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...
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.See question
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?
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).See question
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.
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.See question
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?
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. .See question
If I sell my home in MA and change my residence to ME, then pass away in ME, where will my estate be probated, will I owe any tax to MA. Thank you Eleanor Bouchard
If you truly change your state residence to Maine then you are taxed in Maine but if you still retain assets in MA you will have to probate here in MA. But with good tax & estate planning you should be able to avoid any estate tax to either state. Please seek an attorney to advise you well.See question
I have a Tax lien that is set to expire in 2 yrs from back taxes years ago that I claimed in a chapter 7 bankruptcy. I`m interested in joining the Disney vacation club but am not sure if the IRS can attach the lien to my membership. The Disney vac...
Yes they can and would if they know about it. It's not an item they would normally know about so while they can may not as a practical matter.See question
Hi, As part of a competition, I just won a $1000 prize. The (US) company organizing this competition now asks me to submit a W8BEN form as I'm a non-us citizen. This is all good, but I'm currently in the US on a J-1 Scholar visa. Should I still...
First, the prize is income. Yes, submit the form. You can have tax withheld and still file a US return as a non-resident and you might get a refund depending upon your return information.See question
Income tax property mortgage deduction
It's a little complicated. It is a full deduction on Schedule A (& limited if the loan is over $1 million) and if you make large income itemized deductions can further be limited. Finally if you have an alternative minimum tax the deductions may not help at all. So best to run some calculations with someone that prepares returns.See question
I received notice of intent to assess from Department of Revenue, MA. They are asking for my W2, social security card etc. Last year, I made around $40,000. I don't understand why is DOR trying to audit me. My parents deposit some money into my ...
The DOR does have a right to review every deposit into all your accounts. Gifts must be substantiated so you need copies of all checks from them to you & perhaps even a letter. If they are US citizens they must file gift tax returns (form 709). I highly recommend you get legal help for this audit.See question
I am an Indian citizen and currently in US on a H4 visa. I would like to know if under the H4 immigration law I could do freelance work for an Indian company from home in US. I will be earning in INR and it would be in my Indian bank account. I...
Vivian is quite correct. However, I will add that such a situation you are working within is very complex & can involve the US-India tax treaty, foreign tax credits as well as needed tax questions answered to be sure you are in fact a resident for US tax purposes. Therefore please seek & use a skilled tax preparer for advice far in advance of filing a return.See question