1041 - Income or Not..??

[MAJ]

In an Estate - would the following be considered Income or part of the sale of the home?
Not very versed in the Estate Game.

Title Company overpayment ($3,627.75)
Escrow Overpayment $441.72 --

A quick response would really be AWESOME - I've had a rotten week!!

Thanks again.

[taxea]

If this is above your ability you should refer it to a professional with experience in trusts

[TAXNJ]

In an Estate - would the following be considered Income or part of the sale of the home?
Not very versed in the Estate Game.

Title Company overpayment ($3,627.75)
Escrow Overpayment $441.72 --

A quick response would really be AWESOME - I've had a rotten week!!

Thanks again.

How did you get this type of tax return issue when you state "Not very versed in the Estate Game." and "A quick response would really be AWESOME - I've had a rotten week!!" If you got a "quick response" what do you do next? As you know, you are responsible for addressing the issue not a reply poster giving a "quick response" which may or may not be correct because you have more facts than a reply poster.

As a start, use your TTB and ref Tab 21. Good luck to you and the client.

[MAJ]

WOW... Thanks for your advice - Support Guidance & Help..

For the record - I was trying to help out a friend. But - we see where that went. It seemed like a simple Estate. I offered to assist.

But, NOW, I will add my comment.

Silly me - Here I thought this EXACT Message Board was for Just that - Helping Each Other.
responses like - How did you get this? If you don't know what your doing ask a professional. They are argumentative and lack response.

With responses like that I wonder if many people don't post in fear of ridicule.
But then again, maybe some people like feeling superior to others by putting someone with less knowledge of an issue, down.

I for one can do without the BS. I'm not 15. Some guidance or suggestions I would offer - But basically put someone down they don't know?
>I < would never do such a thing. I didn't think the question was that complicated.

Thank you for condemning/corrupting my optimistic view of people. Geez.. I thought I liked visiting..
To comment is one thing, but to comment without actually offering any response/guidance, Priceless.
Not to mention a waste of storage space & reading (my current post included).

Thank you.

Disclaimer for TAXNJ - I exclude (most) of that from you. You at least offered the Tab 21 reference (Thank you for that, at least).

[DonB]

I would treat refunds the same, being in an estate or not in an estate. If the amount refunded was previously used as a deduction (or came from a deductible item), it is taxable (or reduces the taxable item amount); otherwise not taxable. IMO

[MAJ]

That's what I thought..

I appreciate the response!

[TAXNJ]

The reason for the "How did....." question is noted in the reply post. But more important is that if the suggestion to start with referencing TTTB Tab 21 helped that would be as you would say really totally AWESOME. Again, good luck to the client, your friend and you in getting the result.

[Burke]

In an Estate - would the following be considered Income or part of the sale of the home?
Not very versed in the Estate Game.

Title Company overpayment ($3,627.75)
Escrow Overpayment $441.72 --
Thanks again.

Assuming you are completing only the 1041, and the sale of the home was done by the estate and not the heirs to whom it may have passed, the title company refund would be adjusted against the calculation of expenses of that sale. Hopefully you are doing this all in the same estate year, whether calendar or fiscal. So your gain would be increased, or your loss would be reduced. The Escrow overpayment is simply an accounting item of income, and does not appear as taxable income on 1041 (assuming you did not include any of those deductions when figuring the gain/loss on the sale of the home, which you should not have.) DonB's post is correct.

If you are doing the accounting for the court, both would be shown as income items, since that report is a straight money-in-money-out document, not a tax return.

[Snaggletooth]

Wade through it all

Silly me - Here I thought this EXACT Message Board was for Just that - Helping Each Other.
responses like - How did you get this? If you don't know what your doing ask a professional. They are argumentative and lack response. I for one can do without the BS. I'm not 15.

Matthew, many of us know what you're talking about, and I have expressed frustration before. In fact, I have been accused of being a "policeman" to keep people from useless posts, and from that point of view I guess they're right. There are a handful of folks on this message board who will argue with anyone, and others who never offer anything helpful or constructive.

In particular, one guy answers almost every thread - and never gives a straight answer to a query. I have him blocked because my blood would boil when reading "Have you tried reading the instructions" or "consult with local professional groups". I can't think of a single "straight talking" answer he has ever given. Ever. Ever. It may be a personal weakness I have - not able to tolerate this guy, but I have had him blocked for the last six months.

Sample question: "Where should I report income from a 1099-OID?"
Answer 1: There is an IRS publication dealing with OID. Have you not read it?
Answer 2: Have you talked to the bond issuer?
Answer 3: If you received an original copy of a 1099-OID, the instructions should be on the back.
Answer 4: Are you sure it is resulting in income?
Answer 5: I have seen 1099-OID forms before.
Answer 6: OID stands for Original Issue Discount.

I could go on and on with these types of answers, and they all have one thing in common: None of them answer the original question.

A relevant answer would be: "Report OID amounts on Schedule B along with other interest income."

Matt - what most of us end up doing is wading through responses and hopefully someone will be gracious enough to give you a straight answer. Don't let a few of us stop you from using the message board.

[Burke]

In particular, one guy answers almost every thread - and never gives a straight answer to a query. I have him blocked because my blood would boil when reading "Have you tried reading the instructions" or "consult with local professional groups". ............but I have had him blocked for the last six months.

How did you do that? I may wish to use it myself.....

[Snaggletooth]

Easy to Block

Burke, simply find the guy [lady]'s name underlined. Click on it and it will open up the "profile". Navigate into the profile and you will see the option to "ignore". Select "ignore" and the job is done.

[Burke]

Thanks. Does that mean that individual responses posted by the offender within a thread will not show up, as well as any original posts?