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Tax Law Questions & Answers
Q: again thankyou for your response: One more question, What about inheritance tax?
Richard Samuel Price's answer
Estate tax kicks in after $5.45 Million of property passing to the heirs. If you have to worry about estate tax, then please call an attorney.
Estate tax kicks in after $5.45 Million of property passing to the heirs. If you have to worry about estate tax, then please call an attorney.
Q: Again, thankyou for you response. How long do i have to come up with the money? I have made an appointment with the l
1 Answer
| Asked
in
Estate Planning, Real Estate Law and Tax Law
for
California
on
Answered on Apr 25, 2016
Answered on Apr 25, 2016
Richard Samuel Price's answer
An attorney will start a probate action without getting paid upfront, but the attorney doesn't get paid until the end of the probate action, usually six to twelve months after the probate action is filed. However, most attorneys request that the client advance the costs of the probate action, usually around $1,500 upfront. Email or call a probate attorney for a full consultation.
An attorney will start a probate action without getting paid upfront, but the attorney doesn't get paid until the end of the probate action, usually six to twelve months after the probate action is filed. However, most attorneys request that the client advance the costs of the probate action, usually around $1,500 upfront. Email or call a probate attorney for a full consultation.
Q: My mom died 4-9-2016. She left a will stating that all is to be divided equally between my sister and i.
Richard Samuel Price's answer
I'm sorry to hear of your loss. If the home was in your mother's name, then the only way to pass the property is through a probate action. If the only asset is the $700,000 townhouse, then the attorney's fees are set by statute at $17,000 and add on another $1,500 to $2,000 for court costs, publication, appraiser, etc. These fees are paid out of the estate, or if the estate doesn't have any cash, then the heirs can pay the fees.
I'm sorry to hear of your loss. If the home was in your mother's name, then the only way to pass the property is through a probate action. If the only asset is the $700,000 townhouse, then the attorney's fees are set by statute at $17,000 and add on another $1,500 to $2,000 for court costs, publication, appraiser, etc. These fees are paid out of the estate, or if the estate doesn't have any cash, then the heirs can pay the fees.
Q: Only the wife is on the deed of real property. The husband passes away. Can the wife disclaim the property?
1 Answer
| Asked
in
Estate Planning, Real Estate Law and Tax Law
for
New Jersey
on
Answered on Apr 23, 2016
Answered on Apr 23, 2016
H. Scott Aalsberg Esq.'s answer
Maybe, more information is needed and the will would have to be reviewed and remember time limits do apply so I suggest a consultation with a lawyer, it may cost a few bucks but could be worth it in the end.
Maybe, more information is needed and the will would have to be reviewed and remember time limits do apply so I suggest a consultation with a lawyer, it may cost a few bucks but could be worth it in the end.
Q: Can You sue your current employer for putting your SS# in the hands of identity thiefs ?
Mr. Michael O. Stevens' answer
You sue for your damages, which can be difficult in cases like these. If you cannot get your refund, that would be the amount your employer would be liable for.
You sue for your damages, which can be difficult in cases like these. If you cannot get your refund, that would be the amount your employer would be liable for.
Q: I was laid off from my company and kept my 401K plan which contained before tax and after tax funds.
Julie A. Rice's answer
You need to seek the advice of a competent accountant. Also, you are fully responsible for any mishap here as it is your responsibility to know what you are doing with your money regardless of what some administrator told you.
You need to seek the advice of a competent accountant. Also, you are fully responsible for any mishap here as it is your responsibility to know what you are doing with your money regardless of what some administrator told you.
Q: live in san bernardino, since 2013 the city has been charging me a 100.00 a day not having trash services lean 80.000
1 Answer
| Asked
in
Municipal Law, Real Estate Law and Tax Law
for
California
on
Answered on Apr 14, 2016
Answered on Apr 14, 2016
Richard Samuel Price's answer
Your best bet would probably be to argue with code enforcement for a reduction in the liens. You're not going to get out of paying taxes.
Your best bet would probably be to argue with code enforcement for a reduction in the liens. You're not going to get out of paying taxes.
Q: My brother found me a job w/ sign on bonus. I want 15k to go to him and rest to me. is the 15k taxable on me and him?
Anton Pal Montano's answer
The IRS appears to be arguing that you actually earned the entire bonus of $100,000. Merely directing that some of your payment go to someone else may not be enough to transfer the tax obligation to another taxpayer. You may need to consult with a CPA or tax attorney about the deficiency being assessed against you. Best wishes to you,
Please note that my answers are for general educational purposes only and do not establish an attorney-client relationship. You should contact an...
The IRS appears to be arguing that you actually earned the entire bonus of $100,000. Merely directing that some of your payment go to someone else may not be enough to transfer the tax obligation to another taxpayer. You may need to consult with a CPA or tax attorney about the deficiency being assessed against you. Best wishes to you,
Please note that my answers are for general educational purposes only and do not establish an attorney-client relationship. You should contact an...
Q: My loans were forgiven due to a medical hardship (disability). Is there any exception to making that income?
Russell J. Haynes' answer
Yes, Congress in its infinite wisdom, chose to treat the forgiveness of debt as income for tax purposes, despite the liquidity problem that comes with a taxpayer being so broke a bank won't chase them for money, but then hitting a broke person with a big income tax bill. But they do it anyway. The most common exception to the inclusion of "discharge of indebtedness income" is the insolvency exception found Internal Revenue Code Section 108(a)(1)(b). That exception states that you do not have...
Yes, Congress in its infinite wisdom, chose to treat the forgiveness of debt as income for tax purposes, despite the liquidity problem that comes with a taxpayer being so broke a bank won't chase them for money, but then hitting a broke person with a big income tax bill. But they do it anyway. The most common exception to the inclusion of "discharge of indebtedness income" is the insolvency exception found Internal Revenue Code Section 108(a)(1)(b). That exception states that you do not have...
Q: i was recently (sept 2015) discharged from a chapter 13 bankruptcy, the irs was included in my payment plan i recently
Russell J. Haynes' answer
The IRS is often very bad about posting payments received during bankruptcy to the correct modules. A chapter 13 plan must pay all of the "priority" tax debts in full over the life of the plan. So the IRS should have applied the money they received from your plan payments to your priority tax debts. So the question is, which of your IRS debts were priority debts as of the date of your bankruptcy petition. The nonpriority debts should have been subject to the discharge upon completion of...
The IRS is often very bad about posting payments received during bankruptcy to the correct modules. A chapter 13 plan must pay all of the "priority" tax debts in full over the life of the plan. So the IRS should have applied the money they received from your plan payments to your priority tax debts. So the question is, which of your IRS debts were priority debts as of the date of your bankruptcy petition. The nonpriority debts should have been subject to the discharge upon completion of...
Q: Can the IRS overrule a court document for claiming dependants.
Russell J. Haynes' answer
In general, the person who provides more than half the support for the dependent is entitled to claim the exemption for that dependent on their tax return. However, exemptions for dependents can be allocated between former spouses by agreement. It is quite common in divorce cases for spouses to allocate the tax attributes in this manner. It sounds like there is a provision in your marital separation agreement ("MSA") saying you are entitled to the exemption. If I had to guess, your son's...
In general, the person who provides more than half the support for the dependent is entitled to claim the exemption for that dependent on their tax return. However, exemptions for dependents can be allocated between former spouses by agreement. It is quite common in divorce cases for spouses to allocate the tax attributes in this manner. It sounds like there is a provision in your marital separation agreement ("MSA") saying you are entitled to the exemption. If I had to guess, your son's...
Q: Do you think that doing a bank rupcty is the only way to avoid a judgement and a 10-99 tax repay?
Tristan Kenyon Schultz's answer
There are other options. First, you can enter into a payment plan with the IRS. Second, you may qualify for some of your tax debt being forgiven (see a tax attorney for details - the requirements are stringent and most taxpayers that do qualify see a comparatively small reduction in their tax debt). Finally, there is bankruptcy. If you are contemplating filing bankruptcy hire a bankruptcy attorney - only some types of tax debts can be forgiven in bankruptcy.
There are other options. First, you can enter into a payment plan with the IRS. Second, you may qualify for some of your tax debt being forgiven (see a tax attorney for details - the requirements are stringent and most taxpayers that do qualify see a comparatively small reduction in their tax debt). Finally, there is bankruptcy. If you are contemplating filing bankruptcy hire a bankruptcy attorney - only some types of tax debts can be forgiven in bankruptcy.
Q: Can my sis and I sign over our 2/3% of a deed (house 100% paid for) to my 1/3% brother without a tax hit? CPA says no.
Zaher Fallahi's answer
You and sibling can convey your property ownership to the other sibling as a gift. If each donor sibling’s share is worth more than $14,000, the donor will file a gift tax return form 709. The donor will incur tax only if his or her life-time accumulated gift exceeds $5,450,000. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a tax attorney in person. Good...
You and sibling can convey your property ownership to the other sibling as a gift. If each donor sibling’s share is worth more than $14,000, the donor will file a gift tax return form 709. The donor will incur tax only if his or her life-time accumulated gift exceeds $5,450,000. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a tax attorney in person. Good...
Q: tax deduction on home rental in two places
Tristan Kenyon Schultz's answer
Rent is not a tax deduction at the federal level. Some states (e.g. Massachusetts provides a deduction in certain limited circumstances), but most do not (Colorado does not). If any portion of the rent was for the payment of property taxes, that portion can be claimed on a Schedule A of a federal 1040 (rare for most rentals).
Rent is not a tax deduction at the federal level. Some states (e.g. Massachusetts provides a deduction in certain limited circumstances), but most do not (Colorado does not). If any portion of the rent was for the payment of property taxes, that portion can be claimed on a Schedule A of a federal 1040 (rare for most rentals).
Q: Dads wife put me and my siblings with fake last names and fake socials on her tax return. is that allowed?
Leonard R. Boyer's answer
Of course it is not allowed. But there probably won't be much if anything that you can do about it.
Of course it is not allowed. But there probably won't be much if anything that you can do about it.
Q: If i sell a property to finance a new residence how are taxes applied?
Anton Pal Montano's answer
Thank you for your question. Assuming that your property is not part of real estate "inventory" and that you are not a dealer in real estate, it appears that your property would be subject to a federal capital gains tax if you are able to sell it for a profit or more than your basis in the property. Because you have held the property for more than 1 year, it appears you would be subject to a long term capital gains tax rate. The long-term rate is more favorable than the short term capital...
Thank you for your question. Assuming that your property is not part of real estate "inventory" and that you are not a dealer in real estate, it appears that your property would be subject to a federal capital gains tax if you are able to sell it for a profit or more than your basis in the property. Because you have held the property for more than 1 year, it appears you would be subject to a long term capital gains tax rate. The long-term rate is more favorable than the short term capital...
Q: Am I in violation of the law by wiring the profits to my partners?
Zaher Fallahi's answer
Generally, your foreign partners may be subject to the US taxation on their US income, and subject to withholding. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a tax attorney in person. Good luck. Zaher Fallahi, Tax Attorney, CPA (California).
Generally, your foreign partners may be subject to the US taxation on their US income, and subject to withholding. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a tax attorney in person. Good luck. Zaher Fallahi, Tax Attorney, CPA (California).
Q: My employer made a mistake inputting my W4 and now I owe taxes. Am I entirely liable?
Zaher Fallahi's answer
Sorry about the mess up. Generally, you are responsible for the taxes if you filed a W-4 form in the beginning. If you claim one exemption, the box 5 of the W-4 form still may be two, if you filed it properly. Employer wouldn’t know about your other income or deductions. Ask the employer how they entered the W-4 information in their payroll system. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice....
Sorry about the mess up. Generally, you are responsible for the taxes if you filed a W-4 form in the beginning. If you claim one exemption, the box 5 of the W-4 form still may be two, if you filed it properly. Employer wouldn’t know about your other income or deductions. Ask the employer how they entered the W-4 information in their payroll system. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice....
Q: gift from my sister who is non USA resident.
Zaher Fallahi's answer
Generally, US tax pares do not pay tax on the gift they received from anon-resident aliens. If the amount exceeds $100K in a year, then they are required to file “Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts”. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a tax attorney in person. Good luck. Zaher Fallahi,...
Generally, US tax pares do not pay tax on the gift they received from anon-resident aliens. If the amount exceeds $100K in a year, then they are required to file “Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts”. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. For specific advice, please consult a tax attorney in person. Good luck. Zaher Fallahi,...
Q: Can I file single on my taxes if I am separated and living in separate residences and filed for divorce in NJ?
Leonard R. Boyer's answer
Yes, you should be able to, but check with the IRS to be certain. Good luck.
Yes, you should be able to, but check with the IRS to be certain. Good luck.
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