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Recent Internal Revenue Code questions

My siblings and I are preparing a form 1041 for the first

My siblings and I are preparing a form 1041 for the first year. The only income and expenses are from a Schedule F. It shows a loss but the software we are using does not carry it to the 3 K1's. I tried to read all I could about this (IRS and others). From what I could determine, that is correct and the NOL is just carried forward by the estate until the final return is filed or until there is net income to distribute. Is this correct? If not, what do we do with the net loss?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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I am a graduate student and received research money to be

Hello,I am a graduate student and received research money to be used on travel, equipment, and supplies. Under IRC Section 117, it is clear that only qualified expenses (tuition and related expenses) can be excluded from gross income. However, under ECFR §1.117-1(b), travel and research expenses are also excluded from gross income subject to certain limitations. How do I know which guidance applies to my situation? Does the IRC overrule the ECFR?Thank you for your help.Rachael

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PDtax

Owner

Master's Degree

6,972 satisfied customers
If I receive settlement money from a law suit where my

If I receive settlement money from a law suit where my attorney receives 40% of it, what kind of taxes will be assessed on this money?

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Mark Taylor

Certified Public Accountant

Masters

1,220 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

1,220 satisfied customers
I set up a irrevocable living trust, funded it with tax free

i set up a irrevocable living trust, funded it with tax free munis, question do i have to pick up the interest from the trust, tax free interest, on my personal 1040 .... for AGI purposes for medicare payment amount.... or is this tax free interest just that tax free reflected on a 1041 sch B and thats it

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PDtax

Owner

Master's Degree

6,972 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

21,184 satisfied customers
BACKGROUND FACTS: I had waived my community share of member

BACKGROUND FACTS: I had waived my community share of member ownership (25%) in an LLC industrial park, in California, in a legal separation settlement back in 2007, confirmed again with a divorce judgment in 2012. I had included my ex-wife's income draw of $51,000 when I filed "married filing jointly" for tax year 2006 while we were already separated and living apart as of Jan 2006. I had also contributed capital of $175,000 (from community funds) in 2006, after we sold our house in Nov 2005 in Los Angeles. I never received the benefit of any owner draw in 2006 and most of 2007. My ex-brother-in-law (the managing owner) had been directing my draw to my ex-wife before there was a financial settlement in our legal separation. Do I have a case in 2016 for (1) compensation of the difference in income tax paid by me for TY2006 and (2) for compensation of all my capital contribution to pay off the industrial park's mortgage? I do possess the Schedule K-1 and Form 1065, plus all my legal papers and court judgments. I was also hoping to recover my partnership membership in the likelihood of my ex-wife's passing. I had initially invested $117,500 into the industrial park with separately acquired funds from my deceased parents trust fund in 1996, but my ex-wife had me deposit and commingle the funds into a community-held bank account. Can you advise me if I have any legal standing? I can produce all the historic records. I live now in South Carolina.

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PDtax

Owner

Master's Degree

6,972 satisfied customers
I live in California, and I'm selling a condo for $650,000,

Hello, I live in California, and I'm selling a condo for $650,000, which I lived in for two of the last five years. The last 2 1/2 years I have rented the condo. I will have capital gains of about $300,000. does the state of California require me to withhold California State tax of 3 1/3% of the sale price or the capital gain?

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Dr. Fiona Chen

President

Ph.D.

544 satisfied customers
My wife will be taking 97K out of her 401K on a "hardship"

My wife will be taking 97K out of her 401K on a "hardship" in order for us purchase a new retirement home. How much of that money should we either set aside or have automatically taken out for federal & state income taxes?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,686 satisfied customers
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