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About Bart

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  1. You might point out to her that as long as the estate is still open (and it cant be closed until she signs so you can file the final return) there could be claims against the estate that she might have to pay if the estate has no money.
  2. Bart


    Mother owns and lives in house. Mother puts daughter on deed so house will automatically pass to daughter at time of death to avoid probate. Mother dies five years later. When is daughter's basis determined?
  3. There is now another level of assurance to producing financial statements. It is called financial statement preparation and I think only CPAs can do them also. They have an assurance level below compilation. They require an engagement letter that includes a lot of the language in a compilation report but when you issue the financial statement you do not attach any kind of accountants letter. I have my book ordered and will learn more about it then and in a future CPE class.
  4. Donor of the trust did NOT die, so that trust is still REVOCABLE by the donor.
  5. If the trust is a revocable trust, even if it has a federal ID number, it is reported on the donor's tax return.
  6. Why would wages be exempt from income taxes? I have a W-2 from ADP that is blank in Box 1 and two and has amounts in boxes 3, 4, 5 and 6. In the earnings summary provided by ADP it shows gross pay for the amounts in box 3 and 5 then it subtracts out "Exempt Wages" of the same amount to get a zero balance.
  7. How has the SMLLC elected to be taxed?
  8. When we have a tax return picked up we explain the signature pages and have the client sign. One of the pages verifies their bank info. We have them initial by the account number and sign and date at the bottom. Had a lady who is separated from her husband. His account was listed on her return. Her $800 refund went into his account and he will not give it to her. He is due a $1200 refund. She was really upset with us and wanted us to list her account on his return or call the IRS and have them take it back out of his account. She did sign the form verifying the account.
  9. I missed that the estate started in 2017. I think you are correct Gail. I thought Danrvan was saying the estate did not get a step up in basis. Jeez April 10 and I am easily confused. Imagine that.
  10. In reg 1.1014-4 If the bequest is of the residue to trustees intrust, and the executors do not distribute the residue to such trustees until five years after the death of the decedent, the basis of each piece of property left by the decedent and thus received, in the hands of the trustees, is its fair market value at the time when the decedent dies. If the bequest is to trustees in trust to pay to A during his lifetime the income of the property bequeathed, and after his death to distribute such property to the survivors of a class, and upon A's death the property is distributed to the taxpayer as the sole survivor, the basis of such property, in the hands of the taxpayer, is its fair market value at the time when the decedent died. I read that to mean the estate/trust does get a stepped up/down basis to FMV at date of death.
  11. There is no 3115. There is no missed depreciation for the estate. DOD step up basis starts everything from new.
  12. Taxpayer married to spouse #1. Spouse #1 dies 3/10/18. Taxpayer remarries 12/10/18. Taxpayer files MFJ with spouse #2. Spouse #1 has significant income before death. What filing status does spouse #1 use?
  13. If you spend some time setting up the print sets it makes printing quicker.
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