I committed fraud, received a $27,000 payment and did not pay taxes on it, now that I have been convicted I am paying restitution of the full amount. Should I still be responsible for the tax burden of the $27,000?
You owe taxes in the year of receipt. You are entitled to a deduction when you pay it back.See question
Due to new lending regulations (i.e. 2 years of W2 or proof or ability to repay) we were unable to get a loan when we moved from WA to CA - we relocated without jobs and having been in a start-up for the last two years without pay didn't have the ...
Yes, mortgage interest can be tax deductible when a homeowner with 100% equity in a house takes a loan up to $1,100,000 as long as it is used to improve the home. If you take it out within 90 days of acquiring the home it counts as mortgage acquisition debt.See question
California Franchise Tax Board wants $ 5000 for failing to file a return in 1995.
20 years is the usual period to collect back taxes. However, if you didn't file a return, the 20 year statute of limitations does not begin to run.See question
California Franchise Tax Board wants $5000 for failing to file a return in 1995.
20 years is the usual period the FTB has to collect.See question
The trust has a combined fair market value of approximately $10mm and a combined adjusted basis of approximately $5mm. Approximately $2mm consists of two personal residences (a primary and secondary) and the other $8mm is invested in single tenan...
First, the income tax basis of property has nothing to do with the assessed value of property for property tax purposes. So when you pass away, the property - if it has appreciated from when you bought it - will "step-up" in basis to the date of death fair market value under Internal Revenue Code Section 1014. Second, when you die, there are two different parent-child exclusions from property tax reassessment. One is for the principal residence: the principal (not secondary) residence, no matter its value, passes to the children free of any increase in property tax. The other is $1,000,000 of assessed value of real property per parent. Third, whether the property has debt on it is irrelevant for both purposes of both income tax basis and property tax assessed value. Fourth, the assessed value of property should be the fair market value of the property at the time of a "change in ownership" which, presumably, will occur at your death except to the extent of a parent-child exclusion. Fifth, there are ways to pass property to the children even beyond the $1,000,000 exclusion using the entity exclusion of Rev. & Tax. Code Section 64(c) and (d). Best regards.See question
My wife drafted the agreement which says that she will make payments to me in the Equitable distribution, which means I don't pay taxes on it and she doesn't include it into her taxes. But she liquidates money for her payments from her 401k and th...
If your wife distributes money to you after a divorce from her own funds and it is for property, that is not taxable. If your wife distributes money to you as spousal support, that is taxable income to you and deductible by her. If you get money from her 401(k) that is taxable to you, but your wife better get a qualified domestic relations order done or her 401(k) will be disqualified. If she is getting money from her 401(k) it is taxable to her, and if it is not taxable to you that is very nice of her, so say "thank you".See question
I will be 60 in a few months and as stated above want to take out part of my 401K but am concerned about taxes, as I am still working.
Yes you must pay regular income tax on the withdrawal. However, it sounds like you will be exempt from the 10% premature withdrawal excise tax of IRC Section 72(t). Talk to your firm's benefits office to confirm.See question
I got a summons as part of the investigation of a company which I don't even know. The only thing that connects me is that my ex-employer is/was an affiliate to that company according to the summons. They are asking for corporate documents, which ...
You cannot avoid responding to a third party summons from the IRS. If you feel you have some exposure, then hire a tax attorney. If you do not have any exposure, then don't hire an attorney and cooperate with the IRS.See question
Ca FTB has already DRAINED by savings account. They took my last $200.00 for an old tax bill for $1000.00 owed in 2013. I have NOTHING else to give.....I'm retired and trying to live on Social Security~~ Can they take my check? I cannot afford ...
Social Security checks are specifically exempted under the California Code of Civil Procedure, Section 704.080, though there is a dollar amount limit: $2,425 for a single person and $3,650 where two people are on the account.See question
In November 2015, I filed form 8379 Injured Spouse allocation for a MJF 2014 from Sacramento, California. At the time of the tax filing we were recently divorced and I submitted the divorce papers with my new legal name and address. THE IRS appro...
If your spouse cashed your check that is a crime and you should report it to the police. The IRS did not allow this to happen. It is not the job of the IRS to monitor forgery. The IRS did not cash the check: the bank did.See question