Estate Tax-Federal Estate Tax

grumpyoldlady asked:


My cousin was personal rep for my late aunt’s estate…in Michigan. Everything I have read indicates that the first 2 million dollars of the estate is tax exempt. The estate was only $274,000, so should be totally exempt, yet my cousin paid over $30,000 in 2006 estate tax and about $3,000 to Michigan estate tax. NOW comes the kicker…2 days after he signed the final papers ending his responsibility for the estate, he died! Am I right that he should not have paid the $30,000 and $3,000 because of the exemption that SHOULD have been taken? NOW WHAT???? I just received final papers to sign that will go to Probate and then I will receive my part of the estate. If I sign, and that $30,000 was paid in error to the Feds, can the estate recoup the money? What should I do? The attorney apparently assumed that the return filed was correct or he would not have sent us the final papers to sign off on . I know $30,000 is not a big sum, but to me, 1/4 of that is a lot of money!

Moses Filarecki

woodshillfarm asked:


My husband and I own a home and a piece of land that we intended to build on, and sell our house.
We have instead decided to sell the vacant land and our current home (lived in for 6yrs) and put a down payment on a house with the land profit money. My question is, will we have to pay a capital gain on our land profit if we are putting it back into the new house? If so how much will we be taxed on our profit?
Is there any way to avoid being taxed on the land profit?

Elana Bibles

Emily asked:


This is the first year that my husband and I are paying Real Estate Tax. It was $1400. We thought that seemed like A LOT. A friend said that it should be covered by ESCROW. I have no idea wha ESCROW is. I put extra into our mortgage every month, but I put it towards the principal. Should I have also been putting extra into an ESCROW.

Lilli Hidden

Here4u asked:


I am trying to get a real estate loan. I have good credit but I have not filed my taxes in a couple of years. Will this affect my ability to get a loan?

Luciano Pawlak

menarka asked:


Can an LLC purchase residential real estate that will be used as a home office pre-tax?
The LLC has made enough money this year to buy for cash (I understand it can be complicated for an LLC to get a loan, which I can now avoid).

Tatiana

PersRep asked:


The IRS says “Any expense the estate has incurred only because of its estate status”. In the real world, the estate contains real estate, which has utility bills, insurance, taxes, etc. The IRS talks about stamps! The real estate is not a business, it’s my parents house.
Second, of course, the estate has medical bills and some payments from insurance companies. Do these cancel each other? The IRS says the medical bills go to the decedents Form 1040 and the payment from insurance companies go on the 1041. That means if the insurance company pays the medical provider directly, there are no taxes. But, if the insurance company pays the estate and the estate pays the provider, there could be a ton of taxes. What do they really mean? Thanks for any insight. PersRep

Dominic Kertis

demons320 asked:


I’m a new agent in MN and just started in October. I bought all this stuff and i’ve been told I can use them as tax deductions. Now, the question is, if my income is zero from my real estate career for the year 2006, do those tax deductions still count for something? i.e. laptop, software, suits, website. Any C.P.A.s or Realtors out there?
Thanks! I do in fact still have a part time job with continual income and I have that job in order for me to buy all my stuff for my real estate business. Would that still count?

Darla Flatter

920135 asked:


rules that prohibit this? Also, say I sold someone a house and out of the commission they paid me, 55% of that was donated. Could they use this as a tax write off? I plan on selling commercial and residential real estate in California, if that helps. Thanks for your help!

Gertha Dolven

supermoren02130 asked:


if i purchase a $60,000 home, would i still get 8000 of tax credit?
can you explain the process?

no websites pls

Clayton Edgehill

Michael S asked:


I was told that if you live in NY that if you pay the taxes on a Tax forcloser or pre tax forcloser that you can buy the persons house for what ever the taxes are that the person owed.Is this true?Is this easy.How do you do this?can you do this in all states?

Kelly