Franklin Moore Mclaughlin IV's Answers

I have a home in foreclosure I bought for 172,000 and owe 302,000 how much taxes will i get hit with,What rights do I have?

Likely none. If you can prove you are insolvent prior to the taking of your home, the amount of the cancellation of indebtedness income can be avoided. You should consult with a local CPA or tax attorney for more details.

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Is the money recieved as a beneficiary of a trust taxable income.

The distribution is usually not income. However, there may have been some income earned by the trust which may be allocated to your wife. Check with the trustee. If the trustee is uncertain, you need to have a tax attorney or experienced CPA review the trust and its investments to determine the proper tax treatment.

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Is interest paid on a promissory note, irs deductible as home mortgage interest if the promissory note is not recorded.

The loan does not necessarily have to be secured by the home for the interest to be deductible, but I highly recommend that you record a mortgage to secure your loan. No need to put your name on the deed, just record a mortgage.

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I lived and worked in VA from 1991-1997 but never filed state income taxes. Am I still responsible for filing, etc., etc.

As a general rule, the taxing authorities have no limits on chasing you if you never filed returns. The liklihood of this is small, the longer it goes. If you are currently filing in California, with no contact with Virginia, Virginia would not likely even find you. But, the actual answer to your questions is easy - yes, you are still responsible for filing.

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Our home is paid for but it is owened by my husband and his mom.can they come after our home?

You need to find a local attorney who specializes in bankruptcy. Do not make any transfers, even gifts, until you consult an attorney.

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Tax obligation for deed in lieu (California) for rental prop?

Assuming that you are personally liable for your debt (i.e. it is recourse debt), then a deed in lieu of foreclosure is treated for tax purposes as if you sold the property for its fair market value. You may have a taxable gain if your adjusted tax basis is less than the fair market value, or a loss if your adjusted tax basis is higher than its fair market value. Any additional debt that is forgiven will be treated as ordinary income to you. However, there may be a way to avoid taxation on...

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Do I have to file amended Tax return if I wish to carry forward the full amt of the excess contribution to a subsequent tax yr

I agree with the previous answer. You have not provided sufficient facts to make a fully informed answer. There may be other facts and circumstances specific to you that affects the answer. A good CPA with tax background will likely be able to help you, or find a qualified tax attorney.

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Is Visa a countable asset for Medicaid?

A Visa credit card is not a countable asset for Medicaid.

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What are the tax implications of giving cash gifts to family? Is there a one time tax free option?

You can make annual gifts that are exempt from federal gift taxes of up to $13,000 per person per year. This amount goes up occassionally depending on inflation. You can also give gifts up to $3.5 million without paying taxes, but you will need to file gift tax returns. You also need to consider the tax consequences of selling your home. There could be an income tax resulting from the sale. You will also want to take into consideration any state taxes that could become due. You need to...

Elder Rights atty? Elder Law=wills/trusts/asset-protxn. Family Law=Divorce/child-custody. Who helps if no sue nsg home for $$$ ?

Call John Gosselin, Esq. at 781-729-0313 and view his AVVO profile. He is one of the finest Massachusetts elder law attorneys and will be able to assist you and answer your questions.