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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Capital Gains and Losses
Satisfied Customers: 263
Experience:  Over 20 Years experience in resolving tough tax cases
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If the proceeds of the liquidation of an LLC is dispensed

Customer Question

if the proceeds of the liquidation of an LLC is dispensed via an grantor trust, to four individual personal trusts, do the personal trusts file their own tax returns? if so, if the capital gains is 200,000 to each trust, what taxs and what tax bracket
does the trust pay, assuming it has no other income or losses, or does the individual pay the rest on their personal return? after the trust pays its taxs from the proceeds does the individual take a distribution from the trust tax free?
Submitted: 2 years ago.
Category: Capital Gains and Losses
Expert:  PDtax replied 2 years ago.
Hi from Just Answer. I'm PDtax, and can assist. I need more information to look at the tax treatment. I will post an Offer of Additional Service for a price bump for the time needed. Accept, and provide some background, and I will assist.
Customer: replied 2 years ago.
what information do you need to answer?
Expert:  PDtax replied 2 years ago.
This looks like cleanup of estate planning, with a decedent holding LLC or the trust is holding. Death of decedent might trigger estate tax and stepup in basis.
How do you figure the grantor trust/decedent/estate gets to defer tax, and instead distributes tax liability to four trusts?
Customer: replied 2 years ago.
GRAT with term expiration, grat holds the llc, holdings are dispersed to beneficiaries individual trusts.do the personal trusts file their own tax returns? if so, if the capital gains is 200,000 to each trust, what taxs and what tax bracket does the trust pay, assuming it has no other income or losses, or does the individual pay the rest on their personal return? after the trust pays its taxs from the proceeds does the individual take a distribution from the trust tax free?
Expert:  PDtax replied 2 years ago.
Thanks for the additional insight.
I posted an Offer for the complexity of the question you were asking.
Accept the offer, and I can assist immediately.
PDtax
Expert:  PDtax replied 2 years ago.
I see that you posted your question again. I will opt out, and other Experts can review your request and assist.
PDtax