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Tennessee Tax Law Questions & Answers
2 Answers | Asked in Tax Law for Tennessee on
Q: Do I have to pay taxes on my profit on my home I just sold?

Owned for 31 years. Lived there until 3 years ago. I am a widow and soon be 59 years old

Anthony M. Avery
Anthony M. Avery answered on Nov 23, 2021

You are probably exempted from the capital gains tax as you were 55 during the last 5 years of living there as your home. But you still have to report the sale, and you might not meet the one time exclusion because of your age. Check IRS Publication 523.

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1 Answer | Asked in Probate and Tax Law for Tennessee on
Q: can tn collect a business tax after probate has closed
Anthony M. Avery
Anthony M. Avery answered on Aug 12, 2021

Unfortunately TN SC has ruled a tax is not a claim against the Estate. The SOL may have run on collection of taxes, or there not be property of the deceased taxpayer to collect from. Hire a competent attorney to assess the situation since apparently you do not have an attorney handling the... Read more »

1 Answer | Asked in Tax Law for Tennessee on
Q: If I own a house/land worth $650K and want to gift to my parents, are there any tax implications for them or me?
Anthony M. Avery
Anthony M. Avery answered on Jul 14, 2021

There are tax implications to all Parties involved. This issue needs a competent attorney's advice after considering all the known facts. Most importantly, what is your basis? A Future Interests Deed might accomplish your goals and should be considered by an attorney who knows how to... Read more »

1 Answer | Asked in Tax Law for Tennessee on
Q: What is the Privilege Tax that is exempt or waived by the state upon purchasing a vehicle for 100% disabled veterans?

The State Law is T.C.A. 5-8-102, a and d.

Anthony M. Avery
Anthony M. Avery answered on Nov 25, 2020

That should be the "Wheel Tax" which is levied in many, but not all, Counties. It is part of the Registration Fees each year. Take a copy of your VA Decision Letter (and probably a DD 214 also) to the County Clerk for your next Registration. If applicable, it should save you some money.

1 Answer | Asked in Real Estate Law, Tax Law, Civil Litigation and Municipal Law for Tennessee on
Q: I've notified the property accessors office a year ago that the Mobile Home on my Dad's old land has been destroyed

But they continue to add a $29,000 manufactured home to my property taxes each year. What else can I do?

Anthony M. Avery
Anthony M. Avery answered on Oct 26, 2020

Each County has a period where Tax Appraisals can be contested. Contact the Tax Assessor in that County and find out what the process is and when. You too late for 2020 but you can file the written contested appraisal application now.

1 Answer | Asked in Estate Planning, Probate and Tax Law for Tennessee on
Q: My father passed away with no assets, and outstanding debt. What is my probate or tax responsibility?

He was on medicaid in a nursing home and all of his income went to that. Do i have I have to file a will in probate if I am the only heir and their are no assets to distribute? I have also found out owed a significant amount in back taxes, do I have to file a return with the IRS if there is no... Read more »

Anthony M. Avery
Anthony M. Avery answered on Sep 29, 2020

There is no Statute mandating Probate of every Decedent's Estate. Many, many Next Of Kin make this mistake. If there are no assets to distribute, there is no purpose for a Probate. Also land rarely goes through an Estate. If something happens to go to you, worry about any possible lien... Read more »

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Tennessee on
Q: would like to add girlfriend/Fiancé of 10 yrs on my house deed. If I do a quit claim deed, is there IRS or loan issues
Anthony M. Avery
Anthony M. Avery answered on Aug 3, 2020

If there is a Deed of Trust on the Property, then there is probably a due on sale clause if the lender does not give permission. Usually they never find out unless there is a Foreclosure anyway though. The Deed to her should be thoroughly considered and expertly drafted. If the Property is not... Read more »

1 Answer | Asked in Tax Law for Tennessee on
Q: If taxes are owed on a jointly owned home do I need to pay them before I can file for a partition for sale?
Anthony M. Avery
Anthony M. Avery answered on Aug 3, 2020

No the taxes can be paid out of the Partition Sale Proceeds, could be paid now if needed by a Tenant In Common and reimbursed from Proceeds, or could be possibly sold to the purchaser who takes subject to the taxes. Just do not late severely late taxes allow the County to have a tax sale prior to... Read more »

1 Answer | Asked in Tax Law for Tennessee on
Q: My mom is 72 years old and she recently went back to work she files her taxes for 2019 and she got a letter from the IRS

Stating that her and her husband owed the IRS $1600 in back taxes but the man’s name on the letter was a man that she was never dead married to and he is dead what should she do she is done all the documents all the paperwork that she had to do and send it to them and now they are refusing to... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Jul 26, 2020

She should call the taxpayer advocate and ask them for assistance. Here is a link to look up the number for the office closest to her.

https://www.irs.gov/advocate/local-taxpayer-advocate

1 Answer | Asked in Real Estate Law and Tax Law for Tennessee on
Q: In Tennessee can I seller-finance mobile homes in mobile home parks?

My business plan was to buy old mobile homes in parks and repair them. After repairs, sell to individuals with sound credit, housing record, and employment on terms for 3-5 years with no interest and no early-payoff penalties.

Im serving three purposes: I'm cleaning up mobile home... Read more »

Anthony M. Avery
Anthony M. Avery answered on Jun 11, 2020

Your business plan will require alot of work, and will incur significant risks. Do not buy any mobile home that does not have a certificate of title that goes with the serial number on the home. Then you will need a financing statement and note for each sale. Then you must record the lien... Read more »

1 Answer | Asked in Estate Planning, Family Law, Tax Law and Civil Rights for Tennessee on
Q: I received a stimulus check made out to my father who deceased Mar 2019. Do I return or keep it?
Zaher Fallahi
Zaher Fallahi answered on Apr 25, 2020

Sorry about the passing of your father. Yes, you return it with a letter explaining the father's death. Good luck.

Disclaimer: This is not intended for, and may not be construed, as legal or tax advice. For specific advice please consult your legal counsel.

1 Answer | Asked in Child Support and Tax Law for Tennessee on
Q: If my taxes were reduced this year for child support payments and I received the remainder...will my stimulus check be

Garnished as well

Johnny Quitman Rasberry
Johnny Quitman Rasberry answered on Apr 21, 2020

If you owe back child support your stimulus check can and probably will be intercepted.

1 Answer | Asked in Business Law, Contracts and Tax Law for Tennessee on
Q: Can a corporation retrospectively cancel their promised 401k match contribution.

I am an employed physician of a large health system in NE TN. Because of financial losses they are having due to Covid-19, they have mandated a 20% pay cut for all physicians for a 60-day period. IN ADDITION, they are cancelling the 401k match for the entire 2020 FY (July 2019 to July 2020), which... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Apr 20, 2020

Before I answer this question please allow me to sit the stage: Your employer is struggling to stay on top of the waves during the worst economic downturn since the Great Depression--which started in October 1929 and lasted for most of the ensuing decade. IMO, you and all other employees should be... Read more »

1 Answer | Asked in Tax Law for Tennessee on
Q: When I lived in Florida, someone in TN did my taxes & stole my money instead of paying my tax bill. Best way to sue?

I gave her $1,000 for my tax bill & she sent me some confirmation email that my tax bill was paid through the IRS Direct Pay site. However, when I filed my taxes this year, they took my refund claiming that I never paid my taxes! When I called the IRS with the confirmation email I received from... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Apr 16, 2020

I would continue to try and resolve the matter with the preparer. It may have been a clerical error or simple omission. If they can't or won't fix it you should file a police report, send form 3949-A to the IRS (link below), and review them on social media sites. The question is was this... Read more »

1 Answer | Asked in Employment Law, Tax Law, Business Law and Social Security for Tennessee on
Q: How to get SSA withholding that my now deceased employer failed to send to SSA?

My employer failed to send SSA withholding to SSA for many years. All employees' SSA statements show $0 for those years. She passed away last year and her family closed that business entity and reopened with a new name, retaining all employees. The new company has paid SSA as required. The... Read more »

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Apr 15, 2020

Generic legal advice to all humans being asked to sign anything important--ever: Before signing any document that in an y way raises concerns about the possible affect of that document you should ALWAYS send a copy of the document to your family lawyer and ask them to flyspeck it and advise you... Read more »

1 Answer | Asked in Tax Law for Tennessee on
Q: Corona stimulus check that is deposited into only working spouses checking account and in Jan 2020 divorce was filed.

One working spouse received the whole stimulus.

Two children were filed also last year ( BUT now neither spouse has custody).

Who legally should get the money?

Paul E. Tennison
Paul E. Tennison answered on Apr 14, 2020

In fairness it should likely be split 50/50. That would be marital property subject to equitable distribution in the divorce. You may want to consider consulting with an attorney regarding this issue and the pending divorce. Good luck.

2 Answers | Asked in Bankruptcy, Business Law and Tax Law for Tennessee on
Q: Should I file my business taxes as a Partnership or as a Corporation, if i plan to file bankruptcy?

The business is listed as a 2-member LLC. I do not want the other member to be negatively affected by my bankruptcy.

Brian Aho
Brian Aho answered on Mar 26, 2020

The issue that affects your business partner is whether the bankruptcy trustee will want your interest in the business. That depends on the value of the business versus any exemption that might apply. You need to file your taxes based on what you elected at the time of formation or prior to... Read more »

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1 Answer | Asked in Land Use & Zoning, Real Estate Law, Tax Law and Civil Rights for Tennessee on
Q: Reverse the signature of land deed due to Diagnosis of MS. Signed over threat of nursing home.

My condition is stable and I live on my own.

Anthony M. Avery
Anthony M. Avery answered on Feb 24, 2020

Not sure of your question. But the only way you will set aside that conveyance is for the Grantees, and now owners, to convey it back to you. I suggest a Life Estate/ Remainder Deed.

1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Tennessee on
Q: my father quit claimed his home to me in Nov. 2019. We are trying to sell the home, due to he lives with me now. can i

quit claim it back to him? Would this avoid capital gain at sale? he has lived there for 30 years and out for 3 months

D. Mathew Blackburn
D. Mathew Blackburn answered on Jan 25, 2020

You can. As long as it was his primary residence for 2 of the last 5 years the first $250k of gain will be excluded.

You still have a gift to you then a gift back, then a sale with a lump sum of cash. So your going to need to look at gift tax returns, likely no tax owed, and potential...
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1 Answer | Asked in Tax Law for Tennessee on
Q: Does the withdrawal of an NFTL from a particular property mean the property is free of the lien and have a clear title?
Anthony M. Avery
Anthony M. Avery answered on Jan 23, 2020

No but it helps. There may be other liens, etc. A Fed Tax Lien needs to be released of record, both in the County of recording, and possibly other Counties. The Taxpayer may still have a Notice of Deficiency on him, or some other tax problem. A title search is necessary, and if there is a... Read more »

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