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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

928 satisfied customers
My Mom is turning 90 years old. She needs to cash out a

my Mom is turning 90 years old. She needs to cash out a annuity policy that has about $67,000 in it. Her social security and pension income are less than $25,000 per year. Somewhere in the low 20's at best. How much Fed and State Tax should she ask them to take out. She lives in NJ. Need an estimated rate for her to use when completing the cash out...JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: no. I just want her to fairly reasonable with the tax so that she does not owe much afterward.

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Dr. Fiona Chen

President

Ph.D.

282 satisfied customers
I'm married and I am self-employed. My wife makes around

Hi, I'm married and I am self-employed. My wife makes around $17k per year. No kids. We pay a mortgage of around $525 per month.I'm looking at buying a new car, but I want to make sure it's in my budget, so I'm trying to determine two things...1. My self-employment tax2. My federal income tax rate.I'd like to ballpark how much I need to be paying EACH month roughly to cover both #1 and #2 above.I'd guess I make around $2400 a month after business expenses.Is there a way to determine this?I find it very hard to understand and to figure out how to figure them separately.Thank youDayne

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
0, We are a family living in the US, we got our green cards

Hello:0JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: We are a family living in the US, we got our green cards last year and are considering selling our property in the UK now our tenants are moving. We have not lived in the UK property since July 2012. we purchased the property in 2001 for 128K sterling BUT remortgaged in about 2006 for 205K the value of the property is 225K. If we proceed and sell the house are we liable for tax in the US, and would it be calculated fron the original purchase price or the recent remortgage price. This is our only home. we have some costs to offset but our risk is we could owe more on tax than we would get from the sale of the property.JA: Is there anything else important you think the Accountant should know?Customer: If there are any other questions or information that might be needed to help establish our situation please let me know, many thanks

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Robin D.

Vocational, Technical or Trade School

20,940 satisfied customers
If I am trying to figure our my tax rate, do I include FICA?

If I am trying to figure our my tax rate, do I include FICA?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I am trying to figure out the tax rate on a lump sum amount paid at retirement and I am not sure if I need to include the FICA and Medicare taxes....The amount is at the 39.6% so do I need to include the additional money for medicare which makes the amount 41.35JA: Is there anything else important you think the Accountant should know?Customer: No, I am trying to figure out how your service works, do I pay for this

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,252 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

20,940 satisfied customers
How will the sale of intangibles be taxed to a small C

How will the sale of intangibles be taxed to a small C corporation. The corporation sold their customer list plus the inventory(which was calculated separately) to a larger company for a substantial sum(for a small company) which included a non compete provision. Are the proceeds taxed at the regular corporate rate or is there a way to tax the proceeds at a lower rate, such as a long term gain. I have been reading the IRS publication # 542 and 544, but am still not clear as to the solution.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,252 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.

282 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

17,252 satisfied customers
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