Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:
Can Students in College and Grad School Put Their Loans on Tax Return?
Is There Any Advantage to Transferring Annuities and IRAs Into Roth IRA?
The Best Way to Give to Charity and Save on Taxes
Dr. Friday’s Tip of the Day: Give a Gift to Your Kids and Grandchildren
Can I Buy Another Rental Property and Not Have a 41% Capital Gain?
Can I File Taxes in 2022 If I Didn't Work?
Should We File for Married Filing Jointly or Separately?Penalties to Keep In Mind When Married Filing SeparateIs There a Limit on Charitable Donations for 2022?
Transcript
Dr. Friday 0:00 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or financial woes. She’s the how-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.
Dr. Friday 0:30 G'day, I'm Dr. Friday, and we are here live in the studio. And it is a nasty cold day outside. Great day for us to all be at the radio listening and talking about my favorite subject, taxes, or how can we put more money in our pocket? Oh, we're going to have some other things that we're going to be needed to deal with? Maybe looking at some of the tax things that may be expiring, but most of that I'll be quite honest, isn't going to happen until 2025. But we will be able to move forward and see what we have as far as other credits. And if maybe some people that maybe think get health insurance found out maybe there is some health insurance still out there in the marketplace. But you just have to figure out which way or the best way to deal with those situations.
Dr. Friday 1:17 So let's go ahead and hit Joe. Let's hit Joe, while we're on the line here. Always love my callers. First we'll get back to my conversation. Hey, Joe, can you hear me?
Caller 1:27 Yes, ma'am. Okay, well, my wife and I had a trust. And we still have a trust. But unfortunately, she passed away back in April. And I'm seeing if I can go through the stocks that are in the trust and increase the value for tax purposes. At one half of what the value was at the date of her death.
Dr. Friday 1:58 Well, was this an A B trust? Or was it? I mean, normally...
Caller 2:03 Its a family revocable trust.
Dr. Friday 2:09 Okay, so the answer is at the time of her passing, everything basically went to you, but they didn't trust, correct?
Caller 2:16 That's correct. So you into trouble. I'm sorry, the trust continues other than the fact that she is no longer a trustee. Of course, I'm still a trustee of the trust.
Dr. Friday 2:32 Right, but this is a revocable, which means that you're able to take stocks in and out or any assets, you still have full control of the stocks in there, correct?
Caller 2:43 That's correct.
Dr. Friday 2:44 Right. So in that situation, you would have a half up, step up and basis if it was held, normally, and most stocks, I mean, you are husband and wife, but if it was in her name alone, you would have a full step up. If it was in joint tenancy, then you would have a half step up.
Caller 3:02 Great. Okay. Well, that's what I thought I just was just trying to double check on that. Thank you for your help.
Dr. Friday 3:09 Oh, yes, sir. Thanks. All right, let's hit Jamie in Winchester. Hey, Jamie.