Recent content by FBN2007

What is the name of your state (only U.S. law)? MA I am trustee of a family trust that holds title to a single family home. My brother and I are beneficiaries of the trust. My brother lives there with his girlfriend. The house is insured with a standard home owner policy with the insured being...

What is the name of your state (only U.S. law)? MD What are the differences of a simple vs complex trust?

What is the name of your state (only U.S. law)? An inherited IRA names a trust as beneficiary that splits into 2 sub trusts for the 2 individuals who are the trust beneficiaries. The trust qualifies as pass through with RMD being reset to age of oldest beneficiary. Trustee desires to set up...

What is the name of your state (only U.S. law)? A brokerage account was originally titled in a revocable living trust using the grantor's social security number. The grantor died in Sept. 2013 and the revocable living trust became a testamentary family trust. A final 1040 was filed for 2013...

What is the name of your state (only U.S. law)? MD On 1098-T, line 2 lists tuition billed and line 5 lists scholarship amount. When line 5 is subtracted from line 2, is that the amount that is used to figure out the tuition and fees deduction (line 34 on the 1040) using form 8917?

What is the name of your state (only U.S. law)? SC A grad student has a scholarship and a graduate assistant stipend. He received a W2 for the stipend but no federal or state tax was withheld and no FICA taxes were withheld. Should taxes have been withheld? Is this income subject to FICA...

What is the name of your state (only U.S. law)? NC My wife and I are buying a new home. The lot is in a development and the builder is a custom builder who has built 8 other homes in this development. He told us that we will need to get the construction financing to build the house. My initial...

What is the name of your state (only U.S. law)? MD IRA owner died in Sept 2013 but the the RMD was made in Dec. 2013. Does the income get reported on the final 1040 or does it have to get reported on the 1041? The check was made out payable to the decedent. Should it have been payable to the...

What is the name of your state (only U.S. law)? MA Is it required to file form 712 along with a gift tax return for a decedent that was making gifts over the gift exemption amount to an irrevocable trust to pay premiums on an insurance policy where the decedent was the insured?

What is the name of your state (only U.S. law)? MD How does the trust's trustee report distributions to beneficiaries of a trust? My understanding is that the trustee must send each beneficiary a K-1 that shows their share of the distribution and they attach the K-1 to their individual return...

What is the name of your state (only U.S. law)? MD My daughter lived and worked in Maryland until July 2013. She relocated to South Carolina and has worked there since August 2013. Does she need to file both in Maryland and SC. If so, does one of the states credit her with the state taxes she...

What is the name of your state (only U.S. law)? MD A revocable trust splits into a marital trust and a family trust at the settlor's death (making it irrevocable as I understand it). When applying for an EIN for the trust on the IRS website, the following choices of the type of trust has to be...

What is the name of your state (only U.S. law)? MD Do banks and other financial institutions provide copies of 1099s only to the IRS or to the states also?

What is the name of your state (only U.S. law)? MA When a trust is worded that a separate trust be created for different shares for beneficiaries, is it necessary to obtain separate tax ids for each share or can the trustee just keep proper accounting of the various shares and allocate...

What is the name of your state (only U.S. law)? MA What reporting requirements do financial institutions have to the IRS and state when an account holder dies and an account is closed? Do they report the size of the account or just the income generated on a 1099?