Tax_Counsel

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Tax_Counsel last won the day on February 10

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  1. I am surprised Jack because your answer is wrong. Not all discussion of the law by nonlawyers is a crime. General discussion of the law and pointing out facts is not the unauthorized practice of law (UPL). Where the OP crossed the line is when, after pointing out the provisions of the HOA documents, that other homes had that feature, etc., he went on to apply the law to those specific set of facts and offered a legal opinion on the probably of success for the HOA in lawsuit: “I have also indicated that based on the facts as I have presented - that it is unlikely that the HOA will prevail in a lawsuit.” That's the statement that might get the OP in trouble. It's not likely to be much of an issue unless someone actually relies on his advice. But he should bear in mind that crossing that line is a risk that could potentially cause him legal difficulty should he continue to do it.
  2. The private lender is blowing smoke here. No state in the U.S. imposes a value added tax (VAT). VAT taxes are common in Europe, Canada, and a number of other countries but not a tax that is yet used in the U.S. If the lender is asking for this payment before it can disburse the loan check then this has all the indicators of a classic lending scam.
  3. Ok, so both of you were borrowers on the loan. Thus, the discharge of the loan would create taxable income for you unless you meet an exception. The exception that might apply to a line of credit like this would be the insolvency exception. If at the time of the debt discharge the total of all your debts (including this line of credit) exceeded the fair market value of your assets then you were insolvent and some or all of that debt discharge might be excludable from your income on your federal income tax return. IRS Publication 4681 discusses the rules for this in detail. You might want to see a good tax preparer who is familiar with the rules for debt discharges to help you with the return. You may find that the discharge won't result in much, if any, tax.
  4. I am not judging you, simply not sure why you would have thought that. It is pretty common knowledge that if you don’t pay property tax the government will sell the property that is subject to the tax lien to get its money, after all. I’m not seeing how the fact that there was no mortgage would lead you to think you’d be safe from that. Whether or not there is a mortgage on the property makes no difference to the county. The tax liens are superior to the mortgage and thus the mortgage does not factor into the county’s decision making at all. The county is not going to sit and wait years or even decades to collect the tax revenue that it needs now. If it did that no one would pay their property taxes and the government would run out of money. The classic no doc loans were not the driving force behind the 2008 real estate collapse and there was no reason for the federal government to ban them. Certainly no doc loans were part of the easy credit atmosphere that helped drive the housing bubble that was created in the mid to late 2000s that lead to that collapse. The problem was primarily a lack of good lending standards, not any one particular type of loan.
  5. If the creditor discharged (canceled/forgave) debt in the amount of $109,700 then the general rule is that the discharge debt is income to the debtor. There are some exceptions to that, but before we get to the exceptions, the first issue is whether you were a debtor on this loan. Your member info indicates that you are in Nevada. I assume your husband was in Nevada, too, up until his death. Did you live in any other state when he took out the loan? Was he the only borrower on the loan, or were you also a borrower or co-signor on the loan? Was the loan secured with a mortgage on any jointly owned real estate?The answers to these questions will help resolve whether you were a borrower/guarantor(co-signor) of the loan. If you were not a borrower/co-signor of the loan and the loan did was not secured by any assets that you own then you won’t be responsible for any taxable income from the debt discharge. However, in that case you would want to file as single for 2016 rather than a joint income tax return with your late husband. Your husband’s estate would still be liable for any income tax from this, though, and if his estate has significant property then that will still be something that has to be dealt with for the estate.
  6. You'll need to ask your bankruptcy lawyer (and I do hope you have one) that question as the answer will depend greatly on the details of the bankruptcy.
  7. No federal or state law imposes requirements on a private employer regarding the method the employer must use for terminating an employee. That is, no state has a requirement that it must be done in writing, or in person, or whatever. Neither does any federal nor (so far as I know) state law require that the employer tell you when terminating you why you were fired. If you were employed by the government then the applicable civil service rules may well have such requirements. If you are member of a union with a collective bargaining agreement (CBA) with the employer is possible that the CBA addresses this.
  8. I suggest that you consult a civil litigation attorney in the state where the new employer is located. You may be able to pursue a claim against the new employer for the relocation costs you had under a legal doctrine called detrimental reliance. You should also consider putting in a claim for unemployment compensation, too.
  9. Yes. Under the facts stated in this thread you are the custodial parent for purposes of federal income tax because the child lived with you for the greater part of the tax year (i.e. more than 183 days of the year). Forget what your court decision calls the custody arrangement; for federal tax purposes that’s irrelevant. Unlike the dependent exemption, the EIC can never be claimed by the noncustodial parent. So if you meet all the requirements to claim the EIC you certainly should do so. See IRS Publication 596 for all the rules on that. If by chance he does file electronically first and your electronic return is rejected, simply refile on paper and you’ll get the credit and any refund you are due. The IRS will sort out who was entitled to it later. He must have a waiver (e.g. Form 8332) attached to his return each year he claims the dependent exemption for them. That's what the law requires. If he claims them and you don’t he might not get any flack from the IRS for not having attached the form, but technically he is supposed to have it. I agree with the comments made by AdjunctFL so I won't repeat everything he or she said.
  10. If he doesn’t have a will when he dies but all his kids survive him then under the rules of intestacy his estate gets divided up equally between all his kids — but only after the estate first pays off the debts he owed. If the student loans are guaranteed by the U.S. government then generally those debts will cease when he dies and his estate won’t have to pay them. But private student loans may still have to be paid. The federal taxes he owed certainly will have to be paid. So, whatever is left after paying off funeral expenses, administrative expenses, any estate/inheritance taxes, and debts would go to his kids.
  11. You apparently did not read the prior posts carefully. None of them addressed how long a filed lien would attach to the property of the defendant. They simply addressed the issue of how long the restitution is actually owed and may be collected. I said that there is no limit on that, and you evidently agree that is the case. As for the lien, 18 U.S.C. § 3613 says that that judgment is treated like a lien for unpaid federal tax. 18 U.S.C. § 3613(c). The only difference here is that, as you noted, the duration of the lien is for 20 years, not 10 years as in case of unpaid federal taxes. A federal tax lien may be refiled until the liability is either paid or the liability ceases to be enforceable. In the case of federal restitution, the liability never ceases to be enforceable so the government could keep refiling the lien until the restitution is paid. If the government should not refile timely, the refiled lien is still effective but loses its priority with respect to other liens that were perfected prior to the late refiling. I am a tax attorney and am very familiar with federal tax liens. Since the lien for restitution is treated like a lien for federal tax those same rules would apply to the restitution judgment, too. The sections you cited are fully consistent with that. Thus, there is no real limit on how long the lien may remain valid. The only issue after 20 years is whether the government has refiled the lien or not. If not, the lien would no longer attach to the defendant’s property. The government would need to refile the lien to attach the property again, and by doing it late it loses priority.
  12. There is absolutely no benefit to the employer at all for reducing the withholding. None. Either the $8 that should have been withheld goes to the IRS or it goes to you. The employer doesn’t get to keep it. And the withholding has nothing to do with who may claim someone as a dependent. It would not help their son whatsoever in claiming your daughter as his dependent. That’s a totally separate issue. The employer may have made a mistake in reducing the withholding, but there isn’t any benefit to the company for doing it so it’s not like they did it deliberately to get something out of it or to screw you over.
  13. If you did not ever submit a W-4 to your employer then the IRS instructions state the employer is to withhold as though you were single with zero withholding allowances (note that withholding allowances are not the same thing as dependents). Based on a weekly pay period with gross wages of $122, the proper withholding in that case for federal income tax would be $8. You would need to contact the person at your employer who does payroll to see why the employer withheld less. If you want to ensure proper withholding for 2017, make sure you submit a Form W-4 to your employer. Then after you do that check the paystub for the first full pay period you work after you submit the Form W-4 and make sure it is correct. You should always look at your paystub when you get it to make sure there are no problems with it. This is especially true at the start of each year because laws change and companies update their systems and errors can creep in. Even if the employer got the withholding amount wrong, there is no legal action to take against the employer over it. All that the error means is that you got the money that otherwise would have been sent to the IRS, so you haven’t been shortchanged anything here. If you have some amount of tax to pay from the withholding being too law, just pay that when you file the return in April (or October if you file for an extension).
  14. Fair enough, though having some familiarity with NY's court system in which their general trial court is called the “Supreme Court” I long ago learned not to assume what powers a court has just by its name. So I did not assume that the Virginia circuit courts were the equivalent in the Virginia court system to what the circuit courts of appeal are in the federal system.
  15. Circuit Courts are indeed trial courts, but they also do sit as a court of appeal for decisions from the general district courts. The case I cited was one such appeal from a general district court. If I had found a case from the Court of Appeals or Supreme Court that had any in depth discussion what the covenant of quiet enjoyment means in Virginia I would have used it. This was, however, the best I could find on a relatively short search.