Federal Taxation 2024 Individuals, 37e Franklin Solution Manual.pdf (66)

C:14-57 SCHEDULE (Form 1041)

D

Department of the Treasury Internal Revenue Service Name of estate or trust

Capital Gains and Losses

OMB No. 1545-0092

Attach to Form 1041, Form 5227, or Form 990-T. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9 and 10.

Go to www.irs.gov/F1041 for instructions and the latest information.

20 22

Employer identification number

Stan Meadows Trust

74-1212121

Did you dispose of any investment(s) in a qualified opportunity fund during the tax year?

If “Yes,” attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss.

Yes

✓

No

Note: Form 5227 filers need to complete only Parts I and II.

Part I

Short-Term Capital Gains and Losses—Generally Assets Held 1 Year or Less (see instructions)

See instructions for how to figure the amounts to enter on the lines below.

This form may be easier to complete if you round off cents to whole dollars.

(d) Proceeds (sales price)

(g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g)

(e) Cost (or other basis)

(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)

1aTotals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions).

However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b .

1bTotals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . .

2Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . . .

3Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . . . . . . . . .

4

Short-term capital gain or (loss) from Forms 4684, 6252, 6781, and 8824 .

5 6

Net short-term gain or (loss) from partnerships, S corporations, and other estates or trusts . . .

Short-term capital loss carryover. Enter the amount, if any, from line 9 of the 2021 Capital Loss Carryover Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . .

Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter here and on Part III, line 17, column (3) . . . . . . . . . . . . . . . . . . . . . . . .

7

Part II

8aTotals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions).

However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b .

8bTotals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . .

9Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . .

10Totals for all transactions reported on Form(s) 8949 with Box F checked. . . . . . . . . . . . . .

16

.

.

.

.

.

.

.

4 5 6

(

)

7

Long-Term Capital Gains and Losses—Generally Assets Held More Than 1 Year (see instructions)

See instructions for how to figure the amounts to enter on the lines below.

This form may be easier to complete if you round off cents to whole dollars.

11 12 13 14 15

.

(d) Proceeds (sales price)

(e) Cost (or other basis)

18,000

30,000

(g) (h) Gain or (loss) Adjustments Subtract column (e) from column (d) and to gain or loss from Form(s) 8949, Part II, combine the result with line 2, column (g) column (g)

(12,000)

Long-term capital gain or (loss) from Forms 2439, 4684, 6252, 6781, and 8824 . . . . . . . .

Net long-term gain or (loss) from partnerships, S corporations, and other estates or trusts . . . .

Capital gain distributions . . . . . . . . . . . . . . . . . . . . . . . . . .

Gain from Form 4797, Part I . . . . . . . . . . . . . . . . . . . . . . . . .

Long-term capital loss carryover. Enter the amount, if any, from line 14 of the 2021 Capital Loss Carryover Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net long-term capital gain or (loss). Combine lines 8a through 15 in column (h). Enter here and on Part III, li ne 18a, column (3) . . . . . . . . . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see the Instructions for Form 1041.

Cat. No. 11376V

11 12 13 14 15 ( 16

)

(12,000)

Schedule D (Form 1041) 2022

C:TRP-156 For exam .. and test prep, contact excellentessaywriters@gmail.com

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Schedule D (Form 1041) 2022

Part III 17 18 a b c 19

Summary of Parts I and II

(1) Beneficiaries’ (see instr.)

before completing this part.

Caution: Read the instructions Net .short-term gain or (loss) . . . . . . . . . . .

Net long-term gain or (loss): Total for year . . . . . . . . . . . . . . . . .

Unrecaptured section 1250 gain (see line 18 of the worksheet). .

28% rate gain . . . . . . . . . . . . . . . . .

Total net gain or (loss). Combine lines 17 and 18a. . . . .

(2) Estate’s or trust’s

(3) Total

17 18a 18b 18c 19

(12,000)

(12,000)

(12,000)

(12,000)

Note: If line 19, column (3), is a net gain, enter the gain on Form 1041, line 4 (or Schedule A (Form 990-T), Part I, line 4a). If lines 18a and 19, column (2), are net gains, go to Part V, and don't complete Part IV. If line 19, column (3), is a net loss, complete Part IV and the Capital Loss Carryover Worksheet, as necessary.

Part IV 20 a

Capital Loss Limitation

Enter here and enter as a (loss) on Form 1041, line 4 (or Schedule A (Form 990-T), Part I, line 4c, if a trust), the smaller of: The loss on line 19, column (3) or b $3,000 . . . . . . . . . . . . . . . . . .

20 (

3,000

)

Note: If the loss on line 19, column (3), is more than $3,000, or if Form 1041, page 1, line 23 (or Form 990-T, Part I, line 11), is a loss, complete the Capital Loss Carryover Worksheet in the instructions to figure your capital loss carryover.

Part V

Tax Computation Using Maximum Capital Gains Rates

Form 1041 filers. Complete this part only if both lines 18a and 19 in column (2) are gains, or an amount is entered in Part I or Part II and there is an entry on Form 1041, line 2b(2), and Form 1041, line 23, is more than zero.

Caution: Skip this part and complete the Schedule D Tax Worksheet in the instructions if: • Either line 18b, col. (2), or line 18c, col. (2), is more than zero, or • Both Form 1041, line 2b(1), and Form 4952, line 4g, are more than zero, or • There are amounts on lines 4e and 4g of Form 4952.

Form 990-T trusts. Complete this part only if both lines 18a and 19 are gains, or qualified dividends are included in income in Part I of Form 990-T, and Form 990-T, Part I, line 11, is more than zero. Skip this part and complete the Schedule D Tax Worksheet in the instructions if either line 18b, col.

(2), or line18c, col. (2), is more than zero.

21 22 23

24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

Enter taxable income from Form 1041, line 23 (or Form 990-T, Part I, line 11) Enter the smaller of line 18a or 19 in column (2) but not less than zero . . . . . . . . . . . . .

22 Enter the estate’s or trust’s qualified dividends from Form 1041, line 2b(2) (or enter the qualified dividends included in income in Part I of Form 990-T) . . . .

23 Add lines 22 and 23 . . . . . . . . . . .

24

21

38,169

-0-

If the estate or trust is filing Form 4952, enter the amount from line 4g; otherwise, enter -0. . .

40,033 40,033 -0-

.

25 Subtract line 25 from line 24. If zero or less, enter -0- . . . . . . . .

26 Subtract line 26 from line 21. If zero or less, enter -0- . . . . . . . .

27 Enter the smaller of the amount on line 21 or $2,800 . . . . . . . .

28 Enter the smaller of the amount on line 27 or line 28 . . . . . . . .

29 Subtract line 29 from line 28. If zero or less, enter -0-. This amount is taxed at 0% . . . . . .

Enter the smaller of line 21 or line 26 . . . . . . . . . . . . .

31 . . . . . . . . .

32 Subtract line 30 from line 26 . . . . . . .

Enter the smaller of line 21 or $13,700 . . . . . . . . . . . . .

33 . . . . . . . . .

34 Add lines 27 and 30 . . . . . . . . . .

Subtract line 34 from line 33. If zero or less, enter -0- . . . . . . . .

35 . . . . . . . . .

36 Enter the smaller of line 32 or line 35 . . . . . . . . . . . . . . . . . . . .

Multiply line 36 by 15% (0.15) . . . . . . . . . . . . . . . .

Enter the amount from line 31 . . . . . . .

38 . . . . . . . . .

39 Add lines 30 and 36 . . . . . . . . . .

Subtract line 39 from line 38. If zero or less, enter -0- . . . . . . . .

40 . . . . . . . . . . . . . . . .

Multiply line 40 by 20% (0.20) . . . . . . .

Figure the tax on the amount on line 27. Use the 2022 Tax Rate Schedule for Estates and Trusts (see the Schedule G instructions in the Instructions for Form 1041). .

42 ..

43 Add lines 37, 41, and 42. . . . . . . . . . . . . . . .

Figure the tax on the amount on line 21. Use the 2022 Tax Rate Schedule for Estates and Trusts (see the Schedule G instructions in the Instructions for Form 1041). .

44 Tax on all taxable income. Enter the smaller of line 43 or line 44 here and on Form 1041, Schedule G, Part I, line 1a (or Form 990-T, Part II, line 2) . . . . . . . . . . . . . . . . . . .

40,033 -02,800 -0-

38,169 37,233 13,700 2,800 10,900 10,900 38,169 13,700 24,469

30

2,800

37

1,635

41

4,893

45

6,528

-06,528 12,267

Schedule D (Form 1041) 2022

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C:14-57

8960

Net Investment Income Tax— Individuals, Estates, and Trusts

OMB No. 1545-2227

Department of the Treasury Internal Revenue Service Name(s) shown on your tax return

Attach to your tax return.

Go to www.irs.gov/Form8960 for instructions and the latest information .

Attachment Sequence No. 72

Form

Stan Meadows Trust

Part I

Investment Income

Your social security number or EIN

Taxable interest (see instructions) . . . . . . . . . . . . . . . . . .

Ordinary dividends (see instructions) . . . . . . . . . . . . . . . . . .Annuities (see instructions) . . . . . . . . . . . . . . . . . . .

Rental real estate, royalties, partnerships, S corporations, trusts, etc. (see instructions) . . . . . . . . . . . . . . . . . . . . . .

4a b Adjustment for net income or loss derived in the ordinary course of a nonsection 1411 trade or business (see instructions) . . . . . . . . . .

4b . . . . . . . . . . . . . c Combine lines 4a and 4b . . . . . . . .

Net gain or loss from disposition of property (see instructions) . . . . .

5a 5a 5b b Net gain or loss from disposition of property that is not subject to net investment income tax (see instructions) . . . . . . . . . . . . c Adjustment from disposition of partnership interest or S corporation stock (see instructions) . . . . . . . . . . . . . . . . . . . . . .

5c d Combine lines 5a through 5c . . . . . . . . . . . . . . . . . . .

Adjustments to investment income for certain CFCs and PFICs (see instructions) . .

6 . .

7 Other modifications to investment income (see instructions) . . . . . . . . .

8 Total investment income. Combine lines 1, 2, 3, 4c, 5d, 6, and 7 . . . . . .

9a b c d 10 11

. . .

.

. . . .

. . .

. . .

. . .

. . .

1 2 3

.

.

.

.

4c

. . . .

. . . .

. . . .

. . . .

5d 6 7 8

(3,000)

Investment Expenses Allocable to Investment Income and Modifications

Investment interest expenses (see instructions) . . . . .

State, local, and foreign income tax (see instructions) . . .

Miscellaneous investment expenses (see instructions) . . . .Add lines 9a, 9b, and 9c . . . . . . . . . . . . . . .

Additional modifications (see instructions) . . . .

Total deductions and modifications. Add lines 9d and 10 . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

9a 9b 9c . . .

. . .

2,457a . . .

9d 10 11

Net investment income. Subtract Part II, line 11, from Part I, line 8. Individuals, complete lines 13–17.

Estates and trusts, complete lines 18a–21. If zero or less, enter -0- . . . . . . . . . . . .

12

Part III 12

74-1212121

Section 6013(g) election (see instructions) Section 6013(h) election (see instructions) Regulations section 1.1411-10(g) election (see instructions)

1 2 3 4a

Part II

20 22

. . .

. . .

. . .

. . .

. . .

Tax Computation

Individuals: 13 14 15 16 17

Modified adjusted gross income (see instructions) .

Threshold based on filing status (see instructions) .

Subtract line 14 from line 13. If zero or less, enter -0Enter the smaller of line 12 or line 15 . . . . . .

. . . .

. . . .

. . . .

. . . .

. . . .

. . . .

. . . .

. . . .

13 14 15 . . .

.

16

Net investment income tax for individuals. Multiply line 16 by 3.8% (0.038). Enter here and include on your tax return (see instructions) . . . . . . . . . . . . . . . . . . . . . .

.

.

.

.

17

4,000 50,000

(3,000) 51,000

2,457 2,457 48,543

Estates and Trusts:

18a Net investment income (line 12 above) . . . . . . . . . . . . .

18a 48,543 18b 10,274b 18c b Deductions for distributions of net investment income and deductions under 19a section 642(c) (see instructions) . . . . . . . . . . . .. .. .. ..

19b 19c . . . . c Undistributed net investment income. Subtract line 18b from 18a (see . . instructions). If zero or less,. en.ter .-0-. . . . . . . . . . .

38,269 . .

38,169c 19a Adjusted gross income (see instructions) . . . . . . . .

Highest tax bracket for estates and trusts for the year (see instructions) 14,450d . . b c Subtract line 19b from line 19a. If zero or less, enter -0. . . . .

23,719 20 Enter the smaller of line 18c or line 19c . . . . . . . . . . . . . . . . . . .

21 Net investment income tax for estates and trusts. Multiply line 20 by 3.8% (0.038). Enter here and include on your tax return (see instructions) . . . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 59474M

aSee Form 1041, Page 1, Line 16. bSee Form 1041, Schedule B, Line 15. $51,000 – $2,457 – $10,274 – $100 exemption = $38,169 c d$14,450 is the highest tax bracket for estates and trusts for tax years beginning in 2023

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20 21

23,719 901 Form 8960 (2022)

C:14-57 Final K-1

Schedule K-1 (Form 1041)

22

Department of the Treasury Internal Revenue Service

Part III 1

Interest income

2a

Ordinary dividends

2b

Qualified dividends

3

Net short-term capital gain

4a

Net long-term capital gain

Estate’s or trust’s name

4b

28% rate gain

Stan Meadows Trust

4c

Unrecaptured section 1250 gain

5

Other portfolio and nonbusiness income

6

Ordinary business income

7

Net rental real estate income

8

Other rental income

9

Directly apportioned deductions

beginning

/

For calendar year 2022, or tax year / 2022

ending

/

/

Beneficiary’s Share of Income, Deductions, See back of form and instructions.

Credits, etc.

Part I A

B

C

Amended K-1

Information About the Estate or Trust

OMB No. 1545-0092

Beneficiary’s Share of Current Year Income, Deductions, Credits, and Other Items

77

11

Final year deductions

12

Alternative minimum tax adjustment

13

Credits and credit recapture

2,492 2,492

Estate’s or trust’s employer identification number

74-1212121

Fiduciary's name, address, city, state, and ZIP code

Merchants Bank 201 Fifth Ave. Northeast City, NY 10000

D

Check if Form 1041-T was filed and enter the date it was filed

E

Check if this is the final Form 1041 for the estate or trust

14Other information

Part II

A 431

Information About the Beneficiary

F

Beneficiary's identifying number

G

Beneficiary's name, address, city, state, and ZIP code

10

Estate tax deduction

E 2,569a

XXX-XX-XXXX

Angela Meadows 3 East 46th St. North City, NY 11000

H

X Domestic beneficiary

For IRS Use Only

*See attached statement for additional information.

Note: A statement must be attached showing the beneficiary’s share of income and directly apportioned deductions from each business, rental real estate, and other rental activity.

Foreign beneficiary

For Paperwork Reduction Act Notice, see the Instructions for Form 1041.

www.irs.gov/Form1041

Cat. No. 11380D

Schedule K-1 (Form 1041) 2022

Note: See allocation summary at the end of the solution. a$77 interest income + $2,492 dividends if the beneficiary elects to tax the dividends at ordinary rates under Sec. 163(d)(4)(B).

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C:14-57 Final K-1

Schedule K-1 (Form 1041)

22

Department of the Treasury Internal Revenue Service

Part III 1

Interest income

2a

Ordinary dividends

2b

Qualified dividends

3

Net short-term capital gain

4a

Net long-term capital gain

Estate’s or trust’s name

4b

28% rate gain

Stan Meadows Trust

4c

Unrecaptured section 1250 gain

5

Other portfolio and nonbusiness income

6

Ordinary business income

7

Net rental real estate income

8

Other rental income

9

Directly apportioned deductions

beginning

/

For calendar year 2022, or tax year / 2022

ending

/

/

Beneficiary’s Share of Income, Deductions, See back of form and instructions.

Credits, etc.

Part I A

B

C

Amended K-1

Information About the Estate or Trust

OMB No. 1545-0092

Beneficiary’s Share of Current Year Income, Deductions, Credits, and Other Items

230

11

Final year deductions

12

Alternative minimum tax adjustment

13

Credits and credit recapture

14

Other information

7,475 7,475

Estate’s or trust’s employer identification number

74-1212121

Fiduciary's name, address, city, state, and ZIP code

Merchants Bank 201 Fifth Ave. Northeast City, NY 10000

D

Check if Form 1041-T was filed and enter the date it was filed

E

Check if this is the final Form 1041 for the estate or trust

Part II

A

Information About the Beneficiary

F

Beneficiary's identifying number

G

Beneficiary's name, address, city, state, and ZIP code

10

Estate tax deduction

1,295

E

7,705a

XXX-XX-XXXX

Barry Meadows 3 East 46th St. North City, NY 11000

H

X Domestic beneficiary

For IRS Use Only

*See attached statement for additional information.

Note: A statement must be attached showing the beneficiary’s share of income and directly apportioned deductions from each business, rental real estate, and other rental activity.

Foreign beneficiary

For Paperwork Reduction Act Notice, see the Instructions for Form 1041.

www.irs.gov/Form1041

Cat. No. 11380D

Schedule K-1 (Form 1041) 2022

Note: See allocation summary at the end of the solution. a$230 interest income + $7,475 dividends if the beneficiary elects to tax the dividends at ordinary rates under Sec. 163(d)(4)(B).

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Schedule K-1 (Form 1041) 2022

This list identifies the codes used on Schedule K-1 for beneficiaries and provides summarized reporting information for beneficiaries who file Form 1040 or 1040-SR. For detailed reporting and filing information, see the Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR and the instructions for your income tax return.

Report on 1. Interest income

Form 1040 or 1040-SR, line 2b

2a. Ordinary dividends

Form 1040 or 1040-SR, line 3b

Code

Report on

2b. Qualified dividends

Form 1040 or 1040-SR, line 3a

A Credit for estimated taxes

Form 1040 or 1040-SR, line 26

3. Net short-term capital gain

Schedule D, line 5 Schedule D,

B Credit for backup withholding

Form 1040 or 1040-SR, line 25c

4a. Net long-term capital gain

line 12 28% Rate Gain Worksheet,

C Low-income housing credit

4b. 28% rate gain

line 4 (Schedule D Instructions)

D Rehabilitation credit and energy credit

4c. Unrecaptured section 1250 gain

Unrecaptured Section 1250 Gain Worksheet, line 11 (Schedule D Instructions)

5. Other portfolio and nonbusiness income

Schedule E, line 33, column (f)

13. Credits and credit recapture

Cred

E Other qualifying investment credit F Work opportunity credit G Credit for small employer health insurance premiums H Biofuelproducer credit

I Credit for increasing researchactivities

J Renewable electricity, refined coal, and Indian coal production credit K Empowerment zone employment credit

6. Ordinary business income

Schedule E, line 33, column (d) or (f)

7. Net rental real estate income

Schedule E, line 33, column (d) or (f)

M Orphan drug credit

8. Other rental income

Schedule E, line 33, column (d) or (f)

N Credit for employer-provided child care and facilities

O Biodiesel and renewable diesel fuels credit P

9. Directly apportioned deductions Code A Depreciation

Form 8582 or Schedule E, line 33, column (c) or (e)

B Depletion

Form 8582 or Schedule E, line 33, column (c) or (e)

C Amortization

Form 8582 or Schedule E, line 33, column (c) or (e)

Q Credit for employer differential wage payments R Recapture of credits Z Other credits 14. Other information

Schedule A, line 16

10. Estate tax deduction 11. Final year deductions A Excess deductions — Section 67(e) expenses

A Tax-exempt interest

Form 1040 or 1040-SR, line 2a

B Foreign taxes

Schedule 3 (Form 1040), line 1 or Sch. A, line 6

Schedule 1 (Form 1040), line 24k (also see the beneficiary’s instructions)

C Reserved for future use

B Excess deductions — Non–miscellaneous See the beneficiary’s instructions itemized deductions Schedule D, line 5 C Short-term capital loss carryover

D Reserved for future use

Schedule D, line 12; line 5 of the wksht. for Sch. D, line 18; and line 16 of the wksht. for Sch. D, line 19

D Long-term capital loss carryover

E Net operating loss carryover — regular tax F Net operating loss carryover — minimum tax

C AMT adjustment attributable to net short-term capital gain D AMT adjustment attributable to net long-term capital gain E AMT adjustment attributable to unrecaptured section 1250 gain F AMT adjustment attributable to 28% rate gain Accelerated depreciation G H Depletion I Amortization J Exclusion items

Schedule 1 (Form 1040), line 8a

}

12. Alternative minimum tax (AMT) items A Adjustment for minimum tax purposes B AMT adjustment attributable to qualified dividends

See the beneficiary’s instructions

L Indian employment credit

Form 6251, line 2f

Form 6251, line 2j

E Net investment income

Form 4952, line 4a

F Gross farm and fishing income

Schedule E, line 42

G Foreign trading gross receipts (IRC 942(a))

See the Instructions for Form 8873

H Adjustment for section 1411 net investment income or deductions

Form 8960, line 7 (also see the beneficiary’s instructions) See the beneficiary’s instructions

I Section 199A information Z Other information

See the beneficiary’s instructions

Note: If you are a beneficiary who does not file a Form 1040 or 1040-SR, see instructions for the type of income tax return you are filing.

See the beneficiary’s instructions and the Instructions for Form 6251

2023 Form 8801

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C:14-57 Stan Meadows Trust 74-1212121 2022 Form 1041 Schedule B, Line 12 (tax exempt distributions) Line 2 ÷ Line 7 = Exempt income as a percent of distributable net income ($8,657 ÷ $60,200) = 14.380% Line 11 times exempt income as a percent of distributable income = distributed exempt income $12,000 total distribution × 0.14380 = $1,726 tax-exempt distributed Schedule K-1, Lines 1, 2a, 2b, and 14 (beneficiary’s share of distributions) Allocate the $2,457 deductible trustee’s and accountant’s fees to taxable interest income, which is taxed at a higher rate than dividends.

Compute distributed dividends and distributed taxable interest income: 1. [(dividends – no allocable fees) ÷ distributable net income] × total distributions = distributed dividends ($50,000 ÷ $60,200) × $12,000 = $9,967 2. [(interest - allocable fees) ÷ distributable net income] × total distributions = distributed taxable interest [($4,000 − $2,457) ÷ $60,200] × $12,000 = $307 Allocated distributed income to beneficiaries: Barry’s Angela’s 75% 25% Dividends$ 9,967 $ 7,475 $ 2,492 Taxable interest 307 230 77 Subtotal$10,274 $ 7,705 $ 2,569 Exempt interest 1,726 1,295 431 Total $12,000 $ 9,000 $ 3,000 Total

Note: Income for alternative minimum tax purposes is the same as for regular tax purposes.

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