Will my parent owe taxes for receiving foreclosure surplus funds, and will they get a tax form for it? – North Carolina Short Answer In North Carolina, foreclosure surplus funds are usually treated as the leftover sale proceeds that belong to the property owner (or, if the owner has died, the owner’s estate/heirs). Whether a…
Are there tax or transfer-fee consequences when deeding property from an individual to an LLC? – North Carolina Short Answer In North Carolina, deeding real property from an individual to an LLC can trigger the state excise tax on conveyances (often called a “transfer tax”) when the deed is recorded, depending on the consideration or…
If my parent gifts me the surplus funds, do they have to file a gift tax return? – North Carolina Short Answer North Carolina does not have a separate state gift tax return in the way many people mean “gift tax return.” If a parent receives foreclosure surplus funds and then gives some or all…
If taxes were already withheld on an annuity payout, does the estate still have to file any tax forms? – North Carolina Short Answer Sometimes, yes. Tax withholding on an annuity payout does not automatically eliminate the need for a tax filing, because the key question is who received the taxable income (the decedent before…
Can the estate pay for a CPA to prepare the decedent’s final tax return and the estate’s income tax return related to investment sales? – North Carolina Short Answer Yes. In North Carolina, a personal representative (executor) can generally use estate funds to hire and pay a CPA to prepare the decedent’s final income tax…
Do I need to file a final income tax return for my deceased grandparent if there wasn’t enough taxable income? – North Carolina Short Answer In North Carolina, a final state income tax return is generally required only if the deceased person’s gross income for the year (through the date of death) exceeds the filing…
How can I protect my parent’s home from Medicaid recovery or nursing-home claims while they are in long-term care? – North Carolina Short Answer In North Carolina, a parent’s home is often not taken while the parent is alive, but it can still be exposed later through Medicaid estate recovery after death and, in some…
How do I file my spouse’s final tax return and deal with tax debt when we were filing separately and the tax issue may be tied to my spouse’s income reporting? – North Carolina Short Answer In North Carolina, the estate’s personal representative (administrator) generally handles the deceased spouse’s final income tax filings and addresses…
When should I expect a 1099 for an estate account, and what can I do if it isn’t available when the estate needs to file taxes? – North Carolina Short Answer In most situations, a financial institution issues a Form 1099 for interest or other reportable income on a calendar-year schedule, often around late January…
What happens if the deceased person still owes taxes, and how do I find out if a final tax return is required? – North Carolina Short Answer In North Carolina, taxes the decedent owed (and certain estate-level taxes) generally must be addressed as part of probate before the estate can be closed and distributions made.…
