I am the executrix of Gertrude Hannibal's estate. I need to file for an extension to file her 2014 tax return but do not have the details to file accurately. Should I use Form 706 and 4868? Her estate is worth a bit over $250,000. Do I need to send money with the form or can I opt not to at this time? Additionally, how should I handle the name on the extension application—should I use the estate's name or Gertrude's name?

December 8th, 2023

My husband suddenly decided to file taxes separately after 15 years of filing jointly. He claims he will claim the mortgage interest and the kids as dependents. I filed separately as well, claiming the kids. What happens if we both claim the kids and the mortgage interest? Does the IRS care about this unilateral switch? Does the law protect me if he wants to claim all possible deductions and leave me with nothing? I feel at a disadvantage and distraught as this will severely impact my ability to provide for the kids.

July 25th, 2024

In 2005, my father-in-law had a stroke and became disabled, receiving Social Security and Medicaid. In 2007, my mother-in-law died. In 2016, my father-in-law passed away. While cleaning out the house, we discovered that no tax returns had been filed since 2003, and the IRS had sent notices for payment due, with the amount now totaling $46,300 including penalties and interest. We also found out that the IRS might have levied his Social Security to pay toward back taxes. Does the IRS's 10-year statute of limitations for collection apply in this case, or is the Estate still responsible for paying the back taxes due?

March 22nd, 2023

As co-founders of a Delaware C-corp operating out of California, with $2M in profit in 2016 and no other taxable income, what is the most tax-efficient way to realize this profit as personal gains, and what will our total tax burden be? Additionally, if we move to Nevada at the end of May, would we qualify to pay income taxes only for Nevada for the year 2016, and what steps should we take to ensure we can legally recognize Nevada as our home state and avoid California's tax rate for 2017?

January 25th, 2024

We own a triplex; we occupy the downstairs and there are 2 apartments upstairs. In 2015 we paid for repairs caused by water damage in an upstairs apartment. While at it, we had the entire apartment repainted. Several months after the work was done we claimed for those damages from our insurance company, and received a portion of the total cost. Can we claim all of these expenses, and if so, do we have to report the insurance money?

November 23rd, 2024