Archive for August, 2008
August 28th, 2008 | 
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Elisabeth F asked:
Serving as executor – both parents passed in 2005. How is the Estate and Income Tax handled for both New Jersey and Federal returns on Annuities and Life/Term Insurance. Not sure what is taxable as Income and what is taxable to Estate. Also, not sure who pays the taxes, beneficiary or estate on the income tax – assuming there is a income tax liability.
Lauren Wallace
Serving as executor – both parents passed in 2005. How is the Estate and Income Tax handled for both New Jersey and Federal returns on Annuities and Life/Term Insurance. Not sure what is taxable as Income and what is taxable to Estate. Also, not sure who pays the taxes, beneficiary or estate on the income tax – assuming there is a income tax liability.
Lauren Wallace
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fishbulb asked:
About 10 years ago I bought a piece of land for $58,000 zoned residential in a rural township in the upper midwest. The tax bill should be around $1300/year. ————————- The third year I owned it the tax bill was for a different piece of property for only $130. I notified them, they corrected it, and I paid the $1300. The next year they had corrected all the information on the tax bill – except the value. So I got another bill for $130 and have every year since. ————————————- Originally, I had planned on building a home there but due to unforeseen changes in my life I’m considering selling it. What is going to happen when I go to sell it? Will I be reponsible for the approximately $10k they short-billed me? (I am also posting this in the real estate category)
The zoning has not changed. It is still zoned residential (it’s noted on the tax bill every year).
Eugene Schirrmacher
About 10 years ago I bought a piece of land for $58,000 zoned residential in a rural township in the upper midwest. The tax bill should be around $1300/year. ————————- The third year I owned it the tax bill was for a different piece of property for only $130. I notified them, they corrected it, and I paid the $1300. The next year they had corrected all the information on the tax bill – except the value. So I got another bill for $130 and have every year since. ————————————- Originally, I had planned on building a home there but due to unforeseen changes in my life I’m considering selling it. What is going to happen when I go to sell it? Will I be reponsible for the approximately $10k they short-billed me? (I am also posting this in the real estate category)
The zoning has not changed. It is still zoned residential (it’s noted on the tax bill every year).
Eugene Schirrmacher
Julia asked:
My grandpa is a miser, and he has about three or four million saved up. My dad keeps saying that Obama’s estate tax will take away my inheritance when he passes away. The house my family lives in is also owned by him. Is what my dad said true? Please explain… Thanks.
Tomika Villot
My grandpa is a miser, and he has about three or four million saved up. My dad keeps saying that Obama’s estate tax will take away my inheritance when he passes away. The house my family lives in is also owned by him. Is what my dad said true? Please explain… Thanks.
Tomika Villot
Larry M asked:
In an “intentionally defective grantor trust” in which the grantor
retained the power to substitute assets….may the grantor substitute
cash for appreciated stocks owned by the trust so that the appreciated
stocks end up back in his estate and eligible for a step-up in basis
upon his death? (Obviously, the question assums that no capital gains tax is
triggered by substitution itself…if this is a false assumption
please explain.)
If the answer is yes….does it make any difference if the
intentionally defective grantor trust owns the appreciated stocks in
an LLC entity.
Byron Neaves
In an “intentionally defective grantor trust” in which the grantor
retained the power to substitute assets….may the grantor substitute
cash for appreciated stocks owned by the trust so that the appreciated
stocks end up back in his estate and eligible for a step-up in basis
upon his death? (Obviously, the question assums that no capital gains tax is
triggered by substitution itself…if this is a false assumption
please explain.)
If the answer is yes….does it make any difference if the
intentionally defective grantor trust owns the appreciated stocks in
an LLC entity.
Byron Neaves
ml asked:
For the 1040 I have always done standard deduction.
For the 1040 I have always done standard deduction.
Now I have a question. I do not use an escrow account and pay real estate taxes directly to the local town. I paid it late once in 2008 and had to pay interest to the town because it was late. Can I include this late payment interest along with my real estate deduction in my 2008 1040A? Please provide a link to an IRS source or judicial ruling in your answer.
Brad Pinkett