Frequently Asked Questions

1) Will simply paying the fine for a speeding ticket adversely effect my driving record?

Yes, your driving record can be adversely effected if you simply pay your speeding ticket fine to the court houses located in Olathe, Overland Park, Prairie Village, Mission, Merriam, Fairway, Roeland Park, Westwood, Leawood, Lenexa, Kansas City, Missouri, Kansas City, Kansas, and other jurisdictions within the Kansas City Metro area.

In order to avoid a speeding ticket conviction, resulting in points or infractions on your driver’s license and driving record, you may wish to seek the assistance of an attorney who can assist you in seeking an amendment to the speeding ticket to a non-moving violation.

If you are cited for speeding in any of Olathe, Overland Park, Prairie Village, Mission, Merriam, Fairway, Roeland Park, Westwood, Leawood, Lenexa, Kansas City, Missouri, Kansas City, Kansas, or other jurisdictions in the Kansas City metro area or the States of Kansas or Missouri, our office can assist you.

 

2) Do I or does my recipient pay the gift taxes if a give a monetary gift to someone?

Generally, neither the donor nor the donee will pay a gift tax on any gift with a value less than the annual gift exemption amount, currently $13,000 per donee per year.

Any gift by a donor to a donee in a tax year that is above the annual gift tax exemption amount will have to account for the total value of the gift less the exemption amount and report that on a gift tax return, IRS Form 709.  Tax would still not be owed on that gift tax amount if the donor has not used up his or her $1 million lifetime gift giving exemption amount.

 

3) If I enter into a short sale of my home or give the bank a deed in lieu of foreclosure, will I receive a 1099 for cancellation of indebtedness income and, if so, are there any exemptions to treating this amount as income on my tax return?

When a bank (or any creditor) voluntarily agrees to forgive the remaining balance on a debt, the forgiveness of debt is income to the debtor.  See Internal Revenue Code Section 108.  There are 4 exceptions to this rule.  One exception is discharge through a bankruptcy.  Another is discharge due to insolvency but not through a bankruptcy.  You would have to meet that exception to avoid income.

A recent bill signed into law by President Obama allows for an exception to income from principal residence mortgage debt.  The amount of debt discharged during 2007, 2008, 2009, 2010, 2011, or 2012 can be excluded in whole or in part.

So, how much of the 1099 income you can exclude will be determined when you file your tax return for tax year 2011 or 2012, depending on what year you sell the house in a short sale or give it up by a deed in lieu of foreclosure.