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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: A Tax question for the tax season Posted by Ryan Lowe on April 07, 2008 at 10:34 AM In Reply to: A Tax question for the tax season posted by David H. on March 28, 2008 at 3:45 PM DOES ANYONE ELSE HAVE ANY INFO ON THIS SITUATION, I AM THE OTHER PARTNER AND WOULD LIKE TO KNOW. THANKS, RYAN Ward, : A friend and I bought a condo at the trustee sale last Feb. We put the condo in a THT called the Lakeside Trust. Once we had a buyer and opened escrow we then deeded the Condo into a Partnership called Lakedside Partnership, consisting of Lakeside Trust and Everblu Trust. We have an EIN# for the Partnership and each of the trusts that make up the partnership. After we closed escrow we got a 1099 for Lakeside Partnership reflecting the gross proceeds received through the sale. : Long story short, my partner and I are preparing our 2007 taxes right now and we're running into a slight snag with our CPA. : The way I understand it is that the Partnership will file a K-1 specifying where the money has gone or how the gross proceeds are paid out into each of the two general partners (Lakeside trust and Everblu trust). Each of the Trusts will then file a K-1 of their own specifying where the money has gone, which beneficiary received it. Each bene will then receive a 1099 from the trusts for the money they receive. : Here's the snag. Our CPA is telling us that if we had a gain then we would pass through the gains to the respective benes and the benes would report that on their personal 1040's. But since in this case we had a net loss, he told us that we have to keep the losses in the trust and that we can't take the losses against our other income in a passthrough sort of way. This doesn't sound right to me at all and that's why I'm posting this question. It doesn't make sense if we can't take write offs from this deal if we had a net loss. : Is ths CPA correct in this case or does he just not understand the THT and thinks this is some other kind of trust that is subject to different tax codes? If you can clarify this for us we would be very greatful!! : Thanks again for all your help Ward! : Take care, : David H Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : DOES ANYONE ELSE HAVE ANY INFO ON THIS SITUATION, I AM THE OTHER PARTNER AND WOULD LIKE TO KNOW. : THANKS, : RYAN : Ward, : : A friend and I bought a condo at the trustee sale last Feb. We put the condo in a THT called the Lakeside Trust. Once we had a buyer and opened escrow we then deeded the Condo into a Partnership called Lakedside Partnership, consisting of Lakeside Trust and Everblu Trust. We have an EIN# for the Partnership and each of the trusts that make up the partnership. After we closed escrow we got a 1099 for Lakeside Partnership reflecting the gross proceeds received through the sale. : : Long story short, my partner and I are preparing our 2007 taxes right now and we're running into a slight snag with our CPA. : : The way I understand it is that the Partnership will file a K-1 specifying where the money has gone or how the gross proceeds are paid out into each of the two general partners (Lakeside trust and Everblu trust). Each of the Trusts will then file a K-1 of their own specifying where the money has gone, which beneficiary received it. Each bene will then receive a 1099 from the trusts for the money they receive. : : Here's the snag. Our CPA is telling us that if we had a gain then we would pass through the gains to the respective benes and the benes would report that on their personal 1040's. But since in this case we had a net loss, he told us that we have to keep the losses in the trust and that we can't take the losses against our other income in a passthrough sort of way. This doesn't sound right to me at all and that's why I'm posting this question. It doesn't make sense if we can't take write offs from this deal if we had a net loss. : : Is ths CPA correct in this case or does he just not understand the THT and thinks this is some other kind of trust that is subject to different tax codes? If you can clarify this for us we would be very greatful!! : : Thanks again for all your help Ward! : : Take care, : : David H [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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