InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Annual Reunion Speaking Schedule Store Foreclosure Fundamentals Code References 50 State Foreclosure Basics Foreclosure Glossary Foreclosure Statistics 70+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map About Us Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Yes we pay taxes. Posted by JK (the other JK) on November 21, 2009 at 10:06 AM In Reply to: Re: Yes we pay taxes. posted by hard money lender on November 20, 2009 at 11:31 PM : hi jk, : an irrevocable trust will have its own tax id number. it has a separate tax return. : and it generates k-1's for its beneficiaries. : most tht's are revocable trusts - such that i would not think they would carry their own tax id numbers. : i am curious - could you give us a little more detail as to how the tax situation is handled ? Probably too detailed for a public chat board, but every property I buy in a trust is set up as an IRREVOCABLE THT. Therefore, it does have it's own tax ID number, does file it's own tax return, but the profit or loss flows through to the beneficiaries via a 1099 generated from a K-1 partnership return. Technically, a K-1 is not what is supposed to be used, but from everyone I've talked to (I have a VERY good accountant) Uncle Sam is OK with it along as he's getting his cheese. Follow Ups: Re: Yes we pay taxes. hard money lender 4:53 PM, 11/21/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : hi jk, : : an irrevocable trust will have its own tax id number. it has a separate tax return. : : and it generates k-1's for its beneficiaries. : : most tht's are revocable trusts - such that i would not think they would carry their own tax id numbers. : : i am curious - could you give us a little more detail as to how the tax situation is handled ? : Probably too detailed for a public chat board, but every property I buy in a trust is set up as an IRREVOCABLE THT. Therefore, it does have it's own tax ID number, does file it's own tax return, but the profit or loss flows through to the beneficiaries via a 1099 generated from a K-1 partnership return. Technically, a K-1 is not what is supposed to be used, but from everyone I've talked to (I have a VERY good accountant) Uncle Sam is OK with it along as he's getting his cheese. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-date("Y"), InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455