Tax day is only a week away, and preneed trust returns will look a little different this year. As we reported back in December, the IRS took the position that preneed trusts are subject to the Medicare Tax used to fund the Affordable Health Care Act. Accordingly, Federal Form 1041QFT now requires the reporting of
gains
The “Problem” Cemetery: The Difference a Trustee Makes
By Bill Stalter on
Posted in Cemeteries
As cemeteries struggle with harsh economic conditions, regulators are bound to look at their ‘problem cemeteries’ and weigh whether legal proceedings are necessary to preserve the care funds mandated by state law. To the extent such proceedings are premised in part on how capital gains are defined and whether distributions from capital gains are an…
Perpetual Care and Capital Gains: the government’s rainy day fund?
By Bill Stalter on
For the past few years, some Kansas cemeteries have been getting nasty grams from their regulator about their care fund trustee’s treatment capital gains taxes. Kansas, like most states, requires a portion of each grave space sale (interment right) to be contributed to a fund or trust for the future care of the cemetery. Kansas…