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My mother held all her properties in joint tenancy with me when she
died; estimated net worth about $300,000. I never contributed anything to these accounts.
She also had 5 money bequests in her will which I am honoring by paying them out of
"my" money. Did she have an estate for tax purposes?
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 There is not a requirement
for an estate tax return unless a decedent had an estate worth more than $675,000. The
joint tenancy assets are part of her estate, but there is no probate because the assets
were held in joint tenancy. By paying bequests contained in a will, you are making direct
gifts to those beneficiaries since you are the sole owner of the joint tenancy property.
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My employer has a tuition assistance plan that reimburses me for my tuition upon
successful completion of each class to a maximum of $5,250 per year. Would I be able to
deduct these expenses as an employment-related business expense if my employer did not
reimburse me for additional amounts that I spend?
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Your employer may provide you with
tuition assistance up to the limit you describe. If your employer pays more than this
amount, it becomes non-deductible compensation to you. Also, if you pay for tuition and
education expenses and are not reimbursed, you may claim this amount (provided you qualify
with the education requirements described below) as an itemized miscellaneous deduction.
If you need the education to improve your job skills in a job that you currently have,
you are permitted to deduct these expenses under the following conditions: Educational
expenses may be deducted if they are either mandated by your employer or incurred to
maintain or enhance your present skills. You cannot deduct educational expenses if the
courses qualify or retrain you for a new trade or profession, or are part of "entry
level" education, such as the minimum educational requirements to become a teacher,
doctor or attorney.
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: Neither of my parents is a U.S. Citizen, but my
wife and I are U.S. Citizens. My parents want to sell or gift to me a home they own in
California. How can they avoid capital gains tax or gift tax on the transaction?
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This is
a difficult situation. Your parents will owe capital gains tax if they sell the property,
and gift tax if they transfer it to you. Since the home is under $300,000 they could sell
it without incurring the 10% FIRPTA withholding on the proceeds. Review my Foreign
Taxpayer section which discusses these rules.
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I am currently in a
situation where I need all the money I earn with no taxes deducted for at least the next 6
months. Then I will pay whatever taxes are owing for the 6 months when no taxes were
withheld from my check. Can I do this?
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You are not permitted to do this. You can claim
additional exemptions, up to 9, on your W-4, but you are not allowed to tell your employer
not to withhold. Work through the W-4 worksheet to determine the maximum number of
exemptions needed to reduce your withholding to the maximum.
See IRS instructions to Form w-4. |
