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Tax Law Questions & Answers
3 Answers | Asked in Estate Planning, Probate, Foreclosure, Tax Law and Real Estate Law for North Carolina on
Q: How to terminate my dad's lifetime estate as the sole paying beneficiary in NC.

I'm a beneficiary of my dad's lifetime estate, and I've been the sole benefactor in keeping up with the estate taxes through an attorney due to delinquency and foreclosure threats from the county. My siblings, the other beneficiaries, live out of state and have not contributed... View More

Anthony M. Avery
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answered on Jul 14, 2025

Who has the vested remainder interest? That remainderman should sue the other interested parties for a Sale For Partition. If you are a remainderman, then ask the Court for a return of your contributions to your share from the common fund proceeds. You might or might not get reimbursed.... View More

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2 Answers | Asked in Probate, Real Estate Law, Banking and Tax Law for Pennsylvania on
Q: Can I assume a mortgage in PA without reapplying as the sole heir and executor of the estate?

I recently lost my significant other after 26 years, and we lived together for 13 of those years. I paid half the household bills by writing him a check every month. When he was diagnosed with cancer in fall 2024, he added my name to three bank accounts. We were living in a townhouse, which has a... View More

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Jun 27, 2025

The extension of credit through what is to the lender a new loan to you is a matter addressed to the discretion of the lender based upon your ability to qualify (ability to pay) for a new loan from that lender. You alone cannot force that to happen.

That said, you can explore a possible...
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2 Answers | Asked in Real Estate Law and Tax Law for Tennessee on
Q: Can I acquire a residential property in Tennessee by paying defaulted land taxes?

I am interested in acquiring a residential property in Tennessee by paying its defaulted land taxes. However, I have not checked whether the property is part of a tax lien sale or contacted the local tax authority yet. I would like to know if it's possible to take ownership of the property... View More

Michael R. Stooksbury
Michael R. Stooksbury
answered on Jun 26, 2025

There are two methods by which you can obtain ownership to property by paying back taxes: though a al tax sale or through adverse possession. In a tax sale, you will purchase the property at auction, and a deed-holder will have one year to redeem the property (pay you back) to save his interest in... View More

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2 Answers | Asked in Gov & Administrative Law and Tax Law for Texas on
Q: Does a church need a permanent location for IRS 501(c)(3) status?

Our small congregation of 15-20 people follows a nature-based Pagan tradition and meets eight times a year, often outdoors, at solstices, equinoxes, and midpoint Sundays according to Pagan customs. We rotate locations between board members' homes or rent space in local parks. Recently, we lost... View More

John Michael Frick
John Michael Frick
answered on Jun 25, 2025

The IRS considers several factors in determining whether an organization qualifies as a "church" for purposes of tax-exempt status including whether the organization has an established place of worship. That does not necessarily mean a permanent building of its own.

The IRS...
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2 Answers | Asked in Tax Law, Real Estate Law and Estate Planning for Maryland on
Q: What are the tax implications of selling a parent's home in Maryland while they are alive vs after their passing?

I am considering selling my mother's house in Maryland to help cover her final expenses. She has lived in this home, which is solely in her name, since 1948. We are planning to sell it for around $300,000, while the original purchase price was about $13,000. There have been some enhancements,... View More

Cedulie Renee Laumann
Cedulie Renee Laumann
answered on Jun 18, 2025

In a word, "yes". There are definitely tax implications and very often differences between selling real property during the original owner's lifetime vs. after their death. An online post cannot analyze what your specific tax consequences would be in either case (it is more of a... View More

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2 Answers | Asked in Tax Law, Estate Planning and Contracts for Michigan on
Q: Do I owe taxes on life insurance money received from uncle?

I recently received money from my uncle, who was the power of attorney for my grandpa, from a life insurance policy. My uncle changed the beneficiaries to receive the payout after my grandpa passed away. He received the life insurance proceeds and distributed it among four family members, including... View More

Edward Gudeman
Edward Gudeman
answered on Jun 18, 2025

The fact that the beneficiary was changed after your Grandpa's death certainly raises issues. Your uncle's power of attorney would not have been in effect, if the principal was already deceased because death of the principal would negate the power of attorney. This raises questions of... View More

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4 Answers | Asked in Divorce, Domestic Violence, Real Estate Law, Tax Law and Family Law for Florida on
Q: What are my legal options to recover funds invested in a house co-owned with ex, considering a restraining order and inheritance sale proceeds in Florida?

I inherited a house and sold it, using the proceeds to jointly purchase a new house with my ex-girlfriend. Due to a court-imposed restraining order, I am legally barred from the house we co-own. Both our names are on the deed. I have documentation proving that the funds I contributed to the... View More

Kunal Mirchandani
Kunal Mirchandani
answered on Jun 18, 2025

If you co-own a home in Florida with your ex-girlfriend and contributed funds from the sale of an inherited property, you have several legal options to recover your investment—despite being barred from the property due to a restraining order.

Because your name is on the deed, you are...
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4 Answers | Asked in Divorce, Domestic Violence, Real Estate Law, Tax Law and Family Law for Florida on
Q: What are my legal options to recover funds invested in a house co-owned with ex, considering a restraining order and inheritance sale proceeds in Florida?

I inherited a house and sold it, using the proceeds to jointly purchase a new house with my ex-girlfriend. Due to a court-imposed restraining order, I am legally barred from the house we co-own. Both our names are on the deed. I have documentation proving that the funds I contributed to the... View More

Joseph Martin Dobkin
Joseph Martin Dobkin
answered on Jun 18, 2025

You have two distinct but connected issues here: (1) recovering your investment in the co-owned home despite the restraining order, and (2) potential IRS tax consequences related to the sale of the inherited property.

1. Recovering Your Investment in the Co-Owned Home (Florida)

Even...
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2 Answers | Asked in Business Formation, Real Estate Law, Tax Law, Insurance Defense and Business Law for Florida on
Q: How to transfer condo from LLC to personal ownership in Florida?

I am the sole member of an LLC that owns a condo in Miami Beach, FL. I want to transfer the property from the LLC to my name. The condo has no liens or mortgages. I've faced difficulties in obtaining condo insurance under the LLC and cannot take advantage of real estate tax discounts. The... View More

Erik A. Perez
Erik A. Perez
answered on Jun 17, 2025

Generally, there are 2 steps that would need to be completed from a procedural stand point for the transfer. #1 Review the COAs governing documents to identify what requirements are needed for transfer. Usually, you will need COA approval to transfer ownership interest. So make sure to comply with... View More

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2 Answers | Asked in Tax Law, Child Support and Family Law for Florida on
Q: Can my husband face arrest for not paying taxes for 10 years as a 1099 employee?

My husband, a commercial over-the-road truck driver, hasn't paid taxes in 10 years and is a 1099 employee. He's received multiple documents from the IRS, but he hasn't made any attempt to resolve the issues. He was paying a substantial amount of child support until last year and paid... View More

William T. Harmon
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answered on Jun 15, 2025

Your husband could face arrest and criminal prosecution for not paying taxes for 10 years as a 1099 employee if the IRS determines his failure was willful and egregious. However, if he voluntarily files his returns and works with the IRS to resolve his liabilities before being notified of a... View More

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4 Answers | Asked in Employment Law, Tax Law and Estate Planning for California on
Q: Is paid under-the-table caregiving legal in Santa Barbara, CA?

I am working a caregiving gig that is paid under the table, but it is mutually agreed upon with an elderly woman I care for in Santa Barbara, CA. We have not discussed taxes, but we are working on a contract that outlines specific duties. Is this arrangement legal?

Michael R Trust
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answered on Jun 14, 2025

Hello. In short, no. Taxes aren’t being paid, you have no Labor Code or other legal protections. Of particular note, you have no workers' compensation coverage. Any of these issues alone are major, and can have major negative consequences for you. It's good that you both are now... View More

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4 Answers | Asked in Employment Law, Tax Law and Estate Planning for California on
Q: Is paid under-the-table caregiving legal in Santa Barbara, CA?

I am working a caregiving gig that is paid under the table, but it is mutually agreed upon with an elderly woman I care for in Santa Barbara, CA. We have not discussed taxes, but we are working on a contract that outlines specific duties. Is this arrangement legal?

Brad S Kane
Brad S Kane
answered on Jun 14, 2025

No. You are probably an employee, whose rights are set forth in Wage Order 5 and the Domestic Workers Bill of Rights. You should be entitled to at least minimum wage for all hours worked and overtime after 10 hours in day. You cannot waive your rights to minimum wage, overtime by mutual agreement,... View More

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2 Answers | Asked in Immigration Law and Tax Law for Arizona on
Q: Is it safe for a green card holder with pending renewal to travel to Mexico given the current ICE situation?

I am a green card holder from Mexico planning to travel to Puerto Vallarta for one week. With the current situation of ICE detaining individuals, even those with green cards, is it safe for me to travel to Mexico? My green card expires next year, and I'm supposed to renew it soon.... View More

Julia Sverdloff
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Julia Sverdloff
answered on Jun 13, 2025

Yes, it’s generally safe. As long as your green card is still valid, you can travel abroad and return without needing a renewal receipt. A short trip to Mexico (like one week) is fine. You should not face issues with ICE or CBP unless you have prior immigration violations or criminal history,... View More

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2 Answers | Asked in Immigration Law, Tax Law and Internet Law for California on
Q: Does trading options as an F1 student violate visa regulations?

I am an F1 student engaged in trading options in my Robinhood brokerage account, specifically using strategies like cash secured puts and covered calls. I conduct approximately 5-6 trades per week, resulting in 20-24 trades per month, and earn about $1,000 monthly from this activity. My day job... View More

Julia Sverdloff
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Julia Sverdloff
answered on Jun 7, 2025

Frequent options trading that generates consistent income—like 20–24 trades a month and $1,000 in profit—can be viewed as active income, which may violate F-1 visa rules prohibiting unauthorized employment or self-employment.

While occasional investing is allowed, trading at this...
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2 Answers | Asked in Appeals / Appellate Law and Tax Law for Nebraska on
Q: How to appeal a denied tax refund claim due to mailing date discrepancy?

I filed my tax return, and it was dropped off at the post office on 04/15, but it didn't arrive until 04/17. My claim for a tax refund was denied because of this. I have tracking information showing the drop-off date. How can I file an appeal for this denial?

Julie Fowler
Julie Fowler
answered on Jun 3, 2025

You aren't denied a tax refund just for filing a couple of days late. The exception to this is if you are past the generally 3 year statute of limitations. However if you are 3 years and even a day late, then an allegation of filing even one day late can prevent you from being due a tax... View More

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3 Answers | Asked in Bankruptcy and Tax Law for Illinois on
Q: Can teachers' classroom expenses be on Schedule J in Chapter 7 bankruptcy?

I am currently filing for Chapter 7 bankruptcy and want to know if teachers' classroom-related expenses, which the IRS allows for deductions on tax returns, can be considered legitimate expenses on Schedule J. These expenses haven't been documented in my financial records, only on my tax... View More

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on May 31, 2025

In our opinion, yes, list your teacher expenses where those are allowed by the IRS and your tax returns document those expenses.

You will have to show the bankruptcy trustee your last two tax returns to the trustee anyway. And even most bankruptcy courts defer to the IRS.

If the...
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2 Answers | Asked in Tax Law, Identity Theft, Military Law and Consumer Law for California on
Q: Can IRS hold my money during an investigation of alleged tax debt?

I am a Vietnam War veteran, and the IRS has put a hold on my money, stating I owe them $31,000. I haven't filed taxes in 20 years due to being low income and a veteran. I received a letter from the IRS about this issue, but I believe someone might have filed taxes in my name without my... View More

Symantha Rhodes
Symantha Rhodes
answered on May 27, 2025

Yes, the IRS can hold your money, including freezing your bank account, if they believe you owe back taxes, especially during an investigation of alleged tax debt or fraud.

IRS investigation of a potential tax fraud can take a long time to resolve.

To potentially expedite the...
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3 Answers | Asked in Divorce, Tax Law and Family Law for Washington on
Q: Can I withdraw 401k funds for divorce legal fees, and are there penalties or taxes?

I am considering withdrawing funds from my 401k to pay for legal representation and legal fees related to my divorce. I am no longer an employee at the company that holds my 401k. I'm exploring if this is possible and what penalties or taxes might apply. Are there any regulations or... View More

Andrew J. Wyman
Andrew J. Wyman pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on May 23, 2025

If you take money out of your 401(k) to pay for divorce legal fees, you’ll have to pay regular income tax on the amount you withdraw. If you’re under age 59½, you’ll also have to pay an extra 10% penalty to the IRS. Unfortunately, there’s no exception to this penalty for legal fees related... View More

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3 Answers | Asked in Divorce, Tax Law and Family Law for Washington on
Q: Can I withdraw 401k funds for divorce legal fees, and are there penalties or taxes?

I am considering withdrawing funds from my 401k to pay for legal representation and legal fees related to my divorce. I am no longer an employee at the company that holds my 401k. I'm exploring if this is possible and what penalties or taxes might apply. Are there any regulations or... View More

Yatong (Cecilia) Ju
Yatong (Cecilia) Ju
answered on May 23, 2025

Yes, you can withdraw funds from your 401(k) to pay legal fees, especially since you're no longer employed by the sponsoring company. However, unless you're over 59½ or qualify for a specific exemption, the withdrawal will be subject to income tax and a 10% early withdrawal penalty.... View More

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2 Answers | Asked in Tax Law, Legal Malpractice, Landlord - Tenant and Real Estate Law for Ohio on
Q: IRS notice for underreported income. H&R Block handling issues and financial hardships seeking legal advice.

In 2020, I received an IRS notice about underreported income. I've consistently used H&R Block for tax filing, along with their worry-free guarantee. After receiving the notice, I provided it to a tax professional at H&R Block before an extended hospitalization and was unable to... View More

Kenneth L. Sheppard Jr.
Kenneth L. Sheppard Jr.
answered on May 23, 2025

If your question pertains to suing or accusing H&R Block for negligence, yes, there are lawyers out there who may take on that matter on your behalf. To the degree of success in such a case is questionable. You are still ultimately responsible for what is on your tax return. If your question... View More

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