Another episode of the Dr. Friday show is here, and she is ready to help you answer all your questions! She gives you all the new tax information updates as well as the following topics:
- How to Protect Your Credit
- The Paycheck Protection Program
- Tax Filing Deadline
- The Economic Impact Payments
- Is Your Dependant Eligible for Stimulus?
- Construction Loan Deductibles
- Information on Quitloans
- Are You Eligible to File for Unemployment?
No, no, no, she’s not a medical doctor, but she can share cure your problems or your financial woes. She’s the How-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday call her now at 615-737-9986. So here’s your host financial counselor and tax consultant Dr. Friday.
Dr. Friday 0:30
All righty. We are here doing our bit to try to stay out of the way but still try to help educate and prepare people for some of the things that are coming down the line. The economic impact payments, stimulus payments, I referred to them as are supposed to start coming out as early as next week. I just want to kind of go over that really quick just like maybe answer a few of the phone calls before they start coming in. Who are eligible individuals making $75,000 up to $99,000? Married people 150-198,000. Head of the household is going to be like $110,000 up to 140- 150,000 you will get 1200 dollars as an individual, $2400 as a married couple, $500 for qualified children that are children that are 16 and under in the year of 2019. This will be being reconciled on your 2020 tax return. So I don’t know if they give you too much money. I have cases where the ex-wife claims the children and in odd years the ex-husband claims to children. So if they haven’t filed their 19 yet, but they are basing them on the 18, who’s going to get the $500? I don’t know the answer to some of these guys. They haven’t given us that information. “The IRS does not have a direct deposit.” That’s been something that’s been sent to me probably a good 20,000 times, no not quite that many times, but they will be actually getting there. They’re supposedly going to be updating the IRS website. I’ve checked today I did not see any place you can change your address, you can update your address, and your name, I did not see where you could update your electronic payments. So most of the people if you had it on your 19, or if you had it on your 2018 or 19, if that information is wrong, then the money will bounce back if it is your ex-wives or girlfriends account that you had on there because you wanted them to get that particular refund and not get the stimulus, then you’re going to need to contact the IRS. Here are the funny parts. And I’m saying funny because the IRS specifically has a phone number on the website and it pacifically says that at this time, they are not available, they do not have anyone answering the phone. So there is no easy way to contact the IRS. But let’s go ahead and hit the phone lines. We look like we have john on the line from Spring Hill. Hey, john, how can I help you?
I’ve been seeing commercials for, and this is maybe not in your field, about a person who has lost their home due to some crook got their title information for their home?
Dr. Friday 3:37
Oh, I’ve heard those commercials myself. I have not had any hands-on personal experience with them. I would hope that that would be something that’s somehow covered under insurance. I have seen those commercials and it sounds like there’s not a lot you can do. I’m assuming there are lawsuits. They can get you your house back. But what’s your question? Or has that happened to you gosh forbid?
The question is I don’t even know how that’s possible. I mean, if somebody were to steal my information, and a bank or lending institution were to lend them enough money that I would lose my home, I would think that would be on them not me.
Dr. Friday 4:17
That’s assuming that they paid for title insurance, right? Or that the closing agent, whoever was doing this wasn’t also a con artist of some sort, but I agree with you. I didn’t understand how it could happen. I have seen those commercials. It’s horrible that would happen to someone like that. I can’t imagine if and I will tell you this, I have my credit locked meaning you can go to the credit bureaus and ask them to lock your credit. If you have a parent, a senior, they’re not going borrowing money, why not lock their credit so that way, no one could do something like that. Because then someone has to call me and says, “Hey, are you applying for this car” or they get a rejection automatically because the credit won’t pull the credit report. It just makes sense to me that you want to be safe than sorry, but great question. I don’t know if I’m helping much, but I have seen those commercials and I’m thinking, there’s got to be a lot of things you could do to protect yourself on that.
If you lacked your credit at let’s say Experian would that lock it at all the credit bureaus or just Experian.
Dr. Friday 5:21
No, you have to do all three. There are just three credit bureaus, but yes, you’d have to do all three. Okay?
All righty. Thank you very much, I appreciate it.
Dr. Friday 5:28
Thank you, John, love the question. All right. Let’s go to Gary in Gallatin. Gary, what can I do to help you, sir?
Thank you for taking my call. A quick question you may have already answered in the past few weeks. Has it been pushed back as far as paying your 2019 taxes is the deadline still all the same? I mean, April 15th? Number two is if you’ve had a loan in the past year, probably two years ago and you paid it off last year. Are you all eligible for stimulus money?
Dr. Friday 6:03
I’m not too sure about the second one, I’m not sure about. The first one I can tell you July 15, it has been pushed back. July 15 is our deadline. Gary, what were you meaning about a loan? I mean, basically, what was that? I don’t know if I understand what that question was, are you self employed?
I thought it was a part of stimulus package that if you’d had a loan that you were making payments on that, as long as the loan within a year old, then you could have access to some of the stimulus money for that.
Dr. Friday 6:36
My understanding on that for the stimulus side is really businesses that are paying mortgage and interest and they’re part of the stimulus package will be to help them make the interest payment for eight weeks. As a free and then loan them money to go further at an interest rate, but I haven’t seen anything. There is some emergency funds $10,000 that they are releasing to some individuals. But I think that has to tie to saving your home maybe. Almost every bank has been mandated, I think to give a 90-day furlough. So, most of those loans, I don’t know maybe someone knows differently, but my understanding is mortgage companies have to furlough your loan or at least you have to get the ability to ask about a furlough but I don’t think individuals. No, I don’t think that applies.
Okay. Thank you
Dr. Friday 7:29
Appreciate it very much. Guys I’m gonna say I am learning as much as you. I’m doing a lot of the paycheck ones so that’s one that I am knowing more about. How you know eligible impact payments, that’s where the other $1200 dollars and stuff is coming for individuals a way to help them along with obviously unemployment being out there for deducting, things like that to make it happen. So, if we want why don’t we go ahead and go to Linda and then we can hit Joe in Columbia. Hey, Linda, how can I help you?
Hey, Dr. Friday, I heard the previous caller talking about having their title compromised? Some time ago, I learned that you can call either the register of deeds or the tax assessor’s office in Metro Nashville to put your name on a list to be notified if someone is requesting your title.
Dr. Friday 8:31
That’s great. I mean, so that’s what I’m thinking. Especially if you have or you’re single or you’re busy or you have an older parent that maybe owns their home and you’re concerned that they could be taken in. My brother actually he works for me, and he was in the office here and someone called him just on Friday and said, “I need your date of birth and your social security number.” He said, “I don’t know who you are. What do you need?” They eventually hung up, it was a scam. But I always worry about if it was someone that was older, would they be react by just giving that information out because they were taught, you know, I mean, in some ways if somebody asked you answer, those kind of things. So, you know, that would be great if there was ways to help protect those individuals. I think that would be wonderful. And you know, a lot of times we have to step up and help those people. So thank you very much, Linda, for giving us that information. So maybe some people can check with the registered a deed or the title, whoever holds our titles to our homes, be able to check that out.
I don’t remember which one it was, but they were quite happy to provide that service.
Dr. Friday 9:34
Perfect. That sounds like a great thing. Thank you so much. I appreciate you listening. All right, why don’t we go ahead and keep moving along here and let’s go to Joe. Joe in Columbia. Hey, Joe.
Hey, how you doing? Thank you for taking my call. My wife and I are purchasing a house, and we had closing on a construction loan. Is that the closing costs in that deductible?
Dr. Friday 10:00
The only closing costs it would be added back to your cost basis. So when you sell that would be part of your closing. But if you have any property taxes that were assessed during that time, that would be able to be part of your property tax. And then of course, interest. But normally interest would come on a 1098 form, in addition to that. But that would be the only two things that you would have that you could deduct off of an actual closing, or points. But most people aren’t doing points right now.
No, not under construction loan. All right. Well, thanks very much.
Dr. Friday 10:35
Thank you, sir. I appreciate the call very much. juts for all of those that might be first-time listeners, you can join the show at 615-737-9986, taking your calls. Hopefully going to help answer some of your questions. Let’s go ahead and take the next one, which is Jeff out of Hendersonville. Hey, Jeff.
Hi, how you doing?
Dr. Friday 10:58
I am doing awesome.
Oh good. No coughing Yay.
Dr. Friday 11:02
No coughing, no steezy no, whatever. Yes. Doing well, thanks.
I’ll get right to my question. Let me give you a little bit of background. My mother is 95. She is in assisted living. A few years ago, she put her house in mine and my sister’s name. Last year, me and my sister sold the house. We put the money into an account that used to be hers also, and this is for her care totally completely for her care. My question is, are we going to owe capital gains on the sale of her house?
Dr. Friday 11:48
The answer is possibly. So that’s the reason I’m never a big fan and I know why parents do it. They just want to make sure that they’re safe and that their kids are safe etc, etc. But the downside to that is when she quitclaimed it over to you and your sister, she eliminated what we refer to as a “step up in basis.” So now you have the basis of what she paid for that house, which could have been 40 years ago.
It was 60 years ago.
Dr. Friday 12:18
There you go even worse. So in trying to find that basis of what it was. Was she married at some point? Yeah, okay. Well didn’t know because nowadays you never know. So when did Pop’s pass away? When did your dad pass?
Dr. Friday 12:39
Okay. Well, at that point, the home probably went to the mother. So in essence, it would have gotten a step up in basis at the time mom took over title. Most of the time back in the day, husbands had the homes in their name, and then they went to the wives. Now sometimes because we’re not a community property, we didn’t actually have to have the wife’s name on the property. You would have to go back and see if her name wasn’t on the property, you could go back to 1995 the month that your father passed away and see what the house was worth. If mom and dad owned it in joint tenants, then you’re going back to pretty much when they brought it and then that’s gonna be really hard to backtrack into. I’m not trying to be complicated, but that’s why. When mom did it, did she just quitclaim it like for dollar?
What we did, it was in both her and my dad’s name. A few years ago, before she quick claimed it to herself. We had a quitclaim, we took my dad’s name off of it, in other words, and It was in my mother’s name. Then my mother, quitclaimed it and put it in mine and my sister’s name.
Dr. Friday 13:54
Yeah. So the basis is going to be minimal. I’m just being honest. You know, because back in those days homes were worth five and 10,000 that was a lot of money. You know, when they purchased it 60 years ago
Dr. Friday 14:12
See? Now, they may have done quite a bit of up grades. It’s possible to have, increased some of the value what did you sell it for?
We sold it. Oh, thank goodness for $220,000.
Dr. Friday 14:26
Yes. Well too bad we didn’t keep it in mom’s name, because then it would have been free money. heighnsight it’s worth a lot in life. At this point, you and your sisters have a basis of about $13,500 against $220,000 plus closing costs fees at this time. That home was in your name, not mom’s and the basis since she didn’t pass away is the basis that mom had at that time.
Now, would we need a K 1 from the financial institution that paid that paid us off or?
Dr. Friday 15:08
Most likely, you’re going to actually get a 1099 S for real estate sale.
Okay. And 99 F?
Dr. Friday 15:19
S is in SAM for sale. Oh, okay. Yes. Oh, that it could likely be for the whole amount, even though they give it 5050. So you’ll have to make sure when whoever’s doing your taxes that the Schedule D accounts for the total cost basis and then divides it in half in essence, so you can put the 50% of your sisters on her and she would do the same thing. So you’re already responsible for 50% or 110,000, gross, less the $707,000 cost or whatever. You can go back and find more cost that would be the answer.
I haven’t received a 1099 S. So Who would? Who would issue that to me?
Dr. Friday 16:03
Well, the closing costs company usually does to whoever handles the closing. You might want to call and find out they’re going to issue if they’re not just keep in mind, the IRS is notified of every home sale. I’ve been in more than one audit where people are like, “Oh, I forgot about that.” Or they come to the table and say, “Hey, you sold three houses that you didn’t report in the last two years.” So yeah, make sure that they are notified of even if you don’t receive a single document, you signed off and the government has been notified, but you might want to call the closing agent just to find out.
Okay, so the closing agent would be able to either get that to me or tell me where I could get it?
Dr. Friday 16:44
You think the IRS would be real nice and send it to me?
Dr. Friday 16:50
No. [laughing] Not gonna happen my friend. Thank you for calling.
Would they be real nice. Yes. That’s the question. Thank you.
Dr. Friday 17:02
No problem. All right, we’re gonna take a quick break. I appreciate all of you guys that are calling. Hopefully you’ll hold through because we’ll get to all of your calls. As soon as we get through the quick break. This is the Dr. Friday show. We’re gonna be right back
Live in the studio and the phone lines are blowing up, which is awesome, because it always makes my show I think a lot more enjoyable. Let’s go to Jane who’s been on hold quite a while Jane. Let’s see what you have for me.
Hey, Dr. Friday. Well, first of all, I’m a homeschool mom. I think you said that fee for camps are deductible. Is that right?
Dr. Friday 17:56
So if it’s a day camp and you work and the husband works then you can actually take it off as if it was like babysitting. But you don’t work a job you are you know an at home mom then no.
If we both work, is summer camp taken off?
Dr. Friday 18:18
As long as it’s just day-time. If they have to spend the night then no.
Okay and are music lessons taken off or any kind of lessons that you pay someone else to teach the children?
Dr. Friday 18:33
You know, normally it’s it has to be for a number of hours. I suppose if it’s a camp that teaches them something like that for you know, like 11 to four or something like that then yes. Like every week, you get one hour piano lessons. I’ve never seen that deducted so I’m gonna go with no.
Okay, let’s go on. Let’s go to Mike. Mike’s been holding for quite a while. Hey, Mike, what can I do for you?
I have a son that’s 21. He’s gone, usually full time to school to Columbia State here in Franklin. He is included on our taxes, but he has not been that file a tax return on him. He’s 21. For the tax break, or those checks, is there a way we can arrange that for him to get one?
Dr. Friday 19:37
Well, does he work or is he only a student? I mean, some kids actually have jobs where they’ve earned six $7,000 or is he just studying to get through college?
He’s studying get to college, he’s got some disabilities.
Dr. Friday 19:55
Okay, well. In all honesty, to qualify the fire tax return, you have to have some sort of earnings. You know, so he would have to work the job or done something that would have created an income, even if it’s not necessarily taxable. Is he receiving Social Security benefits?
Dr. Friday 20:20
I wasn’t sure if it was that kind of situation. So and not that that would have triggered anything. I was just, you know, sometimes they will call social security to be taxed. So, no, unless he’s actually working or doing something, then there’s no tax return able to be filed. I’m not too sure I totally understand why children that are in college or high school still 17 and 18-year-olds, and they’re not receiving checks. The government is under the impression that all those children are working, I guess. If they’re your dependent, which most kids those age are still their parents dependent, they’re not getting money for those children, so I’m not too sure I totally understand the concept behind where they locked off that number? But I understand I’ve had a lot of parents calling me saying, “Should I take off my, my 18-year-old or my 19-year-old that did have some summer jobs and worked? Should I take it off?” So I don’t have an answer for you, Mike. And the answer legitimately normally would be, he’s a dependent. He’s going to college, you’re going to get college credit plus the $500. So you’re still going to do better, taking him probably as a dependent than him getting his own $1200 dollars and not being able to take the college credit. If you get it.
Okay thank you.
Dr. Friday 21:34
Okay, thanks. Okay, let’s see here next. I think Ken, I think Ken’s next and then Kevin.
How are yoy doing there doctor?
Dr. Friday 21:44
I’m pretty good. What’s happening?
I have 1099 status for 2019. Do I have to file to be eligible for unemployment?
Dr. Friday 21:58
My understanding is no. We do do not have to have our returns file for 2019 to get it where you also attend 99 and 18? Or was that a change of professions?
That was self-employed.
Dr. Friday 22:11
You were self-employed in 18 as well?
Yes. But not a 1099.
Dr. Friday 22:20
Okay, you did repairs or something and people paid but you weren’t actually receiving 1099 as far as income, but you would have proof of self employment on your 2018 return as well as you would on your 19?
Yes, that’s correct.
Dr. Friday 22:35
Okay. So my answer from my understanding we do not need to worry about that. Meaning you should be able to go and apply for unemployment because you have the ability to do that.
Without having to file my return for 19. In the past real quick in the past, contract labor, they weren’t entitled to unemployment. Is that correct?
Dr. Friday 23:00
That is correct and I’m not actually sure why we would be now. I mean, in all honesty because of the fact that we don’t pay into it right? My employees, I as the employer pay into unemployment as a self-employed people we pay into Social Security and Medicare but we don’t pay into unemployment so I’m not sure how they’re getting that done. But it’s been good.
So they’re being magnanimous.
Dr. Friday 23:28
I’m just a little confused on what they’re doing. I’m not sure I totally understand it.
Everyone is. One more question you’re, I’m temporarily out of employment because of the virus thing. Okay. I will return back to work when this thing is all clear. My employers, is he or she obligated to pay me something?
Dr. Friday 23:54
Not necessarily now, that is what we are being worked on. Well, I thought it was gonna start on Friday. But our Banks didn’t actually get on board yet. So apparently, as early as Monday, possibly even today or tomorrow, the banks will start opening and getting us what’s called the Paycheck Protection Program. That program is supposed to give employers money in there, therefore be able to hire back the employees because they want you to be, the money has to be used for payroll. So they want the people like yourself that might be on a W2, but has been let go or whatever to be able to bring. It doesn’t have to be W2 people. It can also be our subcontractors.
I’ll be the same status, I’ll be the same status 1099.
Dr. Friday 24:40
They will have the money being provided. But again, this is probably four weeks from today, right? I mean, if the loans get processed today, you’ll be lucky to see the money in four weeks. So I don’t know how quickly that’s going to happen. But once it does, it will generate people wanting their employees back and their subcontractors because they’re borrowing money for that.
Well I will going back. Will they be obligated to issue some sort of monies while we’re off.
Dr. Friday 25:12
No, it’s not. It’s not obligated. It’s not associate as a subcontractor, we don’t have any obligation, you know, so employees to a point, but most small businesses do not have that obligation because it’s not something that we can afford to do normally. So no obligations.
Are we going to receive from the state half as in as contract labor? Half what we would normally receive we did up a W2?$
Dr. Friday 25:40
I heard that all I’ve heard is the state basically still locked in at 200 and some dollars and the Fed is going to be kicking it up to $600.
Yeah, well, friend of mine said that they told him that because of being contract labor, he would get half which would be $125 from the state. So we’ll see.
Dr. Friday 25:58
I got you half of what no a normal employee would get he’s going to get 50% of it. I got you. Again, it really would depend because you and I both know. If I’m in a service business, I don’t have a lot of write offs. Then you guys, you have construction guys that may make $175,000 but bring home 30. So if they’re trying to get money back in their pockets, it’s not the same as a paycheck. So I’m not sure how they’re calculating that information. It’s above my paygrade I think. All right, buddy?
Thank you very much.
Dr. Friday 26:32
Appreciate you. Thank you. All right, let’s see what Kevin can add. Hey, Kevin, what can I do for you?
Hey, thank you for taking my call. I appreciate it.
Dr. Friday 26:40
Thank you for holding.
Oh, no worries. I have always done my my taxes online and I’ve always had direct deposit. This year, oddly enough, I I just needed the money faster than than normal. So I went to h&r block and they did a fine job. And my return wound up on one of their cards. Now I’m curious as to the stimulus checks. Is it going to wind up in my bank account? Like it normally has? Or is it going to wind up on this card this year?
Dr. Friday 27:27
I would say my understanding is, whatever the last account information they have is what they’re going to try to use to send the money. Is the card able to be redeposited on do you know, I don’t know what kind of cards they actually offer. Is it like a little debit card that you can put money back on anytime you want? Or is it a one time?
Yes. Yes, actually, you can reload the card and all that and thank God, I didn’t throw it away cuz I never intended to use it again.
Dr. Friday 27:55
Absolutely. And that’s the problem. So I mean, and that’s the kind of thing that I’m again questioning because in some cases, people have used accounts that, they move, they’ve relocated, they’ve closed, there’s been fraud, they had to close that account, whatever. Or in your case, they threw the card away, because it was a one time thing. I took all the money off it. Now I didn’t need that card and hope and pray that that card is now shredded or someplace where it’s not going to be, possibly picked up later. And money’s on it. Rhis is the kind of confusion and people in the normal tax year. I mean, there’s situations where this happens. Now you’re talking about every single taxpayer. Well, a large number of taxpayers and many of us may not see the refund of the stimulus. A large number of people are going to be getting this stimulus. I have had more people that haven’t filed for the last seven years, come in and file their 2019 because they want to get their stimulus check. So maybe it’s going to encourage people to get current with the IRS.
I suppose it will.
Dr. Friday 28:58
There’s got to be a positive in this conversation Kevin. My answer would be my thought would be is whatever you received your last refund from would be where they’re going to try to put that money back in as early as next week, according to the website.
Okay, well, again, thank god I hung onto the card cuz I would have just tossed it.
Dr. Friday 29:22
Yeah. They are saying that they’re trying to open something up on irs.gov so people can put their information in and update it. You know, there’s nothing wrong with that, I guess. E-filing your information is one thing going on to the IRS website. I mean, it’s a safe site. I don’t think I’ve ever had a personal problems with it. It’s just probably overloaded and there’s no one there to talk to. So good luck on that one. But I would just make sure you hold on to that card until you either get the check in the mail or or they put it on there, I guess is my answer. All right, bud.
Okay, thank you very much.
Dr. Friday 29:55
Thank you very much. All right. We’re gonna take our second break. I’m a few minutes behind. And then We’ll get back to the phone line 615-737-9986, and we’ll be right back.
We are back live in studio. Well, I’m in my studio. All right, and we are ready to continue. If you want to join the show, guys, you can and the questions. Seriously, there are no silly or stupid questions because we’re all trying to figure this out. If you’ve got a question, please feel free to ask if I don’t know the answer, we will try to find out the answer because much rather than make sure everybody’s getting the best information we have at our fingertips than not. The phone number is 615-737-9986. All right, let’s go Tony in Hermitage about the stimulus.
This is Tony. My Social Security is of course in direct deposit to my bank account. I do not file federal income tax don’t make enough money. Do you think that stimulous check will go into my bank account?
Dr. Friday 31:18
I have been told personally, that is exactly what’s going to happen with the individuals that get their social security direct deposited. That is the exact same account that you should have expectation of receiving your funds in. I’m not sure as far as my understanding the Social Security or the people on so security may not be in the first set of checks going out. They are going to actually go directly through the Social Security Administration. So they’re going to get all that information directly from them. So it will you know, it’s going to be coming out a little separate. But yes, that is my understanding and if you get your social security on a card every month, it’s the same thing that leads positing that stimulus money $1200 or $2400. Assuming but it should be $1200 for each person because so security comes individually and then paid maybe to the same bank account. But yes.
Okay, the fact that I don’t file has no bearing on it.
Dr. Friday 32:16
It’s not required it all. For anyone that is on Social Security or anyone that is not required to file a tax return. Now, let me clarify that Social Security individuals have already paid their taxes basically, they are not required to file because it’s not enough money to trigger a taxable situation. If you haven’t filed taxes, or if you have a situation where you should be filing but you just aren’t, that’s a different conversation. But in Tony’s situation, no, you are not required to have to file any taxes to qualify for this stimulus check.
All right, I’ll go buy some bread. Thank you, doctor.
Dr. Friday 32:50
There you go, buddy. Thanks. Appreciate it. Okay. My guy is stay busy in the studio. He is a loving me. Alright, let’s see here. I’m trying to figure out who’s next up, Tony. Tony is next. Is this Tony?
Well, Dr. Friday, can you hear me?
Dr. Friday 33:06
Yeah, I can.
Well, listen, I’ve got one here. I inherited my mother’s house out in California, my brother send it over to me. I went over and got the title changed to my name. And when I did that, this is what happened. Back in 1980, my mother took a $1500 dollar loan on that house, through the banks that use it as collateral. Eight years later, it was in 1981. That bank was bought out by another big bank, which is, of course live that day. And so when I titled it, I found out there was a lien from that bank on my mom’s house for that 1500 dollars. So I call it the back The new bank that bought them out, they have no records of course my mother’s deceased and everybody else that had anything to do with that is deceased. So I called the bank up and they said we have no records of that bank. We don’t go back that far. So I said, Okay, well what can I do? She said, you’re gonna have to send me proof that you’re the owner and we’ll search it and you know, see what we can but there’s no there’s nothing in the database. So me Well, I went and and I got the things and I sent to her and they, they’re still holding up, they can’t find anything. Now everybody that knew anything about that loan, is hey asked my older sisters and all them. That lien is still on it. I’m trying to figure out how the heck am I going to remove that lien because the house is really over 100 years old. It’s a small house that I was born in back in 47.
Dr. Friday 35:09
Could you hire like a title company or someone? It might cost you a few dollars. I’m not too sure. But my opinion first you obviously you go back to the bank, but the bank doesn’t exist. I mean, I’m assuming it’s a lot like putting something on someone’s credit, if it can’t be proven, it’s got to be able to be removed. So somehow, there’s got to be an I don’t know if anyone’s listening that may know more about this. But somehow, it seems to me there should be a way of contesting this, this lien right, saying that there’s a lien against my house. Somebody proved to me that this exists. Since you know, obviously the lien existed against someone that passed away it was held against that property. But you know, even if you said well, I’ll pay you the 1500 dollars or whatever the lien was. The fact is, there’s no one to pay there’s no company existence any longer. So, I don’t have I’ve never ran into that once a year right? You’ve definitely stumped me. I don’t have a perfect answer. But if I get somebody that calls me in or if I can, my suggestion would be calling a California calling attorney or somebody that does real estate or something like that and see if they would be able to give you any better advice than I can. That may cost you more than what the lien costing you now.
The thing is, when my brother had it, he had an offer for the house to sell the house and they did a title search on it. All it did was come back to that lien on it because that house is given to my mother and my father back in the 1900s when they got married and you know, family was raised.
Dr. Friday 36:51
At closing I mean theoretically at closing does it say how much the liens for?
Dr. Friday 36:59
Why couldn’t they just pay that at closing, put the money in escrow, pay it off that would remove the lien if you decide to sell it.
Well, the thing that the people that were going to buy it, they would not remove that lien. I don’t know what it is. But now I get that I’ll just gonna have to stick with that bank and put more pressure on trying to find out it. Because I was gonna just pay the $1500 dollars, but knowing my mom, it was paid off.
Dr. Friday 37:33
I’m sure you’re right. That’s why I deal a lot with IRS leads, but they’re still around and there’s people that can remove them. So I don’t have a good answer on that one, buddy. But good luck on it, okay?
Well, the second question is, how in the heck do I would I file my taxes? Do I claim it as a second home? What do I do? Because I’m going to be needing to renovate that house as I go along.
Dr. Friday 37:57
It’s really an investment property, It’s not a second at home, so all the money you put into it would add to your basis and then when you sell it, that would be a deduction. You know, I don’t think it probably qualifies. I mean, it may be your second home. I’m not sure. You know, you can only take off property taxes on a second home, so not going to help you for renovations.
I paid the 2019 taxes on it already. On this year, I haven’t filed my taxes yet. But would I be able to claim those taxes that I paid on it already?
Dr. Friday 38:30
Possibly if you can itemize.
Well, which I do.
Dr. Friday 38:35
If you need itemizing, then it falls under the salt tax or the property taxes and sales tax or income tax. Under that $10,000 maximization we have under that section of the Schedule A. You can add all properties that you have property tax on. Yes.
Okay. All right. Well, that makes the main thing. The main question was that darn lien so sorry. All right. Thanks.
Dr. Friday 39:01
Thanks buddy. I appreciate you. Yes. Let’s go to Carla, Carla in the Burro. What can I do for you, Carla?
I love your show Dr. Friday, I always learn so much. My mother passed away on the 23rd of February. And I’m having an impossible time giving her social security back already. I’m trying to figure out what’s going to happen with this stimulus money that’s going to end up going right into her account. Is that gonna go into her stateor will I need to get it back?
Dr. Friday 39:37
That’s good question. It hasn’t actually come up in any of the information. I’m going to suggest or say since she passed away in February of this year, and the stimulus is based in that that it’s going to basically go into her state. She’s entitled to it.
I thought I had February 15 is the date and she passed on the 23rd. So that was definitely my thought is well,
Dr. Friday 40:02
So I’m thinking as far as that side, the question will be well, because they’ve already got a death certificate in there I’m assuming for her. Will they even issue it? So it’d be interesting to see if you actually get it, but I think you should and it would be part of the estate, not something that would have to be paid back. Is my understanding.
Okay, good. Thank you very much.
Dr. Friday 40:23
Thank you. I appreciate you holding. Thank you. All right, we’ve got two more holdng and the one that’s been holding ladies is Carol, and then we’ll go to Rosie. Hey, Carol.
Hi. My question is following the 2019 federal income tax has been postponed to July 15th. Has the whole tax due date also been postponed to July 5 to me?
Dr. Friday 40:46
Yes, ma’am. I have gotten personal confirmation from the state and actually if you go on to 10 tap you can find that or Tennessee Department of Revenue. Yes. They have extended to the federal deadline.
To July 15th?
Dr. Friday 40:59
Okay, thank you. I appreciate it I love your show too.
Dr. Friday 41:03
Thank you very much. Thanks.
Hey, Rosie, what can I do for you?
Hi, I am self-employed. I’m a massage therapist and I have tried to file for unemployment on the Tennessee website and they don’t have my business registered in there on the website. So I’m trouble getting that done. They finally let me get it registered and sent me a monetary determination thing saying I was not what I would be getting the zero dollars. I went and did a dispute, ways to speak. I haven’t received anything back from that yet. Also, you can’t get anyone on the phone, by the way. And the other thing is I have been encouraged to file for an SBA loan. And I wanted to know if it would be the economic injury disaster loan or the paycheck Protection Program, which one?
Dr. Friday 42:31
If we can put her on hold, because she’s got some great questions I’d like to hit but I missed my break. Let me hit this first break. And then we’ll have about five minutes and I can go through all those answers for you and give you some information on what you’re going to need for the SBA. Okay. So we’ll ask you to go back on hold for a minute and we’ll take this break on the Dr. Friday show and we’ll come back we’ll get to Rosie one more time and we’re going to answer about the paycheck protection loan and the disaster loan as well as a lot more information on what she might be able to do for the unemployment. Before I’ll take the break and we’ll be right back.
I only got about a minute or so left. Rosie, I am back with you. Can you hear me?
Okay? Yes, ma’am.
Dr. Friday 43:14
Okay, so the first thing on the Tennessee Department of Labor when you filled out the application, there’s a question on there that they’re telling us that we’re supposed to say no. So if you’re self-employed, there’s a question says, “Are you self employed or the owner operator of a business or farm?” All of us would say yes, but according to them, when asked this question, a self-employed individual needs to market as No.
Okay, good information.
Dr. Friday 43:41
And then the second thing is within the last 12 months, have you received a notice of termination or layoff from a job blah, blah, blah or for military laws? It is put no again, I have not been terminated. That apparently is going to lead us into being able to possibly collect some self-employment from the state. So that’s the biggest thing is everyone would answer that question. I would have answered that question as yes, because I am self-employed the owner of a business, but they’re saying you need to tell them that it’s no. So anyone completing your application do that. The other one is you would basically probably apply for the disaster loan. Again, I’m talking fast because I only have like 30 seconds. A disaster loan, they have the quick one, which is like $10,000. That would be based on just your schedule C line 31, which is the amount that we paid self-employment tax on, off of your sole proprietor, so that’s what they’re going to be looking at is the ability to how much income you’ve you’ve normally earned, and then hopefully be able to get that. You can go right on to sba.gov. Click on the kohrville whatever coronavirus link there and you can put your application online through their website.
Okay, one question about that. The schedule C part of the website it’s saying it goes from February 19 through January 2020. Do I just go by the last year set schedule C or?
Dr. Friday 45:19
That’s what we’re using? And then mostly yes, we’re going from January. Then if you have seasonal workers or something, there’s a little different calculation. When it comes time to justify we can run a financial, but if you’ve already filed your 19 return, use your schedule C as your basis. If you haven’t, you can do a financial statement. Okay.
Thank you so much.
Dr. Friday 45:41
Thank you, Rosie for holding. Okay guys, if you have questions, I will do my very best to answer them by going Friday@defriday.com again. My phone number is 615-367-0819 we can take your calls. If you need to know more about me go to Dr.friday.gov. I hope you guys are all staying home staying safe. If you need assistance in trying to figure out what you need to do or how to get it done, please email will be the easiest or texting the number I gave you. That’s the fastest way for me to probably respond to you. I hope that you guys are having an awesome Saturday. It is beautiful outside, keep the sixth part or whatever, but go outside and enjoy the weather because it’s like we have been so wet so rainy and now we finally got some sunlight.