If a dynasty trust has been created and all of the applicable GST exemption has already been allocated, what can a beneficiary do to increase this exemption for future generations? Could the beneficiaries pull out the corpus that isn't GST exempt and put it back into the trust using THEIR GST... Read more »
You said you received $11,000, as promised. Then you said you received another bonus--without telling us how much. Bottom line: If you received a second bonus you did not deserve (under your employment contract) then you must repay it.
I took the home over when my father passed away, my father owed back property tax already at this time. I did pay on some of the past due but wasn't able to pay off completely. Well I got notice that due State Utah law if someone is delinquent on property tax for 5 years they can put the home up on... Read more »
I have lived in my house for the last 20 years. For the last year, I have lived with my daughter and her husband at their house in the same town. The reason I have not lived in my house is that I allowed my son and his family to live there for a short period while he transitions from Texas to Idaho... Read more »
You will not have to pay taxes on the income of the sale of a personal residence for up to $250,000 (single taxpayer)/$500,000 (married filing joint taxpayer) of income. However, you must meet the ownership and use test:
During the 5-year period prior to the sale of the home, you must...Read more »
I've seen the "2 out of 5 years" rule floating around, but I'm not sure I fully understand it. It sounds like you must have lived there for 5 years total, but at least 2 of them had to be your primary residence...The home in question was my primary residence for almost 3 years total (always primary... Read more »
No, you can't deduct mortgage payments or interest on mortgage payments from your own personal taxes. If you are paying the mortgage out of your own pocket make sure you keep good records because you are entitled to reimbursement for all expenses you front the estate. So if you sell the...Read more »
She still owes on her house. We are going to pay it off. What about other bills? I was told to start sending the death certificate to bill collectors. She was taken to the hospital from work where she passed. Are they responsible for any of the bills? She was working for the local 99 union. She... Read more »
I am sorry for your loss. Usually, if the estate has any real estate that was in her name and not held in a Trust, a probate will be required to transfer the home to the names of her heirs or to give you authority to sell her home. However, if you find that the back taxes owed, medical debts, and...Read more »
My business is looking to acquire a new client. The contract with this client would require me to spend some of that money to complete with the contract itself. Would I be OK to write off that money spent as a business expense, or would I be taxed on the complete income?
Nearly any legitimate business expense can be discounted against revenues. I think you will need to be more specific on your question. If you are having to spend money to acquire new or specialized equipment or an upgrade of some sorts then absolutely.
If you are running it as a sole proprietorship, then you don't need to get a separate EIN, you can just use your own Social Security number when you report your taxes. If your company is an LLC then you will already have an EIN and you will u se the EIN when you do your taxes.
Yes and no. For instance, if I buy a car for my business, but I also use it day in and day out than I have to make a determination of how much I use it for business purposes (not including the first trip to the office/job site/location) and I can then write a certain percentage of that purchase...Read more »
I believe what you're looking for is called a Section 1031 "Like-kind Exchange." Here is an IRS publication on the issue that goes into the transaction a little https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031
There are many practitioners who focus in these kinds of...Read more »
She probably needs to "own" the property in order to qualify for the tax exemption. See an attorney in your jurisdiction to find out the best way to accomplish this. A life estate is one possibility.
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