On Feb 15 CH posted a video titled "The end of the 1099a" which he talked about the brokerage, filling out a 1099a for $120,000 and you receiving a new car, ins, gas card and a check for like $40,000. CH always says your trust is not a bank. Getting a check for $40,000 seems like a bank doesn't it? I just need clarification on this before my brother can act as trustee/broker for my trust. Thank you!
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I think I understand your question. Your brother is the Trustee for your transactions. You can do the 1099-A present 1099-B copy to the trustee He will then do the 1040v /1056OID and send to US Treasury on your behalf for the Beneficiary. Your Trustee will receive the funds and distribute it to say car dealer ,Gas Card,Ins,etc you must keep proof of expenses in case of Audit. If you over price what you need over the 20% you must spend it on something related to said vehicle. Lift kit, Rims Tires, Etc. If there is 20% left over you may keep this. Don't forget about paying the Trustee his 5% add that as well. Hope this helps.
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So if I am going to be the trustee for my son, does he file his 1099A with the IRS himself and then give me copy B to file with the 1040V and the 1099-OID? Or does he give his 1099A to me to file?
Is there anything else either of us needs to file? Don't I also need to file the 1096 as well?
Paula
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The trustee files all paperwork, CH mentions a 8888 form to speed up getting funds. I think you may want to go back through course of 1099A to make sure you are sending in correct forms.
I'm interested in doing the same for my kid and wife. What happens to the other 1099A forms, cause it comes in 3's with carbons. I think I get the 1099-OID and 1040V. Secondly what do we do with the 1096 ? Peace and blessing to you all.
Thank you in advance
Can the strawman be a trustee for the living man?