What is Form 1041 used for? If an estate or trust has gross income of $600 or more during a tax year, it must file a tax return. The fiduciary of a domestic decedent’s estate, trust, or bankruptcy estate uses Form 1041 to report: The income, deductions, gains, losses, etc., of the estate or trust; […]
Blog
IRS Form 56 is used to notify the IRS of the creation or termination of a fiduciary relationship under section 6903 and provide the qualification for the fiduciary relationship under section 6036. Form 56 cannot be used to update the last known address of the person, business, or entity for whom you are acting. Use […]
The American Housing and Economic Mobility Act of 2021 (now “of 2024”) may have taken on new life recently as Kamala Harris promised, if elected, to make housing affordable. That promise has to be funded somehow and the “how” of it seems to be rolling back the estate and gift tax exclusion amounts significantly. At […]
The amounts below are the estate tax exclusion amounts as provided by the IRS. Unless Congress takes action, in 2026, the exclusion amount will revert to the pre-2018 level ($5,490,000, adjusted for inflation) per deceased person. You can, however, use your exemption now. On November 26, 2019, the IRS clarified that individuals taking advantage of […]
In 2021, we blogged about a valuation case, Connelly v. U.S., 20 F. 4th 412 (8th Cir. 2023). We noted at the time that a Petition for a writ of certiorari was filed. On June 6, 2024, the U.S. Supreme Court decided the case, ruling for the United States. Justice Thomas, writing for a unanimous […]
Until recently, the IRS has said little (if anything) regarding whether assets the beneficiary of an irrevocable trust receives get a step up in basis following the Grantor’s death. With issuance of Revenue Ruling 2023-2, that has changed. The IRS has spoken. In RR 2023-2, the IRS posed the following hypothetical which I’ve edited slightly: […]
The following is a mishmash of information on various Elder Law, Special Needs Law, and Estate Planning issues. It also includes anything else we found interesting during the month of June, 2023. We will continue updating from time to time throughout the month. Last updated 6/8/2023. Keep in mind, you are using linked content at […]
Many families get this issue confused, but it’s serious business for the IRS. In Cardiovascular Center, LLC v. Commissioner of Internal Revenue (U.S. Tax Court 5-18-2023), Dr. Frank Kresock operated a medical practice in Arizona. He paid four workers, plus the person he lived with, as independent contractor’s, giving them biweekly cashier’s checks. However, all […]
We regularly post links to news articles and other resources related to Elder Law and Special Needs Law. We focus on general news, health and healthcare news, special needs news, events, government sources, financial and retirement news and legal news. Some cited resources are for professionals, but most are news or other helpful articles we […]
We regularly post links to news articles and other resources related to Elder Law and Special Needs Law. We focus on general news, health and healthcare news, special needs news, events, government sources, financial and retirement news and legal news. Some cited resources are for professionals, but most are news or other helpful articles we […]
