User talk:Dennis
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Spell Czech here... just in from Rome!
"non sequitur"..
1041 Question(s)
Hey Dennis, wondering if you're still around and willing...
I have a 1041 to do, first and final, on a living trust. Grantor died 3/5/11, so we're doing a fiscal year ending 2/28/12. I've read in the past that you've recommended that the residence get into the trust so that if there's a loss on sale, it can be used. That is the case here. Additionally, there was a secondary home which was rented after his death, and then sold. So I have a Sch. E to capture the rental action, but wonder if the losses on sale are both deductible? We have FMV's of both properties at DOD, they sold for less.
And on the 2nd place, there was a short sale, so there's 1099-C for cancellation of some of the debt. I'm hoping the loss on sale can offset that?
Finally, there was a collection valued at 50k which was finally sold for 10k. Do collections qualify for capital loss treatment?
Thanks, Jeff aka JR1
7520 tables
Hi Dennis,
You've been very helpful with this and other estate issues, I just wanted to run this by you (regarding that life estate we were discussing last month).
Although the life estate was originally owned by both spouses, because the father is deceased, I should be using the single-life tables, based on the mother's current age (84) and the current interest rate (1.4%) -- is that right?
That puts her life estate at about 8.6%.
Just wanted to make sure...
Thanks again for all your help.
Mld123 22:03, 17 February 2012 (UTC)
realty sale to beneficiary
Hello Dennis, You seem to have a good grasp of 1041 issues so I hope you can shed some light here.
Decedent's personal residence part of residuary estate. Almost the entire estate. 3 of the 4 beneficiaries want to retain the home and decide to take title as tenants-in-common and buy out number 4. (At FMV) No other assets besides a small bank account that was spent on funeral and lawyer costs.
Question-- Is this actually a sale to #4? It seems to me that this is actually a distribution of #4's rightful share which she is receiving in cash rather than in property. The estate, then, does not report this on the 1041, no 1099 is sent to #4, and it doesn't show up on the K-1. The whole buy-out is a non-event. There's no income to the estate, the 1041 just shows admin. costs that can flow to beneficiaries if estate closes this year.
I'd appreciate your take on this. If I'm right, what do the other 3 get for basis? FMV on date of death or FMV plus amount of buyout? My guess is the former.
Many thanks in advance. Vetta 23:44, 3 March 2012 (UTC)
