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Re: Estate Trustee requests I "waive presentation of account

Unless you or one of the other beneficiaries has reason to doubt the correctness of the amounts you are receiving, I would suggest signing the waiver. A formal fiduciary accounting has the potential to be very expensive, depending on the size, complexity, activity, and duration of the estate or trust.
by MarkNYC
Thu Jul 24, 2014 4:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Estate Trustee requests I "waive presentation of accounting"
Replies: 10
Views: 1284

Re: CPA Help - Estimated taxes and Self-Employment taxes

I am an S-Corp and this is how I handle my estimated taxes and come in with safe harbor every year. When the penalties are calculated for underpayment, you can "annualize" your income. The payroll withholding is considered to be received evenly through out the year (which it was) and your...
by MarkNYC
Fri Jun 13, 2014 10:47 am
 
Forum: Personal Finance (Not Investing)
Topic: CPA Help - Estimated taxes and Self-Employment taxes
Replies: 9
Views: 767

Re: Can a dead woman take her RMD?

The cold reality that is being ignored by everyone is that you cant put toothpaste back in the tube. There is no way under the tax law to return the IRA distribution to the deceased's IRA and then have the beneficiary take the distribution as an MRD. Not everyone is ignoring that reality. I don't t...
by MarkNYC
Thu Jun 05, 2014 9:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can a dead woman take her RMD?
Replies: 47
Views: 3290

Re: Can a dead woman take her RMD?

So, anyone have an opinion on what VG will do once they understand what happened here? Alan, Here's my guess. Vanguard won't change anything, especially since the POA, executor, and beneficiary are the same person. Vanguard did nothing wrong. They made a distribution based on a POA they had on file...
by MarkNYC
Wed Jun 04, 2014 9:19 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can a dead woman take her RMD?
Replies: 47
Views: 3290

Re: Can a dead woman take her RMD?

Since RMD was received after death it is income of the estate. The RMD is income in respect of a decedent. It can be transferred to the IRA beneficiary (son) by the estate and the estate will deduct the RMD from its taxable income and the beneficiary will include it as taxable income. Since the son...
by MarkNYC
Wed Jun 04, 2014 5:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can a dead woman take her RMD?
Replies: 47
Views: 3290

Re: Can a dead woman take her RMD?

I highly doubt there is criminal liability here. Who was defrauded? The estate of which he is the sole beneficiary? And what was the fraud? The money was moved from one account to another. I would agree regarding any criminal issue, but there is a reasonable chance that the transaction, if not corr...
by MarkNYC
Tue Jun 03, 2014 5:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can a dead woman take her RMD?
Replies: 47
Views: 3290

Re: Can a dead woman take her RMD?

Spirit rider, Thank you, thank you. As I read what you pasted from the IRS, I/we understand the the RMD in the year of death must be taken on the owner's life expectancy that year (the divisor is decided the second the new year begins). And that if the IRA was properly transferred to the beneficiar...
by MarkNYC
Tue Jun 03, 2014 2:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Can a dead woman take her RMD?
Replies: 47
Views: 3290

Re: AMT Planning Strategies

And if any of your AMT is due to timing issues (such as accelerated depreciation or stock options), the exemption for your child may increase the amount of AMT credit you get in a future year. It won't change the tax bill this year because the AMT does not allow exemptions, but it will increase the...
by MarkNYC
Thu May 22, 2014 11:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: AMT Planning Strategies
Replies: 13
Views: 1343

Re: AMT Planning Strategies

And if any of your AMT is due to timing issues (such as accelerated depreciation or stock options), the exemption for your child may increase the amount of AMT credit you get in a future year. It won't change the tax bill this year because the AMT does not allow exemptions, but it will increase the...
by MarkNYC
Thu May 22, 2014 10:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: AMT Planning Strategies
Replies: 13
Views: 1343

Re: AMT Planning Strategies

If your wife is pregnant, tell her not have the child until the subsequent year. .. I could not get my daughter to be born until January 1 and instead, I had her on December 31, 2013 which tipped me into AMT. Funny thing is that everyone at the hospital was inducing on December 31 to take advantage...
by MarkNYC
Thu May 22, 2014 1:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: AMT Planning Strategies
Replies: 13
Views: 1343

Re: Death of Spouse

It has long been my understanding that, by naming my spouse as designated beneficiary of my traditional IRA account, when I pass the account becomes hers. For discussion purposes assume no age difference here (late 70s), both spouses taking RMDs from their own account, and RMDs have already been ta...
by MarkNYC
Thu May 15, 2014 4:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Death of Spouse
Replies: 5
Views: 1209

Re: mailed US tax check 4/13 - not cashed yet

So my check was cashed end of april, but i receive a notice from the IRS today stating that I owe the money How do i straighten this out? What sort of delay in crediting? the letter is quite firm that i owe money I think there are two likely possibilities. The first would be that you did not legibl...
by MarkNYC
Sun May 04, 2014 10:32 am
 
Forum: Personal Finance (Not Investing)
Topic: mailed US tax check 4/13 - not cashed yet
Replies: 43
Views: 7302

Re: IRS letter claiming return is late - anyone experience t

Since no one has asked this question, I will. What kind of a return is due on Jan 15? Probably not a 1040 type and not a estimated payment either. Perhaps a 1041 estate return with a different calendar year? Most likely a fiscal year foundation return, Form 990. Only one I know of with a $20/day la...
by MarkNYC
Sat Mar 29, 2014 12:38 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS letter claiming return is late - anyone experience this?
Replies: 34
Views: 4612

Re: When does depreciating a rental property save on taxes?

Since the rules for passive activities and tax on rental real estate are complicated, there is much confusion, even among tax professionals. Certain technical terms are often used incorrectly, which adds to the confusion. A few related comments: 1. When a rental property is sold, any prior year unal...
by MarkNYC
Sun Mar 23, 2014 9:01 pm
 
Forum: Personal Finance (Not Investing)
Topic: When does depreciating a rental property save on taxes?
Replies: 70
Views: 4764

Re: Residency Tax Question

Box 15 is NY. I've looked at IRS Pub 17. Does it address this situation? I didn't spend any time during the entire tax year in either New York or New Jersey. IRS Publication 17 deals with federal income tax, which is not relevant to your issue of whether your income is subject to tax by one or more...
by MarkNYC
Fri Mar 21, 2014 1:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Residency Tax Question
Replies: 20
Views: 1134

Re: Residency Tax Question

Where is the income sourced in Box 15 on your W2? I think technically you owe taxes to DC as a non-resident. You probably owe taxes to NJ as a resident as well but they should give you a credit for most if not all of the taxes you may pay to DC. DC does not tax nonresidents. Not wanting to violate ...
by MarkNYC
Thu Mar 20, 2014 10:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Residency Tax Question
Replies: 20
Views: 1134

Re: Any way to avoid large state tax refund?

However you probably are in the AMT and you can lose the entire benefit of the deduction. And amazingly, despite that situation for me in 2013 (I paid AMT in 2012 and received a state tax refund in 2013) Turbotax and my calculations concluded that the refund was fully taxable. Although it's possibl...
by MarkNYC
Tue Mar 18, 2014 9:28 pm
 
Forum: Personal Finance (Not Investing)
Topic: Any way to avoid large state tax refund?
Replies: 13
Views: 1509

Re: Using Life Expectancy Tables for RMD

Minimum Required Distribution means the same thing as Required Minimum Distribution. At least, I can't parse the difference. ... For many years, most people called it minimun required distributions, or MRDs. I still generally call it that. However, the regulations (which were issued about a dozen y...
by MarkNYC
Tue Mar 18, 2014 9:16 am
 
Forum: Investing - Help with Personal Investments
Topic: Using Life Expectancy Tables for RMD
Replies: 22
Views: 1485

Re: 401K Required Minimum Distribution Question

I think it's best to take the first distribution before December 31, 2014, then take another one before April 1, 2015. I don't understand why this is good. You are splitting the 2014 RMD into these two parts. Then you need to take the 2015 RMD too before December 31, 2015. ...I'm taking my first RM...
by MarkNYC
Fri Mar 14, 2014 3:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401K Required Minimum Distribution Question
Replies: 10
Views: 782

Re: Need Help! New law firm partner taxes

Any responses to my actual questions though? Like Dale said, maybe I'll run for Senate one day and reduce everyone's taxes :greedy I can't help you with Turbo Tax input, but if you're preparing the return yourself, here are some things to know: 1. Your K-1 income is 100% taxable to your resident st...
by MarkNYC
Thu Mar 13, 2014 1:04 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need Help! New law firm partner taxes
Replies: 11
Views: 903

Re: Trusts and Personal Income Tax Question

I am helping out a sibling with a tax issue. Unfortunately we lost a parent in 2012. After their death we each received an inheritance. The inheritance was received in 2 installments. One was a distribution from a TIRA and the other was from a 401k. My sibling is not great with money. Their first d...
by MarkNYC
Mon Mar 03, 2014 10:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Trusts and Personal Income Tax Question
Replies: 12
Views: 878

Re: Real estate rental w Magi >150k

Thanks for the detailed explanation, marknyc. You really make it understandable. It sounds like good news, bad news. Good news: you can do the 250k exclusion repeatedly. Bad news: proportion of time as a rental diminishes the exclusion of gain. It almost makes sense as a "sweet spot" to s...
by MarkNYC
Thu Feb 27, 2014 9:41 am
 
Forum: Personal Finance (Not Investing)
Topic: Real estate rental w Magi >150k
Replies: 20
Views: 2065

Re: Real estate rental w Magi >150k

You do need to consider that you can avoid a lot of capital gains tax if you live in the condo for at least two years, then sell it in less than three more. (Up to $250K of the gain for a single taxpayer.) Also don't forget that if you rent it out, then when you sell you'll have to pay tax (current...
by MarkNYC
Wed Feb 26, 2014 10:32 pm
 
Forum: Personal Finance (Not Investing)
Topic: Real estate rental w Magi >150k
Replies: 20
Views: 2065

Re: Forgot to report 1099-R ?

If you rolled this all over then the tax didn't change, right? If it were me, I wold not file and amended return as no tax would be due and I would think you probably won't hear anything from IRS. If they send you a bill for zero, there is nothing to pay (they won't). If they audited this and the a...
by MarkNYC
Sun Feb 23, 2014 9:23 pm
 
Forum: Personal Finance (Not Investing)
Topic: Forgot to report 1099-R ?
Replies: 13
Views: 875

Re: Form 8606 Info

This year, as a first time Turbo Tax user, I prepared my return and entered the basis in the appropriate section. I did not make a contribution in 2013. The program would not generate an 8606 with my return and several calls to Turbo Tax yielded no help. Further research including deciphering the I...
by MarkNYC
Sun Feb 23, 2014 8:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Form 8606 Info
Replies: 20
Views: 1192

Re: Form 8960 NIIT, real estate company

It's not that simple. The passive activity rules under Sec 469 will allow you to "group" 2 or more activities for the purpose of determining "material participation" in the activities, which determines whether each activity is treated as passive or nonpassive for income taxes. St...
by MarkNYC
Thu Feb 20, 2014 6:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Form 8960 NIIT, real estate company
Replies: 9
Views: 420

Re: Do I need to file an amendment?

In most cases, regardless of filing status, when taxable income is less than $100K, the tax is based on the tax tables and not the tax rate schedules. ( excluding the reduced rate on qualified div & L/T gains) This means that income tax only increases when taxable income increases in increments ...
by MarkNYC
Tue Feb 18, 2014 2:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need to file an amendment?
Replies: 10
Views: 617

Re: When is the 10% early distribution fee due?

Mark, What apparently happened here is Option 1) - corrective distribution done before the tax due date. But rather than returning the contribution with earnings to the taxpayer and then having the taxpayer re submit the 2014 contribution, since it was already 2014 Vanguard consolidated the transac...
by MarkNYC
Mon Feb 17, 2014 10:45 am
 
Forum: Investing - Help with Personal Investments
Topic: When is the 10% early distribution fee due?
Replies: 27
Views: 2185

Re: Question about filing amended return

With rare exception, for any income tax not paid by 4/15 of the following year, interest will be assessed until the tax is paid. ... No penalty, but isn't there interest on the unpaid balance? Bruce I was assuming that there would be, but I just read this on page 4 of the Instructions for 1040X , wh...
by MarkNYC
Sun Feb 16, 2014 6:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question about filing amended return
Replies: 20
Views: 985

Re: When is the 10% early distribution fee due?

Alan, You may be right, but when the OP said "the excess contribution for 2013 was re-written as a 2014 contribution", it sounds like Method 3 was chosen and there was no "distribution" of the contribution, but perhaps Vanguard executed the transaction in a way that it met the re...
by MarkNYC
Sat Feb 15, 2014 3:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: When is the 10% early distribution fee due?
Replies: 27
Views: 2185

Re: Question about filing amended return

You filed, so no failure to file penalty. You are subject to a failure to pay penalty. Regarding the failure to pay penalty, I disagree. This penalty applies to unpaid tax that is "shown" on the original tax return. When an amended return is filed which shows additional tax due, the penal...
by MarkNYC
Sat Feb 15, 2014 2:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question about filing amended return
Replies: 20
Views: 985

Re: When is the 10% early distribution fee due?

Indeed it is a mess. I have an account with Vanguard. I was told that the excess contribution can stay but that the earning had to be withdrawn. I asked about the 6% penalty and they said that since I fixed it before October 2014 (or at least before 2015 came over), I didn't have to pay any fees fo...
by MarkNYC
Sat Feb 15, 2014 1:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: When is the 10% early distribution fee due?
Replies: 27
Views: 2185

Re: When is the 10% early distribution fee due?

Sounds like a bit of a mess. Let's assume there was a 2013 IRA contribution of $5,000, which grew to $5,776. Since there was no earned income for 2013, the $5,000 is an excess contribution for that year. One of the 3 methods of correcting the excess contribution is to treat the previous year excess ...
by MarkNYC
Sat Feb 15, 2014 1:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: When is the 10% early distribution fee due?
Replies: 27
Views: 2185

Re: Missing tax forms for deceased relative

I kept her bank account open to receive this year's refund; I am joint on that account and will close it once this year's refund is processed. There may be a problem that you might want to discuss in advance with the bank. The federal tax refund check will likely be payable to "Estate of John ...
by MarkNYC
Thu Feb 13, 2014 9:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: Missing tax forms for deceased relative
Replies: 12
Views: 718

Re: Missing tax forms for deceased relative

Outer Marker, Since a federal refund is expected, don't forget to either (1) file Form 1310 along with the Form 1040, or (2) attach to the 1040 a court certificate showing that you have been appointed personal representative for the estate. Without one of these, the IRS will not issue the refund to ...
by MarkNYC
Thu Feb 13, 2014 1:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: Missing tax forms for deceased relative
Replies: 12
Views: 718

Re: Jonathan Clements to return to WALL STREET JOURNAL SUNDA

Glad to see Clements is rejoining the Wall Street Journal. But when did the WSJ begin publishing on Sunday?
by MarkNYC
Tue Feb 11, 2014 10:15 am
 
Forum: Investing - Theory, News & General
Topic: Jonathan Clements to return to Wall Street Journal Sunday.
Replies: 29
Views: 3433

Re: Newly Married and Taxed

Kevin21 wrote:If one itemizes, the other must as well, and same holds true for standard deduction.

Since it doesn't matter which spouse files first, if the first part of the above sentence is correct (which it is), then the second part of the sentence cannot also be correct (which it isn't).
by MarkNYC
Mon Feb 10, 2014 10:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Newly Married and Taxed
Replies: 39
Views: 2490

Re: 1231 gains/losses

If you should have net Sec 1231 gains in a current year, you must treat the current year's 1231 gain as ordinary income (rather than capital gain) to the extent of the amount of any unrecaptured net 1231 losses for the prior 5 years.
by MarkNYC
Thu Feb 06, 2014 10:29 pm
 
Forum: Investing - Help with Personal Investments
Topic: 1231 gains/losses
Replies: 2
Views: 450

Re: 709 Gift Tax Form Concern?

Something else worth noting for those filing gift tax returns: although gifts to charity are not subject to gift tax, the instructions to gift tax return Form 709 clearly state that if you're required to file a gift tax return, and you made charitable gifts during the year, you must include all of ...
by MarkNYC
Thu Feb 06, 2014 10:04 pm
 
Forum: Investing - Help with Personal Investments
Topic: 709 Gift Tax Form Concern?
Replies: 12
Views: 702

Re: 709 Gift Tax Form Concern?

Something else worth noting for those filing gift tax returns: although gifts to charity are not subject to gift tax, the instructions to gift tax return Form 709 clearly state that if you're required to file a gift tax return, and you made charitable gifts during the year, you must include all of y...
by MarkNYC
Thu Feb 06, 2014 8:41 pm
 
Forum: Investing - Help with Personal Investments
Topic: 709 Gift Tax Form Concern?
Replies: 12
Views: 702

Re: LLC interest income question

The passive activity rules can be complicated. Unless the dollars involved are nominal, for someone with investments in 2 or more non-publicly traded partnerships or LLCs, one of which is passive, and one or more of which may or may not be nonpassive, I would respectfully suggest that you do one of ...
by MarkNYC
Wed Feb 05, 2014 11:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: LLC interest income question
Replies: 1
Views: 197

Re: Do I need an accountant?

I have repeatedly said this so sorry to those people now thinking I'm a broken record... You should be able to use TurboTax if the K-1 is a page or two in length and only has a few numbers on it... and as long as the pass through entity isn't creating nexus for you in other states... Probably this ...
by MarkNYC
Wed Feb 05, 2014 4:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need an accountant?
Replies: 19
Views: 1226

Re: Does Principal Distribution from TRUST need to be report

In most cases, a "grantor trust" does not need to obtain its own federal tax id number. Instead, the grantor's SSN can be used on the financial accounts, in which case there is no need to file a trust income tax return Form 1041. Each item of income and expense just gets entered directly o...
by MarkNYC
Tue Feb 04, 2014 10:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Does Principal Distribution from TRUST need to be reported?
Replies: 20
Views: 1952

Re: Does Principal Distribution from TRUST need to be report

With a "complex" trust, where the trustee has discretion to make distributions, the distribution of both income and principal gets reported on Form 1041, page 2, Schedule B, line 10. (assuming an income tax return is required to be filed)
by MarkNYC
Mon Feb 03, 2014 11:47 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does Principal Distribution from TRUST need to be reported?
Replies: 20
Views: 1952

Re: Deducting Tax preparation

The problem is the deduction goes on Sch A in an area that is subject to a 2% ceiling before you get a single penny, so unless you had other misc expenses that totaled 2% of your AGI, it would not show up in the result. Line 22 on the 2012 Sch A to be exact. fd Any reason you can't just deduct this...
by MarkNYC
Mon Feb 03, 2014 11:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Deducting Tax preparation
Replies: 14
Views: 667

Re: Deducting Tax preparation

The problem is the deduction goes on Sch A in an area that is subject to a 2% ceiling before you get a single penny, so unless you had other misc expenses that totaled 2% of your AGI, it would not show up in the result. Line 22 on the 2012 Sch A to be exact. fd Any reason you can't just deduct this...
by MarkNYC
Mon Feb 03, 2014 11:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Deducting Tax preparation
Replies: 14
Views: 667

Re: Snow Bird Question [State Residency Requirements]

My understanding that to have state residency you have to live somewhere at least 6 months out of the year. Is this looked at closely? If someone has homes in the North East and Florida or California and Nevada, would the state with the high tax rate ever go after the person if they spent slightly ...
by MarkNYC
Thu Jan 30, 2014 9:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Snow Bird Question [State Residency Requirements]
Replies: 39
Views: 2817

Re: Nonresident NY tax return questions

My wife and I moved from NY to WA in Sep 2012. I have worked for a company based in WA since moving here. My wife worked Jan-Aug 2012 out of her company's office in NYC (she's an editor for a large nonprofit) and the rest of 2012 for the same company out of our home in WA. She worked all of 2013 fo...
by MarkNYC
Thu Jan 30, 2014 10:16 am
 
Forum: Personal Finance (Not Investing)
Topic: Nonresident NY tax return questions
Replies: 17
Views: 1043

Re: tax question

In this type situation, if you're preparing your own tax return, I suggest that after the year the property ceases to be a rental activity you continue to file page one of Schedule E in future years. Next to the property address add the caption "not in service." List zero income and zero e...
by MarkNYC
Wed Jan 29, 2014 3:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: tax question [1040 schedule E and 8582]
Replies: 5
Views: 513

Re: tax question

Just to clarify, if I have only one rental property and take that out of service permanently (and have no other source for any passive income), then I would NOT be able to carry forward any unallowed loses from prior years -correct? Not correct. Prior year unallowed losses CAN be carried forward. I...
by MarkNYC
Wed Jan 29, 2014 12:18 pm
 
Forum: Personal Finance (Not Investing)
Topic: tax question [1040 schedule E and 8582]
Replies: 5
Views: 513
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