You are the trustee for the Steadman Trust. The trust has $50,000 of interest income, all of which it plans to distribute to its beneficiaries in the current year. The trust also has $14,000 in net capital losses for the year that are allocated to corpus. The trust distributes some investment land to one of its beneficiaries. The land was acquired eight years ago and has an adjusted basis of $40,000 and a fair market value of $55,000. The beneficiary plans to sell the land.
·What would be the impact on the trust and the beneficiary if an election is made to recognize gain on the land?
·What is the impact on the trust and the beneficiary if the election is not made?
·What you do recommend?
1. If the trust recognizes the gain on the land, it can absorb the capital losses sustained during the year.
2. If the election is not made, the trust will have a loss carry-forward to offset future capital gains. No current tax effect to the trust.
3. Depending on the income situation of the beneficiary, it could ...
The question asks for a discussion about which entity should report a land sale: the trust or the beneficiary. The response lists six ideas about the transaction followed by a tentative conclusion based on limited information.
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One of the great challenges of catching money launderers today is the global nature of the crimes. For example, international money service bureaus can appear legitimate but are often fronts for those who need money laundering. Sophisticated international networks have been established such as Hawala that fall outside easily traceable transactions. Discuss how money service bureaus and Hawala can be involved in money laundering. Do they serve any legitimate purpose? How do we know when they've crossed the line to illegal activity?
How does the current national and international strategy by regulators and other international organizations help track global money laundering? Which of the states and international regulators are involved? Do you think that enough is being done to coordinate and catch money launderers? What other technology and methods do global money launderers use besides money service bureaus and Hawala?
What sort of electronic surveillance and reporting tools would be helpful to banks and corporations to meet regulatory requirements?View Full Posting Details