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Recent Tax Bracket questions

An initial distribution is being made from a family real

An initial distribution is being made from a family real estate trust consisting solely of my father's house that was sold following his death last year. I have options on whether to take the distribution directly or take it to a Trust in my name. I also have children and grandchildren. If there are no tax ramifications I can take the distribution directly and decide what to do with it later.Please advise on the most tax advantaged option

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Dr. Fiona Chen

President

Ph.D.

280 satisfied customers
I am looking to sell my home (first timer here!) and have

HI! yes - i am looking to sell my home (first timer here!) and have been researching capital gainsJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I purchased the home in 2007, lived there until late 2012, and started renting it in nov. 2012JA: Is there anything else the Accountant should be aware of?Customer: i don't think so.. but IDK! lol

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,242 satisfied customers
My mother-in-law died in April and we are settling her

My mother-in-law died in April and we are settling her estate. Beneficiaries are her son (executor) and her daughter (my wife), and 4 grandchildren (one by her son, and 3 by her daughter). The son and daughter each get a third of the estate, and the third third is divided equally amongst the grandchildren. The estate is roughly $1,000,000, all in cash and securities.A significant amount of deferred income (about $20,000) will be unlocked by cashing in HH bonds that in the past were obtained in exchange for EE bonds in order to defer tax.The estate itself has a tax rate above 40% for investment income. My thought is to disproportionately distribute the investment income via K-1 to the beneficiary with the lowest tax rate (a non-dependent grandchild in the 15% tax bracket) along with cash to pay the tax. The net cash payment to this beneficiary would be offset by paying out less from the corpus of the estate, so that, in total, all beneficiaries get their prescribed proportion of the entire value of the estate. In this way, income tax is minimized on behalf of all the beneficiaries and everyone thus receives a bit more.The question is: does treating income payments to beneficiaries in this disproportionate way, though offset through corpus payouts, violate any estate tax law?

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Mark Taylor

Certified Public Accountant

Masters

914 satisfied customers
I would like to confirm that I can recharacterize

Hello, I would like to confirm that I can recharacterize traditional IRA to ROTH IRA. I made traditional IRA contributions since 2013 when I was no longer income-qualified to contribute to a ROTH. However I have recently learned that the IRS has no income limitations on recharacterizing traditional to ROTH contributions. My financial planner is requiring that I seek the advice of a tax professional in order to process the recharacterization. I would like to (1) confirm that I am eligible, (2) understand which years I can still recharacterize, and (3) understand the process I should use moving forward to take advantage of the ROTH conversion. Thank you!

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Mark Taylor

Certified Public Accountant

Masters

914 satisfied customers
I'm interested in purchasing a home here in Nevada and

Hello,I'm interested in purchasing a home here in Nevada and trying to figure out the best way to spend money for a $100,000 mortgage downpayment plus $14,000 closing costs($114,000 total) from the following:1) $18,000 Bank checking2) $127,000 IRA3) $56,000 Mutual Fund (this pays about $250/monthly income)My annual income is about $42,000 ($1166/month -social security, $250/month -Mutual fund dividends, $2033/month -life annuity). Also, I will start receiving a $105/month pension in 2017.I would like to keep my income unchanged.Currently in 25% tax bracket, single, no dependents/debt, 64 years old, pay $0 state income tax in Nevada.Thanks

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Mark Taylor

Certified Public Accountant

Masters

914 satisfied customers
I am in the middle of a divorce and need to have a estimate

I am in the middle of a divorce and need to have a estimate how much California tax and federal tax I will owe on my income come tax time at end of the year, we have not had a judge tell us which of us can claim our son yet but his attorney keeps saying my income is not taxed. I know it is at the end of the year it has been since I was disabled in 2009. My income is as follows. SSDI for mysel $1190 monthly minus part B premiums of $178 and Part D premiums of $75 . I get SSDI dirivative from my past employment for my 15 year old son of $297 a month, Cal-pers medical reirement (taxed) $437 a month, Child support $298 and Alimony $552 a month. please give me a amount I can turn into the judge to concider for my income and expense decleration.

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

3,988 satisfied customers
I'm considering taking $8,000 out of my IRA account, I have

I'm considering taking $8,000 out of my IRA account, I have just over $11k. I know theres a 10% withholding fee for Federal, can you tell me what I can expect come tax season next year? How much will I owe the state? How much will the early withdrawal fee be? Ect

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

3,988 satisfied customers
I am 60 y/o, and just bought a house for a temporary

I am 60 y/o, and just bought a house for a temporary investment, and then to live in when I retire. Must close soon.The house is 272k. But I would rather not have a traditional mortgage.I have 188k cash.I have a rollover IRA from a previous employer – 73kI have a current employer IRA – 119k, from which I can borrow up to 50k at 4.5%I was thinking of using about:175k cashClosing the rollover IRAAnd borrowing about 40k from the current IRA.But I'm afraid the income tax on closing the 73k IRA is not wise, as my current income is 138k.Is there a better way?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

3,988 satisfied customers
An investment property that I had a mortgage on was

An investment property that I had a mortgage on was foreclosed in 2015. It was a house I'd purchased for my mother, who passed away. Not my primary residence. The 1099-A shows the Balance of Principal outstanding as $246,788, and the Fair Market Value of the Property as $407,802. Leaving a loss of $161,014. For my 2015 taxes, how do i show the loss? On Form 8949 (Sales and other Dispositions of Capital Assets) & Schedule D (Capital Gains & Losses)? ... OR ... On Schedule E, as a Loss on Rental Real Estate (although I didn't charge my mother rent) ...OR... somewhere else? It appears that using Schedule D will only allow me to report $1,500 of the huge loss (married filing separately).

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,242 satisfied customers
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