The Tax Questions Blog

Posts Tagged ‘taxable events’

Question: Transferring custodial accounts?

I would like to transfer my 2 kids custodial bank accounts from a bank to their custodial brokerage accounts. The bank will only let me transfer the money to my personal checking account then I will need to write a personal check and deposit it into their brokerage accounts. Will this cause a taxable event because of the “Uniform Gift to Minors Act”; the amounts will be over $15k each?
Note: Bank will ONLY allow transfer to my personal checking, they rejected a direct transfer.

Answer: Have the brokerage account managers arrange the transfer directly into the brokerage account.

To amend the Internal Revenue Code of 1986 to impose a flat tax only on individual taxable earned income and business taxable income, and for other purposes. $10.16 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover...

To amend the Internal Revenue Code of 1986 to exclude from unrelated business taxable income the gain or loss on the sale or exchange of certain brownfield sites, and for other purposes. $9.39 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover...

Is division of an IRA a taxable event?(individual retirement account, Cohen v. Commissioner): An article from: Journal of Accountancy $5.95 This digital document is an article from Journal of Accountancy, published by American Institute of CPA's on February 1, 2005. The length of the article is 542 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation Det...

• Despite poor economy, downtown investment reaches $9 million

By Emily Ford eford@salisburypost.com Not only can Stephanie Potter advise you on pairing wine with food, she can tell you what beer to drink with grilled salmon and corn on the cob. Founderâs Old Curmudgeon. She knows this because she tested the ...

D-Day : The Normandy Landings HD

Question: An attorney told me that being put on a deed as joint tennant is not a taxable event.?

IF someone puts you on title as a Joint Tennant with rights of survivorship, can it not be a gift. Subject to gift tax?
And is survivorship and the assuption of the whole tennancy (ownership) taxable, or is estate tax avoidable??

Answer: That depends on who is being put on the deed, what the value of the property is and other factors.

First if a spouse puts his/her spouse on the deed then it is a fully exempt transfer for Gift Tax Purposes and there will be no tax.

Second the IRS allows each person a lifetime exemption for Gift Tax Purposes of 1 million dollars. Thus if the person who is now owner of the property never made a gift in his/her life before, and the property being transfered is less than $1million in value, then there will also not be a tax. However, if the transfer is of greater value than $12,000 (the annual gift tax exemption) then a Gift Tax Return must be prepared by your accountant or attorney to report the transfer (so the IRS can track how much of the $1million lifetime exemption you have used).

Also, depending on your jurisdiction you will possibly have to pay a transfer tax (my area has a 1% local and 1% county tax). There also are exemptions for this tax as well (most family transfers are exempt from transfer tax). However, these are local rules and each state is different.

As for the estate tax, there is currently a $2million estate tax exemption at the Federal Level (which climbs to 3.5 million by 2009, is unlimited in 2010, and drops back to 1million in 2011(assuming congress doesn't revise)). Thus if the entire amount of assets being transfered is under the exemption there will not be any tax here either. Thus, it depends.

These are fairly comples tax issues which you should consult a professional in your state for answers to. Please don't try and do this type of transfer yourself. I hope this helps.

To amend the Internal Revenue Code of 1986 to impose a flat tax only on individual taxable earned income and business taxable income, and for other purposes. $10.16 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover...

To amend the Internal Revenue Code of 1986 to exclude from unrelated business taxable income the gain or loss on the sale or exchange of certain brownfield sites, and for other purposes. $9.39 The BiblioGov Project is an effort to expand awareness of the public documents and records of the U.S. Government via print publications. In broadening the public understanding of government and its work, an enlightened democracy can grow and prosper. Ranging from historic Congressional Bills to the most recent Budget of the United States Government, the BiblioGov Project spans a wealth of gover...

Is division of an IRA a taxable event?(individual retirement account, Cohen v. Commissioner): An article from: Journal of Accountancy $5.95 This digital document is an article from Journal of Accountancy, published by American Institute of CPA's on February 1, 2005. The length of the article is 542 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation Det...

Rish dishes on Chili at Rotary Club

No descr No descr   Diane Rish, 2008 Rotary Ambassadorial Scholar to Chile from District 5510, enthralled the Rotary Club of Sierra Vista during the noon meeting on Dec. 28, 2009, with her descriptions of her activities in Chile and her accompanying PowerPoint presentation. read more

Roskam: Death should not be a taxable event