overpayment of unemployment benefits by the state stops in South Carolina?

The SC department of revenue will be garnishing my state returns on behalf of the SC dept. Of unemployment, is there a statute of limitation?

D. Nathan Davis
D. Nathan Davis
answered on Oct 19, 2022

Whether the overpayment of unemployment benefits occurred because of fraudulent actions of the recipient may be in the eye of the Unemployment Agency. Generally, SC Code of Laws Section 41-40-10(5) states:

(5) Notwithstanding any other provision of this section, no action to enforce...
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1 Answer | Asked in Tax Law for South Carolina on
Q: Who can pay delinquent taxes
Carli Jo Aelker
Carli Jo Aelker
answered on Dec 7, 2022

anyone who owes delinquent taxes is recommended to pay them off in a timely manner - you may want to reword your question to include more context.

1 Answer | Asked in Divorce, Family Law and Tax Law for South Carolina on
Q: Going through divorce. I signed my part on our taxes. He did not. Family law judge court ordered us to file jointly.

I did my part, he did not. Since still married its hurtingt me. I also wasn't able to get child tax credit nor will I anymore due to the fact my soon to be ex husband did not sign so therefore we didn't file our taxes. Court ordered by family law Judge we file jointly. I did my part. He... View More

Megan Hunt Dell
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Megan Hunt Dell
answered on Aug 25, 2022

If your court order requires the two of you to file jointly, then you could seek to have your ex held in contempt for violating the order. The mechanism to do so is called a Petition for Rule to Show Cause. The procedure is laid out in Family Court Rule 14.

1 Answer | Asked in Consumer Law, Estate Planning, Real Estate Law and Tax Law for South Carolina on
Q: Is it possible to reverse a sale of a delinquent tax sale of a dead person's property(unnotified heirs)

Property was sold with out notification to heirs living on the property

Anthony M. Avery
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answered on Jul 18, 2022

Consult with a competent SC attorney to exercise your Redemption Rights quickly if you still have them. Time is of the essence. It will take money, or forget it as someone should have paid those Taxes.

1 Answer | Asked in Estate Planning and Tax Law for South Carolina on
Q: My daughter died at age 35 in Florida, 401K left to dead Grandmother, Grandad still alive. Does it go to him or estate?

They were married at her death and he was her beneficiary of life insurance in SC.

Ellen S Deutsch Taylor
Ellen S Deutsch Taylor
answered on May 19, 2021

Any account or life insurance that has a beneficiary goes directly to beneficiary outside of a probate. You didn't mention if she owned Florida real estate or if she had a will. Different rules would apply for intestate or homestead property.

1 Answer | Asked in Immigration Law and Tax Law for South Carolina on
Q: What recourse do I have if my employer tries to force me to participate in the President's Fed tax deferment program ?

I prefer to continue paying my fed income tax as usual but I've heard that I may not be given a choice, that my employer may just stop paying our fed taxes without the employees request or consent.

Kyndra L Mulder
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Kyndra L Mulder
answered on Sep 19, 2020

This is a question for a tax attorney.

1 Answer | Asked in Tax Law for South Carolina on
Q: Can I use my temp tag as a way to not pay property taxes on a new vehicle purchase in SC?

I Live in SC and want to buy a car in Ohio. My current vehicle's tags expire in June. If I buy the new care in May, Can I use the temp tags duration (30 days) and the states grace period (45 days) as a way to avoid paying property taxes on the new vehicle? SC only charges property taxes when... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on May 20, 2020

They'll make an adjustment when you transfer from the old to the new and charge you the difference.

Good initiative but you're not the first to think of this and every state has setup procedures to stop it.

1 Answer | Asked in Tax Law for South Carolina on
Q: I have rented my son's condo and I received 1099; now I have to provide this income as an owner, manager or trustee?

I live in SC and 10 years ago I had helped my son to buy an inexpensive condo near me.

Our family have used this condo occasionally when they had visited me. The condo is on my son's name, but I had managed it and paid all dues (there is no mortgage on it).

However, 2 years ago... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on May 11, 2020

It sounds like you rented the property, received the income, and received the 1099. You would report that income less expenses and depreciation on a Sch E.

Ownership is irrelevant; you're the one running the rental business and using the condo as a business asset. Your right to use...
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1 Answer | Asked in Tax Law and Wrongful Death for South Carolina on
Q: My mother is receiving a settlement for my father's wrongful death. Can she gift that money to her children tax free?

She would like to disperse the money to the six children when she gets the settlement, but is concerned we will have to pay taxes.

David Ostrove
David Ostrove
answered on May 4, 2020

Typically, if the amount your mother received was for bodily injuries, it is not subject to income tax. Any portion for loss of income typically is subject to income tax. Depending on the amount of the award, if your mother gifts it to her children, there is no gift tax. It depends on the amount... View More

1 Answer | Asked in Tax Law and Probate for South Carolina on
Q: Is my widowed mother still responsible for back taxes on my deceased father's sale of inherited land?

My father inherited land, which he sold in 2017 but did not pay the tax at the time of sale. The IRS charged these taxes in 2018, which my parents were paying at $200/month. There is still over $3,000 owing. My father died in April 2019. Is my mother still responsible for paying this tax?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Apr 24, 2020

It's going to depend based on filing status,potential innocent spouse defense, and possibly other factors.

Short answer is it depends. You should retain counsel to review the matter and deal with the IRS directly to challenge the tax assessed or work out a plan to resolve the amounts owed.

2 Answers | Asked in Tax Law for South Carolina on
Q: If I claimed alimony on my tax return does she have to report alimony as income?
Andrew M Steiger
Andrew M Steiger
answered on Feb 5, 2020

The alimony rules changed for 2019. Generally, alimony is not deductible by the payor not includible in income for the recipient for the 2019 tax year. The prior rule required the recipient to include alimony in income.

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1 Answer | Asked in Real Estate Law and Tax Law for South Carolina on
Q: My mom and I are buying a house together financed in her name but I need to take off interest on my taxes since I'll pay

the majority of the mortgage each month. She doesn't have to file taxes (retired). How does this work? Can my name be added to the financing documents to show co ownership even though it's her credit that is being approved for the loan?

Ryan D Templeton
Ryan D Templeton
answered on Dec 18, 2019

You will need to speak to the attorney that is doing the closing to see how the deed is being drafted. That attorney will be in the best position to advise you and your mother on that situation.

1 Answer | Asked in Tax Law for South Carolina on
Q: Hello, I have had a Levy placed on my check in SC. levy was released not sure why.

I make 200 gross after tax its 185.61 HR at my telework job says one thing. SC dept. of Revenue says different I thought I was paying since Aug of this year.

D. Mathew Blackburn
D. Mathew Blackburn
answered on Nov 19, 2019

You may have paid off the amount owed. You'll need to call in and see what's going on with your account, or hire a professional to do it for you.

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