"kastnna" <kastnna[at]auburnalum.org> wrote
- quote -



Client was refinancing a loan. Banker called and requested copy of 2006
return (07 wasn't done back then). After getting the AOK from the client,
we faxed a copy to the bank. Banker called and accused us of not sending
all the pages. Seems they were looking for the Schedule B because of the $8
of interest income reported on Line 8a. Explained to banker that a Schedule
B was not necessary for $8 of interest income. Banker said they needed a
letter to that effect before they could close the loan. We wrote the
letter, and sent the bank a bill for $120 for education and training.



It's no wonder there's a mortgage crisis.






--
Paul A. Thomas, CPA
Athens, Georgia

--
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Tom Russ <tar[at]isi.edu> wrote:
- quote -

Personally I wouldn't bank on it.

Stu

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

On Mar 17, 11:29*am, kastnna <kast...[at]auburnalum.org> wrote:

- quote -

If you can't trust a Trust officer, then who can you trust? ;-)

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"kastnna" <kastnna[at]auburnalum.org> wrote in message
news:feccee95-94c2-4740-af90-f8cfb33fb8a3[at]t54g2000hsg.googlegroups.com...
- quote -

Bankers are always right. Ask Bear Stearns! ;-)

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On Mar 14, 12:25*am, phish <shipleyshap...[at]googlemail.com> wrote:

- quote -

Phish, I warned you about talking to bankers <grin> . The gentlemen
that have posted here are all giving the same advice, and I concur.

Please, please, please see a professional and stop talking to the
bank. Even their senior trust officers are, seemingly, incompetent.

Good luck.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

This is one of the times you really need to talk with a CPA with tax
experience. When you inherit an IRA, the rules and issues can be
confusing for the best of us. I can only tell you how it was
explained
to me. I was name as a beneficiary of my mother's IRA. In my case:

1) The IRA was considered part of my mother's estate for tax purposes.
The taxes due was determined by filing an estate return.

2) If you are a beneficiary of the IRA, your are entitled to a
miscellaneous deduction for the amount of taxes paid on the IRA. The
amount of taxes paid on the IRA is the difference of the actual
taxes
paid by the estate and the amount of taxes that would have been paid
if the IRA was excluded from the estate. The executor should be able
to supply this information. If he/she is unable to do this then ask
for a copy of the estate return and take it to a tax CPA to
determine
the deduction you are entitled to. The misc deduction (which is not
subject to the 2% rule) that you can claim on your tax return is
based
on the distribution you take from the IRA each year.

I STRONGLY suggest you talk with a tax specialist. If you do not
follow the rules regarding distributions, the tax penalties can be
severe. A second option is to forgot about the deduction all
together.
The IRS always likes getting extra taxes.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

DF2 <replyvia[at]newsgroup_please.com> wrote:
- quote -

An IRA shouldn't have a POD or TOD beneficiary. It just has a
beneficiary. As long as the beneficiary is not the estate, it's not
part of the estate for probate purposes. But it is certainly part of
the estate for estate tax purposes.

Stu

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In misc.taxes.moderated, joetaxpayer wrote:

- quote -

I suspect the banker might have said that IRA with a POD/TOD
beneficiary was not part of the estate if he meant (or maybe even
said) for purposes of probate.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

phish wrote:

- quote -

My article first provided background info, and then linked to
http://www.nysscpa.org/cpajournal/20...es/f93400a.htm
which I just viewed and confirmed to be a valid link.

You are very confused or your banker is, or both.
Not part of your estate? I don't know what that means. Someone passed
on, this dialog is about their estate. Bankers (well, everyone, really)
shouldn't speak with authority on subjects with which they are so ignorant.
I know enough to tell you that the topic of concern to you is "Income in
respect of a decedent" and this portion of the tax code may mean you do
not have to claim all the IRA withdrawals without benefit of some credit.
The banker said "if the beneficiary of the IRA on the nomination form
was a person, then there would be no estate tax on it." That's as wrong
as wrong can be. If it were so, it would create quite the loophole for
estate planning. You should get that in writing from him, he'll likely
not remember even saying it.

See the link, and contact a professional.
JOE
www.blog.joetaxpayer.com

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"DF2" <replyvia[at]newsgroup_please.com> wrote in message
news:bhogt3tsemrf9mvd9a53kneda1st4hlo3c[at]4ax.com...
- quote -

True, but that wasn't part of the question.

--
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phish <shipleyshapely[at]googlemail.com> wrote:
- quote -

Bankers generally don't have a clue about taxes. Your banker is
wrong. The value of an IRA is included in the taxable estate for
estate tax purposes.

- quote -

Ok, the problem is that, not only is the IRA subject to estate tax,
but it is also subject to income tax. So in a larger estate once you
pay estate tax and income tax on it, there may not be much left.

But you can ease the burden a little bit, because you can deduct the
estate tax paid when you calculate the income tax.


- quote -

The banker is simply wrong. He is probably confusing estate tax and
income tax. If the estate is the beneficiary then there is income in
respect of a decedent. But if someone else is the beneficiary, then
the tax on the income, along with the income, goes to the
beneficiary.

But it is always included in the decedent's estate for estate tax
purposes.

Stu

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

On Mar 12, 11:13*pm, joetaxpayer <joetaxpa...[at]nospam.com> wrote:
- quote -

Right, I am COMPLETELY confused now, I called up my bank today and the
guy (Assistant Vice President Trust Officer) said no!
Why the difference in answers? (I am sorry, I am having trouble
accessing your site at the moment, if it says it there)
Hmm, I am terribly confused, as for being able to recover tax upon
withdrawal if estate tax was paid, I am rather lost about that too.. I
have inherited an IRA (and *if* estate tax was paid on it), I am
*certainly* not getting any tax recovered upon withdrawal, which I pay
the normal amount of taxes on.... I obviously asked the Executor of
the estate whether estate tax was paid on it and she said yes,
however, I am unclear of the exact value of the estate to make sure
that the sums required would all add up (as I am unclear of other
debts etc that had to have been paid) ,and I am unclear if I should
believe this executor over a bank, however, I could be wrong. Why did
the bank man tell me "no" then? He seemed quite sure of his answer
that if the beneficiary of the IRA was the estate, then there would be
estate tax, however, he said if the beneficiary of the IRA on the
nomination form was a person, then there would be no estate tax on
it. He clearly stated that it was not considered part of my estate
unless I named the estate beneficiary. Could anyone clear this up
please?

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

In misc.taxes.moderated, D. Stussy wrote:

- quote -

Then person inheriting a conventional IRA if there was estate tax
will want to read up on "Income in Respect of a Decedent" I think.

http://www.google.com/search?hl=en&q...ra&btnG=Search

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

D. Stussy wrote:

- quote -

But you need to read up on "income in respect of a decedent", which I
wrote about on my site after this question was asked last time.
http://www.blog.joetaxpayer.com/archives/55

The bottom line is that estate tax paid on the IRA can be recovered upon
withdrawal. Otherwise, a $1M IRA would have $500K (or so) estate tax,
then the $500K can get taxed at 35% ordinary income. On my site I
include a link to a CPA Journal article with more details.

Joe

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

"phish" <shipleyshapely[at]googlemail.com> wrote in message
news:50563669-78d8-47a8-90d3-ff28c3b79363[at]e23g2000prf.googlegroups.com...
- quote -

Yes.

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Is the value of an IRA (traditional retirement account) included when
calculating estate tax?

I think this is a straight forward question but if anyone needs more
information please ask me what additional information is needed and I
will include it.

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >