Tag: Federal Articles
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Depreciation
Depreciation means: an accounting technique in which the cost of an asset is allocated over its useful life. A deduction to reflect the gradual loss of value of business property as it wears out. Former IRC (check if this IRC provision is current here) §167. See Accelerated Cost Recovery […]
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Form 1041
Form 1041 The term “fiduciary” applies to a person(s) who occupies a position of special confidence toward another, who holds in trust property in which another person has the beneficial title or interest, or who receives and controls the income of another. Thus, trustees and executors are considered fiduciaries. A fiduciary must file a return…
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Unrecaptured Section 1250 Gain
Unrecaptured Section 1250 Gain When a depreciable asset is sold, the depreciation that has been allowed or allowable may be subject to recapture. When depreciation is recaptured, some or all of the taxable gain from the sale is taxed at ordinary income tax rates instead of the more favorable capital gain rates. For depreciable real…
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Beneficial Ownership
Equitable or Beneficial Ownership Overview This concept extends to taxable entities as well as individuals. This article will begin with individuals and their ownership of a residence. A personal residence will be used and if the mortgage interest and property taxes are deductible thereon. A taxpayer may generally deduct interest paid or accrued (depending upon…
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Charitable Remainder Trust
Charitable Remainder Trust Charitable Remainder Trust Accumulation and Distributions Schedules Character of Distributions in the Charitable Remainder Trust Accumulation and Distributions Schedules (Regulations Section 1.664-1, February 23, 2005 and Form 5227 instructions revised as of 12/20/2004) The income (both current and cumulative undistributed income) of a charitable remainder trust for purposes of determining the character…