Real Estate Tax
IRS Has the Right to Prosecute and Imprison a Taxpayer Who Doesn’t Pay Taxes
Question: After my father died eight years ago, my mother has tried to manage their three Gilbert rental homes. We live in Portland, but we come to Gilbert to see my mother 3-4 times a year, and try to help out with management of their three Gilbert rental homes. Until recently we didn’t realize, however,…
Read MoreEscrow Company Required to Transfer to IRS 15% of Sales Proceeds of Real Property Sold by a Non-U.S. Citizen
Question: We are Mexican citizens who sold a 20-acre parcel of land in Buckeye for $3,000,000. At close of escrow, the escrow company transferred 15% of the sales proceeds, i.e., $450,000, to the Internal Revenue Service (“IRS”). The escrow company said that the reason for this transfer to the IRS is that we may have…
Read MoreVacation Home Sale May Have Tax Consequences
Question: We have owned a vacation home in Sierra Vista for 15 years. We would like to sell this Sierra Vista home, but we do not want to pay any taxes. Will we have to pay any taxes if we sell our vacation home? Answer: Probably. Although there is a $250,000 single-person exemption/$500,000 married exemption…
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