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Eric P Rothenberg
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Eric Rothenberg’s Answers

450 total


  • Is there a way for a parent to gift rental real estate to an adult child without setting off a tax bomb?

    My father wishes to transfer 3 residential rental properties to me now, which I have helped manage. All are located in Massachusetts & currently titled in his name. Total market value of all 3 properties is under 1 million. We are worried about ta...

    Eric’s Answer

    There are many easy and non-taxable ways to accomplish your goals to protect you. This cannot be answered adequately in this forum. Please get a tax lawyer to guide you through this process with your father. Is not a big deal bug must be done right.

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  • Can I change my legal residence from Massachusetts to Florida without selling my MA house and not pay taxes when I do sell ?

    We have two houses and live 6 months in each which are located in Massachusetts and Florida. Financial advisor wants us to change our legal residence to Florida for estate/tax purposes. I don't want to sell the MA house (which we have owned for 4...

    Eric’s Answer

    If you become a resident of Florida you are only liable in MA for MA "source" income & your estate is only liable for assets you own in your own name at death. So, for ex. , if your MA home is in. Trust at death, your estate doesn't own it & therefore isn't included. So you need to get good income & estate tax advice ASAP.

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  • Is my ex entitled to get a copy of my 1095a form

    i am paying insurance for my two children i take one as a deduction and my ex (never married) takes the other child. I received the 1095a form. Shes telling me that she is entitled to see what i am paying. Do i have to give her a copy? She pays n...

    Eric’s Answer

    If you cover her she's entitled to the name, federal ID and months of coverage but no more. The amount you pay is not required to be shared.

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  • I move around a lot. Is it better for me to set up my LLC in a no-income tax state like Nevada or Wyoming?

    I've been living in Boston for the past year and moving down to Austin soon. In 2017, I plan on moving to California. I've read that more often than not, you should set up your LLC in the state which you reside. For me, since I move frequently, ...

    Eric’s Answer

    Where you form an entity has no bearing on where you need to file or pay taxes. You pay taxes in every state in which the state has "nexus" to your business. Nexus means you have used the state's resources such as assets there, employees there or you go in there to solicit business. You should definitely seek tax advice on the form and location of the entity.

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  • Taxes and a pain and suffering lawsuit

    I am going to be getting a settlement for pain and suffering from a sexual harassment case and constructive discharge. After my layers gets his check and i am left with mine how much should be applied or saved for taxes. I can find a site that can...

    Eric’s Answer

    You should not have your lawyer or you sign a settlement agreement until it's been reviewed by a tax lawyer. There are issues that need to be resolved and cannot be undone.

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  • Can someone report to irs for being paid under the table?

    Someone is threatening me saying they're going to report me to Irs because I was paid under the table for work. They say they won't do it unless I give them money

    Eric’s Answer

    This is not a tax question but a criminal act and should be reported to the police.

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  • Do I have to pay gift taxes if I open an account under my name abroad (~$50K) and give access to my mother to use for expenses?

    My mother is unemployed (lives out of the US) and has several recurring monthly bills which I need to help her with. I understand if I have to transfer more than ~14K annually out of the U.S. then I have to pay gift taxes. If I open an account und...

    Eric’s Answer

    Not unless she uses more than $14,000 Ina year. Then you won't "pay" taxes but will file a gift return if it's over that amount. But you can give away I your life & death over $5 Million without paying & masachusetts doesn't have a gift tax. You must also file an annual FBAR report each year too. Please seek counsel on this & don't rely upon the web.

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  • MA estate tax on property in that State-- At owners death, no cap gains due, but will the state tax on that total amount.

    When I pass away, my house goes up to fair market value, will the State tax on that total or the total after deducting the mortgage owed , improvements and original base?

    Eric’s Answer

    There are two things going on at the same time. If your taxable estate (gross estate less debts including mortgages) and expenses are under $1,000,000 then MA will not tax the estate as an "estate tax". If the estate then sells the real estate, the basis equals the full fair market value at date of death so if sold the gain should be minimal since it was just stepped up. The mortgage only reduces the estate tax but not the income tax on sale. I hope you get advice from someone on this and this clarifies the differences between estate tax (due on death) and the gain tax (only due on sale of the asset).

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  • How do I answer a complaint to for close rights of redemption?

    My grams left her house to me 8 or 9 years ago.I fell behind and town has a tax lien.house needed to be probated.the town sent back taxes to a lawyer and fees are double what's owed.theres a court date next week.

    Eric’s Answer

    The tax title means the town or city "owns" the property now BUT it's subject to redemption by you until they "close" out that right which is what they are trying to do. Until they do, you can call them to settle the amount (payment over time or sell the property to pay them in full). I highly recommend you hire a lawyer to handle this for you because once redemption is closed, all right you had are gone.

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  • If you have unvested stock in an account maintained outside of US, do you have say YES on schedule B under foreign account repor

    If you have unvested stock in an account maintained outside of US, do you have say YES on schedule B of tax return under foreign account reporting?

    Eric’s Answer

    The "unvested" stock is yours and although it's subject to forfeiture in the future under certain circumstances, it may not count unless the stock is "substantially" vested. You are first considered to have an interest in property transferred in connection with the performance of services on the first date that the property is substantially vested (within the meaning of Regulations section 1.83-3(b)) or, if you have made a valid section 83(b) election with respect to the property, on the date of transfer of the property. .

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