WITAXLADY Posted April 10, 2013 Report Share Posted April 10, 2013 client receives estimated form - had to pay penalty last year as put money into trust without letting me know they even had one! Haven't put any $$ in yet - recommended they put in enough to cover prop tax = 0 as pay the tax and then gift $13,000 for the 2 years before and after. So no additional,,, so she fills out form and thinks she should pay $5,000 in tax. Any reason why? Only if someone is going to put money in? Thank you, D Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted April 10, 2013 Author Report Share Posted April 10, 2013 and then did I do last year's wrong? If they put $40,000 into trust from personal - he gets no deduction but the Trust should only pay on earnings - no tax on principal contributed? only earnings? Now I am confusing myself - help please to clarify this. Thx D Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 10, 2013 Report Share Posted April 10, 2013 First, what kind of trust is this? Second, obtain the trust instrument. I have said this many times on this board getting the trust instrument will reveal to you the taxation of the trust. If your client had the trust last year, a return may need to be done and the possibiity of a late filing penalty exists. Quote Link to comment Share on other sites More sharing options...
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