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Recent Marital Deduction questions

A male U.S. citizen has a resident non-citizen spouse. He

A male U.S. citizen has a resident non-citizen spouse. He wishes to establish a joint bank account with her. Is the gift-tax-free amount he can put into the account limited to what he is legally entitled to gift to her each year ($148K for 2016)?

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Dr. Fiona Chen

President

Ph.D.

758 satisfied customers
Are you and American tax specialist? OK. Well, I have a few

Hi there. Are you and American tax specialist?JA: No. I'm the Accountant's Assistant.Customer: OK. Well, I have a few questions. First, I am reading that there is no tax on inherited property worth less than $3 million. What year did this change?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Sorry, I thought you were going to look this up and tell me the answer.JA: Is there anything else the Accountant should be aware of?Customer: Yes, I want to confirm the amount below the inheritance tax threshold in 2007. I also want to confirm that the tax liability is split between siblings, for example, if two siblings inherit a $6 million property, are they free of tax if they each then inherit a basis of $3 million?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,010 satisfied customers
Looking for a quick help from a CPA around building a trust

Hi, My name is***** for a quick help from a CPA around building a trust and CA Beneficiary Taxation rulesJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Okay, I live in CA. I am working on my will and trust formation. I have given 3 people as successor trustees after my days and 2 of them live outside of CA. My lawer asked me to get clarification from a CPA about the CA Beneficiary Taxation Rules that will effect teh CA taxation of my trust in light of 2 out of state person designated as successor trusteesJA: Is there anything else important you think the Accountant should know?Customer: nope

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,284 satisfied customers
Will I need to pay extra tax for an inter-spouse transfer?

I live in NJ, I am a Turkish citizen and my wife is a Russian citizen, we live in the U.S. with a green card - legal immigrant. We would like to buy a house and we would like my wife to be on the loan under her name. However, I will be contributing a significant amount of cash to the down payment of the mortgage, which will involve my cash to be transferred to her bank account. We were told that this will be considered an inter-spouse cash transfer and that there might be a tax consequence. We were wondering if we/I will need to pay extra tax for this?

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Robin D.

Vocational, Technical or Trade School

21,822 satisfied customers
Question on tax treatment of capital gains in the final year

Question on tax treatment of capital gains in the final year of a trust.A marital deduction trust was created in 1998 upon the decease of a husband. The trust invested in a diversified stock portfolio and has remitted all dividend income generated over the years to the income beneficiary, the surviving widow. Per the trust document, capital gains and/or principal may be remitted as well if needed by the widow , but over the life of the trust this was never necessary or done.Each year, capital gains and losses from transactions in the trust were offset, or loss carryforwards used, to zero out the trust's capital gains and losses on the trust's tax return. Income was reported on K1 to the income beneficiary who paid income taxes on it.The income beneficiary passed away this year (2016), the stock portfolio was entirely liquidated, generating net capital gains, and the trust assets (all cash now) will be distributed to the designated heirs/beneficiaries. (There are two children and four grandchildren.)Questions:1. Must the trust itself pay the taxes on the final-year capital gains generated?2. I believe it is not permitted to remit net capital gains to the beneficiaries in this case. True?3. Instead may we remit gross gains and losses to the beneficiaries, some of whom have a lower tax rate? (I believe so)4. Do we have discretion on which approach to use? If both ways are permitted, does the IRS look on the latter approach, with its lower tax result, as particularly aggressive, a red audit flag, etc.?Background:I'm no expert but the online commentary on the Regs do suggest that the trust may remit the gross capital gains, reporting on a K1, pro rata to the remainder beneficiaries, and also remit the gross losses in the form of loss carryforwards that each beneficiary can apply against their share of gains, all of this on their personal tax returns in the same year, 2016. I get this from online commentaries on §1.643(a)-3(b) and §1.642(h)-1.(It is assumed that the ordinary income (dividends) generated by the trust after the widow's death will be distributed to the remainder beneficiaries, who will pay income tax on it.)

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,284 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

1,980 satisfied customers
If my wife passes away and leaves me with $140,000 dollars

If my wife passes away and leaves me with $140,000 dollars is it taxable as an inheritance or what?

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PDtax

Owner

Master's Degree

7,246 satisfied customers
I am a non resident non US citizen married to a US citizen,

I am a non resident non US citizen married to a US citizen, we live in London UKJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Looking to buy a property in US, what is the most efficient way to do it from tax perspective?JA: Is there anything else important you think the Accountant should know?Customer: We both work and pay taxes in UK, my wife files tax returns in US but she pays enough tax in UK so that she does not need to pay any tax in USJA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.

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Robin D.

Vocational, Technical or Trade School

21,822 satisfied customers
I am a U.S. citizen, and a naturalized Mexican retired and

I am a U.S. citizen, and a naturalized Mexican retired and living full time in México for over 30 years.My now exwife who was a Mexican non U.S. resident owned a business Mexico as a sole owner, and filed her taxes seperately.In our divorce the judge ordered the business to be sold and the proceeds be divided equally.My question is my divorce settlement taxable in the U.S.?

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Robin D.

Vocational, Technical or Trade School

21,822 satisfied customers
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