Federal Taxation 2024 Individuals, 37e Franklin Solution Manual.pdf (56)

C:11-61 671121 Final K-1

Schedule K-1 (Form 1120-S)

20 22

Department of the Treasury Internal Revenue Service

Part III Shareholder’s Share of Current Year Income, Deductions, Credits, and Other Items

For calendar year 2022, or tax year

1

Ordinary business income (loss)

/

/

2

Net rental real estate income (loss)

Shareholder’s Share of Income, Deductions, Credits, etc.

See separate instructions.

3

Other net rental income (loss)

4

Interest income

Ordinary dividends

Part I

/

/

beginning

2022

ending

Information About the Corporation

OMB No. 1545-0123

Amended K-1

35,233

13

Credits

600

A

Corporation’s employer identification number

5a

B

Corporation’s name, address, city, state, and ZIP code

5b Qualified dividends

14

Schedule K-3 is attached if checked . . . . .

6

5,800 5,800 Royalties

15

Alternative minimum tax (AMT) items

Net short-term capital gain (loss)

A

xx-xxxxxxx

Bottle-Up, Inc. 1234 Hill Street City, ST 33333

7

C

IRS Center where corporation filed return

8a Net long-term capital gain (loss)

D

Corporation’s total number of shares

8b Collectibles (28%) gain (loss)

24,333

Center City, ST

Beginning of tax year End of tax year

Part II

.

.

.

.

.

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.

.

.

.

.

.

1,000 1,000

E

Shareholder’s identifying number

F

Shareholder’s name, address, city, state, and ZIP code

G

Current year allocation percentage .

H

xxx-xx-xxxx

9

Net section 1231 gain (loss)

16

10

Other income (loss)

C

(550)

50% %

.

Shareholder’s number of shares End of tax year

.

.

.

.

.

.

.

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.

.

.

.

500 500

Loans from shareholder Beginning of tax year .

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.

$

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.

.

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.

$

For IRS Use Only

End of tax year

.

A

Items affecting shareholder basis

300

6,250

D

Melvin Jones

Beginning of tax year

I

8c Unrecaptured section 1250 gain

Information About the Shareholder

.

4,500

17

11

Section 179 deduction

12

Other deductions

A

4,500

L H

300

35,000

Other information

*See schedule on next page

250

18

More than one activity for at-risk purposes*

19

More than one activity for passive activity purposes*

* See attached statement for additional information.

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S.

www.irs.gov/Form1120S

Cat. No. 11520D

Schedule K-1 (Form 1120-S) 2022

For exam and test prep, contact C:TRP-85 .. excellentessaywriters@gmail.com

C:11-61 Bottle-Up, Inc. XX-XXXXXXX

2022 Form 1120-S

Schedule K-1 Melvin Jones – Part III, 17, Other information: Investment income (interest) A $600 Investment income [dividends are inv. inc. only to the extent a shareholder A 5,800 elects to tax them at ordinary rates under Sec. 163(d)(4)(B).]

B 300 Investment expenses V Sec. 199A QBI (Ordinary income, Line 1) 35,233 Sec. 199A W-2 wages [($200,000 + $120,000 + $331,020) × 0.50] V 325,510 Sec. 199A unadjusted basis of property ($375,000 × 0.50) V 187,500

For exam and test prep, contact excellentessaywriters@gmail.com C:TRP-86 ..

C:11-62 Form

1120-S

U.S. Income Tax Return for an S Corporation

OMB No. 1545-0123

Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation.

Go to www.irs.gov/Form1120S for instructions and the latest information.

20 22

Department of the Treasury Internal Revenue Service

For calendar year 2022 or tax year beginning A S election effective date

1/1/21

B Business activity code number (see instructions)

339110

TYPE OR PRINT

C Check if Sch. M-3 attached

, 2022, ending

, 20

Name

D Employer identification number

Number, street, and room or suite no. If a P.O. box, see instructions.

E Date incorporated

City or town, state or province, country, and ZIP or foreign postal code

F Total assets (see instructions)

XX-2024022

Healthwise Medical Supplies Company

1/1/21

2400 Second Street City, ST 12345

$

xNo

4,612,280

G Is the corporation electing to be an S corporation beginning with this tax year? See instructions.

Yes Name change (3) H Check if: (1) Final return (2) Address change (4) Amended return (5) S election termination I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . .

(2) J Check if corporation: (1) Aggregated activities for section 465 at-risk purposes Grouped activities for section 469 passive activity purposes

2

Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.

1a b

Tax and Payments

Deductions (see instructions for limitations)

Income

c 2 3 4 5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21

7,000,000 350,000

Gross receipts or sales . . . . . . . . . . . . . . . .

1a Returns and allowances . . . . . . . . . . . . . . . .

1b Balance. Subtract line 1b from line 1a . . . . . . . . . . . .

Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . .

Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . .

Net gain (loss) from Form 4797, line 17 (attach Form 4797) . . . . . . . . . . . . .

Other income (loss) (see instructions—attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . . . . . . . . . . . . . .

Total income (loss). Add lines 3 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . and . . . . . . . . . . . . . . Repairs . . . . maintenance . . . . . . . . . . . . . . . . . . . . . . . . .

Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rents . . . . . . . . . . . . . . . . . . . . .

Interest (see instructions) .

Taxes and licenses Depreciation from. Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562)

. Depletion (Do not deduct oil and gas depletion.) . . . . .. . . . . . . .. .

Advertising . . . . . . . . . . . . . . . . . .. .

Pension, profit-sharing, etc., plans . . . . . . . . . . .. . . . . . . benefit programs . . .Employee . . . . .. .

Other deductions (attach statement) . . . . . . . . . .. .

Total deductions. Add lines 7 through 19 . . .

Ordinary business income (loss). Subtract line 20 from line 6. . .

. . . . . . .

. . . . . . .

. . . . . . .

. Excess net passive income or LIFO recapture tax (see instructions) . .

22a . . . b Tax .. from Schedule D (Form 1120-S) . . . . . . . . . . lines 22a and 22b (see instructions for additional taxes) . . c Add . estimated tax payments and 2021 overpayment credited to 2022 23a 2022 . b Tax . . . . . . . . . . . . . deposited with Form 7004 . c . Credit for federal tax paid on fuels (attach Form 4136) . . . . . . . . .. . . is. attached d Add lines 23a through (see 23c instructions). . . . . Check . . if .Form . 2220 Estimated tax penalty 24 25 26 27

Sign Here

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.

.

22c

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Refunded

23d 24 25 26 27

22a 22b . . . . . .

23a 23b 23c . . . . . . . . .owed . . .

Amount owed. If line 23d is smaller than the total of lines 22c and 24, enter amount Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid . .

Enter amount from line 26: Credited to 2023 estimated tax

1c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

6,650,000 2,520,000 4,130,000 4,130,000 200,000 980,000 45,500 210,000 98,000 33,600 391,840 42,000

238,000 2,238,940 1,891,060

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Leisa H. Bailey Signature of officer Print/Type preparer’s name

Paid Preparer Firm’s name Use Only Firm’s address

3/11/23 Date Preparer’s signature

Title

President Date

May the IRS discuss this return No Yes See instructions.

PTIN Check if self-employed Firm’s EIN Phone no.

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11510H

C:TRP-87 ..

Form 1120-S (2022)

C:11-62 Page 2

Form 1120-S (2022)

Schedule B

Other Information (see instructions)

Yes No

Check accounting method:

2

See the instructions and enter the: a Business activity

3

At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a nominee or similar person? If “Yes,” attach Schedule B-1, Information on Certain Shareholders of an S Corporation. .

At the end of the tax year, did the corporation:

4

a c

x Accrual

1

Cash b Other (specify)

Manufacturing and sales b Product or service

Medical equipment

a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation

(ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Percentage of Stock Owned

(iv) Country of Organization

(v) Maximum Percentage Owned in Profit, Loss, or Capital

. . . . . .

5 a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? .

If “Yes,” complete lines (i) and (ii) below. (i) Total shares of restricted stock . . . . . . . . . (ii) Total shares of non-restricted stock . . . . . . . . b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments?

7

Has this corporation filed, or is it required to file, Form 8918,Material Advisor Disclosure Statement, to provide information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . .

Check this box if the corporation issued publicly offered debt instruments with original issue discount. . .

. .

. .

x

.

x

.

x

.

x

If “Yes,” complete lines (i) and (ii) below. (i) Total shares of stock outstanding at the end of the tax year . (ii) Total shares of stock outstanding if all instruments were executed 6

x

(v) If Percentage in (iv) Is 100%, Enter the Date (if applicable) a Qualified Subchapter S Subsidiary Election Was Made

b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below ....... (i) Name of Entity

x

If checked, the corporation may have to file Form 8281,Information Return for Publicly Offered Original Issue Discount Instruments.

8

9

If the corporation (a) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in the hands of a C corporation, and (b) has net unrealized built-in gain in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in $ gain reduced by net recognized built-in gain from prior years. See instructions . . . . . . .

Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions. . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . .

10 Does the corporation satisfy one or more of the following? See instructions a The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense. b The corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $27 million and the corporation has business interest expense. c The corporation is a tax shelter and the corporation has business interest expense.

If “Yes,” complete and attach Form 8990, Limitation on Business Interest Expense Under Section 163(j).

.

. . . . . . . . .

Does the corporation satisfy both of the following conditions? a The corporation’s total receipts (see instructions) for the tax year were less than $250,000. b The corporation’s total assets at the end of the tax year were less than $250,000.

If “Yes,” the corporation is not required to complete Schedules L and M-1.

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11

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x x x

Form 1120-S (2022)

C:TRP-88 ..

C:11-62 Page 3

Form 1120-S (2022)

Schedule B 12

13 14a b 15

Other Information (see instructions) (continued)

Yes

Schedule K Shareholders’ Pro Rata Share Items

Total amount

. . . .

Ordinary business income (loss) (page 1, line 21) . . . . . . .

Net rental real estate income (loss) (attach Form 8825) . . . . . .

Other gross rental income (loss) . . . . . . . . . . . b Expenses from other rental activities (attach statement) c Other net rental income (loss). Subtract line 3b from line 3a . . . . . . .

Interest . . income . . .. . . . . . . .

4 . . . .

Dividends: a Ordinary dividends . . . . . . . .

5 . . . . b Qualified dividends . . . . . . . . . . . . . . . . . . . .

Royalties . . . . . . .

6 Net short-term capital gain (loss) (attach Schedule D (Form 1120-S)) 7 8a Net long-term capital gain (loss) (attach Schedule D (Form 1120-S)) . . b Collectibles (28%) gain (loss) . . . . . . . . . . . . . c Unrecaptured section 1250 gain (attach statement) . . . . . .

Net section 1231 gain (loss) (attach Form 4797) . . . . . .

9 Other income (loss) (see instructions) . . . Type: 10 Section 179 deduction (attach Form 4562) . . . . . . . . .

11 . . . . . . . .

12a .Charitable contributions . . . . . .b Investment interest expense . . . . . . . . . . . . . Type: c . Section 59(e)(2) expenditures . . . . . . Type: . d Other deductions (see instructions) .

13a Low-income housing credit (section 42(j)(5)) . . . . . . . . b Low-income housing credit (other) . . . . . . . . . . . d e f g

. . . .

3a 3b . . . . . . . . .

5b . . . . . . . . .

8b 8c . . . . . .

. . .

. . .

. .

. .

. .

. .

. .

1 2

. . .

. . .

. . .

. . .

. . .

3c 4 5a

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. . .

6 7 8a

.

.

.

.

.

. . .

. . .

. . .

. . .

. . .

9 10 11 12a 12b 12c 12d 13a 13b 13c 13d 13e 13f 13g

26,400

. . . . . .. . . . . . .. c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) .

Other rental real estate credits (see instructions) Type: Other rental credits (see instructions) . . . Type: Biofuel producer credit (attach Form 6478) . . . . . . . . . . . . . . .

Other credits (see instructions) . . . . . Type:

14

Attach Schedule K-2 (Form 1120-S), Shareholders’ Pro Rata Share Items—International, and check this box to indicate you are reporting items of international tax relevance . . ..

15a b c d e f 16a b c d e f

Post-1986 depreciation adjustment ........ Adjusted gain or . loss ............ Depletion (other than oil and gas) ........ Oil, gas, . and geothermal properties—gross income ... Oil, gas, and . geothermal properties—deductions .... . . .

Other AMT items (attach statement) ........ .

Tax-exempt interest income ..........

Other tax-exempt income ........... Nondeductible expenses . ........... Distributions (attach statement if required) (see . instructions) Repayment of loans from shareholders ....... . .

Foreign taxes paid or accrued ......... .

Alternative (AMT) ItemsTax Minimum

International

. .

Investment expenses

Credits

Deductions

Income (Loss)

1 2 3a

Items Affecting Shareholder Basis

No

During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . .$ If “Yes,” enter the amount of principal reduction . . . . .

During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions . .

Did the corporation make any payments in 2022 that would require it to file Form(s) 1099? . . . . . . . . . .

If “Yes,” did or will the corporation file required Form(s) 1099?. . . . . . . .. . . . . . . . . . .

Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund? . . . . . . . . . . .

If “Yes,” enter the amount from Form 8996, line 15 . . . . . . . . . . . . . .$

. . . . . . . . . . . .

. . . . . . . . . . . .

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. . . . . . . . . . . .

. . . . . . . . . . . .

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. . . . . . . . . . . .

. . .

.

. . . . . . . . . . . .

15a 15b 15c 15d 15e 15f 16a 16b 16c 16d 16e 16f

x x x x

1,891,060

26,400 1,344,000

700,000 56,000 4,200 7,200

2,000 2,000,000 Form 1120-S (2022)

C:TRP-89 ..

C:11-62 Page 4

Form 1120-S (2022)

Recon- Other ciliation Information

Schedule K

Shareholders’ Pro Rata Share Items (continued)

Total amount

17a b c d

Investment income . . . . . . . . . . . . . . .

Investment expenses . . . . . . . . . . . . . .

Dividend distributions paid from accumulated earnings and profits .

Other items and amounts (attach statement)

18

Income (loss) reconciliation. Combine the amounts on lines 1 through 10 in the far right column. From the result, subtract the sum of the amounts on lines 11 through 12d and 16f

Schedule L

Balance Sheets per Books

. .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

.

Beginning of tax year

1 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15

Assets Cash . . . . . . . . . . .

Trade notes and accounts receivable .

Less allowance for bad debts . . . .

Inventories . . . . . . . . .

U.S. government obligations . . . .

Tax-exempt securities (see instructions) Other current assets (attach statement) .

Loans to shareholders . . . . . .

Mortgage and real estate loans . . . .

Other investments (attach statement) Buildings and other depreciable assets .

Less accumulated depreciation . . .

Depletable assets . . Less . . . . . accumulated depletion . Land . . . . . . (net of any amortization) .

Intangible assets (amortizable only) . .

Less accumulated amortization . . .

Other assets (attach statement) . . .

Total assets . . . . . . . . .

16 17 18 19 20 21 22 23 24 25 26 27

Liabilities and Shareholders’ Equity Accounts payable . . . . . . . . .

Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . . .

Loans from shareholders . . . . .

Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . .

Capital stock . . . . . . . . . . .

Additional paid-in capital . . . . . . .

Retained earnings . . . . . . . . .

Adjustments to shareholders’ equity (attach statement) Less cost of treasury stock . . . . . .

Total liabilities and shareholders’ equity . .

(a)

. . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . .

(

(

(d)

(c)

958,900 756,000 1,400,000 50,000

(

480,000

1,600,000 228,640 )

2,494,060

18

End of tax year (b)

756,000 ) -0-

26,400* 7,200

17a 17b 17c

1,371,360

(

840,000 -0-

)

)

(

)

(

)

(

)

979,520

5,016,260

4,612,280

140,000 700,000 4,900

182,000 140,000 6,860

4,000,000

4,000,000

171,360

283,420

5,016,260

)

*Investment income if shareholders elect to tax dividends at ordinary rates under Sec. 163(d)(4)(B).

C:TRP-90 ..

-0-

2,300,000 1,320,480 )

(

(

1,062,760 840,000 1,680,000 50,000

(

4,612,280

)

(2022) Form 1120-S

C:11-62 Page 5

Form 1120-S (2022)

Schedule M-1

Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note: The corporation may be required to file Schedule M-3. See instructions.

1

Net income (loss) per books .

2

Income included on Schedule K, lines 1, 2, 3c, 4, 5a, 6, 7, 8a, 9, and 10, not recorded on books this year (itemize)

3

.

.

.

2,112,060

4

a Tax-exempt interest $

Expenses recorded on books this year not included on Schedule K, lines 1 through 12 and 16f (itemize): Depreciation $

6 Deductions included on Schedule K, lines 1 through 12 and 16f, not charged against book income this year (itemize):

384,000

2,000

a Depreciation $ Travel and entertainment $ Add lines 1 through 3

Schedule M-2

.

.

.

.

.

.

2,496,060

7 Add lines 5 and 6 . . . . . .

8 Income (loss) (Schedule K, line 18).

Subtract line 7 from line 4 . . .

2,000 2,494,060

. .

Analysis of Accumulated Adjustments Account, Shareholders’ Undistributed Taxable Income Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account (see instructions) (a) Accumulated adjustments account

1 2 3 4 5 6 7 8

2,000

Book-tax difference on stock sale gain

a b

5 Income recorded on books this year not included on Schedule K, lines 1 through 10 (itemize):

Balance at beginning of tax year .... .

Ordinary income from page 1, line 21 .. .

Other additions ......... .

Loss from page 1, line 21 ...... . ( Other reductions ......... . ( Combine lines 1 through 5 ...... .

Distributions . . . . . . . . . . .

Balance at end of tax year. Subtract line 7 from line 6 ............ .

171,360 1,891,060 1,370,400* 767,400* 2,665,420 2,000,000 665,420

(b) Shareholders’ undistributed taxable income previously taxed

(c) Accumulated earnings and profits

(d) Other adjustments account

-0) )

2,000 (

2,000

)

2,000 Form 1120-S (2022)

*See schedules on next page.

C:TRP-91 ..

C:11-62 Healthwise Medical Supplies Company XX-2024022

2022 Form 1120-S

Page 1, Line 19 - Other deductions: General insurance Travel Utilities Professional fees Business meals Total

$ 49,000 28,000 84,000 70,000 7,000 $238,000

Page 4, Schedule M-2, Line 3 - Other additions: Dividend income Long-term capital gain Total

$

26,400 1,344,000 $1,370,400

Page 4, Schedule M-2, Line 5 - Other reductions: $700,000 56,000 7,200 4,200 $767,400

Sec. 179 expense Cash contributions Investment expenses Investment interest expense Total

C:TRP-92 ..

C:11-62 SCHEDULE D (Form 1120-S) Department of the Treasury Internal Revenue Service Name

Capital Gains and Losses and Built-in Gains

OMB No. 1545-0123

Attach to Form 1120-S. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.

Go to www.irs.gov/Form1120S for instructions and the latest information.

20 22 Employer identification number

Healthwise Medical Supplies Company

. . .

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

Part I

Short-Term Capital Gains and Losses—Generally Assets Held One Year or Less (see instructions) (d) Proceeds (sales price)

to enter on the lines below.

(e) Cost (or other basis)

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

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

1a

Totals 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

1b

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

2

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

3

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

Short-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . . .

Short-term capital gain or (loss) from like-kind exchanges from Form 8824 . . . . . . . . .. . . . . . .

Tax on short-term capital gain included on line 23 below . . . . . .

Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter here and on Form 1120-S, Schedule K, line 7 or 10 . . . . . . . . . . . . . . . . . . .

to line 1b .

4 5 6 7

Part II

.

.

.

.

.

.

.

.

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

.

4 5 6

(

)

7

Long-Term Capital Gains and Losses—Generally Assets Held More Than One Year (see instructions) (d) Proceeds (sales price)

to enter on the lines below.

(e) Cost (or other basis)

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

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

8a

Totals 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

8b

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

9

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

10

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

96,000 .* 1,440,000 Long-term capital gain from installment sales from Form 6252, line 26 or 37 . .

Long-term capital gain or (loss) from like-kind exchanges from Form 8824 . . . ..

Capital gain distributions (see instructions) . . . . . . . . . . . ..

Tax on long-term capital gain included on line 23 below . . . . .

to line 8b .

11 12 13 14 15

XX-2024022 .

Yes XNo

.

.

.

.

.

.

.

.

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

.

. . . .

. . . .

. . . .

. . . .

. . . .

. . . .

Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Enter here and on Form 1120-S, Schedule K, line 8a or 10 . . . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S.

Cat. No. 11516V

11 12 13 14 ( 15

1,344,000 )

1,344,000

Schedule D (Form 1120-S) 2022

*1,000 shares of Fastgrowth, Inc.: acquired 1/2/19; sold 7/2/22. Basis is $96,000 carryover basis upon Firth's contribution to the entity.

Form 8949 not attached. See Problem C:9-58 for a sample of this form.

C:TRP-93 ..

C:11-62 Form

1125-A

Cost of Goods Sold OMB No. 1545-0123

(Rev. November 2018) Department of the Treasury Internal Revenue Service Name

Attach to Form 1120, 1120-C, 1120-F, 1120S, or 1065.

Go to www.irs.gov/Form1125A for the latest information.

Healthwise Medical Supplies Company

1 2 3 4 5 6 7

Inventory at beginning of year

. . . . . . .

Purchases . . . . . . . . . . . .

Cost of labor . . . . . . . . . .

Additional section 263A costs (attach schedule) . .

Other costs (attach schedule) . . . . . .

Total. Add lines 1 through 5 . . . . . . . . . . . . .

Inventory at end of year .

8 9a

b c d

. . . . . . .

. . . . . . .

Employer identification number

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the appropriate line of your tax return. See instructions . . . . . . . . . . . . . . .

Check all methods used for valuing closing inventory:

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.

4,200,000 1,680,000 2,520,000

8

(i) Cost (ii) Lower of cost or market (iii) Other (Specify method used and attach explanation.)

Check if there was a writedown of subnormal goods . . . . . . . . . . . . . . . .

Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO .

XX-2024022 1,400,000 2,800,000

1 2 3 4 5 6 7

. .

. .

. .

.

. .

. .

. .

9d

e

If property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions

.

Yes

No

f

Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

No

Section references are to the Internal Revenue Code unless otherwise noted.

What’s New Small business taxpayers. For tax years beginning after December 31, 2017, the following apply.

• A small business taxpayer (defined below), may use a method of accounting for inventories that either: (1) treats inventories as nonincidental materials and supplies, or (2) conforms to the taxpayer’s financial accounting treatment of inventories.

• A small business taxpayer is not required to capitalize costs under section 263A.

General Instructions Purpose of Form Use Form 1125-A to calculate and deduct cost of goods sold for certain entities.

Who Must File Filers of Form 1120, 1120-C, 1120-F, 1120S, or 1065, must complete and attach Form 1125-A if the applicable entity reports a deduction for cost of goods sold.

Inventories

merchandise is an income-producing factor. See Regulations section 1.471-1. If inventories are required, you generally must use an accrual method of accounting for sales and purchases of inventory items.

Exception for certain taxpayers. A small business taxpayer (defined below) can adopt or change its accounting method to account for inventories in the same manner as material and supplies that are nonincidental, or conform to its treatment of inventories in an applicable financial statement (as defined in section 451(b)(3)), or if it does not have an applicable financial statement, the method of accounting used in its books and records prepared in accordance with its accounting procedures. See section 471(c)(3).

A small business taxpayer claiming exemption from the requirement to keep inventories is changing its method of accounting for purposes of section 481.

For additional guidance on this method of accounting, see Pub. 538, Accounting Periods and Methods. For guidance on changing to this method of accounting, see Form 3115 and the Instructions for Form 3115.

Generally, inventories are required at the beginning and end of each tax year if the production, purchase, or sale of

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 55988R

C:TRP-94 ..

Small business taxpayer. A small business taxpayer is a taxpayer that (a) has average annual gross receipts of $25 million or less (indexed for inflation) for the 3 prior tax years, and (b) is not a tax shelter (as defined in section 448(d)(3)). See Pub. 538.

Uniform capitalization rules. The uniform capitalization rules of section 263A generally require you to capitalize, or include in inventory, certain costs incurred in connection with the following.

• The production of real property and tangible personal property held in inventory or held for sale in the ordinary course of business.

• Real property or personal property (tangible and intangible) acquired for resale.

• The production of real property and tangible personal property for use in its trade or business or in an activity engaged in for profit.

A small business taxpayer (defined above) is not required to capitalize costs under section 263A. See section 263A(i).

See the discussion on section 263A uniform capitalization rules in the instructions for your tax return before completing Form 1125-A. Also see Regulations sections 1.263A-1 through 1.263A-3. See Regulations section 1.263A-4 for rules for property produced in a farming business.

Form 1125-A (Rev. 11-2018)

C:11-62

1125-E

Compensation of Officers

Form (Rev. October 2016)

Department of the Treasury Internal Revenue Service Name

Attach to Form 1120, 1120-C, 1120-F, 1120-REIT, 1120-RIC, or 1120S. Information about Form 1125-E and its separate instructions is at www.irs.gov/form1125e .

OMB No. 1545-0123

Employer identification number

XX-2024022

Healthwise Medical Supplies Company Note: Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts.

1

2

(a)

(b) Social security number (see instructions)

Leisa H. Bailey

XXX-XX-XXXX

.

.

.

.

.

.

.

.

.

.

(c) Percent of time devotedto business

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.

4

(e) Preferred

100 %

30 %

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

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2

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3

Subtract line 3 from line 2. Enter the result here and on Form 1120, page 1, line 12 or the appropriate line of your tax return. . . . . . . . . . . . . . . . . . .

.

.

.

4

3

For Paperwork Reduction Act Notice, see separate instructions.

C:TRP-95 ..

.

Percent of stock owned (d) Common

.

Cat. No. 55989C

(f) Amount of compensation

200,000

200,000

200,000

Form 1125-E (Rev. 10-2016)

C:11-62 Form

Depreciation and Amortization

4562

OMB No. 1545-0172

(Including Information on Listed Property)

20 22

Attach to your tax return.

Go to www.irs.gov/Form4562 for instructions and the latest information.

Department of the Treasury Internal Revenue Service

Attachment Sequence No. 179 Identifying number

Business or activity to which this form relates

Name(s) shown on return

Healthwise Medical Supplies Company Medical Equipment Manufacturing

Part I 1 2 3 4 5

X X -20 2 4 0 2 2

Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.

Maximum amount (see instructions) . . . . . . . . . . . . . . . . . .

Total cost of section 179 property placed in service (see instructions) . . . . . .

Threshold cost of section 179 property before reduction in limitation (see instructions) . .Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . .

. . . .

. . . .

. . . .

Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions . . . . . . . . . . . . . . . . . . . . . . .

.

.

6

(a) Description of property

(b) Cost (business use only)

. . . .

1 2 3 4 5

700,000

. . . . . . . .

7 7 Listed property. Enter the amount from line 29 . . . . . . .

8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 8 . . . . . . . . . . . . . . .

9 Tentative deduction. Enter the smaller of line 5 or line 8 .

9 . . . . . . . . . .

10 Carryover of disallowed deduction from line 13 of your 2021 Form 4562.

10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 11 . . . . .

12 Section 179 expense deduction. Add lines 9 and 10, but don’t enter more than line 11 .

12 . . 13 13 Carryover of disallowed deduction to 2023. Add lines 9 and 10, less line 12 Note: Don’t use Part II or Part III below for listed property. Instead, use Part V.

Part II

700,000 700,000 700,000 700,000

Special Depreciation Allowance and Other Depreciation (Don’t include listed property. See instructions.)

14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions. . . . . . . . . . . . . . . . . . . . .

.

.

15 Property subject to section 168(f)(1) election . . depreciation (including ACRS) . .

16 Other

. .

. .

Part III

700,000a 700,000 2,700,000 -0700,000

(c) Elected cost

700,000

Equipment

. . . .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

14 15 16

MACRS Depreciation (Don’t include listed property. See instructions.)

Section A . . . . . .

17 MACRS deductions for assets placed in service in tax years beginning before 2022 .

17 391,840 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . . .

Section B—Assets Placed in Service During 2022 Tax Year Using the General Depreciation System (a) C l assification of property

(b) Month and year (c) Basis for depreciation (business/investment use (d) Recovery placed in period service only—see instructions)

19a 3-year property b 5-year property c 7-year property d 10-year property e 15-year property f 20-year property g 25-year property h Residential rental

(e) Convention

(f) Method

(g) Depreciation deduction

25 yrs.

27.5 yrs.

27.5 yrs.

39 yrs.

S/L S/L M property S/L M i Nonresidential real M S/L property S/L M Section C— Assets Place d in Service During 2 022 Tax Yea r Using the Alt e rnative Depreciatio n System M 20a Class life S/L M b 12-year 12 yrs.

M S/L c 30-year M 30 yrs.

MM S/L d 40-year 40 yrs.

MM S/L Part IV Summary (See instructions.) . . . . . . . . . . . . . . . . . . . .

21 Listed property. Enter amount from line 28 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.Enter . here and on the appropriate lines of your return. Partnerships and S corporations—see instructions 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs . . . . . . . . .

23 For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 12906N

21 22

391,840b Form

4562 (2022)

aPer the worksheet in the instructions for Form 4562, Line 1 should be the lesser of the maximum Sec. 179 deduction ($1,080,000 in 2022) or the total cost of Sec. 179 property. bForm 4562 instructions say to omit Sec. 179 deduction from this line for S corporations.

C:TRP-96 ..

C:11-62 671121 Final K-1

Schedule K-1 (Form 1120-S)

20 22

Department of the Treasury Internal Revenue Service

Part III Shareholder’s Share of Current Year Income, Deductions, Credits, and Other Items

For calendar year 2022, or tax year

1

Ordinary business income (loss)

/

/

2

Net rental real estate income (loss)

Shareholder’s Share of Income, Deductions, Credits, etc.

See separate instructions.

3

Other net rental income (loss)

4

Interest income

Part I

/

/

beginning

2022

ending

Information About the Corporation

567,318

A

Corporation’s employer identification number

5a Ordinary dividends

B

Corporation’s name, address, city, state, and ZIP code

5b Qualified dividends

XX-2024022

7,920

Healthwise Medical Supplies Company 2400 Second Street City, ST 12345

6

7

Royalties

7,920

Net short-term capital gain (loss)

C

IRS Center where corporation filed return

8a Net long-term capital gain (loss)

D

Corporation’s total number of shares

8b Collectibles (28%) gain (loss)

End of tax year

Part II

.

.

13

Credits

14

Schedule K-3 is attached if checked . . . . .

15

Alternative minimum tax (AMT) items

A

403,200

Center City, ST

Beginning of tax year

OMB No. 1545-0123

Amended K-1

.

.

.

.

.

.

.

.

.

.

8c Unrecaptured section 1250 gain

Information About the Shareholder

E

Shareholder’s identifying number

F

Shareholder’s name, address, city, state, and ZIP code

9

Net section 1231 gain (loss)

16

A

Items affecting shareholder basis

10

Other income (loss)

D

600,000

XXX-XX-XXXX

600

Leisa H. Bailey 1200 First Pike City, ST 12345 G

H

Current year allocation percentage .

30%

.

17 % 11

Section 179 deduction

12

Other deductions

210,000

Shareholder’s number of shares Beginning of tax year End of tax year

I

.

.

.

.

.

.

.

.

.

.

.

.

.

A H

Loans from shareholder Beginning of tax year .

.

.

.

.

.

.

$

.

.

.

.

.

$

*See schedule on next page

16,800 1,260

L

For IRS Use Only

End of tax year

Other information

2,160

18

More than one activity for at-risk purposes*

19

More than one activity for passive activity purposes*

* See attached statement for additional information.

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S.

www.irs.gov/Form1120S

C:TRP-97 ..

Cat. No. 11520D

Schedule K-1 (Form 1120-S) 2022

C:11-62 Healthwise Medical Supplies Company XX-2024022

2022 Form 1120-S

Schedule K-1 Leisa H. Bailey – Part III, 17, Other information: Investment income [dividends are inv. inc. only to the extent a shareholder elects to tax them at ordinary rates under Sec. 163(d)(4)(B).]

A B Investment expenses V Sec. 199A QBI ($567,318 ord. inc. – $210,000 Sec. 179 exp.)

V Sec. 199A W-2 wages [($200,000 + $980,000) × 0.30] V Sec. 199A unadjusted basis of property ($2,300,000 × 0.30)

C:TRP-98 ..

$7,920 2,160 357,318 354,000 690,000

C:11-62 671121 Final K-1

Schedule K-1 (Form 1120-S)

20 22

Department of the Treasury Internal Revenue Service

Part III Shareholder’s Share of Current Year Income, Deductions, Credits, and Other Items

For calendar year 2022, or tax year

1

Ordinary business income (loss)

/

/

2

Net rental real estate income (loss)

Shareholder’s Share of Income, Deductions, Credits, etc.

See separate instructions.

3

Other net rental income (loss)

4

Interest income

Part I

/

/

beginning

2022

ending

Information About the Corporation

Corporation’s employer identification number

5a Ordinary dividends

B

Corporation’s name, address, city, state, and ZIP code

5b Qualified dividends

18,480

Healthwise Medical Supplies Company 2400 Second Street City, ST 12345

6

7

18,480

Royalties

Net short-term capital gain (loss)

C

IRS Center where corporation filed return

8a Net long-term capital gain (loss)

D

Corporation’s total number of shares

8b Collectibles (28%) gain (loss)

End of tax year

Part II

.

.

Credits

14

Schedule K-3 is attached if checked . . . . .

15

Alternative minimum tax (AMT) items

A

940,800

Center City, ST

Beginning of tax year

13

1,323,742

A

XX-2024022

OMB No. 1545-0123

Amended K-1

.

.

.

.

.

.

.

.

.

.

8c Unrecaptured section 1250 gain

Information About the Shareholder

E

Shareholder’s identifying number

F

Shareholder’s name, address, city, state, and ZIP code

9

Net section 1231 gain (loss)

16

A

Items affecting shareholder basis

10

Other income (loss)

D

1,400,000

XXX-XX-XXXX

1,400

Thomas J. Firth 3600 Third Blvd.

City, ST 12345 G

H

Current year allocation percentage .

70%

.

17 % 11

Section 179 deduction

12

Other deductions

490,000

Shareholder’s number of shares Beginning of tax year End of tax year

I

.

.

.

.

.

.

.

.

.

.

.

.

.

A H

Loans from shareholder Beginning of tax year .

.

.

.

.

.

.

$

.

.

.

.

.

$

*See schedule on next page

39,200 2,940

L

For IRS Use Only

End of tax year

Other information

5,040

18

More than one activity for at-risk purposes*

19

More than one activity for passive activity purposes*

* See attached statement for additional information.

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S.

www.irs.gov/Form1120S

C:TRP-99 ..

Cat. No. 11520D

Schedule K-1 (Form 1120-S) 2022

C:11-62 Healthwise Medical Supplies Company XX-2024022

2022 Form 1120-S

Schedule K-1 Thomas J. Firth – Part III, 17, Other information: Investment income [dividends are inv. inc. only to the extent a shareholder elects to tax them at ordinary rates under Sec. 163(d)(4)(B).]

Investment expenses Sec. 199A QBI ($1,323,742 ord. inc. – $490,000 Sec. 179 exp.)

Sec. 199A W-2 wages [($200,000 + $980,000) × 0.70) Sec. 199A unadjusted basis of property ($2,300,000 × 0.70)

C:TRP-100 ..

A B V V V

$18,480 5,040 833,742 826,000 1,610,000

C:11-62 Healthwise Medical Supplies Company XX-2024022 2022 Form 1120-S Basis in S corporation stock: Item Basis at 1/1/22 S corporation ordinary income Dividend income Long-term capital gain Tax-exempt interest Distributions Sec. 179 expense Charitable contributions (cash) Investment interest expense Investment expenses Basis at 12/31/22

Bailey

Firth

$ 1,251,408

$ 2,535,952 1,323,742 18,480 940,800 1,400 (1,400,000) (490,000) (39,200) (2,940) (5,040)

567,318 7,920 403,200 600 (600,000) (210,000) (16,800) (1,260) (2,160) $1,400,226

C:TRP-101 ..

$2,883,194

C:11-63

MN Corporation 2022 Form 1120-S

Page 3

Form 1120-S (2022)

Schedule B 12

13 14a b 15

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1 2

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3c 4 5a

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6 7 8a

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. . . . . .. . . . . . .. c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) .

. . .

9 10 11 12a 12b 12c 12d 13a 13b 13c 13d 13e 13f 13g

Other rental real estate credits (see instructions) Type: Other rental credits (see instructions) . . . Type: Biofuel producer credit (attach Form 6478) . . . .

Other credits (see instructions) . . . . . Type:

.

.

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.

. . . . .

3a 3b . . . . . . . . .

5b . . . . . . . . .

8b 8c . . . . . .

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.

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.

10,000

.

.

.

14

Attach Schedule K-2 (Form 1120-S), Shareholders’ Pro Rata Share Items—International, and check this box to indicate you are reporting items of international tax relevance . . ..

15a b c d e

Post-1986 depreciation adjustment ........ Adjusted gain or . loss ............ Depletion (other than oil and gas) ........ Oil, gas, . and geothermal properties—gross income ... Oil, gas, and . geothermal properties—deductions .... . . .

Other AMT items (attach statement) ........ .

Tax-exempt interest income ..........

Other tax-exempt income ........... Nondeductible expenses . ........... Distributions (attach statement if required) (see . instructions) Repayment of loans from shareholders ....... . .

Foreign taxes paid or accrued ......... .

Alternative (AMT) ItemsTax Minimum

Income (Loss) Deductions Credits

d e f g

Total amount

See schedule

Ordinary business income (loss) (page 1, line 21) Net rental real estate income (loss) (attach Form 8825) . . . . . . . . . .

Other gross rental income (loss) . . . . . . . . . . . b Expenses from other rental activities (attach statement) c Other net rental income (loss). Subtract line 3b from line 3a . . . . . . .

Interest . . income . . .. . . . . . . .

4 . . . .

Dividends: a Ordinary dividends . . . . . . . .

5 . . . . b Qualified dividends . . . . . . . . . . . . . . . . . . . .

Royalties . . . . . . .

6 Net short-term capital gain (loss) (attach Schedule D (Form 1120-S)) 7 8a Net long-term capital gain (loss) (attach Schedule D (Form 1120-S)) . . b Collectibles (28%) gain (loss) . . . . . . . . . . . . . c Unrecaptured section 1250 gain (attach statement) . . . . . . . . . . section 1231 gain (loss) (attach Form 4797) .

9 . Net Other income (loss) (see instructions) . . . Type: 10 Section 179 deduction (attach Form 4562) . . . . . . . . .

11 . . . . . . . .

12a .Charitable contributions . . . . . . . . . . . . . . . b Investment interest expense . . . Type: . .

Section 59(e)(2) expenditures . c . . Type: deductions (see instructions) . . d Other 13a Low-income housing credit (section 42(j)(5)) . . . . . . . . b Low-income housing credit (other) . . . . . . . . . . .

1 2 3a

International

No

During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . .$ If “Yes,” enter the amount of principal reduction . . . . .

During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions . .

Did the corporation make any payments in 2022 that would require it to file Form(s) 1099? . . . . . . . . . .

If “Yes,” did or will the corporation file required Form(s) 1099?. . . . . . . .. . . . . . . . . . .

Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund? . . . . . . . . . . . . . . .$ If “Yes,” enter the amount from Form 8996, line 15 . . . . . . . . . .

Schedule K Shareholders’ Pro Rata Share Items

Items Affecting Shareholder Basis

Yes

Other Information (see instructions) (continued)

f 16a b c d e f

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

.

. . . . . . . . . . . .

15a 15b 15c 15d 15e 15f 16a 16b 16c 16d 16e 16f

109,800

10,000 (6,000) 1,000 12,000 2,000 6,400

3,000 1,800 30,000 Form 1120-S (2022)

C:TRP-102 ..

C:11-63

MN Corporation 2022 Form 1120-S Page 4

Form 1120-S (2022)

Recon- Other ciliation Information

Schedule K

Shareholders’ Pro Rata Share Items (continued)

Total amount

17a b c d

Investment income . . . . . . . . . . . . . . .

Investment expenses . . . . . . . . . . . . . .

Dividend distributions paid from accumulated earnings and profits .

Other items and amounts (attach statement)

18

Income (loss) reconciliation. Combine the amounts on lines 1 through 10 in the far right column. From the result, subtract the sum of the amounts on lines 11 through 12d and 16f

Schedule L

Balance Sheets per Books

. .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

.

Beginning of tax year

1 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15

Assets Cash . . . . . . . . . . .

Trade notes and accounts receivable .

Less allowance for bad debts . . . .

Inventories . . . . . . . . .

U.S. government obligations . . . .

Tax-exempt securities (see instructions) Other current assets (attach statement) .

Loans to shareholders . . . . . .

Mortgage and real estate loans . . . .

Other investments (attach statement) Buildings and other depreciable assets .

Less accumulated depreciation . . .

Depletable assets . . Less . . . . . accumulated depletion . Land . . . . . . (net of any amortization) .

Intangible assets (amortizable only) . .

Less accumulated amortization . . .

Other assets (attach statement) . . .

Total assets . . . . . . . . .

16 17 18 19 20 21 22 23 24 25 26 27

Liabilities and Shareholders’ Equity Accounts payable . . . . . . . . .

Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . . .

Loans from shareholders . . . . .

Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . .

Capital stock . . . . . . . . . . .

Additional paid-in capital . . . . . . .

Retained earnings . . . . . . . . .

Adjustments to shareholders’ equity (attach statement) Less cost of treasury stock . . . . . .

Total liabilities and shareholders’ equity . .

(a)

. . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . .

10,000*

17a 17b 17c

118,400

18

End of tax year (b)

(c)

(d)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

) Form 1120-S (2022)

* Investment income if shareholders elect to tax dividends at ordinary rates under Sec. 163(d)(4)(B).

C:TRP-103 ..

C:11-63 MN Corporation 2022 Form 1120-S S corporation ordinary income, Schedule K, Line 1: Sales Minus: Cost of goods sold Gross profit Plus: Sec. 1245 gain Minus: Depreciation

$300,000 (140,000) $160,000 22,000 $18,000 20,000 32,000 2,200

Salary to Nancy Business interest Business meals S corporation ordinary income

C:TRP-104 ..

(72,200) $109,800

C:12-58

709

United States Gift (and Generation-Skipping Transfer) Tax Return

Department of the Treasury Internal Revenue Service

(For gifts made during calendar year 2022)

Form

22

See instructions.

1 Donor’s first name and middle initial

3 Donor’s social security number

2 Donor’s last name

Joel

4 Address (number, street, and apartment number)

Bruton

XXX-XX-XXXX

5 Legal residence (domicile)

117 Panther Place

North Carolina

7 Citizenship (see instructions)

Part 1—General Information

6 City or town, state or province, country, and ZIP or foreign postal code

South City, NC 28000 If the donor died during the year, check here

11

Have you (the donor) previously filed a Form 709 (or 709-A) for any other year? If "No," skip line 11b . .

Has your address changed since you last filed Form 709 (or 709-A)? . . . . . . . . .

a b 12

13 15 16 17 18

. .

. .

4

. .

Janis Bruton

XXX-XX-XXXX

. .

Were you married to one another during the entire calendar year? See instructions . . . . . . . . widowed/deceased, and give date. See instructions: If line 15 is “No,” check whether married divorced or . .

Will a gift tax return for this year be filed by your spouse? If “Yes,” mail both returns in the same envelope .

. .

X

. .

No

X

X

.

.

X

.

.

X

Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar year considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent.

Janis Bruton

Date:

4/14/23

Have you applied a DSUE amount received from a predeceased spouse to a gift or gifts reported on this or a previous Form 709? If “Yes,” complete Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . .

19

Part 2—Tax Computation

. .

Yes

.

Gifts by husband or wife to third parties. Do you consent to have the gifts (including generation-skipping transfers) made by you and by your spouse to third parties during the calendar year considered as made one-half by each of you? (See instructions.) (If the answer is “Yes,” the following information must be furnished and your spouse must sign the consent shown below. If the answer is “No,” skip lines 13–18.) . . . . . . . . . . . . . . . . . . . .

14SSN N a m e o f c o n s e n t in g s p o u s e

Consenting spouse’s signature:

Attach check or money order here.

U.S.A.,

and enter date of death If you extended the time to file this Form 709, check here Enter the total number of donees listed on Schedule A. Count each person only once:

89 10

OMB No. 1545-0020

Go to www.irs.gov/Form709 for instructions and the latest information.

Enter the amount from Schedule A, Part 4, line 11 . . . .

Enter the amount from Schedule B, line 3 . . . .

Total taxable gifts. Add lines 1 and 2 . . . .

7

Applicable credit amount. If donor has DSUE amount from predeceased spouse(s) or Restored Exclusion Amount, enter amount from Schedule C, line 5; otherwise, see instructions . . . . . . . . .

Enter the applicable credit against tax allowable for all prior periods (from Sch. B, line 1, col. C) . . . . . . .

Balance.

Subtract line 8 from line 7. Do not enter less than zero . . . . . . . . .

8 9 10 11 12 13 14 15 16 17 18 19 20

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

Tax computed on amount on line 3 (see Table for Computing Gift Tax in instructions) .

Tax computed on amount on line 2 (see Table for Computing Gift Tax in instructions) .

Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

Enter 20% (0.20) of the amount allowed as a specific exemption for gifts made after September 8, 1976, and before January . .1, 1977. . . See . .instructions . . . . . . . . . . .

Balance. Subtract line 10 from line 9. Do not enter less than . .zero . . . . . . . . . . . .. . . . . . . . .

Applicable credit. Enter the smaller of line 6 or line 11 . . . . . .. . . . . . . . . . . .

Credit for foreign gift taxes (see instructions) . . . . .. . . . . . . . . . . . . . .

Total credits. Add lines 12 and 13 . . .

Balance. Subtract line 14 from line 6. Do not enter less than . .zero . . . . . . . . .

Generation-skipping transfer taxes (from Schedule D, Part 3, col. G, total) . . . . . . . . . . . . . . . . . .

Total tax. Add lines 15 and 16 . . . . . . . . . . . . .

Gift and generation-skipping transfer taxes prepaid with extension of time to file . . . . . . . . . . . . . .

If line 18 is less than line 17, enter balance due. See instructions . . . . . . . . . . .

If line 18 is greater than line 17, enter amount to be refunded . . . . .

. . . . . .

. . . . . . . . . . .

1,365,000 1,000,000 891,800a 2,365,000 345,800b 546,000 10 4,769,800 11 12 13 220,550 14 15 4,549,250 16 17 1 2 3 4 5 6 7 8 9

1 2 3 4 5 6

18 19 20

4,549,250 546,000 0 546,000 0 0 0 0

Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than donor) is based on all information of which preparer has any knowledge.

Sign Here

Joel Bruton Signature of donor Print/Type preparer’s name

Paid Preparer Use Only Firm’s name

Date

4/14/23 Date

Preparer’s signature

May the IRS discuss this return with the preparer shown below?

See instructions.

Yes No

Check if self-employed

PTIN

Firm's EIN Phone no.

Firm’s address

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the instructions for this form.

aTax on line 3 = $345,800 + [($2,365,000 - $1,000,000) x 0.40] bTax on line 2 = $345,800 (where first $1 million is subject to $345,800 tax)

C:TRP-105 ..

Cat. No. 16783M

Form 709 (2022)

C:12-58 Page 2

Form 709 (2022)

SCHEDULE A A

Computation of Taxable Gifts (Including transfers in trust) (see instructions)

Does the value of any item listed on Schedule A reflect any valuation discount? If “Yes,” attach explanation

.

.

.

.

.

.

Yes

No x

C heck here if you elect under section 529(c)(2)(B) to treat any contributions made this year to a qualified tuition program as made ratably over a 5-year period beginning this year. See instructions. Attach explanation.

B

Part 1—Gifts Subject Only to Gift Tax. Gifts less political organization, medical, and educational exclusions. See instructions.

A Item number

B • Donee’s name and address • Relationship to donor (if any) • Description of gift • If the gift was of securities, give CUSIP no.

• If closely held entity, give EIN

D Donor’s adjusted basis of gift

C

E Date of gift

F Value at date of gift

G For split gifts, enter 1/2 of column F

H Net transfer (subtract col. G from col. F)

60,000 2022 1 Belinda, daughter, stock 78,000 39,000 39,000 1,900,000 2022 2,476,0001,238,0001,238,000 2 Belinda, daughter, apt. bldg. & land 60,000 120,000 60,000 100,000 2022 3 Atlanta Art Museum, pottery 3,000,000 2,430,000 2022 3,000,000 -04 Jains, wife, QTIP trust Gi fts ma d e by spouse —complete onlyif you are splitting gifts w i t h your s pouse and he/s h e also m a d e gifts.

20,000 40,000 2022 40,000 20,000 5 Belinda, daughter, cash 120,000 2022 200,000 100,000 100,000 6 Jeanette Johnson, sister, stock *4,457,000

. . . . . . . . . . . . . . . . . . . . . .

Total of Part 1. Add amounts from Part 1, column H .

Part 2—Direct Skips. Gifts that are direct skips and are subject to both gift tax and generation-skipping transfer tax. You must list the gifts in chronological order.

A Item number

B • Donee’s name and address • Relationship to donor (if any) • Description of gift • If the gift was of securities, give CUSIP no.

• If closely held entity, give EIN

C 2632(b) election out

D Donor’s adjusted basis of gift

E Date of gift

F Value at date of gift

G For split gifts, enter 1/2 of column F

H Net transfer (subtract col. G from col. F)

1

Gi fts ma d e by spouse —complete only if you are splitting gifts w i t h your s pouse and he/s h e also m a d e gifts.

Total of Part 2. Add amounts from Part 2, column H . . . . . . . . . . . . . . . . . . . . . . .

Part 3—Indirect Skips and Other Transfers in Trust. Gifts to trusts that are indirect skips as defined under section 2632(c) or to trusts that are currently subject to gift tax and may later be subject to generation-skipping transfer tax. You must list these gifts in chronological order.

A Item number

B • Donee’s name and address • Relationship to donor (if any) • Description of gift • If the gift was of securities, give CUSIP no.

• If closely held entity, give EIN

D Donor’s adjusted basis of gift

C 2632(c) election

E Date of gift

F Value at date of gift

G For split gifts, enter 1/2 of column F

H Net transfer (subtract col. G from col. F)

1

Gi f ts ma d e by spouse —complete only if you are splitting gifts w i t h your s pouse and he/s h e also m a d e gifts.

Total of Part 3. Add amounts from Part 3, column H . . .

(If more space is needed, attach additional statements.)

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Form 709 (2022)

*Four transfer types are not subject to gift tax, including tuition payments made directly to the educational institution. Per Form 709 instructions, these transfers are not "gifts" for Form 709 or its instructions. Thus, tuition paid for grandson Jacob should not be listed on Form 709, Schedule A. C:TRP-106 ..

C:12-58 Page 3

Form 709 (2022)

Part 4—Taxable Gift Reconciliation 1 2 3

Total value of gifts of donor. Add totals from column H of Parts 1, 2, and 3 . . . . . . . .

Total annual exclusions for gifts listed on line 1 (see instructions) . . . .

Total included amount of gifts. Subtract line 2 from line 1 . .

. . .

. . .

. . .

. . .

Deductions (see instructions) 4 Gifts of interests to spouse for which a marital deduction will be claimed, based on item 5 6 7 8 9 10 11

1, 2, 3, 4

numbers Exclusions attributable to gifts on line 4 Marital deduction. Subtract line 5 from line .4 . .

Charitable deduction, based on item numbers . .

of Schedule A . . . . . . . . . . . . . . . . .. . . . . . .. .. .. .. . less exclusions . . . .

. .. .

4 5 6 7

3

. . .

. . .

. . .

. . .

3,000,000 16,000 2,984,000 44,000b .

Total deductions. Add lines 6 and 7 . . . . . . . . . . . . .. . . . . . . . . . . . . . .

Subtract line 8 from line 3transfer . . taxes payable with this Form 709 (from Schedule D, Part 3, col. G, total) . ..

Generation-skipping .

Taxable gifts. Add lines 9 and 10. Enter here and on page 1, Part 2—Tax Computation, line 1 .

1 2 3

4,457,000 64,000a 4,393,000

8 9 10 11

3,028,000 1,365,000 1,365,000

.

Terminable Interest (QTIP) Marital Deduction. (See instructions for Schedule A, Part 4, line 4.)

If a trust (or other property) meets the requirements of qualified terminable interest property under section 2523(f), and: a. The trust (or other property) is listed on Schedule A; and b. The value of the trust (or other property) is entered in whole or in part as a deduction on Schedule A, Part 4, line 4, then the donor shall be deemed to have made an election to have such trust (or other property) treated as qualified terminable interest property under section 2523(f).

If less than the entire value of the trust (or other property) that the donor has included in Parts 1 and 3 of Schedule A is entered as a deduction on line 4, the donor shall be considered to have made an election only as to a fraction of the trust (or other property). The numerator of this fraction is equal to the amount of the trust (or other property) deducted on Schedule A, Part 4, line 6. The denominator is equal to the total value of the trust (or other property) listed in Parts 1 and 3 of Schedule A. If you make the QTIP election, the terminable interest property involved will be included in your spouse’s gross estate upon his or her death (section 2044). See instructions for line 4 of Schedule A. If your spouse disposes (by gift or otherwise) of all or part of the qualifying life income interest, he or she will be considered to have made a transfer of the entire property that is subject to the gift tax. See Transfer of Certain Life Estates Received From Spouse in the instructions.

12

Election Out of QTIP Treatment of Annuities Check here if you elect under section 2523(f)(6) not to treat as qualified terminable interest property any joint and survivor annuities that are reported on Schedule A and would otherwise be treated as qualified terminable interest property under section 2523(f). See instructions. Enter the item numbers from Schedule A for the annuities for which you are making this election:

SCHEDULE B

Gifts From Prior Periods

If you answered “Yes,” on line 11a of page 1, Part 1, see the instructions for completing Schedule B. If you answered “No,” skip to the Tax Computation on page 1 (or Schedule C or D, if applicable). Complete Schedule A before beginning Schedule B. See instructions for recalculation of the column C amounts. Attach calculations.

A Calendar year or calendar quarter (see instructions)

C Amount of applicable credit (unified credit) against gift tax for periods after December 31, 1976

B Internal Revenue office where prior return was filed

2000

1

Totals for prior periods

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

1

D Amount of specific exemption for prior periods ending before January 1, 1977

E Amount of taxable gifts

220,550c

1,000,000

220,550

1,000,000

.

2 3

Amount, if any, by which total specific exemption, line 1, column D, is more than $30,000 . . . . . . .

Total amount of taxable gifts for prior periods. Add amount on line 1, column E, and amount, if any, on line 2. Enter here and on page 1, Part 2—Tax Computation, line 2 . . . . . . . . . . . . . . . . . .

.

2

.

3

(If more space is needed, attach additional statements.)

a$16,000 each for Belinda, museum, Janis, and Jeanette.

b$60,000 to Atlanta Art Museum (after gift splitting) – $16,000 annual exclusion. cCredit limitation for 2000 gifts.

Note: Pages 4 and 5 of form omitted.

C:TRP-107

..

1,000,000

Form 709 (2022)

C:12-59

709

United States Gift (and Generation-Skipping Transfer) Tax Return

Department of the Treasury Internal Revenue Service

(For gifts made during calendar year 2022)

Form

22

See instructions.

1 Donor’s first name and middle initial

Ned

4 Address (number, street, and apartment number)

2 Donor’s last name

3 Donor’s social security number

Norris

XXX-XX-XXXX

5 Legal residence (domicile)

11616 Starstruck Blvd.

California

6 City or town, state or province, country, and ZIP or foreign postal code

7 Citizenship (see instructions)

Part 1—General Information

Southern City, CA 90068

U .S.A.

and enter date of death If the donor died during the year, check here If you extended the time to file this Form 709, check here Enter the total number of donees listed on Schedule A. Count each person only once: Have you (the donor) previously filed a Form 709 (or 709-A) for any other year? If "No," skip line 11b . .Has your address changed since you last filed Form 709 (or 709-A)? . . . . . . . . .

89 10 11a

,

b

. .

. .

. .

. .

. .

X

. .

Gifts by husband or wife to third parties. Do you consent to have the gifts (including generation-skipping transfers) made by you and by your spouse to third parties during the calendar year considered as made one-half by each of you? (See instructions.) (If the answer is “Yes,” the following information must be furnished and your spouse must sign the consent shown below. If the answer is “No,” skip lines 13–18.) . . . . . . . . . . . . . . . . . . . .

Name of consenting spouse 14 SSN Were you married to one another during the entire calendar year? See instructions . . . . . . . . . . . .

12

13 15 16 17 18

widowed/deceased, and give date. See instructions: If line 15 is “No,” check whether married divorced or . .

Will a gift tax return for this year be filed by your spouse? If “Yes,” mail both returns in the same envelope .

.

No

X

.

Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar year considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent.

Date:

Have you applied a DSUE amount received from a predeceased spouse to a gift or gifts reported on this or a previous Form 709? If “Yes,” complete Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . .

19 1 2 3 4 5 6

Part 2—Tax Computation

Yes

.

3

Consenting spouse’s signature:

Attach check or money order here.

OMB No. 1545-0020

Go to www.irs.gov/Form709 for instructions and the latest information.

7 8 9 10 11 12 13 14 15 16 17 18 19 20

. . . . . .

1 2 3 4 5 6

2,003,000 1,200,000 3,203,000 1,227,000a 425,800b 801,200

Applicable credit amount. If donor has DSUE amount from predeceased spouse(s) or Restored Exclusion Amount, enter amount from Schedule C, line 5; otherwise, see instructions . . . . . . . . . . . .

Enter the applicable credit against tax allowable for all prior periods (from Sch. B, line 1, col. C) . . . .

Balance.

Subtract line 8 from line 7. Do not enter less than zero . . . . . . . . .

7 8 9

4,769,800 425,800 4,344,000

Enter the amount from Schedule A, Part 4, line 11 . . . . . . . .

Total taxable gifts. Add lines 1 and 2 . . . .

. . .

Tax computed on amount on line 3 (see Table for Computing Gift Tax in instructions) .

Tax computed on amount on line 2 (see Table for Computing Gift Tax in instructions) .

Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . .

Enter the amount from Schedule B, line 3

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

Enter 20% (0.20) of the amount allowed as a specific exemption for gifts made after September 8, 1976, and before January . .1, 1977. . . See . .instructions . . . . . . . . . . .

Balance. Subtract line 10 from line 9. Do not enter less than . .zero . . . . . . . . . . . .. . . . . . . . .

Applicable credit. Enter the smaller of line 6 or line 11 . . . . . .. . . . . . . . . . . .

Credit for foreign gift taxes (see instructions) . . . . .. . . . . . . . . . . . . . .

Total credits. Add lines 12 and 13 . . .

Balance. Subtract line 14 from line 6. Do not enter less than . .zero . . . . . . . . .

Generation-skipping transfer taxes (from Schedule D, Part 3, col. G, total) . . . . . . . . . . . . . . . . . .

Total tax. Add lines 15 and 16 . . . . . . . . . . . . .

Gift and generation-skipping transfer taxes prepaid with extension of time to file . . . . . . . . . . . . . .

If line 18 is less than line 17, enter balance due. See instructions . . . . . . . . . . .

If line 18 is greater than line 17, enter amount to be refunded . . . . .

. . . . . . . . . . .

10 11 12 13 14 15 16 17 18 19 20

4,344,000 801,200 0 801,200 0 0 0 0

Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than donor) is based on all information of which preparer has any knowledge.

Sign Here

Ned Norris

Date

Signature of donor

Print/Type preparer’s name Paid Preparer Use Only Firm’s name

Preparer’s signature

4/7/23 Date

May the IRS discuss this return with the preparer shown below?

See instructions.

Yes No

Check if self-employed

PTIN

Firm's EIN Phone no.

Firm’s address

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the instructions for this form.

aTax on line 3 = $345,800 + [($3,203,000 - $1,000,000) x 0.40] bTax on line 2 = $345,800 + [($1,200,000 - $1,000,000) x 0.40]

C:TRP-108 ..

Cat. No. 16783M

Form 709 (2022)

C:12-59 Page 2

Form 709 (2022)

SCHEDULE A A B

Computation of Taxable Gifts (Including transfers in trust) (see instructions)

No x

Does the value of any item listed on Schedule A reflect any valuation discount? If “Yes,” attach explanation . . . . . .

Yes C heck here if you elect under section 529(c)(2)(B) to treat any contributions made this year to a qualified tuition program as made ratably over a 5-year period beginning this year. See instructions. Attach explanation.

Part 1—Gifts Subject Only to Gift Tax. Gifts less political organization, medical, and educational exclusions. See instructions.

A Item number

B • Donee’s name and address • Relationship to donor (if any) • Description of gift • If the gift was of securities, give CUSIP no.

• If closely held entity, give EIN

D Donor’s adjusted basis of gift

C

E Date of gift

F Value at date of gift

G For split gifts, enter 1/2 of column F

Nathan Norris, son, land 300,000 20222,000,000 1 2022 2 Natalie Norris, daughter, rent paid 18,000 County Hospital, beach house 320,000 2022 3 525,000 Nathan Norris, son, ins. prem.

2022 4 17,000 Gi fts ma d e by spouse if you are splitting gifts w i t h your s pouse and he/s h e also m a d e gifts.

H Net transfer (subtract col. G from col. F)

2,000,000 18,000 525,000 17,000

—complete only

*2,560,000

. . . . . . . . . . . . . . . . . . . . . .

Total of Part 1. Add amounts from Part 1, column H .

Part 2—Direct Skips. Gifts that are direct skips and are subject to both gift tax and generation-skipping transfer tax. You must list the gifts in chronological order.

A Item number

B • Donee’s name and address • Relationship to donor (if any) • Description of gift • If the gift was of securities, give CUSIP no.

• If closely held entity, give EIN

C 2632(b) election out

D Donor’s adjusted basis of gift

E Date of gift

F Value at date of gift

G For split gifts, enter 1/2 of column F

H Net transfer (subtract col. G from col. F)

1

Gi fts ma d e by spouse —complete only if you are splitting gifts w i t h your s pouse and he/s h e also m a d e gifts.

Total of Part 2. Add amounts from Part 2, column H . . . . . . . . . . . . . . . . . . . . . . .

Part 3—Indirect Skips and Other Transfers in Trust. Gifts to trusts that are indirect skips as defined under section 2632(c) or to trusts that are currently subject to gift tax and may later be subject to generation-skipping transfer tax. You must list these gifts in chronological order.

A Item number

B • Donee’s name and address • Relationship to donor (if any) • Description of gift • If the gift was of securities, give CUSIP no.

• If closely held entity, give EIN

D Donor’s adjusted basis of gift

C 2632(c) election

E Date of gift

F Value at date of gift

G For split gifts, enter 1/2 of column F

H Net transfer (subtract col. G from col. F)

1

Gi f ts ma d e by spouse —complete only if you are splitting gifts w i t h your s pouse and he/s h e also m a d e gifts.

Total of Part 3. Add amounts from Part 3, column H . . .

(If more space is needed, attach additional statements.)

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.

Form 709 (2022)

*Four transfer types are not subject to gift tax, including tuition payments made directly to the educational institution. Per Form 709 instructions, these transfers are not "gifts" for Form 709 or its instructions. Thus, tuition paid for daughter Natalie should not be listed on Form 709, Schedule A.

C:TRP-109 ..

C:12-59 Page 3

Form 709 (2022)

Part 4—Taxable Gift Reconciliation 1 2 3

Total value of gifts of donor. Add totals from column H of Parts 1, 2, and 3 . . . . . . . .

Total annual exclusions for gifts listed on line 1 (see instructions) . . . .

Total included amount of gifts. Subtract line 2 from line 1 . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

2,560,000 48,000a 2,512,000

1 2 3

Deductions (see instructions) 4

Gifts of interests to spouse for which a marital deduction will be claimed, based on item

5 6 7 8 9 10 11

numbers of Schedule A . . . . . .

4 Exclusions attributable to gifts on line 4 5 . . . . . . . . . . . . .

Marital deduction. Subtract line 5 from line 4 .

6 . . . . . . . . . . .

Charitable deduction, based on item numbers less exclusions 7 . .

Total deductions. Add lines 6 and 7 . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . ..

Subtract line 8 from line 3 . .

Generation-skipping transfer taxes payable with this Form 709 (from Schedule D, Part 3, col. G, total) . . ..

Taxable gifts. Add lines 9 and 10. Enter here and on page 1, Part 2—Tax Computation, line 1 . .

509,000b

3

509,000 2,003,000 2,003,000

8 9 10 11

Terminable Interest (QTIP) Marital Deduction. (See instructions for Schedule A, Part 4, line 4.)

If a trust (or other property) meets the requirements of qualified terminable interest property under section 2523(f), and: a. The trust (or other property) is listed on Schedule A; and b. The value of the trust (or other property) is entered in whole or in part as a deduction on Schedule A, Part 4, line 4, then the donor shall be deemed to have made an election to have such trust (or other property) treated as qualified terminable interest property under section 2523(f).

If less than the entire value of the trust (or other property) that the donor has included in Parts 1 and 3 of Schedule A is entered as a deduction on line 4, the donor shall be considered to have made an election only as to a fraction of the trust (or other property). The numerator of this fraction is equal to the amount of the trust (or other property) deducted on Schedule A, Part 4, line 6. The denominator is equal to the total value of the trust (or other property) listed in Parts 1 and 3 of Schedule A. If you make the QTIP election, the terminable interest property involved will be included in your spouse’s gross estate upon his or her death (section 2044). See instructions for line 4 of Schedule A. If your spouse disposes (by gift or otherwise) of all or part of the qualifying life income interest, he or she will be considered to have made a transfer of the entire property that is subject to the gift tax. See Transfer of Certain Life Estates Received From Spouse in the instructions.

12

Election Out of QTIP Treatment of Annuities Check here if you elect under section 2523(f)(6) not to treat as qualified terminable interest property any joint and survivor annuities that are reported on Schedule A and would otherwise be treated as qualified terminable interest property under section 2523(f). See instructions. Enter the item numbers from Schedule A for the annuities for which you are making this election:

SCHEDULE B

Gifts From Prior Periods

If you answered “Yes,” on line 11a of page 1, Part 1, see the instructions for completing Schedule B. If you answered “No,” skip to the Tax Computation on page 1 (or Schedule C or D, if applicable). Complete Schedule A before beginning Schedule B. See instructions for recalculation of the column C amounts. Attach calculations.

A Calendar year or calendar quarter (see instructions)

B Internal Revenue office where prior return was filed

2014

1

Totals for prior periods

Cincinnati, OH

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1

C Amount of applicable credit (unified credit) against gift tax for periods after December 31, 1976

D Amount of specific exemption for prior periods ending before January 1, 1977

E Amount of taxable gifts

425,800c

-0-

1,200,000

425,800

-0-

1,200,000

2 Amount, if any, by which total specific exemption, line 1, column D, is more than $30,000 . . . . . . . .

3 Total amount of taxable gifts for prior periods. Add amount on line 1, column E, and amount, if any, on line 2. Enter here and on page 1, Part 2—Tax Computation, line 2 . . . . . . . . . . . . . . . . . .

(If more space is needed, attach additional statements.)

.

2

.

3

-01,200,000

Form 709 (2022)

a$16,000 each for gifts to Nathan, Natalie, and County Hospital. b$525,000 to County Hospital - $16,000 annual exclusion. cTax on $1.2 million gift [$345,800 + ($200,000 x 0.40)], which is less than credit limitation.

C:TRP-110 ..

C:13-62

Form

United States Estate (and Generation-Skipping Transfer) Tax Return

706

(Rev. August 2019)

OMB No. 1545-0015

Estate of a citizen or resident of the United States (see instructions). To be filed for decedents dying after December 31, 2018.

Go to for instructions and the latest information.

Part 2—Tax Computation

Part 1—Decedent and Executor

Department of the Treasury www.irs.gov/Form706 Internal Revenue Service 1a Decedent’s first name and middle initial (and maiden name, if any) 3a

Marcia

1b Decedent’s last name

2 Decedent’s social security no.

3b Year domicile established 4 Date of birth

5 Date of death

Miller

1930

XXX

XX

XXXX

7-23-2023

1930

City, town, or post office; county; state or province; country; and ZIP or 6b Executor’s address (number and street including apartment or suite no.; city, town, foreign postal code or post office; state or province; country; and ZIP or foreign postal code) and phone no.

6a

Eastern City, PA 19000

6c

Name of executor (see instructions) Executor’s social security number (see instructions)

6d 7a

If there are multiple executors, check here and attach a list showing the names, addresses, telephone numbers, and SSNs of the additional executors.

Name and location of court where will was probated or estate administered 7b Case number

8 10 1 2 3a b c

If decedent died testate, check here 9If you extended the time to file this Form 706, check here If Schedule R-1 is attached, check here 11If you are estimating the value of assets included in the gross estate on line 1 pursuant to the special rule of Reg. section 20.2010-2(a) (7)(ii), check here Total gross estate less exclusion (from Part 5—Recapitulation, item 13) . . . . . . . . . .

1 Tentative total allowable deductions (from Part 5—Recapitulation, item 24) . . . . . . . . .

2 .Tentative taxable estate (subtract line 2 from line 1) . . . . . . . . . . . . . . .

3a .State death tax deduction . . . . . . . . . . . . . . .

3b . . . . . . .Taxable estate (subtract line 3b from line 3a) . . . . . . . . . .

3c . . . . . . .Adjusted taxable gifts (see instructions) . . . . . . . . .

4 . . . . . . . .Add lines 3c and 4 . . . . . . . . . . . . . . .

5 . . . . . . .

6 7 Total gift tax paid or payable (see instructions) . . . . . . . . . . . . . . . . .

8 Gross estate tax (subtract line 7 from line 6) . . . . . . . . . . . . . . . . . . .Basic exclusion amount . . . . . . . . . . . . . . 9a 9b Deceased spousal unused exclusion (DSUE) amount from predeceased spouse(s), 9c if any (from Section amount D, Part 6—Portability of Deceased Restored exclusion (see instructions). . . Spousal . . . Unused . . Exclusion).

9d 9e .

10 Applicable exclusion amount (add lines 9a, 9b, and 9c) . . . . . .

Applicable credit amount (tentative tax on the amount in 9d from .

Table A in the instructions) . . . . . . . . . . . . .

Adjustment to applicable credit amount (May not exceed $6,000. See instructions.) . . . . . . . . . . . . . . . . . .

Allowable applicable credit amount (subtract line 10 from line 9e) . . . . . . . . . . .

11 . . . . . . . . . .

12 Subtract line 11 from line 8 (but do not enter less than zero) . . .

Creditforforeigndeathtaxes(fromScheduleP).(AttachForm(s) 706-CE.) 13 . 14 Credit for tax on prior transfers (from Schedule Q) . . . . . . . . . . . . . . . . . . . . . .

Total credits (add lines 13 and 14) . . . . .

15 . . . . . . . . . . . . . . . .

Net estate tax (subtract line 15 from line 12) . .

16

4 5 6 7 8 9a b c d e 10 11 12 13 14 15 16 17 18 19 20

Hy Phee

Phone no.

xand attach a certified copy of the will.

17,962,300 1,350,800 16,611,500

16,611,500 -016,611,500x 40% + 345,800 Tentative tax on the amount on line 5 from Table A in the instructions 15,611,500 6,590,400 -06,590,400 12,920,000 -012,920,000 5,113,800 -0-

Generation-skipping transfer (GST) taxes payable (from Schedule R, Part 2, line 10) . .

Total transfer taxes (add lines 16 and 17) . . . . . . . . . . . . . .Prior payments (explain in an attached statement) . . . . . . . . . . .Balance due (or overpayment) (subtract line 19 from line 18) . . . . . . .

. . . .

. . . .

. . . .

5,113,80 0 1,476,60 0

. . . .

. . . .

1,476,600

17 18 19 20

1,476,600 1,476,600

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than the executor) is based on all information of which preparer has any knowledge.

Sign Here

Date

Signature of executor

Signature of executor

Paid Preparer Use Only

Print/Type preparer’s name

Date Preparer’s signature

Date

Phone no.

Firm’s address

Note: Pages that are not relevant are not included.

C:TRP-111 ..

PTIN

Firm's EIN

Firm’s name

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Check if self-employed

Cat. No. 20548R

Form 706 (Rev. 8-2019)

C:13-62 Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of: Marcia Miller Part 3—Elections by the Executor

XXX

XX

XXXX

Note:For information on electing portability of the decedent's DSUE amount, including how to opt out of the election, see Part 6— Portability of Deceased Spousal Unused Exclusion.

Note: Some of the following elections may require the posting of bonds or liens.

Please check “Yes” or “No” for each question. See instructions. . 1 Do you elect alternate valuation? . . . . . . . . . . . . . . . .

2 Do you elect special-use valuation? If “Yes,” you must complete and attach Schedule A-1 3

4

Yes No . .

1 2

Do you elect to pay the taxes in installments as described in section 6166? . . . . . . . . . . . . . . .

If “Yes,” you must attach the additional information described in the instructions.

Note: By electing section 6166 installment payments, you may be required to provide security for estate tax deferred under section 6166 and interest in the form of a surety bond or a section 6324A lien.

Do you elect to postpone the part of the taxes due to a reversionary or remainder interest as described in section 6163? .

3 4

. .

. .

. .

. .

. .

. .

. .

. .

. .

X X X X

Part 4—General Information Note: Please attach the necessary supplemental documents. You must attach the death certificate. See instructions.

Authorization to receive confidential tax information under Reg. section 601.504(b)(2)(i); to act as the estate’s representative before the IRS; and to make written or oral presentations on behalf of the estate: Name of representative (print or type)

State

Address (number, street, and room or suite no., city, state, and ZIP code)

certified public accountant/ I declare that I am the attorney/ enrolled agent (check the applicable box) for the executor. I am not under suspension or disbarment from practice before the Internal Revenue Service and am qualified to practice in the state shown above.

Signature

CAF number

Date

Telephone number

1

Death certificate number and issuing authority (attach a copy of the death certificate to this return).

2

Decedent’s business or occupation. If retired, check here

3a

Marital status of the decedent at time of death:

3b

For all prior marriages, list the name and SSN of the former spouse, the date the marriage ended, and whether the marriage ended by annulment, divorce, or death. Attach additional statements of the same size if necessary.

x Married

and state decedent’s former business or occupation.

Single

Widow/widower

Legally separated

Divorced

Arthur Adams, ended in 1995 with his death

4a

Surviving spouse’s name

5

Individuals (other than the surviving spouse), trusts, or other estates who receive benefits from the estate (do not include charitable beneficiaries shown in Schedule O) (see instructions).

Matt Miller

Name of individual, trust, or estate receiving $5,000 or more

Andy Adams Annie Adams Archie Adams

4b Social security number

4c Amount received (see instructions)

1,165,000a

Identifying number

All unascertainable beneficiaries and those who receive less than $5,000 .

Total . . . . . . . . . . . . . . . . . . . . .

. .

. .

. .

Relationship to decedent

Amount (see instructions)

14,414,900 b,c 360,000b,d 360,000b

Son Daughter Son

. .

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15,134,900e Yes No

If you answer “Yes” to any of the following questions, you must attach additional information as described.

6

Is the estate filing a protective claim for refund? . . . . . . . .

If “Yes,” complete and attach two copies of Schedule PC for each claim.

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7

Does the gross estate contain any section 2044 property (qualified terminable interest property (QTIP) from a prior gift or estate)?

See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8a b

Have federal gift tax returns ever been filed? . . . . . . . . . . . . .

If “Yes,” attach copies of the returns, if available, and furnish the following information.

Period(s) covered c Internal Revenue office(s) where filed

9a b

Did the decedent own any insurance on the life of another that is not included in the gross estate? .

X

.

X

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X

Was there any insurance on the decedent’s life that is not included on the return as part of the gross estate? . . .. . .

. .

. .

. .

. .

X X

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Page 2 aSee Schedule M for details. bAmount includes one-third of amount from included portion of QTIP trust (1/3 x $1,080,000 = $360,000).

See Schedule F for QTIP calculation. c$16,611,500 – $1,476,600 – (2 x $360,000) dAmount does not include $500,000 from trust in which decedent held a special power of appointment; the trust is not included in the gross estate. e$16,611,500 taxable estate – $1,476,600 estate taxes = $15,134,900

C:TRP-112 ..

C:13-62 Form 706 (Rev. 8-2019)

Decedent’s social security number

XXX

Estate of: Marcia Miller Part 4—General Information(continued)

XX XXXX

Yes No

If you answer “Yes” to any of the following questions, you must attach additional information as described.

10

Did the decedent at the time of death own any property as a joint tenant with right of survivorship in which (a) one or more of the less than the full value of the property is included on other joint tenants was someone other than the decedent’s spouse, and (b) the return as part of the gross estate? If “Yes,” you must complete and attach Schedule E . . . . . . . . . . .

11a

Did the decedent, at the time of death, own any interest in a partnership (for example, a family limited partnership), an unincorporated business, or a limited liability company; or own any stock in an inactive or closely held corporation? .

b 12 13a

.

.

X X

.

X

If “Yes,” was the value of anyinterest owned (from above) discounted on this estate tax return? If “Yes,” see the instructions on reporting the total accumulated or effective discounts taken on Schedule F or G . . . . . . . . . . . . . .

Did the decedent make any transfer described in sections 2035, 2036, 2037, or 2038? See instructions.If “Yes,” you must complete and attach Schedule G . . . . . . . . . . . . . . . . . . . . . . . . . .

Were there in existence at the time of the decedent’s death any trusts created by the decedent during his or her lifetime? .

.

b Were there in existence at the time of the decedent’s death any trusts not created by the decedent under which the decedent possessed any power, beneficial interest, or trusteeship? . . . . . . . . . . . . . . . . . . . . . .

. .

. .

. .

X X

. . .

X X

c

Was the decedent receiving income from a trust created after October 22, 1986, by a parent or grandparent? . . “Yes,” was there a GST taxable termination (under section 2612) on the death of the decedent? .

If . .

. .

d

If there was a GST taxable termination (under section 2612), attach a statement to explain. Provide a copy of the trust or will creating the trust, and give the name, address, and phone number of the current trustee(s).

e

Did the decedent at any time during his or her lifetime transfer or sell an interest in a partnership, limited liability company, or closely held corporation to a trust described in lines 13a or 13b? . . . . . . . . . . . . . . . . . . .

If “Yes,” provide the EIN for this transferred/sold item.

Did the decedent ever possess, exercise, or release any general power of appointment? If “Yes,” you must complete and attach Schedule H Did the decedent have an interest in or a signature or other authority over a financial account in a foreign country, such as a bank

X

16

Was the decedent, immediately before death, receiving an annuity described in the “General” paragraph of the instructions for Schedule I or a private annuity? If “Yes,” you must complete and attach Schedule I . . . . . . . . . . . . .

X X X

17

Was the decedent ever the beneficiary of a trust for which a deduction was claimed by the estate of a predeceased spouse under section 2056(b)(7) and which is not reported on this return? If “Yes,” attach an explanation . . . . . . . .

X

14 15

account, securities account, or other financial account?

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Part 5—Recapitulation. Note: If estimating the value of one or more assets pursuant to the special rule of Reg. section 20.2010-2(a)(7)(ii), enter on both lines 10 and 23 the amount noted in the instructions for the corresponding range of values. See instructions for details.

Item no.

Gross estate

1 2 3 4 5 6 7 8 9 10 11 12

Schedule A—Real Estate . Schedule . . . .B—Stocks . . . and . .Bonds . . . .Schedule . . . C— Mortgages, Notes, and Cash . Schedule . . D—Insurance . . . . . on. the. Decedent’s . . . . Life (attach Form(s) 712) . Schedule E—Jointly Owned . Property . . . (attach . . Form(s) . . . 712 . for life insurance) Schedule F—Other Miscellaneous Property (attach Form(s) . . 712 . for life insurance) Schedule G—Transfers During Decedent’s Life (att. Form(s) 712 . for life insurance)

13

Schedule H—Powers of Appointment Schedule I—Annuities

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.

.

.

.

. .

. .

Alternate value

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

Estimated value of assets subject to the special rule of Reg. section 20.2010-2(a)(7)(ii)

Total gross estate (add items 1 through 10) . . . . .

Schedule U—Qualified Conservation Easement Exclusion

. .

. .

. .

. .

. .

. .

Total gross estate less exclusion (subtract item 12 from item 11). Enter here and on line 1 of Part 2—Tax Computation . . . . . . . . . . . . .

14,300,000 1,017,300 1,000,0 0 0 425,000 1,220, 0 0 0 -0-0-0-017,962,300 -017,962,300

13

Item no.

Deductions

14 15 16 17 18 19 20 21 22 23 24

.

Schedule J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims . . . . . . Schedule ... .. . .

K—Debts of the Decedent . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .

Schedule K—Mortgages and Liens . .. . . . . . . . . . . . . . . . . . .

Total of items 14 through 16 . . .Allowable Estimated amount valueofofdeductions deductiblefrom assets item 17 subject (see the to the instructions special for rule item of 18 Reg. of the section Recapitulation) 20.2010-2(a)(7)(ii). . . . .

Tentative L—Net total allowable deductions (add items . Tax .

Schedule Losses During Administration . 18 . .through . . 23). . .Enter . .here . and . . on. line . 2. of the Computation .. . .

Schedule L—Expenses Incurred in Administering Property Not Subject to Claims . . . .. . . .Schedule M—Bequests, etc., to Surviving Spouse . . . . . . . . . . . .. . . . . .

Schedule O—Charitable, Public, and Similar Gifts and Bequests . . . . . . .

C:TRP-113 ..

Value at date of death

1 2 3 4 5 6 7 8 9 10 11 12

Amount

14 15 16 17 18 19 20 21 22 23 24

135,000 800 135,800 135,800

1,165,000 50,000 1,350,800 Page 3

C:13-62 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Marcia Miller

XXX

XX

XXXX

SCHEDULE B—Stocks and Bonds (For jointly owned property that must be disclosed on Schedule E, see instructions.)

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not requiredto report the value of an asset, identify the property but make no entries in the last four columns.

Item number

Description, including face amount of bonds or number of shares and par value for identification. Give CUSIP number.

If trust, partnership, or closely held entity, give EIN.

Unit value

Alternate valuation date

Alternate value

Value at date of death

CUSIP number or EIN, where applicable

1

Stock portfolio

14,300,000

Total from continuation schedules (or additional statements) attached to this schedule ... TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 2.) ..........

14,300,000

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule B—Page 10

C:TRP-114 ..

C:13-62 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

XXX

Marcia Miller

XX

XXXX

SCHEDULE C—Mortgages, Notes, and Cash (For jointly owned property that must be disclosed on Schedule E, see instructions.)

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amountand Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not requiredto report the value of an asset, identify the property but make no entries in the last three columns.

Item number

Alternate valuation date

Description

Alternate value

Value at date of death

1

Cash in money market account

2

Accrued interest on money market account

2,200

3

Checking account, held with spouse as tenants in common, 50% of account balance is included

15,100

1,000,000

Total from continuation schedules (or additional statements) attached to this schedule ..

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 3.) .........

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

1,017,300

Schedule C—Page 11

C:TRP-115 ..

C:13-62 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

XXX

Marcia Miller

XX

XXXX

SCHEDULE D—Insurance on the Decedent’s Life You must list all policies on the life of the decedent and attach a Form 712 for each policy.

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amountand Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item number

1

Alternate valuation date

Description

Life insurance policy; estate is beneficiary

Alternate value

Value at date of death

1,000,000

Total from continuation schedules (or additional statements) attached to this schedule ..

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 4.) .........

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

1,000,000

Schedule D—Page 12

C:TRP-116 ..

C:13-62 Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of:

XXX

Marcia Miller SCHEDULE E—Jointly Owned Property

XX

XXXX

(If you elect section 2032A valuation, you must complete Schedule E and Schedule A-1.)

PART 1. Qualified Joint Interests—Interests Held by the Decedent and His or Her Spouse as the Only Joint Tenants (Section 2040(b)(2)) Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item number

Alternate valuation date

Description. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN.

Value at date of death

Alternate value

CUSIP number or EIN, where applicable

residence 1 Principal 117 Brandywine Way Eastern City, PA 19000

850,000

Total from continuation schedules (or additional statements) attached to this schedule 1a 1b

Totals . . . . . . . . . . . . . . .

Amounts included in gross estate (one-half of line 1a) .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. . .

. . .

. . .

.

.

1a 1b

850,000 425,000

PART 2. All Other Joint Interests 2a

State the name and address of each surviving co-tenant. If there are more than three surviving co-tenants, list the additionalco-tenants on an attached statement.

Name

Address (number and street, city, state, and ZIP code)

A. B. C. Enter Item letter for number co-tenant

Description (including alternate valuation date if any). For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN

Percentage includible

Includible alternate value

Includible value at date of death

CUSIP number or EIN, where applicable

Total from continuation schedules (or additional statements) attached to this schedule . . . . . . . . . . . . . . . . . . . . . .

. .

2b

Total other joint interests

3

Total includible joint interests (add lines 1b and 2b). Also enter on Part 5—Recapitulation,page 3, at item 5 . . . . . . . . . . . . . . . . . . . . . . . . .

.

.

2b 3

425,000

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

C:TRP-117 ..

Schedule E—Page 13

C:13-62 Form 706 (Rev. 8-2019)

Decedent’s social security number

XXX

Estate of: Marcia Miller

XX

XXXX

SCHEDULE F—Other Miscellaneous Property Not Reportable Under Any Other Schedule (For jointly owned property that must be disclosed on Schedule E, see instructions.)

(If you elect section 2032A valuation, you must complete Schedule F and Schedule A-1.)

Note:If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

1 Did the decedent own any works of art, items, or any collections whose artistic or collectible value at date of death exceeded $3,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” submit full details on this schedule and attach appraisals.

2 Has the decedent’s estate, spouse, or any other person received (or will receive) any bonus or award as a result of the decedent’s employment or death? . . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” submit full details on this schedule. . . . . . . . . . .

3 Did the decedent at the time of death have, or have access to, a safe deposit box? .

If ‘‘Yes,’’ state location, and if held jointly by decedent and another, state name and relationship of joint depositor.

Yes No

X X X

If any of the contents of the safe deposit box are omitted from the schedules in this return, explain fully why omitted.

Item number

Description. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN

Alternate valuation date

Alternate value

Value at date of death

CUSIP number or EIN, where applicable

1 2

Household furnishings QTIP Trust at Franklin State Bank for which executor elected a 60% marital deduction; 60% of 1,800,000 is includible

140,000 1,080,000

Total from continuation schedules (or additional statements) attached to this schedule .

1,220,000 .

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 6.) . . . . . . . . .

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule F—Page 14

C:TRP-118 ..

C:13-62 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

XXX

Marcia Miller

XX

XXXX

SCHEDULE G—Transfers During Decedent’s Life (If you elect section 2032A valuation, you must complete Schedule G and Schedule A-1.)

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item number

A.

Description. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN

Gift tax paid or payable by the decedent or the estate for all gifts made by the decedent or his or her spouse within 3 years before the decedent’s death (section 2035(b)) ............

Transfers includible under sections 2035(a), 2036, 2037, or 2038:

B.

Alternate valuation date

Alternate value

Value at date of death

XXXXX

Total from continuation schedules (or additional statements) attached to this schedule . . ..

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 7.) . . . . . . .

SCHEDULE H—Powers of Appointment (Include “5 and 5 lapsing” powers (section 2041(b)(2)) held by the decedent.)

(If you elect section 2032A valuation, you must complete Schedule H and Schedule A-1.)

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item number

1

Alternate valuation date

Description

*

Alternate value

Value at date of death

-0-*

Total from continuation schedules (or additional statements) attached to this schedule . . . .. . .

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 8.) . . . . . .

-0(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

*Note: Decedent held a special, but not general, power of appointment in a $500,000 trust at Quaker State Bank.

Schedules G and H—Page 15

C:TRP-119 ..

C:13-62 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Marcia Miller

XXX

XX

XXXX

SCHEDULE J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims Use Schedule PC to make a protective claim for refund due to an expense not currently deductible.

For such a claim, report the expense on Schedule J but without a value in the last column.

Note: Do not list expenses of administering property not subject to claims on this schedule. To report those expenses, see instructions.

If executors’ commissions, attorney fees, etc., are claimed and allowed as a deduction for estate tax purposes, they are not allowable as a deduction in computing the taxable income of the estate for federal income tax purposes. They are allowable as an income tax deduction on Form 1041, U.S. Income Tax Return for Estates and Trusts, if a waiver is filed to forgo the deduction on Form 706. See the Instructions for Form 1041.

Are you aware of any actual or potential reimbursement to the estate for any expense claimed as a deduction on this schedule? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” attach a statement describing the expense(s) subject to potential reimbursement. See instructions.

Item number

1

Description

Expense amount

YesNo

X

Total amount

A. Funeral expenses:

Funeral and tombstone

Total funeral expenses .

.

.

15,000

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

B. Administration expenses: 1 Executors’ commissions—amount estimated/agreed upon/paid. (Strike out the words that do not apply.)..............................

2 Attorney fees—amount estimated/agreed upon/paid. (Strike out the words that do not apply.) ..

3 Accountant fees—amount estimated/agreed upon/paid. (Strike out the words that do not apply.) .

15,000

120,000

Expense amount

4 Miscellaneous expenses:

Total miscellaneous expenses from continuation schedules (or additional statements) attached to this schedule . . . . . . . . . . . . . . . . . . . . .

Total miscellaneous expenses . . . . . . . . . . . . . . . . . . . . . . . .

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 14.) . . . . . . . . . . . . . .

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

135,000

Schedule J—Page 17

C:TRP-120 ..

C:13-62 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Marcia Miller

XXX

XX

XXXX

SCHEDULE K—Debts of the Decedent, and Mortgages and Liens Use Schedule PC to make a protective claim for refund due to a claim not currently deductible.

For such a claim, report the expense on Schedule K but without a value in the last column.

Yes No Are you aware of any actual or potential reimbursement to the estate for any debt of the decedent, mortgage, or lien claimed as a deduction on this schedule? . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” attach a statement describing the items subject to potential reimbursement. See instructions.

Are any of the items on this schedule deductible under Reg. section 20.2053-4(b) and Reg. section 20.2053-4(c)?. .

If “Yes,” attach a statement indicating the applicable provision and documenting the value of the claim.

Item number

1

Debts of the Decedent—Creditor and nature of debt, and allowable death taxes

X

Amount

Amount owed to country club

800

Total from continuation schedules (or additional statements) attached to this schedule . . ..

TOTAL(Also enter on Part 5—Recapitulation, page 3, at item 15.) . . . . . .

Item number

X

Mortgages and Liens—Description

. .

. .

. .

. .

. .

800 Amount

Total from continuation schedules (or additional statements) attached to this schedule ....... TOTAL(Also enter on Part 5—Recapitulation, page 3, at item 16.) .............

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule K—Page 18

C:TRP-121 ..

C:13-62 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Marcia Miller

XXX

XX

XXXX

SCHEDULE M—Bequests, etc., to Surviving Spouse Note:If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be givenas to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entry in the last column.

Yes

1 2a b c d e 3

Item number

Did any property pass to the surviving spouse as a result of a qualified disclaimer? .

If ‘‘Yes,’’ attach a copy of the written disclaimer required by section 2518(b).

In what country was the surviving spouse born?

.

.

.

.

.

.

.

1

What is the surviving spouse’s date of birth?

Is the surviving spouse a U.S. citizen? . . . . . . . . . . . . . . . . . . . . . . .

If the surviving spouse is a naturalized citizen, when and where did the surviving spouse acquire citizenship?

2c

No

X

U.S.A.

N/A N/A

X

If the surviving spouse is not a U.S. citizen, of what country is the surviving spouse a citizen? Election Out of QTIP Treatment of Annuities. Do you elect under section 2056(b)(7)(C)(ii) not to treat as qualified terminable interest property any joint and survivor annuities that are included in the gross estate and 3 would otherwise be treated as qualified terminable interest property under section 2056(b)(7)(C)? See instructions

Description of property interests passing to surviving spouse.

For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN

X Amount

QTIP property:

1

500,000

Property to QTIP trust at PHL Bank

All other property:

2 3 4

Tangible personal property (household furnishings) $100,000 passing as a result of a qualified disclaimer by Annette Principal residence (JTWROS)

140,000 100,000 425,000

Total from continuation schedules (or additional statements) attached to this schedule . . . . . . . . .. . . . .

4 Total amount of property interests listed on Schedule M . Federal . . estate . . taxes . . . .

5a payable out of property interests listed on Schedule M . . . .

5b . .

Other death taxes payable out of property interests listed on Schedule M .

5c Federal and state GST taxes payable out of property interests listed on Schedule M Add items 5a, 5b, and 5c . . . . . . . . . . . . . . . . . . . . . . . . . 5d Net amount of property interests listed on Schedule M (subtract item 5d from item 4). Also enter on 6 . 6 Part 5—Recapitulation, page 3, at item 21 . . . . . . . . . . . . . . . . . . .

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

1,165,000

4 5a b c d

1,165,000

Schedule M—Page 20

C:TRP-122 ..

C:13-62 Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of: Marcia Miller

XXX

XX

XXXX

SCHEDULE O—Charitable, Public, and Similar Gifts and Bequests Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entry in the last column.

Yes

1a

If the transfer was made by will, has any action been instituted to contest or have interpreted any of its provisions affecting the charitable deductions claimed in this schedule? . . . . . . . . . . . . . . . . . .

If ‘‘Yes,’’ full details must be submitted with this schedule.

b According to the information and belief of the person or persons filing this return, is any such action planned?

If ‘‘Yes,’’ full details must be submitted with this schedule.

2

Did any property pass to charity as the result of a qualified disclaimer? . .

If ‘‘Yes,’’ attach a copy of the written disclaimer required by section 2518(b).

Item number

.

Name and address of beneficiary

1

.

3

Total

4a

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Federal estate tax payable out of property interests listed above .

.

.

.

.

b Other death taxes payable out of property interests listed above .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

X

.

X Amount

Religious

50,000

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

3

.

.

.

.

.

.

4d

50,000

4a 4b

Federal and state GST taxes payable out of property interests listed above .

d Add items 4a, 4b, and 4c

.

X

Character of institution

First Lutheran Church

Total from continuation schedules (or additional statements) attached to this schedule

c

.

No

4c .

.

.

Net value of property interests listed above (subtract item 4d from item 3). Also enter on Part 5— Recapitulation, page 3, at item 22 . . . . . . . . . . . . . . . . . . . . . .

5 (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

5

50,000

Schedule O—Page 21

C:TRP-123 ..

C:13-63 Form

United States Estate (and Generation-Skipping Transfer) Tax Return

706

(Rev. August 2019)

Part 2—Tax Computation

Part 1—Decedent and Executor

Estate of a citizen or resident of the United States (see instructions). To be filed for decedents dying after December 31, 2018.

Department of the Treasury www.irs.gov/Form706 Go to for instructions and the latest information.

Internal Revenue Service 1a Decedent’s first name and middle initial (and maiden name, if any) 1b Decedent’s last name

3a

Zugg

Adam

3b Year domicile established 4 Date of birth

City, town, or post office; county; state or province; country; and ZIP or foreign postal code

OMB No. 1545-0015

2 Decedent’s social security no.

XXX XX

XXXX

5 Date of death

10-31-2023

6b Executor’s address (number and street including apartment or suite no.; city, town, or post office; state or province; country; and ZIP or foreign postal code) and phone no.

Midwest City, IL 60000 6a

Name of executor (see instructions)

6c

Executor’s social security number (see instructions)

6d 7a

If there are multiple executors, check here and attach a list showing the names, addresses, telephone numbers, and SSNs of the additional executors.

Name and location of court where will was probated or estate administered 7b Case number

8 10 1 2 3a b c

and attach a certified copy of the will. 9If you extended the time to file this Form 706, check here If decedent died testate, check here If Schedule R-1 is attached, check here 11If you are estimating the value of assets included in the gross estate on line 1 pursuant to the special rule of Reg. section 20.2010-2(a) (7)(ii), check here Total gross estate less exclusion (from Part 5—Recapitulation, item 13) . . . . . . . . . .

1 Tentative total allowable deductions (from Part 5—Recapitulation, item 24) . . . . . . . . .

2 . Tentative taxable estate (subtract line 2 from line 1) . . . . . . . . . . . . . . .

3a . . . . . . . . .

3b . . . . . . .

State death tax deduction. Taxable . . . estate . . . . . . . . . . . .

3c . . . . . . . (subtract line 3b from line 3a) . . . . .Adjusted taxable gifts (see instructions) . . . . . . . . .

4 . . . . . . . . .Add lines 3c and 4 . . . . . . . . . . . . . . .

5 . . . . . . . .

6 7 Total gift tax paid or payable (see instructions) . . . . . . . . . . . . . . . . .

8 Gross estate tax (subtract line 7 from line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . .

Basic exclusion amount . . . . . .

9a Deceased spousal unused exclusion (DSUE) amount from predeceased spouse(s), 9b 9c if any (from Section D, Part 6—Portability of Deceased Spousal Unused Exclusion).

9d . 9e 10 Restored exclusion amount (see instructions). . . . . . . . .

Applicable exclusion amount (add lines 9a, 9b, and 9c) . . . . .

Phone no.

4 5 6 7 8 9a b c d e 10 11 12 13 14 15 16 17 18 19 20

17,527,100 2,858,300 14,668,800 45,000 14,623,800

14,623,800 Tentative tax on the amount on line 5 from Table A in the instructions 13,623,800 x 40% + 345,800 5,795,320 5,795,320

12,920,000

Applicable credit amount (tentative tax on the amount in 9d from .

Table A in the instructions) . . . . . . . . . . . . .

Adjustment to applicable credit amount (May not exceed $6,000. See instructions.) . . . . . . . . . . . . . . . . . .

Allowable applicable credit amount (subtract line 10 from line 9e) . . .

Subtract line 11 from line 8 (but do not enter less than zero) . . . . .

12,920,000 5,113,800

. .

. .

. .

. .

. .

. .

11 12

. . . . . . . .

Generation-skipping transfer (GST) taxes payable (from Schedule R, Part 2, line 10) . .Total transfer taxes (add lines 16 and 17) . . . . . . . . . . . . . .Prior payments (explain in an attached statement) . . . . . . . . . . .Balance due (or overpayment) (subtract line 19 from line 18) . . . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

15 16 17 18 19 20

Creditforforeigndeathtaxes(fromScheduleP).(AttachForm(s) 706-CE.) Credit for tax on prior transfers (from Schedule Q) . . . .

Total credits (add lines 13 and 14) . . . . . . .

Net estate tax (subtract line 15 from line 12) . .

. . .

. . .

. . .

. . .

. . .

. .

. .

5,113,800 681,520

13 14

681,520 681,520 681,520

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than the executor) is based on all information of which preparer has any knowledge.

Sign Here

Date

Signature of executor

Signature of executor

Paid Preparer Use Only

Print/Type preparer’s name

Date Preparer’s signature

Date

Firm’s name

Check if self-employed

PTIN

Firm's EIN

Firm’s address

Phone no.

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Cat. No. 20548R

C:TRP-124 ..

Form 706 (Rev. 8-2019)

C:13-63 Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of: Adam Zugg Part 3—Elections by the Executor

XXX

XX

XXXX

Note: For information on electing portability of the decedent's DSUE amount, including how to opt out of the election, see Part 6— Portability of Deceased Spousal Unused Exclusion.

Note: Some of the following elections may require the posting of bonds or liens.

Please check “Yes” or “No” for each question. See instructions. . .

1 Do you elect alternate valuation? . . . . . . .

Yes No

2

Do you elect special-use valuation? If “Yes,” you must complete and attach Schedule A-1

.

1 2

3

Do you elect to pay the taxes in installments as described in section 6166? . . . . . . . . . . . . . . .

If “Yes,” you must attach the additional information described in the instructions.

Note: By electing section 6166 installment payments, you may be required to provide security for estate tax deferred under section 6166 and interest in the form of a surety bond or a section 6324A lien.

Do you elect to postpone the part of the taxes due to a reversionary or remainder interest as described in section 6163? .

3 4

4

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

X X X X

Part 4—General Information Note: Please attach the necessary supplemental documents. You must attach the death certificate. See instructions.

Authorization to receive confidential tax information under Reg. section 601.504(b)(2)(i); to act as the estate’s representative before the IRS; and to make written or oral presentations on behalf of the estate: Name of representative (print or type)

State

Address (number, street, and room or suite no., city, state, and ZIP code)

certified public accountant/ I declare that I am the attorney/ enrolled agent (check the applicable box) for the executor. I am not under suspension or disbarment from practice before the Internal Revenue Service and am qualified to practice in the state shown above.

CAF number

Signature

Date

Telephone number

1

Death certificate number and issuing authority (attach a copy of the death certificate to this return).

2

Decedent’s business or occupation. If retired, check here

3a

Marital status of the decedent at time of death: Widow/widower X Married

Office Manager

and state decedent’s former business or occupation.

Single

Legally separated

Divorced

3b

For all prior marriages, list the name and SSN of the former spouse, the date the marriage ended, and whether the marriage ended by annulment, divorce, or death. Attach additional statements of the same size if necessary.

4a

Surviving spouse’s name

5

Individuals (other than the surviving spouse), trusts, or other estates who receive benefits from the estate (do not include charitable beneficiaries shown in Schedule O) (see instructions).

4b Social security number

Callie Zugg

Name of individual, trust, or estate receiving $5,000 or more

All unascertainable beneficiaries and those who receive less than $5,000 . .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

2,805,100

Identifying number

Zebulon Zugg

Total .

4c Amount received (see instructions)

.

.

.

.

.

. .

. .

. .

Relationship to decedent

Amount (see instructions)

13,942,280*

Son

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

.

.

.

.

.

Yes No

If you answer “Yes” to any of the following questions, you must attach additional information as described.

6

Is the estate filing a protective claim for refund? . . . . . . . .

If “Yes,” complete and attach two copies of Schedule PC for each claim.

7

Does the gross estate contain any section 2044 property (qualified terminable interest property (QTIP) from a prior gift or estate)?

See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8a

Have federal gift tax returns ever been filed? . . . . . . . . . . . . .

If “Yes,” attach copies of the returns, if available, and furnish the following information.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

X

.

.

.

.

.

.

b

Period(s) covered

9a b

Was there any insurance on the decedent’s life that is not included on the return as part of the gross estate? . . ..

Did the decedent own any insurance on the life of another that is not included in the gross estate? . . .

. .

. .

. .

. .

2017

.

.

X

X

c Internal Revenue office(s) where filed

X X

Page 2

*$14,623,800 taxable estate – $681,520 estate tax owed

C:TRP-125 ..

C:13-63 Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of: Adam Zugg Part 4—General Information (continued)

XXX

XX XXXX

Yes No

If you answer “Yes” to any of the following questions, you must attach additional information as described.

10

Did the decedent at the time of death own any property as a joint tenant with right of survivorship in which (a) one or more of the less than the full value of the property is included on other joint tenants was someone other than the decedent’s spouse, and (b) . . . . . . . . . . . the return as part of the gross estate? If “Yes,” you must complete and attach Schedule E

11a

Did the decedent, at the time of death, own any interest in a partnership (for example, a family limited partnership), an unincorporated business, or a limited liability company; or own any stock in an inactive or closely held corporation? .

b 12 13a

.

.

X XX

.

If “Yes,” was the value of anyinterest owned (from above) discounted on this estate tax return? If “Yes,” see the instructions on reporting the total accumulated or effective discounts taken on Schedule F or G . . . . . . . . . . . . . .

Did the decedent make any transfer described in sections 2035, 2036, 2037, or 2038? See instructions.If “Yes,” you must complete and attach Schedule G . . . . . . . . . . . . . . . . . . . . . . . . . .

Were there in existence at the time of the decedent’s death any trusts created by the decedent during his or her lifetime? .

.

. .

X

b Were there in existence at the time of the decedent’s death any trusts not created by the decedent under which the decedent possessed any power, beneficial interest, or trusteeship? . . . . . . . . . . . . . . . . . . . . .

Was the decedent receiving income from a trust created after October 22, 1986, by a parent or grandparent? . . . . . . c . . . . . .

If “Yes,” was there a GST taxable termination (under section 2612) on the death of the decedent? . . . d If there was a GST taxable termination (under section 2612), attach a statement to explain. Provide a copy of the trust or will creating the trust, and give the name, address, and phone number of the current trustee(s). e Did the decedent at any time during his or her lifetime transfer or sell an interest in a partnership, limited liability company, or closely held corporation to a trust described in lines 13a or 13b? . . . . . . . . . . . . . . . . . . .

If “Yes,” provide the EIN for this transferred/sold item.

Did the decedent ever possess, exercise, or release any general power of appointment? If “Yes,” you must complete and attach Schedule H 14 Did the decedent have an interest in or a signature or other authority over a financial account in a foreign country, such as a bank 15 account, securities account, or other financial account?

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

X X X

XX X

.

16

Was the decedent, immediately before death, receiving an annuity described in the “General” paragraph of the instructions for Schedule I or a private annuity? If “Yes,” you must complete and attach Schedule I . . . . . . . . . . . . .

17

Was the decedent ever the beneficiary of a trust for which a deduction was claimed by the estate of a predeceased spouse under section 2056(b)(7) and which is not reported on this return? If “Yes,” attach an explanation . . . . . . . .

X X

.

Part 5—Recapitulation. Note: If estimating the value of one or more assets pursuant to the special rule of Reg. section 20.2010-2(a)(7)(ii), enter on both lines 10 and 23 the amount noted in the instructions for the corresponding range of values. See instructions for details.

Item no.

Gross estate

1 2 3 4 5 6 7 8 9 10 11 12

Schedule A—Real Estate . . . . . . . . . . . . . . . .

Schedule B—Stocks and Bonds . . . . . . . . . . . . . .

Schedule C—Mortgages, Notes, and Cash . . . . . . . . . . .

Schedule D—Insurance on the Decedent’s Life (attach Form(s) 712) . . . .

Schedule E—Jointly Owned Property (attach Form(s) 712 for life insurance) .

Schedule F—Other Miscellaneous Property (attach Form(s) 712 for life insurance) Schedule G—Transfers During Decedent’s Life (att. Form(s) 712 for life insurance)

13

Schedule H—Powers of Appointment Schedule I—Annuities

.

.

.

.

.

. .

. .

Alternate value

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

Estimated value of assets subject to the special rule of Reg. section 20.2010-2(a)(7)(ii)

Total gross estate (add items 1 through 10) . . . . .

Schedule U—Qualified Conservation Easement Exclusion

. .

. .

. .

. .

. .

. .

Total gross estate less exclusion (subtract item 12 from item 11). Enter here and on line 1 of Part 2—Tax Computation . . . . . . . . . . . . .

Value at date of death

4,400,000 10,300,000 -02,000,000 5,100 22,000 -0-0800,000 -017,527,100 -017,527,100

1 2 3 4 5 6 7 8 9 10 11 12 13

Item no.

Deductions

14 15 16 17 18 19 20 21 22 23 24

.Schedule J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims . . . . . Schedule K—Debts of the Decedent . . . . . . . . . . . . . . . . .. . . .Schedule K—Mortgages and Liens .. . . . . . . . . . . . . . . . . . . .Total of items 14 through 16 . . .. . . . . . . . . . . . . . . . . . . .Allowable amount of deductions from item 17 (see the instructions for item 18 of the Recapitulation) . . . . .Schedule L—Net Losses During Administration . . . . . . . . . . . . . .. . . .Schedule L—Expenses Incurred in Administering Property Not Subject to Claims . .. . . . . .Schedule M—Bequests, etc., to Surviving Spouse . .. . . . . . . . . . . . . .Schedule Estimated value of deductible assets subject to the special. rule .. . . . . 20.2010-2(a)(7)(ii).

O—Charitable, Public, and Similar Gifts and Bequests . .of .Reg. . section Tentative total allowable deductions (add items 18 through 23). Enter here and on line 2 of the . Tax .

Computation

Amount

14 15 16 17 18 19 20 21 22 23 24

40,000 13,200

53,200 53,200 2,805,100 2,858,300

Page 3

C:TRP-126 ..

C:13-63 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

XXX

Adam Zugg

XX

XXXX

SCHEDULE A—Real Estate • For jointly owned property that must be disclosed on Schedule E, see instructions.

• Real estate that is part of a sole proprietorship should be shown on Schedule F. • Real estate that is included in the gross estate under sections 2035, 2036, 2037, or 2038 should be shown on Schedule G. • Real estate that is included in the gross estate under section 2041 should be shown on Schedule H. • If you elect section 2032A valuation, you must complete Schedule A and Schedule A-1.

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item number

1

Alternate valuation date

Description

Undeveloped land

Alternate value

Value at date of death

4,400,000

Total from continuation schedules or additional statements attached to this schedule ... TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 1.) .........

4,400,000 (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule A—Page 5

C:TRP-127 ..

C:13-63 Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of: Adam Zugg

XXX XX

XXXX

SCHEDULE B—Stocks and Bonds (For jointly owned property that must be disclosed on Schedule E, see instructions.)

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last four columns.

Item number

Description, including face amount of bonds or number of shares and par value for identification. Give CUSIP number.

If trust, partnership, or closely held entity, give EIN.

Unit value

Alternate valuation date

Alternate value

Value at date of death

CUSIP number or EIN, where applicable

1

Stocks in public companies

10,300,000

Total from continuation schedules (or additional statements) attached to this schedule ... TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 2.) ..........

10,300,000

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule B—Page 10

C:TRP-128 ..

C:13-63 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Adam Zugg

XXX

XX

XXXX

SCHEDULE D—Insurance on the Decedent’s Life You must list all policies on the life of the decedent and attach a Form 712 for each policy.

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amountand Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item number

1

Alternate valuation date

Description

Term life insurance on life of Adam Zugg; beneficiary is the Estate of Adam Zugg

Alternate value

Value at date of death

2,000,000

Total from continuation schedules (or additional statements) attached to this schedule ..

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 4.) .........

2,000,000 (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule D—Page 12

C:TRP-129 ..

C:13-63 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Adam Zugg

XXX

XX

XXXX

SCHEDULE E—Jointly Owned Property (If you elect section 2032A valuation, you must complete Schedule E and Schedule A-1.)

PART 1. Qualified Joint Interests—Interests Held by the Decedent and His or Her Spouse as the Only Joint Tenants (Section 2040(b)(2)) Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item number

Alternate valuation date

Description. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN.

Value at date of death

Alternate value

CUSIP number or EIN, where applicable

1

Checking account

10,200

Total from continuation schedules (or additional statements) attached to this schedule 1a 1b

Totals . . . . . . . . . . . . . . .

Amounts included in gross estate (one-half of line 1a) .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. . .

. . .

. . .

.

.

1a 1b

10,200 5,100

PART 2. All Other Joint Interests 2a

State the name and address of each surviving co-tenant. If there are more than three surviving co-tenants, list the additionalco-tenants on an attached statement.

Name

Address (number and street, city, state, and ZIP code)

A. B. C. Enter Item number letter for co-tenant

Description (including alternate valuation date if any). For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN

Percentage includible

Includible alternate value

Includible value at date of death

CUSIP number or EIN, where applicable

Total from continuation schedules (or additional statements) attached to this schedule . . . . . . . . . . . . . . . . . . . . . .

. .

2b

Total other joint interests

3

Total includible joint interests (add lines 1b and 2b). Also enter on Part 5—Recapitulation,page 3, at item 5 . . . . . . . . . . . . . . . . . . . . . . . . .

.

.

2b 3

5,100

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule E—Page 13

C:TRP-130 ..

C:13-63 Form 706 (Rev. 8-2019)

Decedent’s social security number

XXX

Estate of: Adam Zugg

XX

XXXX

SCHEDULE F—Other Miscellaneous Property Not Reportable Under Any Other Schedule (For jointly owned property that must be disclosed on Schedule E, see instructions.)

(If you elect section 2032A valuation, you must complete Schedule F and Schedule A-1.)

Note:If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amountand Form 706 is being solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

1 Did the decedent own any works of art, items, or any collections whose artistic or collectible value at date of death exceeded $3,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” submit full details on this schedule and attach appraisals.

2 Has the decedent’s estate, spouse, or any other person received (or will receive) any bonus or award as a result of the decedent’s employment or death? . . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” submit full details on this schedule. . . . . . . . . . .

3 Did the decedent at the time of death have, or have access to, a safe deposit box? .

If ‘‘Yes,’’ state location, and if held jointly by decedent and another, state name and relationship of joint depositor.

Yes No

X X X

If any of the contents of the safe deposit box are omitted from the schedules in this return, explain fully why omitted.

Item number

Description. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN

Alternate valuation date

Alternate value

Value at date of death

CUSIP number or EIN, where applicable

1

22,000

Automobile

Total from continuation schedules (or additional statements) attached to this schedule . .

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 6.) . . . . . . . . .

22,000 (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule F—Page 14

C:TRP-131 ..

C:13-63 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

XXX

Adam Zugg

XX

XXXX

SCHEDULE G—Transfers During Decedent’s Life (If you elect section 2032A valuation, you must complete Schedule G and Schedule A-1.)

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item number

A.

Description. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN

Gift tax paid or payable by the decedent or the estate for all gifts made by the decedent or his or her spouse within 3 years before the decedent’s death (section 2035(b)) ............

Transfers includible under sections 2035(a), 2036, 2037, or 2038:

B.

Alternate valuation date

Alternate value

Value at date of death

XXXXX

Total from continuation schedules (or additional statements) attached to this schedule . . ..

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 7.) . . . . . . .

SCHEDULE H—Powers of Appointment (Include “5 and 5 lapsing” powers (section 2041(b)(2)) held by the decedent.)

(If you elect section 2032A valuation, you must complete Schedule H and Schedule A-1.)

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item number

Alternate valuation date

Description

Alternate value

Value at date of death

Total from continuation schedules (or additional statements) attached to this schedule ... TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 8.) ..........

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedules G and H—Page 15

C:TRP-132 ..

C:13-63 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Adam Zugg

XXX

XX

XXXX

SCHEDULE I—Annuities Note: Generally, no exclusion is allowed for the estates of decedents dying after December 31, 1984. See instructions.

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

A

Are you excluding from the decedent’s gross estate the value of a lump-sum distribution described in section 2039(f)(2) (as in effect before its repeal by the Deficit Reduction Act of 1984)? . . . . . . . . . . . . . . . . .

If “Yes,” you must attach the information required by the instructions.

Item number

1

Description.

Show the entire value of the annuity before any exclusions

Qualified retirement plan; beneficiary is spouse Callie

Alternate valuation date

Includible alternate value

Yes No

X

Includible value at date of death

800,000

Total from continuation schedules (or additional statements) attached to this schedule . . ..

TOTAL(Also enter on Part 5—Recapitulation, page 3, at item 9.) . . . . . . . .

800,000 (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule I—Page 16

C:TRP-133 ..

C:13-63 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Adam Zugg

XXX

XX

XXXX

SCHEDULE J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims Use Schedule PC to make a protective claim for refund due to an expense not currently deductible.

For such a claim, report the expense on Schedule J but without a value in the last column.

Note: Do not list expenses of administering property not subject to claims on this schedule. To report those expenses, see instructions.

If executors’ commissions, attorney fees, etc., are claimed and allowed as a deduction for estate tax purposes, they are not allowable as a deduction in computing the taxable income of the estate for federal income tax purposes. They are allowable as an income tax deduction on Form 1041, U.S. Income Tax Return for Estates and Trusts, if a waiver is filed to forgo the deduction on Form 706. See the Instructions for Form 1041.

Are you aware of any actual or potential reimbursement to the estate for any expense claimed as a deduction on this .schedule? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

YesNo

X

If “Yes,” attach a statement describing the expense(s) subject to potential reimbursement. See instructions.

Item number

Description

Expense amount

Total amount

A. Funeral expenses:

1

Funeral and tombstone

Total funeral expenses .

.

8,000

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

B. Administration expenses: 1 Executors’ commissions—amount estimated/agreed upon/paid. (Strike out the words that do not apply.)..............................

2 Attorney fees—amount estimated/agreed upon/paid. (Strike out the words that do not apply.) ..

3 Accountant fees—amount estimated/agreed upon/paid. (Strike out the words that do not apply.) .

8,000

32,000

Expense amount

4 Miscellaneous expenses:

Total miscellaneous expenses from continuation schedules (or additional statements) attached to this schedule . . . . . . . . . . . . . . . . . . . .

Total miscellaneous expenses . . . . . . . . . . . . . . . . . .

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 14.) . . . . . . . .

. . .

. .

. .

. .

. .

. .

40,000

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule J—Page 17

C:TRP-134 ..

C:13-63 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Adam Zugg

XXX

XX

SCHEDULE K—Debts of the Decedent, and Mortgages and Liens

XXXX

Use Schedule PC to make a protective claim for refund due to a claim not currently deductible.

For such a claim, report the expense on Schedule K but without a value in the last column.

Yes No Are you aware of any actual or potential reimbursement to the estate for any debt of the decedent, mortgage, or lien claimed as a deduction on this schedule? . . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” attach a statement describing the items subject to potential reimbursement. See instructions.

Are any of the items on this schedule deductible under Reg. section 20.2053-4(b) and Reg. section 20.2053-4(c)?. .

If “Yes,” attach a statement indicating the applicable provision and documenting the value of the claim.

Item number

1

Debts of the Decedent—Creditor and nature of debt, and allowable death taxes

X

Amount

Automobile loan

13,200

Total from continuation schedules (or additional statements) attached to this schedule . . ..

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 15.) . . . . . .

Item number

X

Mortgages and Liens—Description

. .

. .

. .

. .

. .

13,200 Amount

Total from continuation schedules (or additional statements) attached to this schedule ....... TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 16.) .............

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule K—Page 18

C:TRP-135 ..

C:13-63 Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Adam Zugg

XXX

XX

XXXX

SCHEDULE M—Bequests, etc., to Surviving Spouse Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entry in the last column.

Yes

1 2a b c d e 3

.

1

Is the surviving spouse a U.S. citizen? . . . . . . . . . . . . . . . . . . . . . .

If the surviving spouse is a naturalized citizen, when and where did the surviving spouse acquire citizenship?

2c

Did any property pass to the surviving spouse as a result of a qualified disclaimer? .

If ‘‘Yes,’’ attach a copy of the written disclaimer required by section 2518(b).

In what country was the surviving spouse born?

U.S.A..

What is the surviving spouse’s date of birth?

.

.

If the surviving spouse is not a U.S. citizen, of what country is the surviving spouse a citizen?

.

.

.

.

Description of property interests passing to surviving spouse.

For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN

X

X

N/A N/A

Election Out of QTIP Treatment of Annuities. Do you elect under section 2056(b)(7)(C)(ii) not to treat as qualified terminable interest property any joint and survivor annuities that are included in the gross estate and would otherwise be treated as qualified terminable interest property under section 2056(b)(7)(C)? See instructions3

Item number

No

X Amount

QTIP property:

All other property:

1 2 3

Stocks in public companies Qualified retirement plan Joint tenancy checking account

2,000,000 800,000 5,100

Total from continuation schedules (or additional statements) attached to this schedule . . . . . . . .

2,805,100 .. . . . .

4 Total amount of property interests listed on Schedule M . Federal . . estate . . taxes . . . .

5a payable out of property interests listed on Schedule M . . . .

5b . .

Other death taxes payable out of property interests listed on Schedule M .

5c Federal and state GST taxes payable out of property interests listed on Schedule M Add items 5a, 5b, and 5c . . . . . . . . . . . . . . . . . . . . . . . . .

5d 6 Net amount of property interests listed on Schedule M (subtract item 5d from item 4). Also enter on Part 5—Recapitulation, page 3, at item 21 . . . . . . . . . . . . . . . . . . . .

6 2,805,100 (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

4 5a b c d

Schedule M—Page 20

C:TRP-136 ..

Form

C:14-55 Department of the Treasury—Internal Revenue Service

20 22

1041 U.S. Income Tax Return for Estates and Trusts Go to www.irs.gov/Form1041 for instructions and the latest information.

A Check all that apply:

For calendar year 2022 or fiscal year beginning

OMB No. 1545-0092

, 2022, and ending

, 20

Decedent’s estate

Name of estate or trust (If a grantor type trust, see the instructions.)

C Employer identification number

Complex trust

Name and title of fiduciary

D Date entity created

✓Simple trust Qualified disability trust ESBT (S portion only) Grantor type trust Bankruptcy estate—Ch. 7 Bankruptcy estate—Ch. 11 Pooled income fund B Number of Schedules K-1 attached (see instructions)

Tax and Payments

Deductions

Income

G

1

Jenny Justice Trust

First Bank, Trustee

2005

Number, street, and room or suite no. (If a P.O. box, see the instructions.)

E Nonexempt charitable and split-interest trusts, check applicable box(es).

See instructions.

Described in sec. 4947(a)(1). Check here

P.O. Box 100 Southwest City, TX 75000

City or town, state or province, country, and ZIP or foreign postal code

F Check applicable

Initial return Change in trust’s name

Check here if the estate or filing trust made a section 645 election. .

1 2a b 3 4

74-1234567

Final return Change in fiduciary .

.

.

.

.

.

.

if not a private foundation .

Described in sec. 4947(a)(2) Amended return Change in fiduciary’s name

.

Net operating loss carryback Change in fiduciary’s address

Trust TIN

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . .

Qualified dividends allocable to: (1) Beneficiaries (2) Estate or trust Business income or (loss). Attach Schedule C (Form 1040) . . . . . . . . . . .. . . . . . . . . . . . ..

Capital gain or (loss). Attach Schedule D (Form 1041) .

Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040) .

Farm income or (loss). Attach Schedule F (Form 1040) . . . . . . . . . . . . .. . . . . . . . . . . . .

Ordinary gain or (loss). Attach Form 4797 . . . . ..

Other income. List type and amount Total income. Combine lines 1, 2a, and 3 through 8 . . . . . . . . . . . . . .

Interest. Check if Form 4952 is attached . . . . . . . . . . . . . . . . .

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. .

27,000

1 2a

3 4 5 5 6 6 7 7 8 8 9 9 .

10 10 .

11 11 .

Fiduciary fees. If only a portion is deductible under section 67(e), see instructions12.($2.,00.0 –. $.320.b) 12 13 13 Charitable deduction (from Schedule A, line 7) . . . . . . . . . . . . . . . . .

14 Attorney, accountant, and return preparer fees. If only a portion is deductible under section 67(e), see instructions Other . .deductions . . . (attach . . . schedule). . . . .See . instructions . . . . for . deductions . . . . allowable . . . under . .

14 15a section 67(e) 15a .

15b b Net operating loss deduction. See instructions . . . . . . . . . . . . . . . . .Add lines 10 through 15b . . . . . . . . . . .

16 16 . . . . . . . . . . . .

Adjusted total income or (loss). Subtract line 16 from line 9 . . . . .

17 17 18 Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041) . .

18 19 ..

Estate tax deduction including certain generation-skipping taxes (attach computation) . .

19 20 .. ..

20 Qualified business income deduction. Attach Form 8995 or 8995-A . .. . . .

21 .. .. . . .. . . .

21 Exemption . . . . . . . . . . . . . . . . . .

22 .. .. . . .. . . .

Add lines 18 through 21 . . . . . . . . . . . . . .

22 23 .. ..

Taxable income. Subtract line 22 from line 17. If a loss, see instructions. . . . .

23 24 .. .. .. . . .

24 . . . . . . . . .

Total tax (from Schedule G, Part I, line 9) .

25 ..

25 Current year net 965 tax liability paid from Form 965-A, Part II, column (k) (see instructions) 26 . .

26 . .

Total payments (from Schedule G, Part II, line 19) . . . . . . . . . . . . . . .Estimated tax penalty. See instructions . . . . . . . . . . . . . . . .

27 .

27 .. .Tax due.

28 If line 26 is smaller than the total of lines 24, 25, and 27, enter amount owed .

28 If line 26 is larger than the total of lines 24, 25, and 27, enter amount overpaid . .

29 29 Overpayment. .

30 30 Amount of line 29 to be: aCredited to 2023 ; b Refunded. . . . .

Sign Here

. . . . .

11,000 12,800a

50,800

1,680

500

2,180

48,620

37,620 300 37,920 10,700 1,185 2,000 815

815c

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Signature of fiduciary or officer representing fiduciary Print/Type preparer’s name

Paid Preparer Firm’s name Use Only Firm’s address

Date

Preparer’s signature

For Paperwork Reduction Act Notice, see the separate instructions.

EIN of fiduciary if a financial institution Date

May the IRS discuss this return with the preparer shown below?

See instructions.YesNo

Check if PTIN self-employed Firm’s EIN Phone no.

Cat. No. 11370H

Form 1041 (2022)

Note: Problem C:14-55 instructs students to prepare a Form 1041 for 2023. Because the 2023 forms were not yet available as of the time of publication, 2023 figures were used where possible in preparing this 2022 tax return. a$15,000 (rents) – $1,500 (maintenance) – $700 (property taxes) = $12,800.

Note: Per trust instrument, depreciation is charged to principal. bTrustee's fee allocable to tax-exempt interest. See calculation on next page. cThis is one example of how the overpayment could be allocated between a refund and application to estimated taxes.

Note: Pages related to the AMT are omitted.

C:TRP-137 ..

C:14-55 Page 2

Form 1041 (2022)

Schedule A

Charitable Deduction. Don’t complete for a simple trust or a pooled income fund.

1 2 3 4

Amounts paid or permanently set aside for charitable purposes from gross income. See instructions Tax-exempt income allocable to charitable contributions. See instructions . . . . . . . . .

Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . .

Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 6

Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . .

Section 1202 exclusion allocable to capital gains paid or permanently set aside for charitable purposes. See instructions . . . . . . . . . . . . . . . . . . . . . .

Charitable deduction. Subtract line 6 from line 5. Enter here and on page 1, line 13 . . .

7

.

.

.

4 5

. .

. .

. .

6 7

.

Adjusted total income. See instructions . . . . . . . . . . . . . . .. . . . . .

Adjusted tax-exempt interest . ($8,000 – $320)b. . . . . . . . . . . . . . . Total net gain from Schedule D (Form 1041), line 19, column (1). See instructions . . . . . . . Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion) . . . . . .Capital gains for the tax year included on Schedule A, line 1. See instructions . .. . . . .

Enter any gain from page 1, line 4, as a negative number. If page 1, line 4, is a loss, enter the loss as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Distributable net income. Combine lines 1 through 6. If zero or less, enter -0- . . . . . . . .

If a complex trust, enter accounting income for the tax year as determined .under the governing instrument and applicable local law . . . . . .

8 .Income required to be distributed currently . . . . . . . . . . . . . . . . . . .

Other amounts paid, credited, or otherwise required to be distributed . . . . . . . . . . .

Total distributions. Add lines 9 and 10. If greater than line 8, see instructions . . . . . . . .

Enter the amount of tax-exempt income included on line 11 . . . . . . . . . . . . . .

Tentative income distribution deduction. Subtract line 12 from line 11 . . . . . . . . . . . . . .

Tentative income distribution deduction. Subtract line 2 from line 7. If zero or less, enter -0Income distribution deduction. Enter the smaller of line 13 or line 14 here and on page 1, line 18 .

1 2 3 4 5

Schedule B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 2 3

Income Distribution Deduction

6 7

9 10 11 12 13 14 15

48,620a 7,680

(11,000) 45,300 47,300c 47,300 7,680 39,620 37,620 37,620

Schedule G Tax Computation and Payments (see instructions) Part I — Tax Computation 1

Tax: . . . . . . . . . . . . . 1a a Tax on taxable income. See instructions 1,185 . . . . . . . . . . 1b b Tax on lump-sum distributions. Attach Form 4972 . . . . . 1c c Alternative minimum tax (from Schedule I (Form 1041), line 54) . . . . . .. . . . . . . . d .Total. Add lines 1a through 1c . . . . . . . . . . . . . . . ..

2a Foreign tax credit. Attach Form 1116 . . . . . . . . .

2a . . . b .General business credit. Attach Form 3800 . . . . . . .

2b . . . . c Credit . . . for prior year minimum tax. Attach Form 8801 2c . . . d .Bond credits. Attach Form 8912 . . . . . . . . . .

2d . . . . e Total . . . . . . . . credits. Add lines 2a through 2d . . . . . . . . .Subtract line 2e from line 1d. If zero or less, enter -0- . . . . . . . . . . . . . .

3 . . .

Tax on the ESBT portion of the trust (from ESBT Tax Worksheet, line 17). See instructions .

4 . . . .Net investment income tax from Form 8960, line 21 .

5 . . . . . . . . . . . . . . . .Recapture taxes. Check if from: Household 6 F o r m 4 2employment 5 5 F o r mtaxes.

8 6 1 1. . . . . . . . . . . .Attach Schedule H (Form 1040) . .

7 . . . . . . . . . . . .Other taxes and amounts due .

8 . . . . . . . . . . . . . . . . . . . . . .Total tax. Add lines 3 through 8. Enter here and on page 1, line 24 . . . . . . . .

9

1d

2e 3 4 5 6 7 8 9

Part II — Payments 10 11 12 13 14 15 16 17 18 19

a

2022 estimated tax payments and amount applied from 2021 return . . . . . . . . . .

Estimated tax payments allocated to beneficiaries (from Form 1041-T). . . . . . . . . .

Subtract line 11 from line 10. . . . . . . . . . . . . . . . . . . . . . . .

Tax paid with Form 7004. See instructions. . . . . . . . . . . . . . . . . . .

Federal income tax withheld. If any is from Form(s) 1099, check here . . . . . . . . .

Current year net 965 tax liability from Form 965-A, Part I, column (f) (see instructions) . . . .

Other payments: a Form 2439 ; b Form 4136 ; Total . .

Credit for qualified sick and family leave wages for leave taken before April 1, 2021 . . . . .

Credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total payments. Add lines 12 through 15 and 16c through 18. Enter here and on page 1, line 26 .

. . . . . . . . . .

10 11 12 13 14 15 16c 17 18 19

1,185

1,185 -01,185 2,000 2,000

2,000

Form 1041 (2022)

See Line 17 on Page 1. b$8,000/($27,000 + $15,000 + $8,000) x $2,000 = $320

cNet accounting income = $27,000 + $15,000 + $8,000 – $2,700 allocable expense ($2,000 trustee fee + $700 property taxes) = $47,300

C:TRP-138 ..

C:14-55 Page 3 Yes No

Form 1041 (2022)

Other Information 1 2 3

4

Did the estate or trust receive tax-exempt income? If “Yes,” attach a computation of the allocation of expenses.

Enter the amount of tax-exempt interest income and exempt-interest dividends . . . . $ Did the estate or trust receive all or any part of the earnings (salary, wages, and other compensation) of any individual by reason of a contract assignment or similar arrangement? . . . . . . . . . . . . . . .

8,000

✓

✓

At any time during calendar year 2022, did the estate or trust have an interest in or a signature or other authority over a bank, securities, or other financial account in a foreign country? . . . . . . . . . . . . . .

✓

See the instructions for exceptions and filing requirements for FinCEN Form 114. If “Yes,” enter the name of the foreign country During the tax year, did the estate or trust receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If “Yes,” the estate or trust may have to file Form 3520. See instructions . . . . . . . . .

✓

5

Did the estate or trust receive, or pay, any qualified residence interest on seller-provided financing? If “Yes,” see the instructions for the required attachment . . . . . . . . . . . . . . . . . . . . . . .

If this is an estate or a complex trust making the section 663(b) election, check here. See instructions . . .

6 To make a section 643(e)(3) election, attach Schedule D (Form 1041), and check here. See instructions . . .

7 If the decedent’s estate has been open for more than 2 years, attach an explanation for the delay in closing the 8 estate, and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Are any present or future trust beneficiaries skip persons? See instructions . . . . . . . . . . . . .

9 Was the trust a specified domestic entity required to file Form 8938 for the tax year? See the Instructions for 10 Form 8938 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11a Did the estate or trust distribute S corporation stock for which it made a section 965(i) election? . . . b If “Yes,” did each beneficiary enter into an agreement to be liable for the net tax liability? See instructions .

12 Did the estate or trust either make a section 965(i) election or enter into a transfer agreement as an eligible 965(i) ... transferee for S corporation stock held on the last day of the tax year? See instructions . . . . . . . . . . . . . .

13 ESBTs only. Does the ESBT have a nonresident alien grantor? If “Yes,” see instructions 14 ESBTs only. Did the S portion of the trust claim a qualified business income deduction? If “Yes,” see instructions

✓

✓ ✓ ✓ ✓

Form 1041 (2022)

C:TRP-139 ..

C:14-55 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

74-1234567

Jenny Justice Trust

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)

91,000

80,000

(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)

11,000

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.

C:TRP-140 ..

Cat. No. 11376V

11 12 13 14 15 ( 16

)

11,000

Schedule D (Form 1041) 2022

C:14-55 Page 2

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

11,000

11,000

11,000

11,000

17 18a 18b 18c 19

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 (

)

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

10,700

Enter taxable income from Form 1041, line 23 (or Form 990-T, Part I, line 11) 21 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 If the estate or trust is filing Form 4952, enter the amount from line 4g; otherwise, enter -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) . . . . . . . . . . . . . . . . . . .

11,000

11,000

11,000 -02,800 -0-

10,700 8,200 10,700 2,800 7,900 7,900 -010,700 10,700 -01,185 2,179

30

2,800

37

1,185

41

-0-

45

1,185

Schedule D (Form 1041) 2022

C:TRP-141 ..

C:14-55

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

Jenny Justice Trust

Part I

Investment Income

Your social security number or EIN

. . .

. . .

. . .

. . .

.

4a 4b b Adjustment for net income or loss derived in the ordinary course of a nonsection 1411 trade or business (see instructions) . . . . . . . . . . . . . . . . . . . . . . . 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) . . . . . . . .Total investment income. Combine lines 1, 2, 3, 4c, 5d, 6, and 7 . . . . . . .

8

9a b c d 10 11

. . .

. . .

. . .

. . .

. . .

1 2 3

. . . . . .

. . . . . .

. . . . . .

. . . . . .

. . . . . .

.

. . . .

.

.

.

.

4c

. . . .

. . . .

. . . .

. . . .

5d 6 7 8

11,000

9a 9b 9c

2,180b . . .

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

. . .

. . .

. . .

. . .

. . .

. . .

. . .

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 . . .

27,000

12,800a

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 . .

Part III 12

74-1234567

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

1 2 Taxable interest (see instructions) . . . . . . . . . . . . . .

3 Ordinary dividends (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . .

4 a .Annuities (see instructions) . . .

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

Part II

20 22

.

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

12,800

11,000 50,800

2,180 2,180 48,620

Estates and Trusts:

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

18a 48,620 18b 18c b Deductions for distributions of net investment income and deductions under 19a 37,620c 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-. . . . . . . . . . .

11,000 . .

Adjusted gross income (see instructions) . . . . . . . .

19a 10,700d . .

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

-020 Enter the smaller of line 18c or line 19c . . . . . . . . . . . . . . . . . . .

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

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

a$15,000 - $1,500 - $700 = $12,800 bSee Form 1041, Line 16.

See Form 1041, Schedule B, Line 15. c d$50,800 - $2,180 - $37,620 - $300 = $10,700

Cat. No. 59474M

e$14,450 is the highest tax bracket for estates and trusts for tax years beginning in 2023.

C:TRP-142 ..

20 21

-0-0-

Form 8960 (2022)

C:14-55 Final K-1

Schedule K-1 (Form 1041)

22

Department of the Treasury Internal Revenue Service

beginning

/

Part III

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

Information About the Estate or Trust

OMB No. 1545-0092

1

Interest income

2a

Ordinary dividends

2b

Qualified dividends

3

Net short-term capital gain

4a

Net long-term capital gain

4b

28% rate gain

4c

Unrecaptured section 1250 gain

5

Other portfolio and nonbusiness income

6

Ordinary business income

7

Net rental real estate income

24,820a

11

Final year deductions

12

Alternative minimum tax adjustment

13

Credits and credit recapture

Estate’s or trust’s employer identification number

74-1234567 B Estate’s or trust’s name Jenny Justice Trust C

Amended K-1

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

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

First Bank P.O. Box 100 Southwest City, TX 75000

12,800b

8 Other rental income 9 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

Directly apportioned deductions

2,400c

A

14Other information

Part II

A 7,680d 10

Information About the Beneficiary

F

Beneficiary's identifying number

G

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

Estate tax deduction

E 37,620e

XXX-XX-XXXX

Jenny Justice 2 Mountain View South City, AL 35000

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

a$27,000 taxable interest - $2,180 allocable interest expense (Form 8960, Line 11) = $24,820 b$15,000 - $1,500 - $700 = $12,800 c$2,400 from one rental activity (depreciation) d$8,000 - $320 non-deductible trustee fee $24,820 Line 1 + $12,800 Line 7. Also see Form 8960, Line 18b. e

C:TRP-143 ..

Schedule K-1 (Form 1041) 2022

C:14-55 Page 2

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

C:TRP-144 ..

Form

C:14-56 Department of the Treasury—Internal Revenue Service

1041 U.S. Income Tax Return for Estates and Trusts

20 22

Go to www.irs.gov/Form1041 for instructions and the latest information.

A Check all that apply: Decedent’s estate Simple trust

✓Complex trust Qualified disability trust ESBT (S portion only) Grantor type trust Bankruptcy estate—Ch. 7 Bankruptcy estate—Ch. 11 Pooled income fund B Number of Schedules K-1 attached (see instructions) G

1

3 4

, 2022, and ending

, 20

Name of estate or trust (If a grantor type trust, see the instructions.)

C Employer identification number

Name and title of fiduciary

D Date entity created

74-1243565 2014

Lopez Trust #3

First Bank, Trustee

Number, street, and room or suite no. (If a P.O. box, see the instructions.)

E Nonexempt charitable and split-interest trusts, check applicable box(es).

See instructions.

Described in sec. 4947(a)(1). Check here

125 Seaview Northwest City, WA 98112

City or town, state or province, country, and ZIP or foreign postal code

F Check applicable

Initial return Change in trust’s name

Check here if the estate or filing trust made a section 645 election. .

1 2a b

Income

For calendar year 2022 or fiscal year beginning

OMB No. 1545-0092

Final return Change in fiduciary .

.

Interest income . . . . . . . . . . . . . . .

Total ordinary dividends . . . . . . . . . . . .

Qualified dividends allocable to: (1) Beneficiaries Business income or (loss). Attach Schedule C (Form 1040) .Capital gain or (loss). Attach Schedule D (Form 1041) .

.

.

.

. .

.

.

if not a private foundation .

Described in sec. 4947(a)(2) Amended return Change in fiduciary’s name

.

Net operating loss carryback Change in fiduciary’s address

Trust TIN

. . . . . . . . . . . . . . . . . . . . . .

(2) Estate or trust . . . . . . . . . . .. . . . . . . . . . . ..

Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040) . ..

Farm income or (loss). Attach Schedule F (Form 1040) . . . . . . . . . . . . .. . . . . . . . . . . . .

Ordinary gain or (loss). Attach Form 4797 . . . .

. .

9,200

1 2a

. . . . .

3 4 5 5 6 6 7 7 8 Other income. List type and amount 8 9 9 Total income. Combine lines 1, 2a, and 3 through 8 . . . . . . . . . . . . . . .

10 10 Interest. Check if Form 4952 is attached . . . . . . . . . . . . . . . . . .

11 .

11 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12 Fiduciary fees. If only a portion is deductible under section 67(e), see instructions12(.$8.00. – $.34.0a).

13 13 Charitable deduction (from Schedule A, line 7) . . . . . . . . . . . . . . . . .

14 Attorney, accountant, and return preparer fees. If only a portion is deductible under section 67(e), see instructions Other . .deductions . . . (attach . . . schedule). . . . .See . instructions . . . . for . deductions . . . . allowable . . . under . .

14 15a section 67(e) 15a . b Net operating loss deduction. See instructions . . . . . . . . . . . . . . . .

15b . . . . . . . . . . . . .

Add lines 10 through 15b . . . . . . . . . . .

16 16 Adjusted total income or (loss). Subtract line 16 from line 9 . . . . .

17 17 18 Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041) . .

18 19 Estate tax deduction including certain generation-skipping taxes (attach computation) . .

19 ..

20 ..

20 Qualified business income deduction. Attach Form 8995 or 8995-A . .. . . . ..

21 .. . . .. . . . ..

Exemption . . . . . . . . . . . . . . . . . .

21 22 .. . . .. . . . ..

Add lines 18 through 21 . . . . . . . . . . . . . .

22 23 ..

Taxable income. Subtract line 22 from line 17. If a loss, see instructions. . . . . ..

23 24 .. .. . . . ..

24 . . . . . . . . .

Total tax (from Schedule G, Part I, line 9) .

25 ..

25 Current year net 965 tax liability paid from Form 965-A, Part II, column (k) (see instructions) 26 ..

26 ..

Total payments (from Schedule G, Part II, line 19) . . . . . . . . . . . . ..

27 ..

Estimated tax penalty. See instructions . . . . . . . . . . . . . . . .

27 ..

28 If line 26 is smaller than the total of lines 24, 25, and 27, enter amount owed . .

28 Tax due.

29 29 Overpayment. If line 26 is larger than the total of lines 24, 25, and 27, enter amount overpaid . .

30 30 Amount of line 29 to be: aCredited to 2023 ; b Refunded. . . . .

300

9,500

Tax and Payments

Deductions

460

Sign Here

525

985

8,515

4,814

100 4,914 3,601 458 2,400

1,942 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge 1,442and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

500b

Signature of fiduciary or officer representing fiduciary Print/Type preparer’s name

Paid Preparer Use Only Firm’s name

Date

Preparer’s signature

EIN of fiduciary if a financial institution Date

Check if PTIN self-employed Firm’s EIN Phone no.

Firm’s address

For Paperwork Reduction Act Notice, see the separate instructions.

May the IRS discuss this return with the preparer shown below?

See instructions.YesNo

Cat. No. 11370H

Form 1041 (2022)

Note: Problem C:14-56 instructs students to prepare a Form 1041 for 2023. Because the 2023 forms were not yet available as of the time of publication, 2023 figures were used where possible in preparing this 2022 tax return. aTrustee's fee allocable to municipal bond interest. See calculation on next page. bThis is one example of how the overpayment could be allocated between a refund and application to estimated taxes.

Note: Pages related to the AMT are omitted.

C:TRP-145 ..

C:14-56 Page 2

Form 1041 (2022)

Schedule A 1 2 3 4 5 6 7

Amounts paid or permanently set aside for charitable purposes from gross income. See instructions Tax-exempt income allocable to charitable contributions. See instructions . . . . . . . . .

Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . .

Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 1202 exclusion allocable to capital gains paid or permanently set aside for charitable purposes. See instructions . . . . . . . . . . . . . . . . . . . . . . . . .

Charitable deduction. Subtract line 6 from line 5. Enter here and on page 1, line 13 . . . . . .

Schedule B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Charitable Deduction. Don’t complete for a simple trust or a pooled income fund.

1 2 3 4 5 6 7

Income Distribution Deduction

.Adjusted total income. See instructions . . . . . . . . . . . . . . . . . . . . . . . . .Adjusted tax-exempt interest . . . . . .Total net gain from Schedule D (Form 1041), line 19, column (1). See instructions . . . . . . .Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion) . . . . .

Capital gains the page tax year included Schedule A, line If1.page See instructions .

Enter any gainforfrom 1, line 4, as aonnegative number.

1, line 4, is a loss, enter the loss as a .

1 2 3 4 5

positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Distributable net income. Combine lines 1 through 6. If zero or less, enter -0- . . . . . . .

If a complex trust, enter accounting income for the tax year as determined .under the governing instrument and applicable local law . . . . . .

8 . . . . . . . . . .

Income required to be distributed currently . . . . . . . . .

Other amounts paid, credited, or otherwise required to be distributed . . . . . . . . . .

Total distributions. Add lines 9 and 10. If greater than line 8, see instructions . . . . . . .

Enter the amount of tax-exempt income included on line 11 . . . . . . . . . . . . .

Tentative income distribution deduction. Subtract line 12 from line 11 . . . . . . . . . . . .

Tentative income distribution deduction. Subtract line 2 from line 7. If zero or less, enter -0Income distribution deduction. Enter the smaller of line 13 or line 14 here and on page 1, line 18

6 7

($6,800 – $340)b

. .

15,075c . . . . . . .

9 10 11 12 13 14 15

8,515a 6,460 (300) 14,675 8,600 8,600 3,786d 4,814 8,215 4,814

Schedule G Tax Computation and Payments (see instructions) Part I — Tax Computation 1

Tax: . . . . . . . . a Tax on taxable income. See instructions . . . . . b Tax on lump-sum distributions. Attach Form 4972 c Alternative minimum tax (from Schedule I (Form 1041), line 54) . d .Total. Add lines 1a through 1c . . . . . . . . . . . .

2a Foreign tax credit. Attach Form 1116 . . . . . . . . . . b General business credit. Attach Form 3800 . . . . . . . c .Credit for prior year minimum tax. Attach Form 8801 . . . d .Bond credits. Attach Form 8912 . . . . . . . . . . e .

Total credits. Add lines 2a through 2d . . . . . . . . . . . .

Subtract line 2e from line 1d. If zero or less, enter -03 4 5 6 7 8 9

. . . . . . . . . .

. . . . . . . . . .

. . . . . . . . . .

. . . . . . . .. ..

1a 1b 1c . .

2a 2b 2c 2d

458 .

.

.

.

.

1d

. . . . . . . . . .

Tax on the ESBT portion of the trust (from ESBT Tax Worksheet, line 17). See instructions . .Net investment income tax from Form 8960, line 21 . . . . . . . . . . . . . .

Recapture taxes. Check if from: Household F o r m 4 2employment 5 5 F o r mtaxes.

8 6 1 1. . . . . . . . . . . . . . . . .

Attach Schedule H (Form 1040) . . .Other taxes and amounts due . . . . . . . . . . . . . . . . . . . .Total tax. Add lines 3 through 8. Enter here and on page 1, line 24 . . . . . . . .

. . . . . . . .

. . . . . . . .

. . . . . . . .

2e 3 4 5 6 7 8 9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; Total . . .

Other payments: a Form 2439 ; b Form 4136 Credit for qualified sick and family leave wages for leave taken before April 1, 2021 . . . . ..

Credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total payments. Add lines 12 through 15 and 16c through 18. Enter here and on page 1, line 26 .

10 11 12 13 14 15 16c 17 18

Part II — Payments 10 11 12 13 14 15 16 17 18 19

2022 estimated tax payments and amount applied from 2021 return . . . . . .

Estimated tax payments allocated to beneficiaries (from Form 1041-T). . . . . .

Subtract line 11 from line 10. . . . . . . . . . . . . . . . . . . .

Tax paid with Form 7004. See instructions. . . . . . . . . . . . . . .

Federal income tax withheld. If any is from Form(s) 1099, check here . . . . .

Current year net 965 tax liability from Form 965-A, Part I, column (f) (see instructions)

aSee Line 17 on Page 1 bTrustee's fees allocable to tax-exempt income: $6,800/$16,000 x $800 = $340 c$9,200 + $6,800 – $525 – (0.50 x $800) = $15,075 d($6,460 adjusted tax-exempt interest/$14,675 DNI) x $8,600 distribution amount

C:TRP-146 ..

19

458

458 -0458 2,400 2,400

2,400

Form 1041 (2022)

C:14-56 Page 3 Yes No

Form 1041 (2022)

Other Information 1 2 3

4

Did the estate or trust receive tax-exempt income? If “Yes,” attach a computation of the allocation of expenses. $ Enter the amount of tax-exempt interest income and exempt-interest dividends Did the estate or trust receive all or any part of the earnings (salary, wages, and other compensation) of any individual by reason of a contract assignment or similar arrangement? . . . . . . . . . . . . . . .

6,800

✓

✓

At any time during calendar year 2022, did the estate or trust have an interest in or a signature or other authority over a bank, securities, or other financial account in a foreign country? . . . . . . . . . . . . . .

✓

See the instructions for exceptions and filing requirements for FinCEN Form 114. If “Yes,” enter the name of the foreign country During the tax year, did the estate or trust receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If “Yes,” the estate or trust may have to file Form 3520. See instructions . . . . . . . . .

✓

5

Did the estate or trust receive, or pay, any qualified residence interest on seller-provided financing? If “Yes,” see the instructions for the required attachment . . . . . . . . . . . . . . . . . . . . . . .

If this is an estate or a complex trust making the section 663(b) election, check here. See instructions . . .

6 To make a section 643(e)(3) election, attach Schedule D (Form 1041), and check here. See instructions . . .

7 If the decedent’s estate has been open for more than 2 years, attach an explanation for the delay in closing the 8 estate, and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Are any present or future trust beneficiaries skip persons? See instructions . . . . . . . . . . . . .

9 Was the trust a specified domestic entity required to file Form 8938 for the tax year? Seethe Instructions for 10 Form 8938 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11a Did the estate or trust distribute S corporation stock for which it made a section 965(i) election? . . . b If “Yes,” did each beneficiary enter into an agreement to be liable for the net tax liability? See instructions .

12 Did the estate or trust either make a section 965(i) election or enter into a transfer agreement as an eligible 965(i) transferee for S corporation stock held on the last day of the tax year? See instructions . . . . . . . . . . .

13 ESBTs only. Does the ESBT have a nonresident alien grantor? If “Yes,” see instructions . . . . . . . .

14 ESBTs only. Did the S portion of the trust claim a qualified business income deduction? If “Yes,” see instructions

✓

✓ ✓ ✓ ✓ ✓

Form 1041 (2022)

C:TRP-147 ..

C:14-56 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

Lopez Trust #3

74-1243565

Yes

✓

No

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

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)

lines below.

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

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 . . . . . . . . . . . . .

(d) Proceeds (sales price)

(e) Cost (or other basis)

9,500

9,200

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) . . . . . . . . . . . . . . . . . . . . . . . .

Part II

.

.

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

300

4

7

.

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

.

.

.

.

.

4 5 6

(

7

)

300

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

lines below.

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

(d) Proceeds (sales price)

(e) Cost (or other basis)

(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 column (g) line 2, column (g)

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. . . . . . . . . . . . . .

11 12 13 14 15 16

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, line 18a, column (3) . . . . . . . . . . . . . . . . . . . . . . . . .

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

C:TRP-148 ..

Cat. No. 11376V

11 12 13 14 15 (

)

16

Schedule D (Form 1041) 2022

C:14-56 Page 2

Schedule D (Form 1041) 2022

Part III 17 18 a b c 19

Summary of Parts I and II

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. . . . .

(1) Beneficiaries’ (see instr.)

17 18a 18b 18c 19

(2) Estate’s or trust’s

(3) Total

300

300

300

300

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 (

)

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

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

30

37

41

45

Schedule D (Form 1041) 2022

C:TRP-149 ..

C:14-56

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

Lopez Trust #3

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

. . .

. . .

300

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 . . .

. . .

985a . . .

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

74-1243565

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

9,200

300 9,500

985 985 8,515

Estates and Trusts:

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

18a 8,515 18b 18c b Deductions for distributions of net investment income and deductions under 19a 4,814b 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-. . . . . . . . . . .

3,701 . .

3,601c 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. . . . .

-020 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. $8,515 – $4,814 – $100 exemption = $3,601 c d$14,450 is the highest tax bracket for estates and trusts for tax years beginning in 2023.

C:TRP-150 ..

20 21

-0-0Form 8960 (2022)

C:14-56 Final K-1

Schedule K-1 (Form 1041)

22

Department of the Treasury Internal Revenue Service

Part III

For calendar year 2022, or tax year

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

Lopez Trust #3

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

/

/ 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

4,814a

11

Final year deductions

12

Alternative minimum tax adjustment

13

Credits and credit recapture

Estate’s or trust’s employer identification number

74-1243565

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

First Bank 125 Seaview Northwest City, WA 98112

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

Information About the Beneficiary

F

Beneficiary's identifying number

G

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

10

Estate tax deduction

A 3,786b E 4,814

XXX-XX-XXXX

Loretta Lopez 123 Maple Ave. Northwest City, WA 98115

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

aForm 1041, Schedule B, Line 13 bForm 1041, Schedule B, Line 12 Note: Total $6,800 distribution is allocated between $4,814 taxable income and $3,786 tax-exempt income.

C:TRP-151 ..

C:14-56 Page 2

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

Cred

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

13. Credits and credit recapture

E Other qualifying investment credit Worksheet, line 11 (Schedule D Instructions) 5. Other portfolio and nonbusiness income

F Work opportunity credit G Credit for small employer health insurance premiums H Biofuelproducer credit

Schedule E, line 33, column (f)

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)

L Indian employment credit

8. Other rental income

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

N Credit for employer-provided child care and facilities

M Orphan drug credit

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

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 C AMT adjustment attributable to net short-term capital gain

See the beneficiary’s instructions

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

I Section 199A information

beneficiary’s instructions) See the beneficiary’s instructions

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

C:TRP-152 ..

Form

C:14-57 Department of the Treasury—Internal Revenue Service

1041 U.S. Income Tax Return for Estates and Trusts

20 22

Go to www.irs.gov/Form1041 for instructions and the latest information.

A Check all that apply: Decedent’s estate Simple trust

✓Complex trust Qualified disability trust ESBT (S portion only) Grantor type trust Bankruptcy estate—Ch. 7 Bankruptcy estate—Ch. 11 Pooled income fund B Number of Schedules K-1 attached (see instructions) G

Income Deductions

, 2022, and ending

, 20

Name of estate or trust (If a grantor type trust, see the instructions.)

C Employer identification number

Name and title of fiduciary

D Date entity created

74-1212121 2014

Stan Meadows Trust

Merchants Bank, Trustee

Number, street, and room or suite no. (If a P.O. box, see the instructions.)

201 Fifth Ave. Northeast City, NY 10000

E Nonexempt charitable and split-interest trusts, check applicable box(es).

See instructions.

Described in sec. 4947(a)(1). Check here

City or town, state or province, country, and ZIP or foreign postal code

F Check applicable

Initial return

Final return

Change in trust’s name Change in fiduciary 2 Check here if the estate or filing trust made a section 645 election. . . . . . . . .

1 2a b

Tax and Payments

For calendar year 2022 or fiscal year beginning

OMB No. 1545-0092

if not a private foundation .

Described in sec. 4947(a)(2) Amended return Change in fiduciary’s name

Net operating loss carryback Change in fiduciary’s address

Trust TIN

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total ordinary dividends . . . . . . . . . . . . . . . . . . . . . . . .

Qualified dividends allocable to: (1) Beneficiaries (2) Estate or trust Business income or (loss). Attach Schedule C (Form 1040) . . . . . . . . . . ..

Capital gain or (loss). Attach Schedule D (Form 1041) . . . . . . . . . . . . ..

Rents, royalties, partnerships, other estates and trusts, etc. Attach Schedule E (Form 1040) . ..

Farm income or (loss). Attach Schedule F (Form 1040) . . . . . . . . . . . . .. . . . . . . . . . . . .

Ordinary gain or (loss). Attach Form 4797 . . . .

Other income. List type and amount 1, 2a, Total income.Combine Interest.lines Check if and Form3 through 8 . . . . . . . . . . . . . .

4952 is attached . . . . . . . . . . . . . . . . . .Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,967a

40,033

.

. .

4,000 50,000

1 2a

3 4 5 6 7 8 9 .

10 .

11 .

12 Fiduciary fees. If only a portion is deductible under section 67(e), see instructions13($2,400 – $343b) Charitable deduction (from Schedule A, line 7) . . . . . . . . . . . . . . . . .

Attorney, accountant, and return preparer fees. If only a portion is deductible under section 67(e), see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . .

14 15a 15 a Other deductions (attach schedule). See instructions for deductions allowable under section 67(e) 15b . b Net operating loss deduction. See instructions . . . . . . . . . . . . . . . .

16 .Add lines 10 through 15b . . . . . . . . . . . . . . . . . . . . . . .

16 Adjusted total income or (loss). Subtract line 16 from line 9 . . . . .

17 17 18 18 Income distribution deduction (from Schedule B, line 15). Attach Schedules K-1 (Form 1041) . .

19 19 Estate tax deduction including certain generation-skipping taxes (attach computation) . . ..

20 20 ..

Qualified business income deduction. Attach Form 8995 or 8995-A . .. . . . ..

21 21 .. . . .. . . . ..

Exemption . . . . . . . . . . . . . . . . . .

22 22 .. . . .. . . . ..

Add lines 18 through 21 . . . . . . . . . . . . . .

23 23 ..

Taxable income. Subtract line 22 from line 17. If a loss, see instructions. . . . . ..

24 24 .. .. . . . .. (from Schedule G, Part I, line 9) . . . . . . . . . .

Total tax 25 25 ..

Current year net 965 tax liability paid from Form 965-A, Part II, column (k) (see instructions) 26 26 . . ..

Total payments (from Schedule G, Part II, line 19) . . . . . . . . . . . .

27 . . ..

Estimated tax penalty. See instructions . . . . . . . . . . . . . . . .

27 28 ..

If line 26 is smaller than the total of lines 24, 25, and 27, enter amount owed . .

28 Tax due.

29 If line 26 is larger than the total of lines 24, 25, and 27, enter amount overpaid . .

29 Overpayment.

30 30 Amount of line 29 to be: aCredited to 2023 ; b Refunded. . . . .

3 4 5 6 7 8 9 10 11 12 13 14

Sign Here

. . . . .

(3,000)

51,000

2,057

400

2,457

48,543

10,274

100 10,374 38,169 7,429 6,000 1,429c

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Signature of fiduciary or officer representing fiduciary Print/Type preparer’s name

Paid Preparer Firm’s name Use Only Firm’s address

Date

Preparer’s signature

For Paperwork Reduction Act Notice, see the separate instructions.

EIN of fiduciary if a financial institution Date

May the IRS discuss this return with the preparer shown below?

See instructions.YesNo

Check if PTIN self-employed Firm’s EIN Phone no.

Cat. No. 11370H

Form 1041 (2022)

Note: Problem C:14-57 instructs students to prepare a Form 1041 for 2023. Because the 2023 forms were not yet available as of the time of publication, 2023 figures were used where possible in preparing this 2022 tax return. a($50,000 ordinary dividends/$60,200 DNI) x $12,000 total distribution bTrustee's fee allocable to tax-exempt interest. See calculation on next page. cAssume no estimated tax penalty.

Note: Pages related to the AMT are omitted.

C:TRP-153 ..

C:14-57 Page 2

Form 1041 (2022)

Schedule A 1 2 3 4 5 6 7

Amounts paid or permanently set aside for charitable purposes from gross income. See instructions Tax-exempt income allocable to charitable contributions. See instructions . . . . . . . . .

Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . .

Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 1202 exclusion allocable to capital gains paid or permanently set aside for charitable purposes. See instructions . . . . . . . . . . . . . . . . . . . . . . . . .

Charitable deduction. Subtract line 6 from line 5. Enter here and on page 1, line 13 . . . . . .

Schedule B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Charitable Deduction. Don’t complete for a simple trust or a pooled income fund.

1 2 3 4 5 6 7

Income Distribution Deduction

.

Adjusted total income. See instructions . . . . . . . . . . . . . . .. . . . . .Adjusted tax-exempt interest . . . . . . . .. . . . . . Total net gain from Schedule D (Form 1041), line 19, column (1). See instructions . . . . . . . Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion) . . . . . .Capital gains for the tax year included on Schedule A, line 1. See instructions . .. . . . .

Enter any gain from page 1, line 4, as a negative number. If page 1, line 4, is a loss, enter the loss as a

1 2 3 4 5

positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Distributable net income. Combine lines 1 through 6. If zero or less, enter -0- . . . . . . .

If a complex trust, enter accounting income for the tax year as determined .under the governing instrument and applicable local law . . . . . .

8 . . . . . . . . . .

Income required to be distributed currently . . . . . . . . .

Other amounts paid, credited, or otherwise required to be distributed . . . . . . . . . .

Total distributions. Add lines 9 and 10. If greater than line 8, see instructions . . . . . . .

Enter the amount of tax-exempt income included on line 11 . . . . . . . . . . . . .

Tentative income distribution deduction. Subtract line 12 from line 11 . . . . . . . . . . . .

Tentative income distribution deduction. Subtract line 2 from line 7. If zero or less, enter -0Income distribution deduction. Enter the smaller of line 13 or line 14 here and on page 1, line 18

. .

6 7

. . . . . . .

9 10 11 12 13 14 15

.($9,000 – $343b).

62,600c

Schedule G Tax Computation and Payments (see instructions) Part I — Tax Computation 1

Tax: . . . . . . . . a Tax on taxable income. See instructions . . . . . b Tax on lump-sum distributions. Attach Form 4972 c Alternative minimum tax (from Schedule I (Form 1041), line 54) . d .Total. Add lines 1a through 1c . . . . . . . . . . . .

2a Foreign tax credit. Attach Form 1116 . . . . . . . . . . b General business credit. Attach Form 3800 . . . . . . . c .Credit for prior year minimum tax. Attach Form 8801 . . . d .Bond credits. Attach Form 8912 . . . . . . . . . . e .

Total credits. Add lines 2a through 2d . . . . . . . . . . . .

Subtract line 2e from line 1d. If zero or less, enter -03 4 5 6 7 8 9

. . . . . . . . . .

. . . . . . . . . .

. . . . . . . . . .

. . . . . . . .. ..

1a 1b 1c . .

2a 2b 2c 2d

.

.

.

.

1d

. . . . . . . . . .

Tax on the ESBT portion of the trust (from ESBT Tax Worksheet, line 17). See instructions . .Net investment income tax from Form 8960, line 21 . . . . . . . . . . . . . .

Recapture taxes. Check if from: Household F o r m 4 2employment 5 5 F o r mtaxes.

8 6 1 1. . . . . . . . . . . . . . . . .

Attach Schedule H (Form 1040) . . .Other taxes and amounts due . . . . . . . . . . . . . . . . . . . .Total tax. Add lines 3 through 8. Enter here and on page 1, line 24 . . . . . . . .

. . . . . . . .

. . . . . . . .

. . . . . . . .

2e 3 4 5 6 7 8 9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; Total . . .

Other payments: a Form 2439 ; b Form 4136 Credit for qualified sick and family leave wages for leave taken before April 1, 2021 . . . . ..

Credit for qualified sick and family leave wages for leave taken after March 31, 2021, and before October 1, 2021. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total payments. Add lines 12 through 15 and 16c through 18. Enter here and on page 1, line 26 .

10 11 12 13 14 15 16c 17 18

19

2022 estimated tax payments and amount applied from 2021 return . . . . . .

Estimated tax payments allocated to beneficiaries (from Form 1041-T). . . . . .

Subtract line 11 from line 10. . . . . . . . . . . . . . . . . . . .

Tax paid with Form 7004. See instructions. . . . . . . . . . . . . . .

Federal income tax withheld. If any is from Form(s) 1099, check here . . . . .

Current year net 965 tax liability from Form 965-A, Part I, column (f) (see instructions)

3,000 60,200 -012,000 12,000 1,726d 10,274 51,543 10,274

6,528 .

Part II — Payments 10 11 12 13 14 15 16 17 18

48,543a 8,657

19

6,528

6,528 901 7,429 6,000 6,000

6,000

Form 1041 (2022)

aSee Line 17 on Page 1 bTrustee's fee allocable to tax-exempt interest: $9,000/($50,000 + $4,000 + $9,000) x $2,400 = $343 c$4,000 + $50,000 + $9,000 - $400 = $62,600 d($8,657 adjusted tax-exempt income/$60,200 DNI) x $12,000 distribution = $1,726

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C:14-57 Page 3 Yes No

Form 1041 (2022)

Other Information 1 2 3

4

Did the estate or trust receive tax-exempt income? If “Yes,” attach a computation of the allocation of expenses.

Enter the amount of tax-exempt interest income and exempt-interest dividends . . . . $ Did the estate or trust receive all or any part of the earnings (salary, wages, and other compensation) of any individual by reason of a contract assignment or similar arrangement? . . . . . . . . . . . . . . .

9,000

✓

✓

At any time during calendar year 2022, did the estate or trust have an interest in or a signature or other authority over a bank, securities, or other financial account in a foreign country? . . . . . . . . . . . . . .

✓

See the instructions for exceptions and filing requirements for FinCEN Form 114. If “Yes,” enter the name of the foreign country During the tax year, did the estate or trust receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If “Yes,” the estate or trust may have to file Form 3520. See instructions . . . . . . . . .

✓

5

Did the estate or trust receive, or pay, any qualified residence interest on seller-provided financing? If “Yes,” see the instructions for the required attachment . . . . . . . . . . . . . . . . . . . . . . .

If this is an estate or a complex trust making the section 663(b) election, check here. See instructions . . .

6 To make a section 643(e)(3) election, attach Schedule D (Form 1041), and check here. See instructions . . .

7 If the decedent’s estate has been open for more than 2 years, attach an explanation for the delay in closing the 8 estate, and check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Are any present or future trust beneficiaries skip persons? See instructions . . . . . . . . . . . . .

9 Was the trust a specified domestic entity required to file Form 8938 for the tax year? See the Instructions for 10 Form 8938 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11a Did the estate or trust distribute S corporation stock for which it made a section 965(i) election? . . . b If “Yes,” did each beneficiary enter into an agreement to be liable for the net tax liability? See instructions .

12 Did the estate or trust either make a section 965(i) election or enter into a transfer agreement as an eligible 965(i) ... transferee for S corporation stock held on the last day of the tax year? See instructions . . . . . . . . . . . . . .

13 ESBTs only. Does the ESBT have a nonresident alien grantor? If “Yes,” see instructions 14 ESBTs only. Did the S portion of the trust claim a qualified business income deduction? If “Yes,” see instructions

✓

✓ ✓ ✓ ✓ ✓

Form 1041 (2022)

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