California Tax Legal Questions

Depending on the facts, there may be relief available through the Innocent Spouse Program.  If not, she should consider filing the missing tax returns, if possible, and then reach an agreement with the IRS and California Franchise Tax Board on any remaining tax liability through Hardship Status, Offer In Compromise, Installment Agreement... Call my office if you or your sister-in-law have any more questions -- 1-888-351-3707.... Read More

This is not an inheritance, it is a gift. California has no inheritance tax. You mother can give each of you up to $`14,000 during 2013 (and again during each taxable year in the future) without even needing to file a gift tax return. Since she may still want to give you other gifts this year, let her give $10-13,000 now, and give the rest in January. Then she does not even need to file a return. (The lifetime exclusion is $5.25 million. If her net worth is that high, or anywhere close to it, she should consult a lawyer.)... Read More

If your grandmother's estate distributed the money to your mother and your mother then gave each of her children $15,000, this would not be considered an inheritance. It would be a gift from your mother that would require your mother to file a gift tax return. Because the applicable gift tax exclusion amount in 2013 is $5,250,000, there would be no gift tax on the gifts unless your mother has already used up this exclusion amount. If your mother wanted to avoid even the requirement to file a gift tax return or to use any of her gift tax exclusion, she can give each child up to $14,000 in 2013 and the balance in 2014. The annual exclusion from gifts increased to $14,000 per gift beneficiary in 2013. You and your siblings would only have an inheritance of the funds from your grandmother's estate if your mother made a "qualified disclaimer" of interest in the funds in your grandmother's estate and the provisions for distributing those funds provided they would go to you in the event of a disclaimer or if your mother predeceased your grandmother. Using disclaimers can be very complicated. Because there will be no need to file a gift tax return and no gift taxes, it would be much easier for your mother to make of a gift of $14,000 or less to each child this year and the rest of the gift next year. The federal death tax is an estate tax based upon the value of the decedent's estate. For decedent's dying in 2013, the value of the taxable estate must exceed $5,000,000, before there is any estate tax. If your grandmother's estate was less than $5,000,000, there would be no estate tax on the funds regardless to whom the funds were distributed. If it was over that, the representative of your grandmother's estate should have taken care of filing the estate tax return and paying any estate taxes before distributing the funds of the estate to your mother or any of the other beneficiaries of the estate.... Read More

Yes, a preparer can be accountable for not preparing your income tax return correctly. The damages would be limited to (i) the fees you were charged by the preparer; (ii) the cost of the audit (fees paid to the person who handled it); and (iii) tax penalties. The taxes you pay and the interest you pay are not damages.... Read More

Where is the request for a clearance coming from? When there is an inheritance in this state, there is no fee that need be paid to receive the inheritance. This sounds like a foreign scam and I would not send any money to anyone until you determine who is asking for this. Even the IRS doesn't require payment prior to a person receiving an inheritance (which is income tax free anyway).... Read More

You can deduct gambling losses only if you itemize your deductions. The AMOUNT you deduct may not be more than the amount of gambling income reported on your return. You claim your gambling losses on Schedule A to Form 1040 as a "miscellaneous deduction NOT subject to the 2% limit." A non-resident of the United States cannot deduct gambling losses on Schedule A of Form 1040NR.... Read More

If you are the sole owner of the business, you will be taxed as a sole proprietor (schedule C) whether you do business as an LLC or as a sole proprietor.  This is referred to as the disregarded entity provisions.  As a sole proprietor, you can deduct your health insurance premiums on page 1 of form 1040, but you will not be able to deduct them on schedule C.  This applies whether you do business as an LLC or as a sole proprietor.  If you want to deduct health insurance premiums against business income the only way to do that is to be a C corporation.  If you are the only employee, then anything that happens will involve you, so doing business as an LLC will afford you no liability protection.  Only if you plan on having other people working for you will operating as an LLC give you a liability benefit.  If this is a new business and you will be the only owner and employee, I suggest you start off as a sole proprietor and if the business is successful change the structure at a later date.  Even if you operate as a sole proprietor, you will still need a separate checking account in the name of the business.  You do not have to operate the business under your name, but be sure to file an assumed name certificate if you decide to use a business name other than your own.  I do not practice in California, so understand I can not assist you in the nuances of California law.... Read More

Am. Jur. is just a collection of cases. It is not the law. If you are in California then you can read the California Corporations Code on Nonprofit Religious Corporations which starts at Section 9110. There is a great deal of reading material available on-line on how to establish and operate a religious institution.... Read More