My parents have a tax lien (state and federal) of about 39k (has been lowered significantly) in their name. The lien is now in a state of compromise with their CPA and he will be going to a hearing shortly. They both have US visas and my father i...
If the IRS has filed a tax lien travel can be restricted. However, if the taxpayer has entered in an installment agreement or has requested a timely Collection Due Process hearing, travel will not be restricted. The government will also allow travel for humanitarian reasons. Their CPA may be able to work something out that will lift any restrictions.See question
Married in 2013. Right before filing our first tax return two weeks ago for 2013 he told me that he hasn't made any estimated payments on his income. I receive a salary from my job and my taxes are all paid up. I filed for divorce and I am going...
Did you try to for an annulment? You may want to discuss this with a family law attorney. An innocent spouse claim can only be made if you file a joint income tax return. So, no you cannot file for innocent spouse relief when he has not filed. I do not recommend filing a joint income tax return with the knowledge you have. What you actually do will depend on the income each of you made, whether you can get an annulment, etc. I suggest you work with an attorney to work this out to protect your rights.See question
We have been separated for almost 11 years. He married his wife about 4 years ago. We have 2 children together. He does pay child support, but is in arrears for over $13,000. No custody was ever established, but in the States eyes I have full cust...
The custodial parent (you in this case since the kids live with you the majority of the time), is entitled to the deduction. The custodial parent must sign off the deduction with a form 8332 for the non-custodial parent to take the deduction. You should contact the state to pursue the back child support and rightfully deduct the children on your tax return. If he has already claimed the children you will have to file a paper return since an e-filed return will be rejected if the children have already been claimed. You may also want to see a family law attorney to discuss the custody issue.See question
I did a 1031 exchange a few years ago and deferred the capital gains tax. A couple years later the property went into foreclosure. What happens to the deferred gain, do I still have to pay it? What about the unpaid loan of about $350k (forgiven d...
When a property is foreclosed on the lender will typically issue a 1099 to you for the cancellation of debt income. This is taxable as ordinary income in the year the debt is forgiven. If this was a purchase money note in California, that is, the debt was used to originally purchase the property as your principal residence, then there is no deficiency, the lender can only look to the property for repayment and there is no cancellation of debt as a result. This is not true if you refinanced the property. Then the debt is no longer purchase money and a deficiency results. This is also true for HELOC's that were later added to the debt on the property. If you have cancellation of debt income it may be excluded from income to the extent that you are insolvent (amount debt exceeds assets just before the forgiveness of the debt) under Section 108 of the Internal Revenue Code. This Code Section also allows the cancellation of debt income to be excluded if you went bankrupt.
As far as the capital gain goes, you have to take the sales price of the property (The amount of the loan for non-recourse debt) less its tax basis (The carryover basis from the exchanged property, plus improvements made to the new property, less depreciation allowed or allowable). This will be taxed as a Capital Gain or treated as a Capital Loss, depending on whether it is a gain or loss.
As you can see this is a rather complex transaction and it is advisable you seek the help of a tax attorney or CPA to walk you through this and make sure the transaction is reported properly.See question
My corporation business failed 4-5 years ago, and while barely making day-to-day living, I didn't get to properly close the business and was not sure to whom I owe what. However, I got a bill under my business name from BOE so I knew that we owed ...
The only way to determine if the corporation has any tax liability is to get a transcript. This must be obtained from the IRS. Any tax debt that is not Payroll Taxes or Sales Tax (as you found out) should not carry personal liability. The debt should be corporate debt and not debt of the Taxpayer. The Ralite Lamp Corporation case in California is the authority that a shareholder is not responsible for the income tax debt of a corporation except in certain circumstances. It may be better to let the sleeping dog lie here. If you want to pursue this further obtain a tax lawyer to walk you through it.See question
I am the executor and one of the benificiaries and according to the will I must distribute the money four ways equally. The money was not in a trust.
It is impossible to tell without further information. The tax on an inheritance is based on the value of the Gross Estate, less the allowable deductions. The tax is paid by the estate and typically not the individual receiving the inheritance. As the executor, you can be held personally liable if you do not file the proper tax returns and pay all the taxes that may be due before you make distributions. You should hire a local attorney that can take you through this estate administration. The risks are too high for someone who is unfamiliar with these matters.See question
Last Fall, 2013, I fell behind in my water bill and received a notice of a tax sale for the balance. A week before the scheduled tax sale I called the water dept in my town to get the up-to-date balance and was told the balance was $0. I asked h...
Best advise I can give you is to hire an attorney to protect your rights.See question
Can the IRS take all my disposable income
The calculation of what the IRS can take from your wages is very specific. This may or may not be what you consider "disposable income." If you are living over the National Standard amount for the area you live in this could very well be true.
The levy notice your employer received from the included a Statement of Exemptions and Filing Status, which your employer should promptly give you to complete. On this form you indicate your filing status and number of exemptions. You then submit the form to your employer within three business days of receipt. If you fail to submit it, your employer will calculate the exempt amount as though you were married filing separately with one exemption, until you submit the form. Your employer should use Publication 1494, which is enclosed with the levy notice, to calculate your levy exemption amount. Make sure that you have provided this form to your employer and they are calculating the amount correctly.See question
I sold half of my house that I owned with my brother. We are both U.S citizens with U.S bank accounts. He will be wiring the money into my account.
You have to determine whether you have a capital gain from the sale of the house. Take the total sales price, less the tax basis (what you paid plus improvements and less depreciation allowed or allowable), and less commissions and closing costs. This is your capital gain or loss. Your share of this is 50 percent. Then you need to determine if you have an exclusion if this was your principal residence or if you took back a note in the sale. If this does not apply you probably do not have an exclusion. The gain / loss is reported on Schedule D (assuming this was not owned by and entity, but you personally) of your Form 1040 in the year it was sold.See question
I am filing Ch.7 banktruptcy, I typically get a large refund which is mostly EIC and additional child tax credit.
I agree with the previous attorney, but always check with your bankruptcy attorney to see if you have sufficient exemptions available to exempt the entire amount. In California, we have a wild card exemption that could be used to exempt the entire amount if it is not used elsewhere. Check with your bankruptcy attorney to see if you have something similar in your state.See question