Texas Tax Law Questions & Answers

Q: My dad wants 2 sell me his home below FMV, & continue 2 live with us. Tax implications? Any better options?

2 Answers | Asked in Estate Planning, Tax Law and Real Estate Law for Texas on
Answered on Mar 2, 2019
Terry Lynn Garrett's answer
It might be better for him to transfer it to you effective on his death using a transfer on death or a Lady Bird Deed. If he makes any transfer of $200 or more for less than fair market value in the five years before he enters a nursing home (or hospital followed by a nursing home) and then, like 90+% of Texans, applies for Medicaid, Medicaid will treat him as still having the difference between the fair market value and the transfer/sale price. He won't qualify until he has been in the...

Q: Do minors need to pay income tax?

1 Answer | Asked in Banking and Tax Law for Texas on
Answered on Feb 19, 2019
D. Mathew Blackburn's answer
Yes, if you have $400 or more of self-employment income you'll need to file a 1040.

How much income you have will determine whether your parents can still claim you as a dependant.

There is a difference between royalties from music and Self-employed Independent contractor income so make sure the contract and the tax docs match. Also, the filing requirement for royalties is higher than for SE income. But you also have the kiddie tax to deal with if it's royalties.

This...

Q: How long after a vehicle registration and inspection expires do you have to renew?

1 Answer | Asked in Tax Law and Traffic Tickets for Texas on
Answered on Feb 8, 2019
Grant St Julian III's answer
Incorrect. Automobile registration expires on the last day of the month on the sticker, and you must update your registration prior to that date to avoid a citation.

Q: Daughter is living w/my dads while I get back on my feet I pay him he wants to claim her tax

1 Answer | Asked in Tax Law, Family Law and Child Custody for Texas on
Answered on Jan 23, 2019
Rahlita D. Thornton's answer
Your answer can not be answered until the orders are reviewed to see what the details are as spelled out. In general the IRS rules govern tax exemptions but you may have agreed to follow other rules. Seek the counsel of an attorney and tax advisor on these issues.

Q: If I believe my boss is skimming money from his business, who would I report this to? The IRS?

1 Answer | Asked in Tax Law for Texas on
Answered on Dec 5, 2018
Eric Steven Day's answer
You could report this to the IRS if he is not reporting all the income he is making to the IRS for tax purposes. The IRS has a whistleblower program, where you can turn in individuals or businesses for evading taxes and take a percentage of whatever the IRS is going to collect from the taxpayer. However, the IRS usually is looking for the big cases that has potential to collect in the millions of dollars because they have to use a certain amount of resources to prove it. Additionally, you...

Q: My spouse and I hv been filing our taxes jointly. Do I need her explicit approval to release the tax statements to any1

1 Answer | Asked in Civil Litigation, Tax Law and Family Law for Texas on
Answered on Nov 5, 2018
Tammy Lyn Wincott's answer
You each have a right to a copy of your tax returns. Speak with the immigration lawyer.

Q: bought land from private owner. Never changed title. Original owner paid taxes for 10 yrs. who owns the land?

1 Answer | Asked in Real Estate Law and Tax Law for Texas on
Answered on Nov 5, 2018
Tammy Lyn Wincott's answer
When you say you have the "bill of sale" are you referring to the deed? If so, you may want to record it in the County Deed records. Generally the owner of the property is only recognized by the chain of title which means whomever has the last recorded deed with their name on it.

Q: We are being sued for delinquent taxes but the property is not in our name. Help!

1 Answer | Asked in Real Estate Law and Tax Law for Texas on
Answered on Oct 16, 2018
Tammy Lyn Wincott's answer
You can speak with the attorney who is suing and find out some options. At a minimum I would suggest filing an "Affidavit of Heirship" in the County where the property is located. This takes two people who have known the family for a long time, know relatives and circumstances; however, it cannot be anyone who could inherit, i.e. a spouse of a relative does not qualify.

You might file a disclaimer to real property as well.

Q: How can we transfer ownership of a condo to me from my ex-husband without paying taxes?

1 Answer | Asked in Tax Law for Texas on
Answered on Oct 3, 2018
Tammy Lyn Wincott's answer
If it was addressed in your divorce decree and awarded as part of a property settlement, I suggest filing a certified copy of the divorce decree in the county deed records where the property is located.

Q: I was arrested in December of 2017 for dwi and told I would receive a letter with court date. When will I receive it?

1 Answer | Asked in DUI / DWI and Tax Law for Texas on
Answered on Sep 24, 2018
Grant St Julian III's answer
First, your license suspension is a separate proceeding from the DWI. If a blood sample was taken on your DWI, it may take several months for the crime lab to return the results, which causes a delay in the filing of the criminal case. Call an attorney in your area; don't wait for a phone call. Good luck.

Q: Uncle had land the county was foreclosing for unpaid taxes. He gifted to me I pd taxes since 2013 heir say 3/2017

1 Answer | Asked in Contracts, Estate Planning and Tax Law for Texas on
Answered on Aug 16, 2018
Terry Lynn Garrett's answer
If the deed properly stated who owned the property (which may have been the RLT or may have been your uncle), correctly described it and was properly recorded, the deed governs. All too many people create RLTs and do not properly fund them by recording a deed into an RLT. On the other hand, your uncle may have recorded a deed from him to the RLT and then a deed from him to you. Without seeing the documents, it is impossible to tell.

Q: Do I have to report my Airbnb income on my taxes?

1 Answer | Asked in Tax Law for Texas on
Answered on Aug 3, 2018
Frank Huerta Jr's answer
Yes,it is considered taxable income. You can deduct your expenses related to your Airbnb income as well.

Q: I work in Kuwait (military contractor) I had to open a salary account & filled out a W9. Will I get a 1099 from the IRS?

2 Answers | Asked in Tax Law for Texas on
Answered on Jul 31, 2018
Frank Huerta Jr's answer
The purpose of a W-9 is for a business to properly report payments when it pays more than $600 per year to an individual taxpayer. You will likely receive a 1099 Misc but from the business not the IRS. They will send a copy of the 1099 Misc to the IRS.

Q: Should I let IRS debt expire?

1 Answer | Asked in Tax Law for Texas on
Answered on Jun 18, 2018
Linda Simmons Campbell's answer
It is impossible to answer the question with the limited facts you have provided. If, for example, you are eligible for currently not collectible status, then that may be the best option for you since there is limited time left on the statute of limitations. It may not be an option to just let the debt expire. If you are working or receiving some type of income that the IRS can levy, they likely at this point have the right to do so and likely will if they can.

I suggest calling the...

Q: Uncle passed away without a will.

1 Answer | Asked in Tax Law and Probate for Texas on
Answered on May 17, 2018
Eric Steven Day's answer
I am not licensed in Texas, but it will be hard for the stepdaughter to sell the house without the house passing through probate court. When an individual dies without a trust (ie. a will or intestate), the estate has to be presented to the court for the court to decide the distribution of the assets that the individual left behind. Before this happens the house will be in the Aunt or Uncle's name which should prevent the title company from handing over the deed without a court document. If...

Q: Is possession of Deed of Trust proof of ownership. Or does it give me rights at all. In Texas

1 Answer | Asked in Tax Law for Texas on
Answered on Apr 30, 2018
Linda Simmons Campbell's answer
I recommend speaking to an elder law attorney regarding the guardianship issue and a real estate attorney regarding the sale of the land.

Q: Hi, I am planning to convert my Sole P into an LLC here in Texas. And I also have about 21 sales tax permits. I plan to

1 Answer | Asked in Tax Law and Business Formation for Texas on
Answered on Apr 23, 2018
Benton R Patterson III's answer
Most states require companies that sell products in the state to register to conduct business in the state. An LLC that is not properly registered to conduct business and intermingles transactions with a sole proprietor has a decent chance of losing its ability to shield the owner or owners from liability.

Q: How can we sell our deceased grandmother's property if there is a judgement against it? There was no will.

1 Answer | Asked in Estate Planning, Family Law, Real Estate Law and Tax Law for Texas on
Answered on Apr 22, 2018
Terry Lynn Garrett's answer
Because you do not know the heirs, you cannot file Affidavits of Heirship in the deed records. Instead you or the judgment creditor must hire a local probate attorney to file an Application for Determination of Heirship and Letters of Independent Administration for each estate.

Q: why did i get a 1099_misc. I'm not sure I should have been issued one and cant complete my taxes until I have an answer.

1 Answer | Asked in Tax Law for Texas on
Answered on Apr 13, 2018
Linda Simmons Campbell's answer
It is impossible to say for sure without seeing the document but if you received a car allowance it is generally taxable.

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