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artp

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  1. Correction: This was a revocable trust. See below: Got confirmation that no gift tax return or estate tax return was filed in 1982. The wording in the trust is as follows: Mr. X (father) as "settlor of this trust, hereby declares that from after the date hereof he shall hold and administer as "Trustee" the property described in Schedule A (farm ground ect.) and any other property which may be added to the trust as follows: FISRT: As long as Settlor is acting as Trustee, he shall have power to withdraw any part or all of the net income and principal of the trust. I would take that to mean he could have pulled the farm ground out any time he wanted as part of the principal. So until he died he in effect had control over the assets in the trust. Would need to run this by the attorney to confirm. Anyone have other thoughts?
  2. Farm land from father was put in irrevocable complex trust in 1982 with distributable income going to him and his wife as beneficiaries; capital gains is taxed in the trust. They continued to operated the farm until he died in 2002. Farm continues to operate under the trust with DNI going to widow and capital gain taxed in the trust. Trust sold part of the farm land in 2023. My take is the there is a step-up in basis for the FMV of the land when father died in 2002. Agree??
  3. Thanks Lion I did not realize that!
  4. For 2023 client had $227 FTC but was not needed as tax was computed using Capital gains rate which was zero. Regular tax per tax table was $1800. Drake did not show any carryover of FTC. This does appear to be correct. Am I wrong on this
  5. Thanks for the confirmation. These situations always confuse me.
  6. Single taxpayer is sole support for live in girl friend (not related) and her 13 year old son. Girl friend has no income. She and her son lived with the taxpayer all year. Father of the 13 year old is incarcerated. Can taxpayer claim $500 credit for both the girl friend and her son? Taxpayer also has an adopted daughter age 3 who he fully supports and lives with him all year. So HOH status?
  7. Clarification: the parents have been appointed by the court as personal representatives.
  8. Client's son (single) retired from the military in June 2023 and passed away in July 2023 suffering a fall while helping a friend do roof repair. The parents have power of attorney to handle the son's affairs. They have been unable to get the son's military W-2 as it is only available electronically and they do not have access. They have tried numerous military agencies, but no luck. They are now contacting their US Congressman for help. Can I get Power of Attorney to access the son's records with the IRS through them? Never run into this situation before. Any suggestions?
  9. That was my thought as well but had not run into this before. Just wanted to get someone else's input to confirm. I was only concerned that in Drake that is not on their list, just had to use Other as relationship.
  10. Client has been Foster parent for the same 2 children for the past 5 years. In 2023 the legal relationship has been changed to guardianship. My understanding is that this is a more permanent status than temporary care under fostering. Did not see this relationship specially listed in CTC rules. Client meets are of the other requirements so any issue with taking CTC for 2023?
  11. artp

    1099-Q question

    TexTaxToo Thanks for the clarification. That makes sense.
  12. Client received 2 1099-Q forms for the same college student from of 2 different 529 Bright Start accounts. One issued under the father's SSN and one under the son's SSN. The father is custodian on both accounts. FYI, the second account was originally created by his sister-in-law many years ago. After she was divorced the funds were transferred to account under his SSN. When calculating the AQEE and any earnings that are taxable and subject to 10% penalty do you use the full AQEE for each calculation or split between the two? Same question for the amount of AOC. Can you split the amount of AOC? or do you have to take the full amount of expense used for each calculation? I have never run into this situation before. Would appreciate feedback from others on the board.
  13. Brother A had always paid his share of the taxes each year. The other brothers did not. As part of the escrow settlement their share of the taxes was credited back to A when the funds were dispersed. There were substantial legal fees as show on the spreadsheet.
  14. i have attached my summary of these transactions to clarify. The results of the partition sale I think are correct but I am not sure about the presentation on the sale to the unrelated party in Nov. Please offer your thoughts. TAX CALCULATION Sale of Property 11102023.xlsx
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