My father gave his house to me and my sister before he died,if we sell the house will we have to pay capital gains tax? If he truly gifted you both the house and retained no rights, then your basis is the basis your father had [purchase price plus capital improvements]. But most likely, and you will need an attorney to get more information, your father either retained an interest in the house legally, or he ratined it in actuality, in which case it would still be included in his estate and you would get a step up in basis equal to the FMV of the home the day he died. This is a question you truly need to see an attorney well versed in probate and estates. It’s worth the time and money to get a good reliable answer. Eric Rothenberg

I am planning to sell a house in Albania (Europe). This house was given to me as a gift by my parents. If I sell this house, the Albanian government will hold 10% of the total sale in taxes. Do I have to report this money to IRS even though I paid the Albanian government 10%? If you are a resident of the US (i.e. a citizen or permanent resident/green card holder) then you pay income taxes on income “world wide”. If you paid taxes on the gain in another country, then you may and probably qualify for a foreign tax credit for taxes paid to Albania (we have no tax treaty with Albania). There is not a 20% tax to the US if you are filing world wide taxes here in the US; it’s the tax bracket you are in based upon US tax laws and the top capital

A long time friend of mine told me that she has not filed tax returns in over 40 years. Now, she is going to retire and is afraid she will not be able to get her social security checks. What can she do? Will she be arrested? Go to jail? What can she do about this at this late time in her life? I have dealt with these issues many times over the years. The issue of unfiled tax returns really doesn’t mean going back more than the current year plus 7 years as a policy stated by both the IRS and the Commonwealth of Mass. They have the right to go back more but as a practical matter they don’t. Criminal doesn’t usaully come into play either if she voluntarily files the returns for the periods mentioned. If her social security comes from wages paid to her then she