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Recent Estate Tax questions

NC real estate tax question: I own a condo with someone else

NC real estate tax question:I own a condo with someone else (unrelated), however i'm the only person on the mortgage note. I'm thinking about buying the other person off the title. I'm assuming this would be done with a quitclaim deed. What are the tax implications of buying their portion of the title for say $10,000 versus working out a situation where no cash in exchanged? From a tax perspective what do I need to know or consider?

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Mark Taylor

Certified Public Accountant

Masters

880 satisfied customers
My brother died recently without a will. Our mother is his

My brother died recently without a will. Our mother is his legal next-of-kin so his estate will go to her. She would like to share it with her children and grandchildren. I understand that she will not have to pay inheritance taxes (estate is less than $500,000). But, if she passes some of that money to her offspring, is that considered by them to be an inheritance (no taxes) or a gift (amount over $14,000 is taxed)? Is there a time limit on such a distribution? Thank you.

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Mark Taylor

Certified Public Accountant

Masters

880 satisfied customers
I have a new client who needs an estate income tax return

I have a new client who needs an estate income tax return (form 1041) filed for his father who died in 2015. His mother died in 2009. His mother and father both had separate personal living trusts and pour over wills. All assets owned by the mother were transferred to his father's personal living trust after her death. There was also marital trust but FMV is below estate tax filing. The son (my client) was made trustee of the living trust after the mother's death. In 2013 the father gifted to his son 50% (without filing a gift tax return) ownership in his Florida condo which was one of the assets in the trust. The Florida condo was the principal residence of the father up to the point of death in 2015. The father lived there for more than 10 years. After the father's death, the son transferred his interest in the condo to the father's estate in 2016. After the condo's transfer to the estate the condo was sold (3rd party) in 2016. Is the estate eligible for the Section 121 home gain exclusion?

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Mark Taylor

Certified Public Accountant

Masters

880 satisfied customers
A TAXPAYER OWNS AND LIVES IN HIS PERSONAL RESIDENCE. TEN

A TAXPAYER OWNS AND LIVES IN HIS PERSONAL RESIDENCE. TEN YEARS AGO HE PURCHASED A SECOND HOUSE IN THE SAME TOWN FOR $135,000 AND PAID CASH. FOR TEN YEARS HIS SON, DAUGHTER-IN-LAW AND GRANDCHILDREN LIVED IN THE SECOND HOUSE RENT FREE. HE HAS NEVER HELD IT OUT FOR RENT TO THE PUBLIC. DURING THESE TEN YEARS THE TAXPAYER TREATED IT AS A SECOND HOME AND DEDUCTED REAL ESTATE TAXES ON HIS SCHEDULE A. THERE WAS NO MORTGAGE INTEREST. CHILDREN MOVED AWAY IN 2016 AND HE SOLD THE HOME FOR $100,000 A LOSS OF ($35,000). QUESTION. IS THIS A (1) NON-DEDUCTIBLE PERSONAL LOSS, OR (2) CAN HE TAKE THE POSITION IT WAS AN INVESTMENT THAT HE HOPED ALL ALONG WOULD INCREASE IN VALUE AND BE SOLD AT A CAPITAL GAIN BUT ENDED UP A CAPITAL LOSS?

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Robin D.

Vocational, Technical or Trade School

20,922 satisfied customers
I am the executor and sole trustee of my parent's Living

I am the executor and sole trustee of my parent's Living Trust. I am one of three beneficiaries. My dad had an IRA held by TDAmeritrade and managed by a local brokerage frim. In order to disburse those funds we have to pay the tax on it. I have asked that the funds be wired to the estate account I set up for distribution that has it's own EID--minus the withholding for the taxes. The brokerage firm is set to do that, but they are using my personal social security number, instead of the EIN...so that it will be on my personal tax return. They tell me this is the only way they can process my request because they claim the wording of the trust document is poorly done. My question is, is there a way for me to show all of this on my personal tax return and not be unfairly penalized for having agreed to be my father's trustee? It makes me nervous.

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PDtax

Owner

Master's Degree

6,858 satisfied customers
I could potentially inherit real estate property which is

I could potentially inherit real estate property which is located in India. what are the taxation surrounding such inheritance? I reside in Massachusetts?Are there any inheritance tax, income tax or estate taxes when I inherit it and what are taxes when I sell the property and bring the money back to USA?Can I continue to hold the property in India and do I have to show such property when filing tax return in USA? Also when I sell the property I will be paying taxes in India do I have to pay taxes in USA as well if the taxes are already paid in India? if so what kind of taxes do I incur?

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Robin D.

Vocational, Technical or Trade School

20,922 satisfied customers
I am retiring and will be living with my daughter in her

I am retiring and will be living with my daughter in her home in AR. I wil not be her dependent at this time though eventually she may become my caregiver. I want to pay half of the household expenses. Should we open a household account and both contribute to that account? Does it need to be specified - named a household account and both of us be signers? Will the amount that I contribute be income for her? She will still claim taxes & interest on her mortgage.JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: She just this month paid home insurances for the coming year. I want to reimburse her for my half.

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Barbara

Enrolled Agent, Paralegal

4,992 satisfied customers
I own a home in California. My property taxes are in escrow

I own a home in California. My property taxes are in escrow and included in my monthly mortgage premium. Because of financial hardship in 2015, I did not pay many of my mortgage payments, (which of course includes my property tax payments). I am now in modification with my lender and expect to save the house and continue living in the property. Can I still deduct my total property tax bill for 2015 on my 2015 income taxes?

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Dr. Fiona Chen

President

Ph.D.

250 satisfied customers
Spanish citizen married to a US citizen (all our income

Spanish citizen married to a US citizen (all our income assets are joint property) living abroad. Question on Estate taxes. How will our assets be taxed if one of us died?- When US citizen dies I understand there is a large exemption ($5+M). Does this apply even if recipient (spouse) is a non citizen?- If non-citizen dies I understand that only certain assets (real estate, securities located in the US) are subject to the tax. But what is the exemption that applies? In general is low for non-citizens (about $60,000). But what if the receiving spouse happens to be a US citizen? Does the large exemption apply as well?Any other thoughts on this situation would be appreciated.

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Mark Taylor

Certified Public Accountant

Masters

880 satisfied customers
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