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Intentionally Defective Grantor Trusts -... Expand / Collapse
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Posted 7/16/2009 11:25:02 AM
Member

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I fully understand IDGT's and how interest and capital gains are not picked up from a note used by an IDGT to purchase a partnership interest or closely held business interest.

My question of the board is regarding the initial year of the IDGT, when the IDGT makes the initial purchase from the taxpayer or the taxpayer's inter-vivos trust.  Do you make any type of notation on the taxpayer's individual return for this sale, or is nothing done?  Once again, I realize no gain or loss would be recognized on the sale, but I want to know if you need to note the sale in the tax return?

Post #784
Posted 7/24/2009 7:18:46 PM
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I would make an election to opt out of installment reporting and report a sale with no gain.

Mary Kay Foss
Post #787
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