jasdlm Posted April 1, 2016 Report Share Posted April 1, 2016 Child was the beneficiary of a life estate that was gifted to him prior to the death of the life-estate holder. (Feedlot I mentioned in another post.) The lot was sold. I reported the gain on the child's 1040 and completed form 8615 with Mom's information (does not make much and has 3 children - head of household). Federal tax due $0. I think this is correct, but it is not completely passing the smell test. (Total gain of $14,000 plus $5,500 1245 recap.) Thanks for your thoughts. I need verification or a swift kick, but under no circumstances do I need a hug from Rita! 2 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 1, 2016 Report Share Posted April 1, 2016 It could be correct if the mom's income is low enough that she wouldn't be out of the 10% bracket, that cap gain would be taxed at 0. 4 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 1, 2016 Author Report Share Posted April 1, 2016 Woohoo! Great day in Mudville! This is a Mom who could really use, and in my opinion deserves, a break! Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 1, 2016 Author Report Share Posted April 1, 2016 Ooops . . . and Thanks so much, Judy! I really appreciate it. Quote Link to comment Share on other sites More sharing options...
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