Randall

I don't fault him for structuring his investments to pay the least amount of taxes. I would advise any client to do so, even if I disagreed with the tax laws. I don't fault Romney for having overseas bank accounts. Gee, it's the prudent thing to do if you have a lot of money. I'm not talking about hiding money or trying to get away from paying taxes, rather just diversifying out of the dollar. And why would anyone send in a voluntary payment? He could pay his entire fortune and it wouldn't put a dent in the debt.

Sorry to hear news like this.

I'm also wondering if the 706-GS(T) is required at all due to the exception of being an irrevocable trust before Sept 25, 1985. The trust was created 6/24/82.

KC, I saw this. The two provisions say one 'or' the other. I think in my case, there is one non-skip person who has a 25% interest. However, reading further than your quote, there seems to be a partial termination:

"... a specified portion of the trust's assets are distributed to 1 or more skip persons, such termination shall constitute a taxable termination with respect to such portion of the trust property."

This leads me to believe a 706-GS(T) is required. I think the exemption should mean no tax but I'm not sure. The origin of the trust goes so far back, no one knows anything. The value of the trust assets are about $200,000, stocks bought years ago, basis approximately half at $100,000. Long term gains will go to beneficiaries. But will the GST exemption apply at $5,000,000. The original value of trust assets were about $100,000.

Is a 706-GS(T) required for all final trust returns, even if there is no GST? For my situation, benefiary died, trust to distribute assets to remainder beneficiaries. One is a sibling and non-skip person (25%). The other 3 siblings are deceased and their shares will go to their children. Total amount is about $200k so exemption should mean no GST.

Final short year Ky trust ending Nov 30. Funds to be distributed, some dividend and cap gains to be reported on final K-1s. Most beneficiaries are nonresidents of Ky. I was wondering if tax withholding needs to be done. I can't find something specific. Ky PTEs seem to refer to Partnerships, LLC, S Corps, etc. Not trusts. PTE withholding is required for these. Nothing on the Ky 741 form indicates this either.

Anyone familiar with Ky trusts know if tax withholding needs to be done. I see some other states (OH & WI) include trusts in their PTE withholding requirement.

I already get the Intelliconnect from CCH/ATX. And I get some PPC materials. Intelliconnect is cumbersome but it seems that way with any research (for me anyway). I'm wondering if Parker Tax Research is really that much easier. I'd hate to pay for it when it is just a duplcation of what I already have.

Anyone use Intelliconnect and Parker extensively and can say Parker is really worth the additional money?

I did very well in math. But I've forgotten much of the trig, calculus, etc. I even forgot about the ordering rules. I looked for the parenthesis. I still like the parenthesis. They make the ordering rules obvious (or at least remind me of the ordering rules). I think most people would have gotten the correct answer if the parenthesis were put in.

I love my government, but I am really starting to hate my country. Careful what you wish for. Revolutions aren't pleasant. :)

I renewed yesterday. I recall the question about CPE was either you had or will have by Dec 31 the required hours. As a CPA, I don't think that applied to me though. My renewal went thru ok.

Lion, how do you search on BigCharts for companies who are bought out? I've had difficulty with this in the past.

Seems ok now. My last corp is out.

I'm getting the same error message. I have one more corp to send.

I have both pdffactory and Acrobat 10 standard. I use acrobat to send encrypted with a password. I'm not sure if you can assign a pw to reuse for certatin clients.

Thanks

The estate return due date is 9 months after date of death (6 month extension available). Is that due date the exact date of the month or the last day of the 9th month (including or following the month of death)?

But remember what the father said to the good son:

'Thou art ever with me, and all that I have is thine' (Luke 15:31)

Thanks again. That's what I thought on 754. I'll look more regarding Question M. I did read something about reporting this as built in gain that the contributing partner would have to report if the contributed property were distribtued to another partner other than the contributing partner within 7 years. If that took place, the contributing partner would then have to report a gain. There's no intention right now of distributing the property to anyone but it does seem like I need to check yes on Item M and included a statement of the built in gain amount. But I'm wondering if this just goes away after 7 years or if father dies before then, does it go away.

OldJack, do you have any comment on my question about Item M on Sch K-1 regarding the built in gain of FMV excess over adjusted basis?

Thanks KC and OldJack. This helps to sort out my thoughts out a bit.

Thanks KC. So are you saying the original cost should be listed with accumulated depreciation? Then separate line item for excess of FMV over original cost listed and depreciated for book purposes (but not tax purposes)?

On the original assets, in ATX, would you list acquisition date as beginning LLC date to be consistent. But then show prior depreciaton, would that be a problem with ATX?

I'm thinking of duplicating the return in ATX to show the excess FMV portion and having a depreciation schedule for these that will not flow thru to a deductible tax item on the actual return. Does that sound like a good way to track things.

I'm still trying to get a handle on why this book depreciaton needs to be maintained on the FMV excess if it is not deductible for tax purposes and doesn't pertain to tax basis. I guess for book capital purposes for the members.

Thanks OldJack. That's basically where my reading has brought me. But my reading also gave me the impression that for the father's K-1, the item M should be checked for built in gain with a statement attached. I got the impression that for contributed property with a FMV greater than tax basis, item M should be checked 'yes'.

A side question, which is preferable on the K-1 schedules, to check tax basis or 704 book? If the balance sheet (Sch L) is presented on book basis, should I be consistent and show the K-1s as 704 book?

Another side question, some of my reading brings up 754. I don't think that applies this year as there are no distributions. But in the future, when father dies, his interest is distributed to children, would this constitue a 754 adjustment in basis to the children to step up their interests to FMV at that time?

Father contributes a rental property to LLC with children as other LLC members. Father will own 95% of LLC. Renat property is fully depreciated (building portion).

I'm confused on how to treat. Everything I'm reading says the original basis is the partnership basis. Then I read that the FMV is booked but both depreciation for book purposes (on FMW) and tax purposes must be maintained.

Do you show the FMV on the LLC books and balance sheet, then show a book/tax difference in depreciation? Does this then flow to the K-1. I'm thinking the Item M must be checked for the father's K-1 and show built in gain.

Then when he dies, how do children get the stepped up basis? I'm thinking thru inheriting his LLC interest. But if his interest has the built in gain, then would they too have to report gain on a future sale?

Good suggestions. Thanks.

Speaking of email and records. When you have an email exchange, do you wait until you think the thread is completed and copy to client file? I try to do this, but either I think the thread is going to continue and forget to copy or I copy thinking the thread is finished and then it continues and I forget to add the additional emails to the file.