How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Jim Revels Your Own Question

Jim Revels
Jim Revels, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 210
Experience:  Providing income tax / planning services for over 16 years on all entity and individual tax issues
4204301
Type Your Tax Question Here...
Jim Revels is online now
A new question is answered every 9 seconds

Good afternoon. I am an active duty military member

Resolved Question:

Good afternoon. I am an active duty military member who''s home of record is NY. I am currently stationed in CT. I am in the process of selling an unimproved property for 365K. I know I am liable for federal capital gains tax but I would like to know if I am liable for NY and/or CT capital gains taxation. Thank you very much.
Submitted: 6 years ago.
Category: Tax
Expert:  Jim Revels replied 6 years ago.
Where is the property located?
Jim Revels, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 210
Experience: Providing income tax / planning services for over 16 years on all entity and individual tax issues
Jim Revels and 4 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
My apology. The property is located in Southold, NY.
Expert:  Jim Revels replied 6 years ago.

Thank you for the quick response. Yes I agree the property will be taxed for New York purposes. Even if you were a Florida resident and you sold property in NY you would be taxed in New York. Now the CT issue. I am pretty sure that as a military person stationed in a particular state the state does not have the authority to tax you on the sale of the NY property so long as you have kept NY as your Primary residence. I will just double check for CT to make sure.

 

Kindest regards,

Expert:  Jim Revels replied 6 years ago.

Got it....you are not subject to CT tax. I have attached a link. Please go to page 8 of the tax form instructions.

http://www.ct.gov/drs/lib/drs/forms/2007forms/incometax/ct-1040booklet.pdf

On another note, How did you get my name to specifically request me. Just curious.

Kindest regards,

 

Customer: replied 6 years ago.
Mr Revels,
     Thank you for your time and responses. Additional question: Tax basis is a key here. The property was my mothers and was transfered to me by deed just prior to her death. Will the tax basis be the cost at the time of her purchase or at the time of the transfer (this will make a considerable difference in the gains tax).
As for your question - the luck of the draw, Sir. It is nice to see I drew an Ace.
Expert:  Jim Revels replied 6 years ago.

If in the property was transferred to you by deed just prior to her death the property should have been included in her estate. This being the case you will get a step up in basis to the FMV at time of death or the alternate valuation date 6 months after.

 

Best regards,

Customer: replied 6 years ago.
Interesting - this differs from the opinion of my CPA (glad I asked). Now, to expand a bit, this was not be bequeathed but rather was a signature to signature deed. Does this process warrent the step up taxation basis?
Expert:  Jim Revels replied 6 years ago.
Did your Mother file an Estate return Form 706? If so was the property on that filing? Or was it in fact gifted to you?
Customer: replied 6 years ago.
No 706 that I am aware of however, might that have been executed by the attorney? It also was not handled as a gift but rather as a sale (token $10.00 if memory serves).
Expert:  Jim Revels replied 6 years ago.
Odds are the property would have been included in her estate. I would suggest that you contact the attorney and find out just be be sure. I really think it would have been included in her estate.

kindest regards,
Customer: replied 6 years ago.

If that be the case, at the time of her demise, her estate would have passed, by law, to my father who is surviving. The property "sale" was accomplished in an attempt to protect if from the state should my parents have required long-term care (medicade). Perhaps a better question is what do I have to have lined up to warrent the step-up?

Expert:  Jim Revels replied 6 years ago.
Oh this makes a difference....under this case she gifted the property to you. Your basis would be what her basis was. There should have been a gift tax return filed (form 709)for the difference between the fair market value at time of transfer and the $10 on the deed transfer. That gift tax return would have reported her basis in the property.
Customer: replied 6 years ago.

I will have to look at the deed that was executed and see if a 706 or a 709 was accomplished and hash this out w/ the lawyers and my CPA. Ah well - the research continues.

Mr. Revels, I thank you very much for your time and effort. God Bless.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.