Input on Estate Tax Return Requested.
Bob Mason
Trustee of an estate settles a car loan with the Auto Finance Company. Turns in the auto and settle debts with an 18K payment. I am of the opinion that this is not cancelled debt. The trustee would like it reported as a deductible expense of the estate. Would this be an appropriate handling of this payment?
Best Regards,
Bob Mason, CPA
Coast Financial Services, Inc.
Coast Financial Services, Inc.
655 Capitola Rd, Suite 101
Santa Cruz, CA 95062
Fax: (831) 480-1803
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Avantax WM Holdings℠ is the holding company for the group of companies providing financial services under the Avantax® name. Securities offered through Avantax Investment Services℠, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services℠ and Avantax Planning PartnersSM. Insurance services offered through licensed agents of Avantax Insurance Agency℠, Avantax Insurance Services℠, and Avantax Planning Partners. AVANTAX INSURANCE AGENCY, LLC CA Insurance # 0C32143. AVANTAX INSURANCE SERVICES INC. CA Insurance # 0B42956.
Bob Mason
It would really be helpful to receive some input on my question. Bob
Lee Reams
On Jul 29, 2022, at 5:02 PM, Bob Mason <bo...@coastfinancialservices.com> wrote:
It would really be helpful to receive some input on my question. Bob
From: Bob Mason <bo...@coastfinancialservices.com>
Sent: Thursday, July 28, 2022 7:19 PM
To: 'clientwh...@googlegroups.com' <clientwh...@googlegroups.com>
Subject: Input on Estate Tax Return Requested.
Trustee of an estate settles a car loan with the Auto Finance Company. Turns in the auto and settle debts with an 18K payment. I am of the opinion that this is not cancelled debt. The trustee would like it reported as a deductible expense of the estate. Would this be an appropriate handling of this payment?
Best Regards,Bob Mason, CPACoast Financial Services, Inc.
655 Capitola Rd, Suite 101Santa Cruz, CA 95062
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NOTICE: This e-mail and any attachments are for the exclusive and confidential use of the individual(s) named as recipients and is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§ 2510-2521. If you received this in error, please do not read, distribute, or take action in reliance upon this message. Instead, please notify us immediately by return email and promptly delete this message and its attachments from your computer system. We do not waive CPA client or work product privilege by the transmission of this message.
Avantax WM Holdings℠ is the holding company for the group of companies providing financial services under the Avantax® name. Securities offered through Avantax Investment Services℠, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services℠ and Avantax Planning PartnersSM. Insurance services offered through licensed agents of Avantax Insurance Agency℠, Avantax Insurance Services℠, and Avantax Planning Partners. AVANTAX INSURANCE AGENCY, LLC CA Insurance # 0C32143. AVANTAX INSURANCE SERVICES INC. CA Insurance # 0B42956.
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Diana Skocypec
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Bob Mason
Thank you. I agree, but I am receiving pushback from the Trustee.
Best Regards,
Bob Mason, CPA
Coast Financial Services, Inc.
Coast Financial Services, Inc.
655 Capitola Rd, Suite 101
Santa Cruz, CA 95062
Fax: (831) 480-1803
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Bob Mason
I agree not cancelled debt so no income, also no deductible expense
Best Regards,
Bob Mason, CPA
Coast Financial Services, Inc.
Coast Financial Services, Inc.
655 Capitola Rd, Suite 101
Santa Cruz, CA 95062
From: clientwh...@googlegroups.com <clientwh...@googlegroups.com> On Behalf Of Lee Reams
Sent: Friday, July 29, 2022 5:30 PM
To: clientwh...@googlegroups.com
To view this discussion on the web visit https://groups.google.com/d/msgid/clientwhysconnect/2755D581-F144-4A42-B7B9-9C016CB80A20%40clientwhys.com.
Diana Skocypec
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Alma Guenther
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Bob Mason
The car was returned and an amount paid in complete settlement. In effect it was like the car was leased and retured.
Best Regards,
Bob Mason, CPA
Coast Financial Services, Inc.
Coast Financial Services, Inc.
655 Capitola Rd, Suite 101
Santa Cruz, CA 95062
Fax: (831) 480-1803
Use Canopy to securely upload files to us!
From: clientwh...@googlegroups.com <clientwh...@googlegroups.com> On Behalf Of Alma Guenther
Sent: Friday, July 29, 2022 6:23 PM
To: clientwh...@googlegroups.com
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Laura Beach
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Philip Storrer
My take on this as a Trust Administrator and also former preparer of many trust and estate returns is, I agree with Lee that this is not a cancellation of debt. Although I never had this particular issue, I agree with Diane that the vehicle was an asset and the funds (in addition to the value of the car returned were payment of this debt of the Trust (estate?). The Trust most likely stated that the Trustee was to pay all debts. Paying a debt is usually not an allowable expense. Just because the Trustee wants you to handle this as a deductible expense I suggest you don’t.Alma, In past years for cancellation of debt for a foreclosed home, my clients received a 1099 for the amount which was considered income and was included in their tax returns. (But I did not review Alma’s IRS reference)Hopefully my former professor, Phil Storrer will weigh in on this!
On Fri, Jul 29, 2022 at 5:03 PM Bob Mason <bo...@coastfinancialservices.com> wrote:
It would really be helpful to receive some input on my question. Bob
From: Bob Mason <bo...@coastfinancialservices.com>
Sent: Thursday, July 28, 2022 7:19 PM
To: 'clientwh...@googlegroups.com' <clientwh...@googlegroups.com>
Subject: Input on Estate Tax Return Requested.
Trustee of an estate settles a car loan with the Auto Finance Company. Turns in the auto and settle debts with an 18K payment. I am of the opinion that this is not cancelled debt. The trustee would like it reported as a deductible expense of the estate. Would this be an appropriate handling of this payment?
Best Regards,
Bob Mason, CPA
Coast Financial Services, Inc.
Coast Financial Services, Inc.
NOTICE: This e-mail and any attachments are for the exclusive and confidential use of the individual(s) named as recipients and is covered by the Electronic Communications Privacy Act, 18 U.S.C. §§ 2510-2521. If you received this in error, please do not read, distribute, or take action in reliance upon this message. Instead, please notify us immediately by return email and promptly delete this message and its attachments from your computer system. We do not waive CPA client or work product privilege by the transmission of this message.
Avantax WM Holdings℠ is the holding company for the group of companies providing financial services under the Avantax® name. Securities offered through Avantax Investment Services℠, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services℠ and Avantax Planning PartnersSM. Insurance services offered through licensed agents of Avantax Insurance Agency℠, Avantax Insurance Services℠, and Avantax Planning Partners. AVANTAX INSURANCE AGENCY, LLC CA Insurance # 0C32143. AVANTAX INSURANCE SERVICES INC. CA Insurance # 0B42956.
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Bob Mason
Thank you Phil, my thought is exactly what you express. Knowing what I don’t know I find that my confidence grows with this group input. Have a great weekend.
Best Regards,
Bob Mason, CPA
Coast Financial Services, Inc.
Coast Financial Services, Inc.
655 Capitola Rd, Suite 101
Santa Cruz, CA 95062
From: clientwh...@googlegroups.com <clientwh...@googlegroups.com> On Behalf Of Philip Storrer
Sent: Saturday, July 30, 2022 11:09 AM
To: clientwh...@googlegroups.com
Phil
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