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Michael Ross Lykken

Michael Lykken’s Answers

196 total


  • Need REdraw Partnership Today and remove kids to close escrow

    I added my kidz to my DBA gen Ptnrship & 2-under age Oregon has no minors on title laws I need to remove/draw new ptnrshp

    Michael’s Answer

    I agree with my colleagues; this question is a bit confusing. A partnership and a dba are two very different things. I would consult with a business attorney to determine what you need to do.

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  • Improper writing of a court order

    The court granted an order in a civil case and order the opposing attorney to write it. The order is not correct, and does not follow the order of the court. I informed the attorney and request he fix his mistakes, he then said I was stalling and ...

    Michael’s Answer

    I would draft a letter to the judge (at least this is how we do this in Monterey) explaining how the proposed order filed by the opposing counsel is wrong. I would also include a proposed order drafted as you want for the judge to sign. I would be sure to include a copy of the minute order so the Court has the minute order backing up your proposed order.

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  • Do I have a case with a contractor? A 2 week job turned into 2 months. He took on other projects without telling me.

    He admitted to rushing the job and had to come out on 4 separate times of 3 days each to fix what he did. There were paint drips everywhere on the baseboards and door casings. Where the door casing meet the laminate floor there were gaps. He told ...

    Michael’s Answer

    First, I would verify with the CSLB that he is actually licensed. You can do that here: https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/checklicense.aspx If he is not licensed then he could not charge you more than $500 (including the cost of materials). He has to do the job in a workmanlike manner, and if he didn't then you can dispute the amount he was paid. You should bring pictures of the work with you to the small claims hearing, and I would get an estimate of what it would cost to have the work properly done. That could then be a measure of damages since that is the amount you will have to pay to have someone finish the job the other contractor started.

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  • Re capital gain on house that goes through probate - would I pay cap gain tax on gross or net?

    If the house is sold in probate, would I only pay tax on amount I receive - ie gain - minus any other probate related expenses? Or, would I have to pay tax, on gross amount, prior to other expenses? If there is a creditor, in probate, my t...

    Michael’s Answer

    There would not be any capital gains tax if the house is sold because of the step-up in basis that occurs upon the death of the property owner. Upon death, the basis in the property is increased to the value at the date of death (or 6 months later). If the house is distributed and later sold there could be appreciation if the property appreciates enough.

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  • Do i need a tax lawyer or a different lawyer for having someone do fraud against me regarding tax return

    i was notified by my new tax person who filed an amended tax return on my behalf, that my old tax preparer scammed me out of money. She used credits for her own benefit and took $3600 in 2013 from my tax return and almost $4000 in 2014. She deposi...

    Michael’s Answer

    Your question is a bit confusing and I think you don't have the whole picture. If your old preparer took part of your refund, you would not owe that money back to the IRS. If the IRS is demanding that you owe them money for those tax years, it doesn't sound like this is the situation. Instead, it sounds like your old preparer used fraudulent deductions and tax credits to get a refund you weren't entitled to. The IRS is now pursuing you to get back the improper refund. In this case, it sounds like you have a case against the prior preparer for the theft of the refund and the filing of the fraudulent returns. You also have to defend yourself from the IRS from the tax that is due. You may need two attorneys, or a firm which can represent you in both the case against the preparer and the IRS. You can search on Avvo for an attorney which will do both. Some CPAs will represent clients in front of the IRS, so it may be that you could use a CPA for the IRS matter and an attorney for the case against the preparer. Good luck!

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  • Tax Question?

    After becoming a widow, in order to make ends meet with one income only, it was imperative I dip into retirement to pay my monthly mortgage as well as my daughter's monthly college tuition. What good is my retirement after I am dead and I cannot ...

    Michael’s Answer

    It is difficult to avoid the penalty for early withdrawals from your IRA without the assistance of a tax attorney who can negotiate on your behalf. . I expect you probably have or will have an issue with the California Franchise Tax Board as the two entities often piggy back on each other once one of them issues a notice for taxes due. You really need to speak with a tax attorney who can advise you on your options after discussing your situation in more detail with you. Good luck!

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  • What is a fair attorney fee for assisting with the purchase of a home when not being represented by a buyer's realtor.

    e.g. sales contract preparation, review of pertinent ensuing documents, and counsel at escrow closing; home sales price is approximately $850,000 located in La Quinta, CA

    Michael’s Answer

    In general, if there is a listing agent for the property the seller pays the commission for both the listing agent and selling agent. It would only make sense to hire an attorney if there are issues that need to be clarified or resolved and which are beyond the ability of the real estate agents. If you were to hire an attorney, then you would pay on an hourly basis, and the fee would depend on what the representation is for. If this was a private transaction and no realtors were involved, an attorney at an hourly rate would generally be a lot less than the standard realtor commission, especially since a lot of the legwork after the preparation and negotiation of the sales agreement is done by the title company. I hope this helps and good luck!

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  • Will I be liable for anything if I start a llc or c corp and sponsor a visa??

    I'm thinking of starting either an LLC or a C corp and hiring my boyfriend as a contractor. The corporation will file tax returns for individuals and corporations. I would have to hire him under a TN1 Visa for Canadians, and probably sponsor his v...

    Michael’s Answer

    Are you referring to liability for his work for the company, or liability with regard to USCIS? In regard to his work, you couldn't hire him as a contractor for immigration purposes, so if he incorrectly prepares a return the company would be liable for any errors he makes. Regarding his immigration status, if your company sponsors him you would need to make sure that you have an actual, valid job for him. If you don't, that could be considered immigration fraud since you obtained a visa for him using a job that doesn't actually exist. I hope that helps!

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  • 'Business partner' sold company before signing paperwork on LLC. I lost $35,000, he doesn't seem interested in returning it

    I wired money into the company (have wire confirmation) and signed a contract that showed my percentage in the company (I have his signature). He kept on pushing off including me in the LLC and then sold the company cash and took my money. I hav...

    Michael’s Answer

    There are actually a few California and federal laws and regulations that are implicated here. This sounds like securities fraud because your friend was soliciting investments in the company and had no intention to actually transfer the agreed upon membership interest to you (LLC membership interests are considered securities like stock).. Even if your friend is in FL, which isn't clear from your question, I think that California's long-arm statute would give the courts here jurisdiction over the case, and you could also consider Federal Court instead. I would consult with an attorney who can review the contract you do have, and the elements present in your case to determine the appropriate course of action. Good luck!

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  • Are payments of interest and/or profit sharing to those investing into business tax deductible for such business?

    Basically the question is in the title, but to comment, I just can't find at the moment anywhere in the tax codes if business owner can request a tax deduction of payments to its investors. The model is the following: Let's say I want to start ...

    Michael’s Answer

    I would say no because it would be either a dividend or a return of investment. If the investors loan money to the business and the business pays interest on the loans, that interest would be deductible. You probably should talk to an attorney to ensure that your business is structured properly. Good luck!

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