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Is Inheritance Taxed? And More Free Legal Advice – Free Joe 10/23/12

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Sally: Do children have to claim inheritance money on tax returns?

Joe Escalante: Generally, inheritance is tax free. If the value of the estate was in the millions, the government would get their paws on it from the estate. Gary the tax guy is here on Thursdays. He could give you some more details, like sometimes you inherit a fund, and the fund increases in value. That increase may affect your tax burden.

LegalZoom: The Tax Pros will be here on Thursday, Sally:

Lorrie: Received a notice for a case that will be dismissed for want of prosecution. What does that mean? How do I handle it? Had no idea I had a case. Stated I was not represented by an attorney.

Joe Escalante: That means the prosecution took to long to get things going, thereby prejudicing the defense. When that happens, the judge will dismiss the case because he thinks it would be unfair to have you dig up all the old crap it would take to beat the wrap. If you didn’t know you had a wrap to beat, that’s freaky. Call the D.A.’s office to get some details. You should at least know what is in the files. It could be mistaken identity.

Roberto: Dear Joe, I would like to know if processes such as widening the scope of the services my company (will) provide (for example, from Publications to Publications & Consulting) requires it to be reported to and registered again (like starting from scratch) with the state (I live in CA). Also, do mutually agreed changes in the percentage of interests of an LLC’s managers have to be reported to the state, or that is an internal company business. Thanks very much for your time and advise.

Joe Escalante: In your Articles of Organization, it should spell out what the purpose of your LLC is and the business you will be engaged in. Usually people go with something like “any lawful business.” Then you don’t have to mess with it if you change the scope of your services. So to answer your question, it depends on whether you have limited your scope in the Articles. The Operating Agreement is generally where you list the contributions and other internal business. Most states, including California, don’t require you to notify the secretary of state for this kind of internal business.

Dot: We are in a dispute with a carpetecarpet company contract to we hired to install carpet in several rooms of our home the installer (Sub Contractor) walled off the job before it was completed . The owner is saying I locked him out of the job this is not true , he said he wanted noting more to do with the job or us, I had to hire a new contractor to finish the install and had to purchase the addit
ion carpet to complete the work after the original company removed it from my home, now they are demanding the balance due on the unfinished job, he was paid 75 % up front with the balance due upon completeion, in the amout of 1000 dollars I received a demand letter form his attorney along with an additional bill for his service of 250 dollars what do I do how can I dispute the demand

Joe Escalante: A demand letter is not a legal obligation. It is just their wish. He may take you to small claims court. If he does, he will have to prove that he was locked out of the job. Try to gather the evidence to dispute this claim now. You will need it. Send the lawyer a letter denying the claim that he was locked out of the job and that, if anything, he owes you money for the difference between what you had to pay, and what you would have paid if he had finished the job as promised. You may take him to small claims court for that amount as well. Good luck.

Ewan: Hi Joe. My husband and I want to start a business and need to know what would be better for us: an LLC, an S-Corp or C-Corp. We will have 2-3 employees, in case you needed to know. Thanks for any help you can give me.

Joe Escalante: An LLC is easier to create and maintain. They have fewer reporting and administration requirements. Most people are going with LLCs these days. They provide liability protection similar to incorporation. The tax structure is flexible. The final answer is going to come from your tax pro to see what’s right for your situation.

Muhammad: Dear Joe,
I had dental extractions at 16 (which is age of consent in UK)…. without my consent…..

I have been told by a Professor
I do not think you will win a case on the grounds of damage or harm but you might win on the grounds of lack of valid consent. You need to get good advice on this. Prof John Mew.

When suing for lack of valid consent. What can you claim for ?? pain and suffering, loss of earnings, ?? I have Anxiety and Depression now. And cannot work. WHat do I do.



Joe Escalante: You have to prove some kind of damages but you can only expect to be awarded for reasonable ones. How long is reasonable for missing work? One week? Two? That’s not a lot of damages. The other stuff is harder to prove. You will have to show that you were under the order of a doctor’s care for pain, and receiving treatment. You can’t just make it up. You have to have evidence.
Anxiety and depression must be the direct result of the action of the dentist. That sounds like an uphill battle.
Then you are going to have to deal with the fact that the dentist is not going to roll over. He’s going to claim that you did consent.
I cannot see any lawyer taking this case on a contingency. There are not enough provable and certain damages.

Darryl: Hello jus my question is payday loans I had a payday loan due to my illness couldnt pay it off so now they are talkin abt tryin to get my licesne surspened also I recivced ssi can they take that to

Joe Escalante: They can garnish your wages and do a lot of things with a judgment against you. But they generally cannot touch your SSI benefits. You only have to worry about the IRS and back child support going after that.

LegalZoom: Joe Escalante will be back on Friday for more free legal Q&A. And don’t miss free tax advice tomorrow from the Tax Pros at Corporate Tax Network:

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October 22nd, 2012 at 6:17 am