DANRVAN

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.

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.

Yes, but not subject to SE tax. You also do not 1099 accountants or attorneys unless directly related to a trade or business.

Not required. The payment was not related to a trade or business of the estate; but instead to the admin of the estate.

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.

"Granddad to file sch H" That appears to follow the fact pattern.

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.

If this was from an oversight of changing account from wife then yes, he needs to claim it; and get the account ownership transferred.

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.

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.

but that does not mean he cannot open up a SEP. He needs to see his financial advisor to hammer out the details.

Up to the lessor of 25% of compensation or $66,000. SEPs work well with S Corps.

correct

From bank accounts? but might be only record of any income, whether complete or not.

Is son personal rep? Maybe he would at least authorize bank to release statements to you. PR is responsible for filing final tax return.

Yes fairly recently. See 501(c)(13). The are part of a bigger E.O., the Church.

Actually in this case there is no conflict. Mother is the custodial parent, she can either claim the dependent or release it to Dad's estate. His estate has no choice in the matter and can only claim the dependent via form 8332.

Sara is correct. There is no doubt that ex is custodial parent and you are aware of that fact. But you need to confirm that with her. I suggest you meet with her first and explain that she has the option to release dependent by filing 8332. Off the top on my head, I don't see any ethical issues in this scenario.

I have had clients receive payments and W-2s from DHS that were for non-foster care and taxable.

See section 131. I would make sure that the payments are in fact for foster care. Did they receive W-2s form DHS?

If they are otherwise entitled to them, but I am not aware of any exception to the dependent rules in his favor. In this case child did not live with dad for over 1/2 year, so mom would win in a tie breaker case since child lived with her the greatest number of days. But in fact, only one can be the custodial parent for tax purposes in a normal 365 day year, since the child could only spend 183 nights with one parent. If one parent breaks the agreement it is a legal issue, not a tax issue. For 2023 it looks like mom is clearly the custodial parent (unless there is some special rule for the deceased taxpayer). You might be able to navigate through form 8867 in favor of deceased dad, keep in mind mother would prevail in tie breaker case.

Interest taxable for sure. I would check it out to be sure they are not overlooking any premiums that were not paid back as dividends.

If the SSA-1099 was under the estate EIN it would be a good idea to report the gross and deduct the nontaxable portion in order to prevent an under reporting letter.

Report any taxable amount as other income.

I believe an estate is treated as any other taxpayer under section 86(b). 86(b) does not make any reference to "individual" vs estate. Instead the code refers to any taxpayer in which the taxable portion of benefits applies. Therefore in my opinion an estate is treated the same as an individual in computing the taxable amount. I have seen it and reported as mentioned above.