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John P Fazzio III
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John Fazzio’s Answers

869 total


  • I have missed a form 5498 form IRA because I had moved out of state, when it was forwarded to me I had already filed my taxes.

    Hi, the reason why I'm contacting you for advice is because I have moved out of state, and after the taxes were done, I have received in the mail a form 5498 from IRA, which my 401k was transferred to since I didn't have a 401k at my last job. Thi...

    John’s Answer

    See a local CPA or Tax Attorney. If you are in a situation where you need to file an amendment because you missed a deduction for IRA contributions or a taxable withdrawal and penalty, you should just amend the return right away to deal with the issue. I am not sure why you would have a tax obligation simply on the transfer, if done properly.

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  • Mother dying, House given to daughter. House sold what tax implications are there?

    Our mother was passing and the house was given to daughter. The house sold now after 2 months. What are the tax implications? There are 2 brothers also that the are to receive 1/3 after sold. How does that effect them tax wise as well?

    John’s Answer

    Other posters have good answers. If there is gain, it is taxable, but inheritance generally will not be.

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  • I have been told sales tax applies to both goods and services in wedding photography - as the 2 are combined. Is this true?

    I'm new to California from Australia and am waiting my work permit from UCSIS. (marriage) so I'm trying to get my website organized. I have been told California sales tax only applies to services, not goods. But I read on wedding photo...

    John’s Answer

    Read the CA Board of Equalization guidance. Many states impose sales tax on certain services that are inextricably intertwined into the product. It seems that CA views private photograph (as opposed to commercial photography for ad campaigns) as such an activity. Thus, wedding photography appears to be subject to sales tax, both on the service as well as the finished product.

    That said, I only looked quickly at the regulations, and you should consult a local CPA or Tax Attorney who works with the Board of Equalization regularly and knows their views on photography in particular.

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  • Does a tax lien give the government the right to seized my property or more of a restriction of sale until the lien is paid?

    Does a tax lien give the government the right to seized my property or more of a restriction of sale until the lien is paid? In other words, when a lien is placed on a property, does that translate into the property being seized by the gover...

    John’s Answer

    A tax lien is not a seizure. The tax lien is an encumbrance that must be paid before a sale can take place and title can be transferred free of the restriction.

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  • Tax implications as the beneficiary of my brother's 401k and ESOP accounts.

    My brother listed me as his beneficiary to his 401k and ESOP. He didn't own a home or have much in terms of assets outside some savings ($10k) and his 401k and ESOP. I need to understand my options on what to do with the monies and the tax impli...

    John’s Answer

    You need to consult a local CPA or Tax Attorney and provide them with all the information and documentation to make an intelligent decision of how to handle this.

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  • How many times can the federal government re do you income tax in one year

    they redid it immediately and took more money and then two years later they are sending me a statement saying that I owe 1600 more dollars.

    John’s Answer

    This is a strange fact scenario. Generally, unless you amend, the IRS can only audit any tax module once.

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  • Can I legally claim my daughter as a dependent on my w-4 forms for the 2015 tax year?

    I know that her mother doesn't work and have reason to believe that she let someone other than me claim my daughter on their taxes since she didn't work last year either

    John’s Answer

    You are not providing enough information. Your W-4 and your filings should match. So the question is whether you are entitled to claim your daughter on your tax return. Obviously, if someone else is claiming her, that raises the question of whether you or someone else meet the 50% of living expenses and 50% of custody time requirements in the tax code. That is who is entitled to the deduction. So, that is the appropriate inquiry. If you are providing more than 50% support and watching your daughter more than 50% of the time, you should be taking the exemption.

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  • Newly married, want to apply for Income Based Repayment for huge student loan. Better to file separate taxes?

    My husband has no debt, earns about twice as much as me. Since I earned less than 30k last year payments towards my IBR plan would be calculated relatively low based on filing separately. Any advice for whether it would be better to file separate ...

    John’s Answer

    I agree with David. You are better off showing your lower income for IBR purposes.

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  • I recently had a state tax lein put on me for an error on a return from the year 2012.

    I recently had a state tax lein put on me for an error on a return from the year 2012. I am supposed to be my husband's sponsor for his greencard. Will this affect me sponsoring him?

    John’s Answer

    This could have an effect on your immigration status, but you can get the lien removed if you pay off what you owe. I would take care of that right away.

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  • If I have a retail business in TX and am shipping an Item to a person In another state do I charge sales tax?

    I am a sole proprioter of a business some people from out of state ordered items from me and I have to ship it to them. My permit is for corpus christi tx. Do I charge them sales tx and if so for there state or mine?

    John’s Answer

    I agree with Everett. Sales tax is tricky. You most likely don't owe out of state sales tax if you ship by common carrier. But, you must investigate the sales tax in each state which you ship to and meet the requirements of each of those states. The fight that is going on between every state in the union to reach into your pocket for sales tax revenue has made it more difficult and expensive for business owners. If this is a one off, I wouldn't worry about it. If this is a regular occurrence, you need to make sure you are in compliance.

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