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Tax Law Questions & Answers
1 Answer | Asked in Tax Law and Arbitration / Mediation Law for Florida on
Q: Attorney fees paid by defendant for plaintiff deductible on 1040 Sch 1 line 24 h?

I received a lump sum settlement for disability benefits under my employer's LTD group policy last year, and I believe my claim should meet the definition of unlawful discrimination under IRC section 62 a 20 e 18 so I am likely able to deduct attorney fees and court costs on 1040 Schedule 1... View More

James L. Arrasmith
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answered on Mar 29, 2024

Understanding the nuances of tax deductions related to attorney fees and court costs can be complex, particularly when it comes to settlements for disability benefits under an employer's LTD group policy. According to IRS Publication 525, attorney fees and court costs associated with claims... View More

Q: Disabled person selling a house to move oversea - consequences?

My parents live in Washington state, and my mother is disabled receiving SSDI and long term care service where a caregiver comes to her house every day. They live in a house they jointly own, no mortgage. They're both seniors, and now they miss their home country, so they decided to move back... View More

James L. Arrasmith
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answered on Mar 29, 2024

Selling a house and moving overseas can have several implications for your parents, particularly regarding their Social Security Disability Insurance (SSDI) and Medicaid benefits. First, it's important to note that SSDI benefits are typically not affected by the sale of a primary residence or... View More

1 Answer | Asked in Tax Law and Immigration Law for New Jersey on
Q: Filing tax returns as F-1

As the end date is getting closer, I am wondering that what option should I select in my marital status? I have been to US since 2022 as an international student and working on CPT. I am married but my spouse never been to US. She is in home country. In this context, should I select... View More

James L. Arrasmith
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answered on Mar 29, 2024

When it comes to filing your tax returns in the United States on an F-1 visa, your marital status plays a crucial role in determining how you should file. Since you're married, but your spouse has never been to the U.S. and presumably doesn't have income subject to U.S. tax laws, you face... View More

1 Answer | Asked in Employment Law, Contracts and Tax Law for Virginia on
Q: Concern pertaining to 1099-NEC: total non-employee compensation amount

In a situation where you are a transportation lessor (one truck, tractor) and all expenses are deducted from the gross by the lessee (transportation company) before you receive revenue.

Does the lessee typically write off those expenses?

I received a 1099-NEC accounting for the... View More

James L. Arrasmith
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answered on Mar 29, 2024

When you're working as a transportation lessor, it's common to encounter complex arrangements regarding payments, expenses, and tax reporting. The situation you've described, where the lessee deducts expenses from the gross amount before issuing your net pay, does raise some... View More

1 Answer | Asked in Tax Law and Car Accidents for Arkansas on
Q: My car was totaled before I paid sales tax. I now have no money to pay and can't get the check until I do. Help
James L. Arrasmith
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answered on Mar 29, 2024

In a situation where your car was totaled before you managed to pay the sales tax, and you're now facing the challenge of not having the funds to cover this tax to access the insurance check, it's essential to explore all available options. First, consider reaching out to the tax... View More

1 Answer | Asked in Tax Law for Wisconsin on
Q: Our town sent a overpayment property tax check in error. Are we responsible to pay it back?

They applied another person's taxes to ours. Also we switched mortgage companies and we thought both services paid from escrow.

James L. Arrasmith
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answered on Mar 28, 2024

If your town mistakenly sent you an overpayment for your property taxes, it's likely that you are responsible for returning the overpayment. This is because the payment was not intended for you and was sent due to an administrative error. Laws and regulations generally require individuals to... View More

1 Answer | Asked in Tax Law for Georgia on
Q: If I’m granted homestead exemption does that mean I’m exempt from paying school tax?
James L. Arrasmith
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answered on Mar 28, 2024

If you're granted a homestead exemption, it means you can receive a reduction or exemption on a portion of your property taxes related to your primary residence. However, this does not typically exempt you from paying school taxes. School taxes are a crucial part of local property taxes and... View More

1 Answer | Asked in Tax Law for California on
Q: I have a property inheritance and tax question.

Hello Attorney, a few years ago we inherited a cabin and a dock in Lake Arrowhead, California. Because that happened before Proposition 19 went into effect, we were able to keep the original property assessment. However, we were told by the county, well someone who answered the phone, that we... View More

James L. Arrasmith
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answered on Mar 28, 2024

Under California law, property inheritance and tax assessments are subject to specific regulations which can indeed differ based on the type of property and the timing of the inheritance. Before Proposition 19, certain properties, including primary residences inherited from parents or grandparents,... View More

3 Answers | Asked in Tax Law for Tennessee on
Q: A family member who was supposed to have filed my taxes for the past 3 years has failed to do so. I'm positive I owe

back taxes. Where do I start? Should I reach out to the IRS first? Should I file an extension for this year and then find a tax professional to complete the previous years? Should I retain an attorney to protect the one asset that I have, my home, from being liened on by the IRS. Please... View More

Anthony M. Avery
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answered on Mar 28, 2024

Hire an attorney to file those tax returns. Did he not mail the returns after you signed them? There will be failure to file, failure to pay and late filing interest penalties. Hopefully the relative did not receive levy notices already. Check your title for tax liens.

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3 Answers | Asked in Tax Law for Tennessee on
Q: A family member who was supposed to have filed my taxes for the past 3 years has failed to do so. I'm positive I owe

back taxes. Where do I start? Should I reach out to the IRS first? Should I file an extension for this year and then find a tax professional to complete the previous years? Should I retain an attorney to protect the one asset that I have, my home, from being liened on by the IRS. Please... View More

James L. Arrasmith
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answered on Mar 28, 2024

Firstly, reaching out to the IRS directly is a wise initial step. They offer options for those who haven't filed for past years and can guide you on how to proceed with filing back taxes. It's crucial to communicate your situation to them; they can provide forms for previous years or... View More

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3 Answers | Asked in Tax Law for Tennessee on
Q: A family member who was supposed to have filed my taxes for the past 3 years has failed to do so. I'm positive I owe

back taxes. Where do I start? Should I reach out to the IRS first? Should I file an extension for this year and then find a tax professional to complete the previous years? Should I retain an attorney to protect the one asset that I have, my home, from being liened on by the IRS. Please... View More

Benjamin A. Goldburd
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Benjamin A. Goldburd
answered on Apr 4, 2024

Unless you are a minor, or under some sort of protective order, the duty to file taxes is on each individual themselves. Staying in compliance is the most important part of this situation. Filing an extension and paying what you owe in the current year is a good start and hiring a tax professional... View More

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2 Answers | Asked in Tax Law and Immigration Law for Georgia on
Q: Should I use the 1040 or the 1040NR?

What is the appropriate tax form to use when filing taxes as an applicant with an ongoing green card application? Should I use the 1040 or the 1040NR?

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answered on Mar 26, 2024

You should use the 1040 form if you are considered a resident alien for tax purposes. This generally applies if you meet the Substantial Presence Test, which involves being physically present in the U.S. for at least 31 days during the current year and 183 days during the three-year period that... View More

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2 Answers | Asked in Tax Law and Immigration Law for Georgia on
Q: Should I use the 1040 or the 1040NR?

What is the appropriate tax form to use when filing taxes as an applicant with an ongoing green card application? Should I use the 1040 or the 1040NR?

Brian Chase Malone
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answered on Apr 16, 2024

Hello Sir,

I'm an immigration lawyer based in Atlanta. As my feedback follows briefly after the final hours of tax day here in the U.S., I want to commend you on being proactive and addressing your tax concern several weeks ago. I also want to provide you with some encoragement...
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1 Answer | Asked in Real Estate Law, Tax Law and Civil Litigation for Puerto Rico on
Q: I am currently being sued by my ex regarding my half of my apartment in Puerto Rico. My ex is claiming that I abandoned

the property and demanding that I pay for her lawyers' fees. This is not a divorce case. We own a condominium apartment and this is our first home together. We have owned the property for a year now. I paid more than half of the apartment cost, yet we still own it 50/50. I left said property... View More

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answered on Mar 26, 2024

When you decide to donate your half of the property in Puerto Rico to your ex, there could be tax implications depending on the value of the property and the laws in place. In Puerto Rico, the donation of real estate is subject to the payment of a donation tax unless specific exemptions apply. This... View More

1 Answer | Asked in Tax Law, Civil Litigation and Landlord - Tenant for Texas on
Q: What type of attorney do I need to sue my deceased sons landlord for letting my daughter go in and steal his assets

I'm in texas. My son lived 7 hours away. Landord allowed her to remove assets when I told him his father and I would be in following day. I explained I was next of kin.

James L. Arrasmith
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answered on Mar 26, 2024

In Texas, for a situation involving the mishandling of a deceased person's property, you may want to consult with an attorney experienced in estate law or probate law. These attorneys handle cases related to the distribution of a deceased individual's assets and can help navigate the... View More

1 Answer | Asked in Social Security, Tax Law and Gov & Administrative Law for New Jersey on
Q: Can I keep my maiden name on W-2 if my name on passport and SSA has changed

I have 2 last names as I recently added my husband’s last name to mine . So now my last name is composed of 2 last nabes without hyphen. Can I continue to use my maiden name first last name at work and hence on W-2? What’s the way to retain maiden name professionally?

James L. Arrasmith
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answered on Mar 25, 2024

If your name has legally changed and is updated on your passport and with the Social Security Administration (SSA), it is generally recommended to update your name at work to ensure consistency across all official documents and systems. This includes having your new name reflected on your W-2 form,... View More

1 Answer | Asked in Tax Law and Business Law for Texas on
Q: Do I have to charge sales tax for video editing services in Texas?

If I do a video edit for a client and they provide me all the footage do I need to charge them sales tax?

James L. Arrasmith
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answered on Mar 25, 2024

In Texas, not all services are subject to sales tax; however, there are specific services that do fall under taxable categories. While the state's general approach leans towards taxing tangible personal property, certain services, especially where tangible personal goods are not primarily... View More

1 Answer | Asked in Tax Law, Real Estate Law and Cannabis & Marijuana Law for Florida on
Q: I'm a GM working for a dispensary. I pay federal taxes out of my check but I can't get an FHA mortgage. Is this illegal?

I also get a W2. I work for a reputable dispensary operating over 40 stores in Florida. I understand it's not legal on the federal level but why am I paying federal taxes if they don't recognize cannabis income?

The easy fix would be to have it rescheduled to a schedule III... View More

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answered on Mar 25, 2024

Your situation reflects a complex intersection of state and federal laws. While cannabis may be legal in certain states, including Florida, it remains illegal under federal law. This legal discrepancy leads to your current dilemma: despite receiving a W-2 and paying federal taxes, your income from... View More

1 Answer | Asked in Tax Law on
Q: Will I fall in a fine with the irs with a disssolution order placed for an llc without the beneficial ownership report?

If I do not file the "beneficial ownership information report" even with the dissolution of the llc scheduled, will I fall in a fine with the irs?

hello I formed an llc from abroad as a foreigner using legalzoom on january 4, I am not in the us, neither a citizen, but a foreigner.... View More

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answered on Mar 24, 2024

Filing the "beneficial ownership information report" is crucial, regardless of the dissolution status of your LLC. Neglecting this requirement can lead to fines, as it is part of the regulatory obligations set by the authorities. Even though your LLC is in the process of dissolution, the... View More

1 Answer | Asked in Business Formation, Tax Law and Business Law for Wisconsin on
Q: Hypothetically, if an organization with the same model wanted to build houses in the same manner but give the house away

What implications are there to giving a house away with the land? (The land in purchased from the city by HH.)

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answered on Mar 24, 2024

If an organization decides to give away houses along with the land, purchased from the city, there are several factors to consider. Firstly, there might be tax implications for both the giver and the receiver. The value of the house and land could be taxable as income for the recipient, depending... View More

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