50% partner owes CA taxes now attached to our rental property

7 Replies

Own an investment property 50/50.  My partner got a personal tax lien attached to him by the State of CA. Not due to anything owned on the house. He is willing to give me the property. What is the state entitled to collect?

@Daniel Patterson

We can only guess. My guess is that your partner did not file CA state form for the LLC and did not pay $800 minimal annual tax. Will need to know a lot more to evaluate his situation.

He was a real estate agent and they claim he owes way more tax than what he paid.  Federal tax was no problem they let him settled for pennies on the dollar. The state of ca is proving more difficult. I just don’t think the state can claim 50k if there isn’t that even that much equity. Even if there is how can they get part of my share of the equity?

@Daniel Patterson

Is your partner fighting the tax lien?

If your partner drafts a response to California or mentions to California that he will have representation to fight the letter - the state will give approximately 30-90 days  and put any liens in hold and not seize anything.

What the state can and will levy will depend on the amount.
I would have to assume that the state will try to levy something more liquid first before they do anything with the partnership interest.

Basit Siddiqi, CPA
917-280-8544

That’s scary...thanks for the info. 

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