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Recent Direct Tax Law questions

I am a legal us resident non citizen and will be receiving

I am a legal us resident non citizen and will be receiving a inheritance from Canada no properties involved strictly cash only what will be the tax if any Canada does not have an inheritance tax imposed on citizens or non residents

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
In the trust scenario, IF it were irrevocable, IF you have

In the trust scenario, IF it were irrevocable, IF you have no discretion to distribute to yourself, and IF IRS didn't say that your power to appoint makes it property in your hands anyway, THEN you'd be giving away the company. THAT's a thought."I am not sure how to apply this.It has to be irrevocable for asset protection. It is Ok if the trust cannot distribute to me.So I give the IP or company to Buyer, buyer creates Trust... I get lost here somebody has to pay tax at sometime???At this point I think I will just take the cash, pay the tax, contribute the balance to a trust.In technology companies come an go overnight. I do not want to rely long term on this company's value or contract payments.RegardsSam, i will be out for a couple of hours...

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
Certainly qualifies for 1031, as as you sell it separately

Certainly qualifies for 1031, as long as you sell it separately from the business... again IF they have an asset to swap that would provide value (ongoing income or other) for you."What are the limitations on assets to swap for IP? I assume cash is not considered an asset, but I should ask, is cash OK?How about they buy AAA publicly traded stock with their cash (or they may already have some) and give it to me. Probally substance over form issue if cash is out.Can they create a trust, Grant the cash, make me the Trustee, make my kids the beneficiary?RegardsSam

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
Can I purchase my mother's house as part of a 1031 exchange?

Can I purchase my mother's house as part of a 1031 exchange? She will receive approximately $100K from the sale (at fair market value) of her property.Thanks!Kim

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
What does jurisdiction of legal residence mean? New York,

what does jurisdiction of legal residence mean?JA: Because laws vary from state to state, could you tell me what state is this in?Customer: New YorkJA: Have you talked to a lawyer yet?Customer: No. Just filling out a form for savings bonds.JA: Anything else you think the lawyer should know?Customer: Husband passed away in 2009. 5 bonds out of 50 series ee bonds did not have my name on them. trying to file form 5336 to correct this problem. Estate value was less than 100,000 dollars and I am his widow.

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Mark Taylor

Certified Public Accountant

Masters

862 satisfied customers
What happens to an American if they submitted their income

What happens to an American if they submitted their income tax return to the IRS, but didn't sign? The IRS returned the forms, requesting a signature. What happens if the person never sends it back? There was nothing owing.

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Barbara

Enrolled Agent, Paralegal

4,988 satisfied customers
QUESTION FOR JD, LANE--PLEASE HOLD FOR HIM Some months ago I

QUESTION FOR JD, LANE--PLEASE HOLD FOR HIMSome months ago I had a series of questions about a gentleman in California who had millions in trusts and also had been given un-collectible status. You did a great job on answering my questions.My client now has been assigned a RO (Revenue Officer) . Client reported he was renting and his rental address. RO found in TRW report that he was paying on a mortgage at that location. Client had reported he did not own. RO did a property search and found he is a possible owner for that and another property. The RO asked for documents to support his statement that he was renting and did not own. If such documentation is not received by Sep 10, the RO will summons mortgage companies for information and will being the process of levying his bank account. This is from RO letter that she faxed me a copy of.I have been handling this cycle under the mentorship of a consulting EA who I have been paying to consult and who was a RO herself for many years overseeing large collections like this. My mentor suggest I do a courthouse records check. How do I do one?It is my view that if he really owns these properties personally, the value of these properties is probably forfeit. They are levyable. Do you agree with this summation?My mentor immediately distanced herself from this cycle,"Circular 230 prohibits you from speaking with someone other than your Form 2848 client in regards ***** ***** tax issues.I personally would not/will not Rep someone who has willfully withheld pertinent information from me let alone from the IRS. This appears to be the case. therefore I am respectfully ***** ***** assist with this case moving forward."I do not know of anything in circular 230 that prohibits me from asking assistance of a fellow EA in my employ. I do hold a 2848 POA. My mentor had no resistance to assisting me before. I also have authority to add a representative on 2848, as I put it there when the client signed. That being said-- Is there some real prohibition on me asking a fellow EA for advice or consultation, even if they are not repping the client???? ...,Is it wrong for me to ask an EA more experienced in this areas for advice? Is this really a circular 230 violation?To me, my mentor does not want to have anything to do with this client, and is distancing herself. Do you think it would be wise for me to emulate her and terminate my relationship with client? ....If I am honestly trying to help my client and am honest, am I putting myself at risk by dealing with a possibly sleazy client? I have been scrupulously honest so far.My thought is I should find out from client first if he really owns these properties, or if they are trust assets. Do you agree?If he says he does not own them, he needs to provide proof. I should also do a search of courthouse records. Do you agree?If he DOES own them personally, what would you recommend?I can continue to rep him and insist e comes clean with everything and meet all requirements set forth by RO.OR I can tell him he needs to do that, but I am no longer repping him as he withheld data from me and IRS.What are your thoughts/reocmmendations on this?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
This one is a little odd. Figuring insolvency to offset

This one is a little odd. Figuring insolvency to offset canceled debt. There is a property for which I received a 1099-A, but not a 1099-C. Since the debt wasn't canceled but the 1099-A is a disposition of the asset, can I claim the liability on the insolvency worksheet and leave off the asset? The 1099-A is dated before the unrelated canceled debt that I am trying to offset.JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: No, it's an interpretation thing. I have a canceled debt on a 1099-C dated in November. In figuring assets and liabilities, I have a property with a 1099-A in May. Since that May property does not have a 1099-C, I wonder if I can use just the debt for that property in Liabilities, but leave the property itself out of the assets since there was a 1099-A for it.

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PDtax

Owner

Master's Degree

6,850 satisfied customers
If I have a negative balance in my S Corp basis, do I need

HiIf I have a negative balance in my S Corp basis, do I need to recognize capital gains in the same year or can I carry the negative balance to next year?Moreover, I have a zero balance in my loan account.

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Mark Taylor

Certified Public Accountant

Masters

862 satisfied customers
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