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John P Fazzio III
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John Fazzio’s Answers

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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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  • Do I pay federal income tax on my beneficiary check from an estate of...made out to me

    as a beneficiary of a estate, am I taxed on the money received. was a revocable trust amount 200k. Haven't cashed the check.

    John’s Answer

    Generally, you are not taxed on an inheritance. Estate taxes are paid by the estate.

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  • Is a lump sum support payment tax deductible?

    in a divorce financial settlement conference, i agreed to forego paying monthly support payments to my ex. Instead of making those monthly payments, it was agreed that i would make a one time, lump sum payment( approx $50K ). the lump sum paymen...

    John’s Answer

    It is a matter of federal tax law.

    Alimony -- payments to a spouse -- are income to the spouse, not you.

    Child Support -- payments to a child -- are your income, taxable to you alone.

    These are essentially immutable laws from an IRS perspective.

    Without seeing the language, I'd characterize this as a Lump Sum Alimony Payment, which is subject to tax payment by the recipient, depending on wording, etc.

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  • Need to understand tax implications of selling my property

    Events 1. Purchased property in Miami as a home owner occupant on 05/16/2012 for $163,694 with 20% down conventional loan 2. Lived there till Sept 2013 before relocating to Seattle, WA due to new job. 3. Rented the Miami house till Nov 2015...

    John’s Answer

    Mr. Souza has it right. You will be taxed on the gain. But, if you could keep it as your personal residence for two years, you'd have been able to avoid the gain tax of 15%.

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  • Will a legal separation reduce my elderly wife's and my taxes.

    My elderly wife was paying around $800 a year for property taxes. We payed this for some years after marriage. After the government found out I was below retirement age our property taxes increased to about $10,000 . Will getting a legal separa...

    John’s Answer

    You need to consult with a local tax attorney on this and bring all the information. I'm not sure why the property taxes would go up by $9,200. This is not something that happens in my state.

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