- A limited partnership learns that a state agency intends to exercise eminent domain with respect to the business premises and real property improvements. The agency agrees to reimburse the partnership’s relocation costs, including the costs of moving and reinstalling specific pieces of machinery and equipment.
Read PLR 201401001 for all the details. (Link opens a PDF file in a new window.)
- Taxpayer died in 2010. She owned an annuity that was to pass to a trust established for the benefit of her grandchild. The trustee will receive required minimum distributions for a certain term. During this term, the trustee is required to distribute annually the amounts paid to the trust to the grandchild. The trustee may accelerate distributions at any time for the grandchild’s health, education, maintenance, and support. If the grandchild dies before the end of the annuity’s distribution period, then the grandchild’s issue are entitled to the remaining distributions as beneficiaries of trust. If the grandchild dies before the end of the distribution period and is not survived by issue, then the grandchild’s surviving siblings become the beneficiaries of the trust. At the end of the distribution period, the trust will terminate and the trustee will distribute any remaining assets outright to the current beneficiaries of the trust.
Read PLR 201352003 for all the details. (Link opens a PDF file in a new window.)
- Taxpayer died intestate at the age of 68 and did not name any beneficiaries of his IRA. The right to receive the IRA passed to three heirs via state intestacy law. The personal representative for the estate wants to divide the IRA into three sub-accounts, each titled “Taxpayer (Deceased) for the benefit of Heir.” The division will be made via trustee-to-trustee transfers, and post-death investment gains and losses will be split between the separate accounts in a consistent manner.
Read PLR 201338028 for all the details. (Link opens a PDF file in a new window.)
Based solely on the facts and representations submitted, we conclude the following:
The division of IRA X and establishment of the three sub-IRAs will not constitute a transfer within the meaning of § 691(a)(2). B, C, and D will each include, in their respective gross income, the amounts of IRD from their respective sub-IRAs when the distribution or distributions from the sub-IRAs are received by B, C, and D, respectively, under § 691(a)(1)(C).