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Posted by pattyjamas on January 14, 2008, 5:51 pm
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On Jan 11, 9:29 pm, pattyja...@hotmail.com wrote:
> I read the below which was quite informative but I still could use
> some help.
>
> http://groups.google.com/group/misc.taxes.moderated/msg/0575dfe042949d73
>
> CPA she used is of little help so trying to find a new one. Tax
> Lawyer, had to get rid of him since he was churning up money by
> desiring endless and repetitive conference calls with no work being
> done and most of it being put on me.
>
> Here we go......
>
> Both parents had Revocable Trusts
> Father died about 8 years ago.
> Mother died 2 weeks ago unfortunately at end of 2007.
> There is no house or furniture or jewelry or real property of such.
> Trust and will are simple.
> All of her assets in the trust were put into cash the first week of
> 2008.
> We will file 1040 and 1041 tax returns.
>
> ***Here is where I need help (see **)
>
> 1. I need to create a tax ID for the Trust.
> When I use the Online application from the IRS it asks for the Grantor
> (my mother) and asks for Trustee (me) and asks if trust is revocable
> or irrevocable.
>
> 2. Well trust was Revocable but I realize when someone dies the trust
> becomes Irrevocable.
> **Which box should I check?????
>
> It asks about section 645 election-not sure I should check it or not.
> We intend to have the estate pay any taxes, year end will be 12/31/07
> and then that should be that.
>
> Thanks for any help. I appreciate it much
>
> Sincerely
> Patty
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, >>
> << nor can it used, for the purpose of avoiding penalties >>
> << that may be imposed upon the taxpayer. >>
> << >>
> << The Charter and the Guidelines for submitting posts >>
> << to this newsgroup as well as our anti-spamming policy >>
> << are atwww.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>
Got the answers.
If it is a revocable trust and prior parent died and now you have no
parents, then you will select Irrevocable when setting up your EIN.
Also select TRUST and not ESTATE.
No need to check box for Section 645
Grantor in this case is your mother.
When it asks toward end of form county and State, you put the county
and state that your mother lived in-not yours.
Make sure when it asks for accounting month you usually would put in
the month and year of death or December and year of death.
Do not forget to file a form 56 with the IRS and include a copy of the
will or trust naming you as executor or as trustee.
Get a CPA to help with 1040 and 1041. Use an estate lawyer as
necessary but the more you do yourself, the less expensive it will be
for that person's services.
You may need to file 2 1040's but ask your accountant. Depends if
there are gains/losses. and when person died versus end of year.
Patty
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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