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Eric P Rothenberg
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Eric Rothenberg’s Answers

349 total


  • IS FORGIVEN DEBT IN MASSACHUSETTS EXCLUDED FROM GROSS INCOME IF THE INDIVIDUAL IS INSOLVENT?

    WE ARE FILING JOINTLY AND HAVE ALREADY FILED OUR FEDERAL RETURN INCLUDING FORM 982 FOR EXCLUSIONS OF FORGIVEN DEBT IN THE EVENT OF INSOLVENCY. DOES MA HAVE THIS EXCLUSION IN THE EVENT OF INSOLVENCY? THANK YOU

    Eric’s Answer

    Yes Massachusetts follows the federal rules on not recognizing income from the cancellation of debt. Any good tax preparation person should know that. Some income tax software doesn't necessarily carry it over correctly to Massachusetts. So you might need help this year to prepare your returns.

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  • "Reasonable Expectation" S Corp. Massachusetts. BUSINESS. Fraudulent behavior, Atty, aggravated

    I was raised as a child, to believe that I would own the family business one day. I so joined. I worked for 30 years there, with my heart, my soul, hours after hours, I brought in personal belongings (*of which they will not give me). About 18 yea...

    Eric’s Answer

    Your question doesn't have all the facts needed to address your questions. If you have been a 49% shareholder for years, then you may well have a "freeze-out" claim against the corporation. As for taxes, again, I'd want to see much more info than relayed here. For example, if by taxes you mean there is income reported on Schedule K-1 and no distributions to you and they paid the income tax costs of that to you, then that's a separate claim too. I highly recommend you quickly see a business and tax attorney to help you sort through all the issues.

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  • I only made 200 hundred dollars last year. Am I required to file my income tax in boston?

    I dont have any dependants.

    Eric’s Answer

    If your total income in 2014 was only $200 you do not have to file tax returns but I suggest you do. First, the statute of limitations never runs (that's right, your whole life) unless you file a return. Without a return filed, the IRS and the state can go back to that year and assess you. I always file zero tax returns and do so with a certified letter, return receipt requested, or I file it without and then look online to make sure it was processed. Second, if that was self-employment income and you had no deductions, there may be self-employment taxes due.

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  • Will my application for citizenship be effected because I accidentally filed my taxes as single and my husband filed us jointly

    We were married in Dec 2014. I have been on a F-1 student visa and have only filed taxes 3 times so am quite unfamiliar with this process. We recently met with an immigration lawyer who filed the papers. We had a misunderstanding about whether we...

    Eric’s Answer

    While you cannot file as both single and jointly, this should not affect your immigration applications in any way. The IRS will not process two separate income tax returns with a same social security number or ITIN number. Generally if your return was filed earlier, they will either reject the second (joint) return OR they will treat the second return as an election to file jointly. It's no big deal but might take some time to sort out with the IRS.

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  • ASAP... When you sell your house the profit you make on it do you have to spend it before you get taxed on it?

    Thanks in advance.

    Eric’s Answer

    in case you were thinking of the long ago "roll-over" provisions, to avoid some cap gains by buying a replacement property, that expired a long time ago! Now we have a primary residence exclusion ($250K single or MFS and $500K joint). You need to see a tax advisor ASAP.

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  • My 87 year old father lives in his run down beach front home. If he sells will he be killed in cap gains?

    He pd 8000.00 for 4 lots in 1960. Not 4 lots by today standards. I am on deed he believes as after death inherit. A few people have approached him offering low $ telling him if he recvd over 400,000 he'd pay more than its worth in taxes

    Eric’s Answer

    The number of lots, buildable or not, doesn't affect his right to exclude capital gains for the sale of his primary residence. If he's single the exclusion is $250,000. You must get a good tax return preparer to advise him (or you) on this to avoid making a mistake or saving taxes with good planning.

    If he passes away you could sell the property with no gain or loss. In addition, at his age there will be many vultures trying to take advantage of him so I further suggest re-titling the property to protect against that.

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  • The tax firm that did my 2011 taxes made a mistake and I needed to pay $ 1000 in taxes I owed due to their mistake .

    The tax firm did not return the $ 450 fee I payed to have them prepared . They told me that the accountant that did my return no longer worked there and if I wanted a refund due to the error he made I would have to get it from him . I contacted hi...

    Eric’s Answer

    I believe you just re-posted the question, with updated information, from earlier in the past week. Those answers really don't change. The firm should pay the penalty and return their fee BUT that is not entirely clear and there's no guaranty that if you sued (even in small claims) that you would recover the fee. For ex. it's possible a judge would say you had the return prepared, they made you whole with paying the penalty, and any interest you paid was because you had the IRS's money that you should not have had, and therefore you received what you bargained for in full, a return prepared by them. Sometimes it's just best to put that to rest and then cease using them if you're unhappy.

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  • The tax firm I used for my 2001 taxes made a mistake and I ended up owing the gov't $1000 .

    I was also out the fee i payed the firm to do my taxes....the account who did them no longer worked there and they said if I wanted the fee back to contact him . He told me to get it back from the firm . What is my recourse here .

    Eric’s Answer

    There are several issues here. For 2001 (really 2001?) professional malpractice in MA must be filed within 3 years of the time you knew or should have known of the claim.

    Second, they are each liable to you for the full amount what we say is "jointly and severally". This means you can go after either one or both. If one party loses they might have a claim against the other but that's between them and not your issue. So you can move forward against either one.

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  • NR / PY / Resident Status - State taxes

    Hi, I am currently a student in MA, about to graduate in June '15, and have been studying here since June 2014, after moving from India. My federal tax returns software has advised me to select my status as "Non Resident" for my federal taxes but ...

    Eric’s Answer

    I don't know why your university is involved in this discussion, unless they are paying you? But you can work in MA and be a non-resident and also be a non-resident for US purposes. Residency is a set of facts. The university is incorrect.

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  • State Tax Returns filing for a Massachusetts Student

    Hey folks, I am an international student in Massachusetts and had a question on my state tax filing. I do not have an SSN or ITIN yet, and would be submitting my federal tax forms soon, along with my W7. Do I need an SSN / ITIN to file for State t...

    Eric’s Answer

    If you have US source income, and it sounds like you do, then yes you have to obtain an ITIN and all income reportable to the US is also reportable in MA if you are resudent here. That being said, there are many complex issues raised within your question so please seek experienced legal counsel right away. For ex., how can you get a signing bonus unless you have the right to work here?

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