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Thanks to all for working hard for the OP's client. Those of us who deal with disabled children are often left on our own to find out how to best help our kids... We have run into "professionals" who have had less knowledge than they should, and often must rely on the wider community to get suggestions and answers. "all the help they can get": In most localities, there are disability "rights" organizations which can sometimes represent disabled people, and always can steer towards quality advice. In our case, we recently went to a free seminar where a former SSA employee gave some great advice in plain language. While your client likely has been dealing with the process for some time, even those of us who have, should always be listening for changes, new interpretations, and for things we have missed. If I knew then what I know now... can be costly (as I again recently found out). I did not realize there was an auto qualifier for utility discount if a household person is receiving benefits, which for us, will be more than 20%! I knew about the plan, but they buried the auto qualifier deep, and only plainly show the income qualifiers. For SSI recipients, CA recently joined the majority in allows recipients to qualify for food benefits... which the person who shared to me about the utility discount had missed. And, since my daughter's benefits will eventually be based on my SS amount, I need to be sure not to file before my benefit hers will be calculated on is at it's max, and I severely regret some of the choices I made regarding income in my young adult life, zero and low SS wage years are painful, should I not make it to max benefit age for her.

Start by reading the trust document.

Thanks Lion and Judy, it appears as though she qualifies as a dependent. Disability income does not count no matter the amount and gross cd redemption income offset by basis leaving no taxable income doesn't count. What she contributes to her own support is apparently irrelevant. This mom and daughter will be happy as they need all the help they can manage! Thanks again...

You do not show a sell of assets on the 1040 of the deceased. Assets go to estate at stepped up basis. Hope this helps.

Somewhere, somehow, there should be a basis step-up for half. Where it goes, though, depends on the trust document.

Property was bought 40+ years ago with very little repairs and improvements.

No, only for earned income, same as all other PA localities. The sale of the home is excluded if she lived there 2 of the last 5 years and did not sell a previous home within the last 2 years. The pensions, SS, and IRAs are not taxable in PA.

Ok - I get it . The estate returns on the PA side don't reflect entirely how the Fed taxes stuff. So the Estate took the Fed tax on the capital gain, but PA has to push it thru to individual. There - answered my own question. Love this forum.

Lion is right. You have to know what kind what kind of trust you are dealing with? There are many kids of trusts and a myriad of variations in each type.

Take a look at Cornell Law's online code, sec 152(d)(1)(B) reads as "Qualifying Relative...whose gross income for the calendar year in which such taxable year begins is less than the exemption amount (as defined in sec 151(d))." Gross income had this pop up (can't link to that directly) that says this: (ETA - the link to gross income on that page I linked to is pointing at something else now, and this quote was taken from an older post on this forum when that page was working and pointing to the proper definition).

So as long as you are using the fmv on date of death as basis for estate and showing as long term gain then you should be okay.

ps - I would love to send you some really good cheese for helping at the 11th hour! if you send me your address personally

Are you asking how to report the sale of the assets by the estate? If they were used in a business of the estate they would go on 4797, otherwise report as sale of capital asset. The estate gets a stepped up basis which is the FMV at date of death, if that is what you are asking.

Here is a photo from Gwen's wedding yesterday.

Congratulations all around!

Congratulations to newly wed and parents !!!

ya my hubby sent to me - very nasty1 better I do their payrolls!! d

congratulations as well - Weddings are wonderful and especially past the stress, of family!

I have to pick one or the other in the next year, passport or real ID. I was mentally ready, until I had to help our daughter get a new ID. Probably will go with a pass-a-port (nope, not born in Jamestown either) in case we want to visit Canada again. I always snicker at my DL since so much information is outdated, and could easily be checked if the "system" really cared. If my DMV worker can be qualified to vouch for my real identity, but cannot see my hair is no longer black... and that I no longer at my racing weight of 170. And with the comment about a pay stub being accepted as proof of anything, I will no longer scoff at the one jurisdiction where the employer must SIGN the stubs...

The discussion draft of the "Tax Technical and Clerical Corrections Act" released in January contains a provision that eliminates a duel deduction for both DPAD and 199A.

I used AAA last time, too. However, since then AAA has stopped renewing driver's licenses in all but about six CT offices. None in Fairfield County.