Don't forget that this needs to be the FINAL 1041 with the "Final Return" box checked. Many executors miss this and end up getting notices from the IRS asking for returns for subsequent years. Also make sure Form 56 (Notice Concerning Fiduciary Relationship) is filed showing the termination of the fiduciary relationship.

Just to add another perspective - make sure you have clear documentation showing your mom was acting in her capacity as Personal Representative when she paid these fees. A simple letter or memo to the file stating something like "Paid attorney fees of $7,600 on behalf of [Estate Name] from personal funds due to bank restrictions" can be helpful documentation. Also, when you enter these on the 1041, you might want to attach a brief statement explaining the circumstances (that the estate's bank wouldn't allow the payment but the PR paid personally). This isn't required, but it can prevent questions later if the IRS reviews the return. The good news is that since your mom was the sole beneficiary, this is really just a timing difference - the money was always going to come out of "her" funds eventually anyway, whether directly from the estate account or indirectly through her inheritance.

Has anyone here actually tried implementing a smaller version of this strategy? I have about $200k in company stock that's appreciated a lot, and I'm considering taking out a loan against it to renovate my house instead of selling the shares and triggering capital gains. Not exactly Elon Musk level, but I'm wondering if the "buy, borrow" part of the strategy makes sense for regular-ish people too? What interest rates are banks offering on these securities-backed loans for non-billionaires?

One aspect that hasn't been mentioned yet is the estate planning angle of this strategy. The "die" part of "buy, borrow, die" is actually crucial for making the whole thing work long-term. When someone dies, their heirs inherit assets with a "stepped-up basis" - meaning the cost basis resets to the fair market value at death. So if Musk bought Tesla stock at $10/share and it's worth $200/share when he dies, his heirs inherit it as if they bought it at $200/share. All those unrealized gains from $10 to $200 are never taxed. This is why the ultra-wealthy can keep rolling over loans indefinitely. They don't necessarily need to pay them back during their lifetime - the estate can sell inherited shares (with no capital gains tax due to stepped-up basis) to pay off any outstanding loans after death. It's a pretty remarkable feature of our tax code that essentially allows generational wealth to avoid capital gains taxes entirely. The heirs start fresh with a new basis, and the cycle can continue for generations.

This is a complex situation that requires careful attention to both timing and documentation. Since you're physically present in the US while working, a few additional considerations: 1. **Work authorization**: Even though you're a US citizen, your EU employer may need to understand the legal implications of having an employee working from the US. Some companies have policies against this due to corporate tax nexus issues. 2. **Estimated tax payments**: Since your EU employer isn't withholding US taxes, you'll likely need to make quarterly estimated payments to avoid underpayment penalties. Use Form 1040ES to calculate what you owe. 3. **Record keeping**: Document everything - dates of travel, where you performed work, foreign taxes paid, and currency conversion rates. The IRS may question the source and timing of your income. 4. **Professional help**: Given the complexity with dual citizenship, foreign employment, temporary US presence, and potential state tax issues, I'd strongly recommend consulting with an Enrolled Agent or CPA who specializes in international tax. The cost is usually worth avoiding costly mistakes. The foreign tax credit route mentioned by others is likely your best approach, but the devil is in the details with your specific circumstances.

Just to add another perspective on this - I went through a very similar situation working for a Dutch company while caring for family in the US for about 8 months. A few things I learned the hard way: **Banking complications**: Your EU bank might freeze or question your account if they detect you're consistently accessing it from the US for an extended period. I had to provide documentation to my Dutch bank explaining my temporary situation to avoid account restrictions. **Social security treaties**: Don't forget about the US-EU social security agreements! If you're paying into the EU social system while physically in the US, you might be able to avoid double social security taxation. This is separate from income tax treaties but equally important. **Professional liability**: If your work involves any professional licenses or certifications, check if working from the US temporarily affects their validity. Some EU professional bodies have specific requirements about where licensed work can be performed. **Currency fluctuation tracking**: Since you're paid in Euros but will file in USD, keep detailed records of exchange rates on payment dates. The IRS requires you to use the rate on the day you received the income, not year-end rates. I used the Treasury's published rates to stay consistent. The Foreign Tax Credit approach others mentioned is definitely correct, but these operational details can trip you up if you're not prepared. Good luck with your family situation - hope everything works out well!

Don't forget you can also use Section 179 to just expense the whole printer in year 1 instead of depreciating it over 5 years with MACRS! Since $8,200 is well under the Section 179 limit of $1,190,000 for 2025, you could just deduct the entire amount this year if that's better for your tax situation.

Quick tip from someone who's been burned before: KEEP DETAILED RECORDS of all your depreciated assets! I learned this the hard way when I got audited last year and couldn't find the original invoice for equipment I was depreciating using MACRS. Create a folder (physical or digital) for each asset with: - Original purchase invoice - Documentation showing when it was placed in service - The MACRS class you assigned and why - Your depreciation calculations each year Trust me, if you get audited 3-4 years from now, you won't remember the details without good records.

Anyone here actually used a CRT for crypto specifically? I'm looking at doing this with some Ethereum that's way up from my cost basis, but my attorney seems hesitant about using crypto in a trust like this. Said something about valuation issues.

This is exactly why I always recommend consulting with both a tax attorney AND a financial advisor who specializes in charitable trusts before setting up any CRT with volatile assets. The interplay between the 10% remainder rule, payment obligations, and asset volatility can create serious cash flow issues even when you're technically compliant with IRS requirements. One strategy I've seen work well is setting up what's called a "flip CRUT" - it starts as a net income makeup trust (NIMCRUT) that only pays out actual income earned, then "flips" to a standard unitrust once a triggering event occurs (like diversification of the original volatile assets). This provides protection during periods when the trust assets might not generate enough income to support full payments. The key takeaway from your crypto example is that while the 10% rule won't be violated by market crashes after establishment, you could end up with a trust that gets completely depleted paying the fixed annuity amounts, leaving nothing for the charitable remainder. That defeats the whole purpose of the structure.