estate and business ? please

[WITAXLADY]

when a business continues to operate after the death of the business owner - children are operating - and it is nside the trust... under a LLC/EIN,

and it shows a loss...

Can the K-1 be issued for the year so the losses can be distributed to the heirs that are running it?

does that make sense? They want to use it on their current year taxes or use the NOL to CB for the last 2 years now...

[Lion EA]

I think the losses stay in the estate or trust until the final year, but I'm not sure. Just saying, you'll want to research if your clients are anxious to use the loss. Also, do trusts follow the new rules about no CB, just carry forward? Not any help, I know, but I move it back to the top for you!

[WITAXLADY]

the new Taxpro Journal had a great article about Trusts  - understandable! and there it is a choice - now I have to find out about Estates..

Thank you

[michaelmars]

Can you share this article.   I was just researching a similar situation.

[Lion EA]

https://www.natptax.com/Publications/TaxProJournal/TAXPRO Journal Archives/Volume 27 - Issue 1.pdf

 

[WITAXLADY]

super - thx for sharing that - now please someone let me know about the estate - WI follows the fed - I found that out- I am going to ask NATP - see what they have to say..

I tried the online  and then they charge,

Last time I tried a charge place - they charged and were wrong...

[DANRVAN]

The rule is the same for estates and trusts.  The beni's are not allowed the deduction until the final year of the trust or estate.  Then it goes into the big bucket of "Excess deductions on termination of an estate or trust", which could have been deductible in the past only as a 2% misc itemized deduction...so under current tax code no deduction what so ever.

See Reg § 1.642(h)-2. for details.

[Lion EA]

NATP gives one free question to members. They charge for future questions in the same year. Make sure you ask for cites.

If you subscribe to David & Mary Mellem's e-newsletter at [email protected] you can get answers with cites at a very reasonable fee, maybe about $15 for a quarter hour:

David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (920-496-9111).

We do not sell, give, or in any way share email addresses with anyone. If someone else would like to be added to our list, have them send us an email to that effect or use the word SUBSCRIBE in the subject line.

[michaelmars]

i can't get to that page even with registering, can you post the article?

[Lion EA]

The Mellems? I know they have different email addresses, so let me check and get back here.

[Lion EA]

Here's their website link:

http://ataxprof.com/

Click on Tax Pro Newsletters to get a long list of recent e-newsletters. And, try this email address:

[email protected]

Put SUBSCRIBE in the subject. They're a small outfit, so I don't know how often they'll add to their list during tax season. But, they do answer questions promptly. They bill monthly, but not during tax season. If you ask a question now, you'll probably receive an invoice 1 May. They take checks only.

Both Mary & David Mellem are great people, tax preparers, and speakers. The NY/CT-ATP frequently uses them for our all-day October Seminar.

[Lion EA]

The TaxProJournal article? Maybe have to be a subscriber. Let me see if I can post the full article.

[Abby Normal]

1 hour ago, Lion EA said:

Both Mary & David Mellem are great people, tax preparers, and speakers

I like David as a presenter but I do not like Mary. I stopped going to some seminars because she was frequently a speaker.

[Lion EA]

Mary is better at some topics than others! I like David better of the two, but I do like their banter when they present together.

We've had some health scares from other speakers, as well as transportation issues (think flights during snowstorms), so we've been booking more duos as insurance. We hope that not both get sick or not both are flying from the same airport due to their different speaking schedules.

[Max W]

I have seen a few businesses (Sch C) recently that are being held in trust for the express reason of avoiding SE taxes.

[michaelmars]

I have one where the taxpayer didn't close out the estate because he wanted to qualify for student aid and didn't want to show the assets or income on his personal return.