We are closing in on purchasing our 1st rental property and wanted to know what business entity we should form if any and if not right now what threshold should we form a business entity at
A properly formed and operated Limited Liability Company is best in my opinion. The problem is that some banks won't lend to such LLCs or will have additional hoops to jump through. Have an attorney assist you with setting up the LLC.See question
I'm the trustee of a trust my mom set up when she passed away January 2016. I noticed how high the income taxes are for the trust and we want to avoid that. I haven't found anyone CPA or lawyer that can help us yet. We live in the Tampa, FL are...
There are a few options to consider, including distributions of income, investing for growth rather than income, and investing in municipal bonds. You will need to find a tax attorney of CPA knowledgeable and experienced in fiduciary income taxation.See question
As the trustee of a trust with an IRA in it, I want to try to avoid the heavy tax rate and pass directly to the beneficiaries. I'm in need of how to do this.
The IRA distributions received by the trust will need to be distributed to the beneficiaries in the same year (or 65 days after the close of the year). The trust will then be entitled to a deduction for the amount of the distributions, and the beneficiaries will report what they receive on their personal returns. A knowledgeable tax attorney of CPA can assist you, and should be used to prepare the tax return for the trust.See question
I have a will with trust provisions with my mother as trustee for my minor son. I have a life insurance policy in effect that I need to change the beneficiary on (my mother is currently the beneficiary) so that it goes into a trust for the benefi...
The simplest way to accomplish this is to have a will prepared that contains a testamentary trust for your son. Then the beneficiary for the insurance would be something like "Trustee under the Will of Jane Doe." After your death, the trustee will get a tax id number and open a bank and/or investment account. If are concerned about avoiding estate taxes (estates over $5.49 million), you will need to set up an irrevocable trust. Either way, I recommend that you meet with an estate planning attorney.See question
My great grandparents passed away and left my family and I a small inheritance. They lived in Colorado and that is where the inheritance was distributed from. Now the inheritance I recieved is under $16,000 so far. But I live in Florida and im a l...
No. Colorado law applies in this case, but Colorado does have have an inheritance or estate tax. Neither does Florida.See question
I am getting pressured and coerced by siblings.
You indicate that you are trustee of your mother's estate, but trustee serve under a trust document. So it's not clear if you are personal representative of the estate, or trustee of a trust. Your responsibilities differ depending on whether it's an estate or trust, and if a trust, the provisions of the trust as to notice to beneficiaries. My best advice would be to consult with an attorney.See question
Hi, if I pay taxes for 2017, then sell a piece of land in NY - does the new owner have to pay taxes again for 2017 or no? What if I sell the land BEFORE paying taxes? Thank you for the help, best
Property taxes are paid in arrears, so that 2017 taxes are due the end of the year or early January. If you pay before selling the buyer will not have to pay again, and you should get a pro-rata credit at closing for the remainder of the year. If you sell before paying the taxes, there will be a pro-rata deduction against the sales proceeds.See question
I am a beneficiary of the estate and need to contact the decedent bank to obtain trust documentation. They will not communicate with me even though I am the beneficiary, which is confirmed by the court.
You state that you are a beneficiary of the estate and want to obtain trust documentation. So it sounds as though the decedent had a trust in addition to a will. If so, a trustee should have been named in the trust agreement. I recommend consulting with an attorney to determine how to proceed.See question
My wife and I own rental property under an LLc and in Florida there is charging order protection for multimember LLC's but not single members.Will court treat a married couple as multimember or single member LLC?
Assuming all the formalities of the LLC are respected, including an operating agreement designating husband and wife as members, it should be treated as multi-member.See question
On the internet they state these common law trust aka pure trust or Natural Law trust are legal and that there is no income taxes on the money that is earned in the trust have to be paid to the irs. They also state that no yearly tax filing is r...
Such trusts are shams and the only thing they will do is get you is penalties by the IRS and maybe even jail.See question