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John P Fazzio III
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John Fazzio’s Answers

1,040 total


  • Do I the wife get some of my husband's tax return money?

    My husband and I been legally married since 2012 and has filed one tax return together in 2014 and put our child as a dependent on it. When he got the money ,he didn't give me any of it. 4 months later he beat me up(DV case), I left the home and ...

    John’s Answer

    Right. This is a matter to be addressed in the Separation Agreement attendant to divorce proceedings. So long as you are married joint filers your financial futures are tied together.

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  • Do i have to pay tax for PayPal money

    i would like to know that do i have to pay tax or make report on money that i receive from PayPal? i heard that if the money was a gift i do not have to pay tax? my question is what if it was big money like thousands of dollar? how can Federal enf...

    John’s Answer

    As Mr. Cappuccio points out, PayPal sends 1099s to the IRS. Thus, they'll know of the income. If you don't report it as either income or a gift, you will be audited.

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  • Is there a loophole/law that someone can provide me or is there any way to avoid this unfair tax?

    Recently divorced and my ex-spouse and I were co-titled to two properties. In the divorce settlement, the court ordered stipulation awarded one property to each spouse. Hired a real estate attorney for the specific purpose of composing the deeds...

    John’s Answer

    I'm assuming this is a NY State Tax Auditor, not IRS. I'm assuming they are assessing the New York State Real Estate Transfer Tax (RETT), which is imposed at a rate of $2 per $500 of consideration. Your statement that: "there is a rebuttable presumption that the consideration for the conveyance, the relinquishment of marital rights, is equal to the fair market value of the interest in the real property conveyed." is generally correct. That comes from Title 19 RCNY Section 23-03(d)(3) and in Title 20 NYCRR section 575.11(a)(10). That means if the property is worth $1,000,000, then you each owe $2,000. If a figure is stated in the divorce decree, this will trump the presumption. Likewise, if the decree states the grantee spouse handles the taxes, then that will govern.

    Bottom-line, I could recite all the ins and the outs of the way this is PROPERLY calculated. But, the Auditor has a job to do, and frankly, is probably not terribly conversant with these laws. You are going to need to hire an attorney who specializes in Tax Controversy work to fight this for you, and depending on the bill, I'm not sure if this problem is big enough to justify the costs, but that is what you'll have to do if you want to resolve it.

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  • Was is ok to claim my stepsons as dependents using (relationship: son)?

    I lived and supported my girlfriend's sons for the entire 2012. At the beginning of 2013, my girlfriend and I got married. After getting married, I filed my 2012 tax return, I understand my stepsons qualify as dependents. I filed as head of househ...

    John’s Answer

    The general rule is that to claim a dependent, you must be married, they must have lived with you for six (6) months of the prior year and you needed to have provided for them, also the dependents cannot be claimed on both your and your girlfriend (now wife)'s returns. Only one or the other. Thus, it does not appear that you filed correctly, unless she did not claim them. You should have probably filed as single without claiming any dependents.

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  • When I retire, Will any of my deferred comp be tax exempt if I'm using it as down payment for house?

    Deferred comp plan when retiring under age 62.

    John’s Answer

    There are a lot of factors that play into this. You should consult a local tax attorney, provide all the relevant details, and hire them to assist you with the issue if you decide to move forward.

    Generally, what you are referring to is an IRS Code 72 (p) (2) (B) (ii) exception to the five (5) year rule for repayment of pension loans, which generally has a $50,000 limit.

    So, while the specific pension plan, the circumstances of the purchase, and a host of other factors need to be analyzed to give you a clear answer, based on what you've said it is unlikely that any part of a $200,000 pension loan would be tax free.

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  • If I take a final loan from my pension, what portion will be tax free if I use it as down payment for house?

    Retiring from NYPD, under 62, taking final loan of 200K. What portion of this will be tax free if I use it to put down payment on a house?

    John’s Answer

    There are a lot of factors that play into this. You should consult a local tax attorney, provide all the relevant details, and hire them to assist you with the issue if you decide to move forward.

    Generally, what you are referring to is an IRS Code 72 (p) (2) (B) (ii) exception to the five (5) year rule for repayment of pension loans, which generally has a $50,000 limit.

    So, while the specific pension plan, the circumstances of the purchase, and a host of other factors need to be analyzed to give you a clear answer, based on what you've said it is unlikely that any part of a $200,000 pension loan would be tax free.

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  • If I were to move myself and my small ecommerce business to Puerto Rico, would I have to pay income tax?

    I have a small reselling business where I sell my goods on the Amazon Marketplace. I purchase goods from suppliers in the US and have them ship the items directly to an Amazon warehouse. When a customer purchases an item, Amazon handles the shipp...

    John’s Answer

    You may have a sales tax obligation where the products are sold. This is something that needs to be carefully explored. As to the income tax question, it has to do with your filing status, citizenship, corporate form and a host of other details you have not provided.

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  • I put in 150,000 can I write the whole thing off?

    I made an investment in a business 4 years ago. The k1 I received now tells me it is completely worthless now.

    John’s Answer

    An accountant or other tax professional will need to review the entire factual situation, including the nature of the business interest (assumed partnership structure), the nature of the money you "put in" (assumed contribution to capital), and whether your right to write-off your contribution as a loss has been triggered.

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  • Where to request the copy of w2, w4 or i-9 form of any person? Is it under FOIA? What if it is about another person?

    Where one can request the copy of the I9, w2 or w4. These forms are held in the companies where one is employed or with the government office? If you need to access the copies of these forms about a person who might be involved in a fraud on y...

    John’s Answer

    I agree with Mr. Hansen that you cannot get another taxpayer's tax information through FOIA as these are private records.

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  • How can I pay taxes that I forgot to pay from a Fulbright grant one year ago?

    I was awarded a Fulbright grant in Taiwan last year (August 2014- July 2015). I have been so busy that I have irresponsibly forgotten to pay taxes on the grant money.

    John’s Answer

    The best strategy will be to file an Amended Return.

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