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Eric P Rothenberg
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Eric Rothenberg’s Answers

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  • PROPERTY TAX DISPUTE: town is claiming $90K owed in back taxes on land that has been unbuildable for decades due to swampland.

    A lot of land was bought in the 70's by my dad (who has been incapacitated for many years). He never got around to building on the land as planned, & over the years (by the 1980's) the land had become wet & unbuildable. In fact, my dad was turned ...

    Eric’s Answer

    While you are in MA, this is a FL state law question. But here in MA, real estate property taxes are not personal against the owner. They attach solely to the land and buildings. So if the taxes exceeding the FMV of the property, then you simply walk away and let the city of town take the title back and re-sell it. Also, here in MA, you cannot complain about over-valuation unless you file for an abatement within the same year of the bill. It must be paid in full to challenge it. Also here in MA, if your property is assessed high based upon the belief it's buildable, you cannot use that at the building department to show it was either a 2-family when it's not, or a buildable lot when it's not.

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  • I have a FATCA question. Does anyone know what constitutes Indian Reportable Account under FATCA India US Treaty?

    The link to the document is here: http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-India-7-9-2015.pdf

    Eric’s Answer

    This type of question is far too complex to be answered in this forum and without a lot more information. Generally these types of treaties between countries relates to which income is subject to one or both countries. I highly recommend you seek a preparer who is familiar with international income taxes and not undertake this yourself.

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  • What paperwork needs to be filed when closing an LLC from a state and federal standpoint?

    I recently closed an LLC in Massachusetts. I filed the certificate of dissolution and confirmed that it has been certified. I was told that I also need to file IRS form 966? Is this required when an LLC is closed? When I read the instructions...

    Eric’s Answer

    If the LLC was taxed as a corporation, then Form 966 may be appropriate (but no always). If the LLC was a 1 member LLC and it was reported on Schedule C, then no, Form 966 is not needed. You simply report to the IRS (and the state) that the Schedule C business ended.

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  • Tax filing requirements for an LLC

    I have an LLC registered in the state of Massachusetts. For the past year (2014), there was no income nor any expenses. The tax preparer told me that nothing needs to be indicated on the schedule "C" since there was no income or any expenses. Mor...

    Eric’s Answer

    If this is a 1 member LLC to be reported on your Schedule C, then it should be reported in full. And at first you say there was no income but then you ask about earning less than $400. Earnings are gross receipts less all expenses and is not a test for anything. Please seek a tax return preparer for these answers

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  • Gift tax return

    A Gift was made to a trust where there are 2 beneficiaries that are children of the donor and 3 beneficiaries that are grandchildren. One child has a 50% share of the trust, the other child a 40% share. The grandchildren have a total of 10% share....

    Eric’s Answer

    First you need to remember to deduct the annual exclusion for all five beneficiaries if the trust has the so-called Crummey provisions. Second, if the gift was other than cash (meaning a check, money) then there may be discounts on the value of the gifts. Third, the generation skip gifts are complex and there are allocation rules, so I would NOT prepare this yourself but seek a qualified tax return preparer who is familiar with all these concepts. At a minimum a CPA or a lawyer.

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  • Taxes. How to declare Student Grant Received from abroad?

    I have been doing my undergraduate studies here in the US and I received about $27k from the Turkish government in 2014. How do I declare this income to the IRS since this was my only source of income?

    Eric’s Answer

    You need to get a good tax return preparer. I would not try this yourself as I can be quite complicated.

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  • How to fight years of false tax returns prepared by my mother?

    I recently found out my mother was allowing my step-father ( not married to my mother) to claim my daughter.My mother prepared all our taxes so I trusted her to prepare them correctly. I have leases with myself and my daughters name. I have full c...

    Eric’s Answer

    You can claim your daughter regardless of what your mother or her friend does. If the IRS challenges one or both returns, you need to show the court order & that she lived with you & you provided more than 1/2 her support.

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  • Can I sue my tax preparer for lost receipts?

    My tax preparer lost my over $10,000 worth of moving expenses receipts! I gave them to him when it was time to do my taxes, and he forgot to include them in my return. I submitted the return without my moving expenses so my return wouldn't be late...

    Eric’s Answer

    Of course you can. But that's not really the question. Do they admit losing them? Did he admit he knew they showed what you said? Can they be recreated? Talk to another tax lawyer first & see if there's an alternative solution first.

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  • When do the heirs of the estate report their share of the capital gains on real property sold in 2015 on their 1040s?

    I am executrix of an estate with a tax year ending 6/30/2015. We have sold real estate that is closing after that date, effectively in the fiscal year ending 6/30/2016. There will be a capital gain related to the sale and the estate funds will be...

    Eric’s Answer

    Preparation of the estate income tax return, Form 1041, for the estate, can be very tricky and should be done in consultation with the estate heirs to determine if the gain is to be reported by the estate (on said Form 1041) or passed through to the beneficiaries. It's rare for an estate to have a fiscal tax year ending June 30 so I'd be very cautious about that as well. The reporting of the gain by a beneficiary is as of the date of the end of the year of that entity. Given the unusual nature of your question specifics, I highly recommend you get a very good tax return attorney to help you out here. Do not rely solely upon answers given on this forum.

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  • Accountant put incorrect dates of residence on taxes, should I amend?

    I graduated from university in 2014 in State A, and also worked part time while a student in State A. I got a job in State B, but my plan was only to work there for 8-10 months and return to State A (and actually did leave State A after 10 months)...

    Eric’s Answer

    First, it's not a great likelihood of being audited by either state. Obviously if you amended both returns one would have a balance due and the other a refund. Second, when you go o another state to work and intend to return to the first state, you are not a resident of the second state. So in such situations you are supposed to treat the temporary stay in the second state as a non-resident and not a part year resident since you don't intend to stay there. Then you would have had to file a full year resident where you intended to return and non-resident in the temporary state.
    Finally, I doubt it will make much difference and if you are audited, you can amend both and make it correct.

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