IRS Form 1099-NEC.Where do I Report the Income? from irs 1099 nec form Watch Video

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Jason D. Knott

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The IRS issued Revenue Ruling 2023-2, which had a substantial impact on estate planning, particularly where an irrevocable trust is involved. In the last decade or so, more families have begun utilizing irrevocable trusts to protect their assets from spend-down in order to qualify for government benefits, such as Medicaid and VA Aid and Attendance.<br/><br/>Prior to the issuance of this ruling, it was unclear whether assets passing to beneficiaries through an irrevocable trust would receive a step-up in basis, thereby eliminating any capital gains taxes that would otherwise be owed. Historically, assets that are disposed of during an individual’s lifetime are subject to capital gains taxes on the increase in value of that asset over time. The amount of capital gains owed is determined largely by the difference between the value at the time of purchase and the value at the time of transfer.
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IRS Form 1099-NEC is used to report payments made to non-employees or independent contractors which was previously reported in Box 7 of Form 1099-MISC. nFrom the tax year 2020, the payer must use Form 1099-NEC to report non-employee compensation of $600 or more paid to contractors for their service. nStart e-filing your 1099-NEC with TaxBandits and Get Instant Approval from the IRS.nVisit, https://www.taxbandits.com/1099-forms/what-is-form-1099-nec/
⏲ 87 sec ✓ 08-Jan-2021

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