USA How to Reduce Tax Impact of Large Amount of Interest Received from Unclaimed Funds?


Joined
Mar 30, 2019
Messages
1
Reaction score
0
Country
United States
Is there any way to lessen the income tax impact on 2018 Federal tax return of a large amount of interest income earned by an estate due to abandoned funds (bank accounts) being located?

The main concern is that the interest, paid out all at once from unclaimed funds, increases income to such an extent that penalties will ensue as well as the unwanted need to make estimated tax payments when none were needed before and wouldn't likely be needed again. Next year income should drop back down again since this was a one time thing. Unfortunately, this doesn't fit Lump Sum Payment/ Form 4972 since the interest is just from bank accounts that had gone to unclaimed funds but continued to earn interest that is now being reported all at once. Any ideas? Thank you.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top