Practice Question: Another Kiddie Tax Calculation

At only thirteen years old, Melissa Moore is a promising figure skater with dreams of Olympic competition. When she was born, her parents established a section 2503(c) Minor's Trust on her behalf. Melissa's parents are in the 37% marginal federal income tax bracket. The trust assets which are now substantial, are invested conservatively in bonds and bank-issued CDs. In the 2019 TY, $15,000 of income from the trust is distributed to cover private figure skating coaching sessions. Assume that Melissa has no other sources of income. How will the distribution of trust income be taxed? Read More

So the yield curve is inverted... What does that really mean?

What exactly is the yield curve? Read More

Question of the Month (September 2019): Kiddie Tax Calculation

In 2019, Nancy, age 15, earns $3,000 babysitting. She also has $2,800 in interest from her UTMA which is maintained for her college savings. How much of Nancy’s income is subject to the kiddie tax at the income tax rate for estates and trusts? Read More

BIF Bites Podcast: September 2019: Kiddie Tax, Fiduciary Rules and Retirement "Alphabet Soup"

Subscribe and Listen on Mobile Apple Podcasts | Google Podcasts | Stitcher | Spotify Read More

Practice Question: Roth IRA Tax/Penalty-Free Distribution

Mike, age 50, established a Roth IRA on 04/01/19, with a $5,000 regular contribution for 2018. What is the first possible year Mike will be able to make a tax-free, penalty-free distribution from the account? Read More