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DANRVAN

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Everything posted by DANRVAN

  1. I'm not completely clear as to what you are asking. If the distribution was taken in 2024 then I would not show it on the 2023 tax return, since there would be both a cash balance and retained earnings balance as of December 31 2023.
  2. This is still not clear. How was the $79,000 accounted for? I think you have stated 19,908 for legal fees; back taxes of 8,398; amount paid to older brother 28,095. Based on that, where did the remaining 22,599 go? Who incurred the legal fees? The county or the brothers? Were there additional taxes that brother paid and was credited for? This is not a typical settlement statement since one party is both a buyer and seller, so you really need to look at the substance of the transaction.
  3. It is still not clear. So there were additional unpaid taxes after the sale? And brother A paid them? Were the legal fees incurred by the brothers?
  4. So there was cash paid above what was owed to the county for taxes and legal fees. How much did brother A actually receive from the court ordered sale?
  5. That is what it really boils down; to substance over form, even if some of the taxes were owed by him.
  6. So was the county sale to cover back taxes owed by the two other brothers and related legal expenses of the county? If older brother did not owe anything to the county, then it sounds like he bought out brothers share by paying off their debt. That would change my answer from previous post.
  7. Are you saying the sale price was $79,000, of that $19,908 went to attorneys, and the remaining $59,092 went to the county to cover back taxes per the settlement statement?
  8. There are some exceptions. Do they meet the holding period requirement?
  9. I discuss with clients and let them make the call in cases where Sect 179 does not fit or it can't be squeezed into 1.263(a) safe harbor. Most decided not to wait for a ship that has not yet set sail, and potentially file amended returns.
  10. Rev. Rul. 60-378, 1960-2 CB 38 -- IRC Sec(s). 117 Marc W. Spiegelman, 102 TC 394, Code Sec(s) 117; 1402, 03/08/1994
  11. It depends on the facts and circumstances. I believe the key is who has ownership of the research. I think in most cases the research is done independently and does not rise to the level of a trade or business. I don't have a cite right at the moment, but you should find your answer in the Pubs or IRS website.
  12. Oregon does not yet accept e-filed OR-41. Oregon started accepting partnership returns e-filed in recent years and ATX followed through.
  13. Does not sound like IRD to me. If it were IRD, it would have accrued before death and paid after death. This sounds like a case of 2023 interest paid on account that was not transferred from name of spouse who died three years ago.
  14. That would be the case if the PR was paid extra to operate the trade or business. If the PR fees are paid strictly as a percentage of the estate assets you would not allocate any amount to the operation of the business per RR 58-5.
  15. Yes, but not subject to SE tax. You also do not 1099 accountants or attorneys unless directly related to a trade or business.
  16. Not required. The payment was not related to a trade or business of the estate; but instead to the admin of the estate.
  17. I would never give out advice on MC rules, but I "think" a family member is allowed to be caregiver if through an "arms-length" transaction.
  18. "Granddad to file sch H" That appears to follow the fact pattern.
  19. He was scammed and TCJA suspended any possible deduction. There was a bill introduced last month to reinstate the T & C Loss deduction, but I don't think it has gone anywhere. Unfortunately she needs to report the COD income.
  20. If this was from an oversight of changing account from wife then yes, he needs to claim it; and get the account ownership transferred.
  21. Donations to a 501(c(13) are deductible per IRC 170(c)(5). And like any other donation cannot be restricted of benefit any particular individual. You can't donate $1,000 to specifically bury uncle Fred.
  22. A cemetary must apply under 501(c)(13). The user fee was most recently $600. Section H of the form is used for 501(c)(13). The questions in section H are simple yes or no; as long as you meet the basic requirements that the funds are used for the upkeep of the cemetery and there is no intent to sale or subdivide the land. I filed one last year with no issues.
  23. but that does not mean he cannot open up a SEP. He needs to see his financial advisor to hammer out the details.
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