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I have this mouse and use the heck out of the forward/back buttons on the internet. And I always try them in ATX until I remember I have to do Ctrl+B to go back and click the forward button to go forward. But this year the mouse buttons work! Great time/aggravation saver. If you have a cheapo mouse, you might want to consider this upgrade.

The one I got this week asked me to "process their employees refund." Hmmmm, already knew there was a refund. Then asked me to "revert as soon as possible." Cheap translation software I guess. I did not bother to open the "financial affidavit" attachments. In the past year or so I have gotten over a dozen of these, some using better English. WHY does the IRS publish/sell our contact info? They are taking all these steps now to warn us about crooks trying to get our info, yet they are causing the problem or at least enabling it.

Beneficiaries do use carryover basis for securities distributed in-kind if no election is made to recognize gain at the trust or estate level. It sounds like there would be no benefit to making that election in the case Margaret describes because the trust has had gains thus far. The election allows recognition of gain at the trust/estate level at the time of distribution, and it must be applied to all in-kind distributions during the tax year and not be applied on an asset-by-asset basis. If this election is made, then the beneficiary would then use a stepped up basis when the security is ultimately disposed of. This strategy may be beneficial when the trust has unused capital losses that could absorb the gain, but Margaret's client doesn't have this scenario, so this would likely not be advantageous. It's also has no benefit if the beneficiary will incur more tax than the trust, if the beneficiary will hold the security for a long time and thereby deferring gain for that extended period, or if planning to hold it until death at which time it would receive the stepped up basis.

I would certainly think so. I cannot imagine any reason for a change. The basis was established on the deaths of the grantors, grandparents, as they were transferred into a family trust then distributed to the sub-trusts. To date, the sales have resulted in some amount of gain but not outrageously so. The first grandparent passed in 2010, the second in 2013.

Choose one, or choose none. Those are the only safe methods of dealing with divorced couples.