FAQ
Frequently Asked Questions
Here's a list of the most comman asked questions from us.
You’ll notice it says ‘Do Not Cut or Separate Forms on This Page’ under each of the forms. You can submit 3 different forms per sheet. So one could be for a home, the next for a car and the third for paying bills/debts. All 3 forms must be for you, you can’t include another beneficiary on the same sheet.
Yes, you can do it offline, the forms can be obtained from the IRS here. It can take several weeks to receive the forms. You can send the completed form(s) and a cover letter with your contact details to ChasDre Llc at:
ChasDre Llc
1st Street 120, Fresno, California 93720
Below are two examples of how to fill the 1099-A forms out. One is for a property purchase, the other is for paying bills. You must sign your beneficiary name on the back of copy A. Do not remove the perforated edge on the left. Lift copy A using the right hand edge to sign the back of copy A.
No, it can only be used to buy personal property and services.
Not only is using multiple trustees to buy multiple houses, etc. fraud, it is considered fleecing the trust and will get you, the beneficiary into trouble.
Yes, but with caution. You can work with one trustee to buy a house and another to buy a car but not two trustees to buy two cars, for example.
If you ever get audited and you haven’t kept the property for at least 6 months, it might cause you issues.
Nope. Get them to file the 1099-A for themselves. The only exception to this is buying a vehicle for a dependent under the age of 18 and then gifting it to them.
Not yet, we need to have proof of concept and streamline the process first then we will be working on creating a network of trustees.
To become a professional trustee you will need to setup an LLC and obtain an EIN from the IRS.
Not yet, we need to have proof of concept and streamline the process first then we will be working on creating a network of trusted dealers/realtors.
No, this is trust fraud.
Your Cesti Que Vie trusts are separate in this regard so he/she can file separately for his/her own home and vehicle.
A married couple has their trusts joined by the state so cannot be each other’s trustees. However a friend, sibling or adult child, father, mother, uncle, etc. can be trustee to a family member.
Absolutely not. You could risk losing your money if the funds aren’t approved or take longer than anticipated. It’s better to file an amount that you think will comfortably buy you a home in the area you want to live in. Once you receive the funds you can buy something to suit that budget.
If a realtor is asking for proof of funds, this is illegal in the USA. But given the market and competition for houses, they often won’t show you the property without this. It’s best to wait until we have received your funds before making an offer on a property.
No, the funds have to be used for your personal use only. Get them to file a 1099-A themselves (with your assistance).
No, they have to file it themselves. You can assist them but you can’t file on behalf of
somebody else.
Absolutely as long as the amount is over $600. It’s best if you attempt this directly yourself first using the 1099-A rather than involving Chasdre Llc
As an example, there’s a covering letter template for Verizon in the files section of the Telegram group . This can be adapted for any bank or utility company.
The process for paying bills/debts differs slightly in that you are the lender instead of the United States Treasury and the borrower is the company you are paying off, i.e Verizon (see the example here).
If your 1099-A is ignored by the company and your follow up letters haven’t worked, you can use us as the trustee and add the 5% fee. We will send the company the payment once we receive funds from your trust.
You must keep paying your bills in the meantime .
Yes, we have some expert contacts on this who can help. We can discuss this once you close on the property.
We can work with you to get allodial title for the property and a Land Patent so that you own the property absolutely and not just the title. We can discuss this once you close on the property.
Yes, you can.
Please note, we are not tax or financial advisors. The funds are paid directly to the suppliers/vendors not you, so you aren’t receiving the funds directly. If there are any funds remaining after everyone has been paid, you can receive these directly as long as they are not
in excess of 20% of the amount entered into Box 2 of the 1099-A form. These may be taxable but speak to a qualified professional about this.
Use the name that’s on your social security card/married name.
You can, but it’s not essential. To do this open a new checking account and sign your name as follows on the application: First-Middle: Last, Beneficiary.
This is where you add all your extras to the purchase price. So in the example of buying a house, you add the 5% trustee fee to the purchase price of the home. [Multiply the purchase price of the home by 1.05]. Then add closing costs, home insurance, moving costs,
renovations, interior design, furniture, linens, solar, emergency generators, landscaping, outbuilding construction etc.
The amount in Box 2 will always be higher than the amount in Box 4.
On top of the purchase price, add registration fees, insurance for the year, a prepaid fuel card, extended warranty, roadside assistance, servicing package, optional extras i.e. theft tracking subscription, roof bars, snow tires etc. And of course, remember to add the 5% trustee fee to the purchase price. See the checklist below for more ideas.
Add the total of the items together and add it to the list price of the vehicle. Enter the total $ amount in Box 2 of the 1099-A. Here’s a handy spreadsheet template to help you calculate the costs.
On top of the purchase price, add the closing costs, home insurance, moving costs, renovations, interior design, furniture, linens, solar, emergency generators, landscaping, outbuilding construction. And of course, remember to add the 5% trustee fee to the purchase
price.
See the checklist below for more ideas.
Add the total of the items together and add it to the purchase price of the property. Enter the
total $ amount in Box 2 of the 1099-A. Here’s a handy spreadsheet template to help you calculate the costs.
You can receive up to 20% of the amount that you entered into Box 2 of the 1099-A form paid directly to you but only after everyone else has been paid. If there is more than 20% remaining you will need to find something else to purchase that relates to what you entered in Box 5 from the original 1099-A filing.
No, ChasDre Ll care acting as the trustees and as such have to administer the funds diligently. We will send funds to whoever needs to be paid in relation to your filing, i.e. car dealership, lawyers, contractors.
You can use the 1099-A for anything over $600 that’s a personal benefit to you.