Search found 853 matches

by MarkNYC
Fri Jul 03, 2015 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Getting Married and Living in Separate States
Replies: 10
Views: 1413

Re: Getting Married and Living in Separate States

Since you live in different states, once married you would be allowed to file a "joint" federal tax return and separate state returns. You would file a full-year resident "married separate" OR return, and he would file a NY resident "married separate" return, or he may ...
by MarkNYC
Thu Jul 02, 2015 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Snow Bird Question [State Residency Requirements]
Replies: 54
Views: 4777

Re: Snow Bird Question [State Residency Requirements]

Does mailing address trump everything else? I was beginning to think that as well, but now it seems as if real property and/or business ownership trumps all. From CA's Publication 1031, Guideline on Residency: "No one factor is determinative. Consider all the facts of your particular situation...
by MarkNYC
Thu Jul 02, 2015 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Snow Bird Question [State Residency Requirements]
Replies: 54
Views: 4777

Re: Snow Bird Question [State Residency Requirements]

If CA had the 183 day rule, the husband would be considered a statutory resident and the wife would not. Ok, great. Now if the husband is declared a CA resident and the wife is not, does the couple (married filing jointly) have to pay CA state income tax or not? His income would be subject to CA ta...
by MarkNYC
Wed Jul 01, 2015 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Snow Bird Question [State Residency Requirements]
Replies: 54
Views: 4777

Re: Snow Bird Question [State Residency Requirements]

Question on the 183 day rule. Let's say you are married filing jointly. Let's say you trying to stay in California for less than 183 days. If the husband stays in California for 190 days and the wife stays in California for 170 days, does that count as staying less than 183 days? The average is les...
by MarkNYC
Tue Jun 09, 2015 9:30 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Notice regarding home sale in 2013
Replies: 20
Views: 2681

Re: IRS Notice regarding home sale in 2013

These types of situations should reinforce the message that, if you receive a 1099 showing income or sales proceeds, even if you believe there should be no income, or no tax on the income, you should consider carefully whether leaving the item off your tax return is likely to result in a computer-ge...
by MarkNYC
Sun Jun 07, 2015 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Avoiding form 709
Replies: 2
Views: 541

Re: Avoiding form 709

I Googled gift limit joint account , and found the following at: Gift Tax Returns: What You Need To Know : When married couples use the annual exclusion to gift split, does it matter who signs the checks if the funds are coming out of a joint account? Adam Toft, a reader, recently sent me this ques...
by MarkNYC
Sat May 30, 2015 3:49 pm
Forum: Personal Finance (Not Investing)
Topic: How to Estimate Nonresident Taxes in Multiple States
Replies: 3
Views: 375

Re: How to Estimate Nonresident Taxes in Multiple States

I had a bad experience with Turbotax doing my 2014 taxes. Turbotax calculated a number for the nonresident state that made no sense to me. So I downloaded the state tax bulletin and worked through it myself. It showed 0 tax due. Turbotax said I owed thousands. So I called the State and went through...
by MarkNYC
Wed May 27, 2015 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Transcript page hacked
Replies: 23
Views: 1586

Re: IRS Data Breach Announced Today

Wife's SS#s was used on a fraudulent claim last year. Now she requires a PIN to file. But you have to be a victim of ID theft before you can get a PIN to file. Hopefully we will soon get to the point where you can get a PIN either way. You don't actually have to be a victim of identity theft to obt...
by MarkNYC
Thu May 21, 2015 12:30 pm
Forum: Personal Finance (Not Investing)
Topic: What actually happens when you overcontribute to your Roth IRA in a year?
Replies: 1
Views: 380

Re: What actually happens when you overcontribute to your Roth IRA in a year?

A contribution to a Roth IRA may not be allowed if you do not have enough compensation or if your modified AGI is too high for the year. If an excess contribution is not withdrawn by the due date of the tax return, there is a 6% tax on the excess contribution. The 6% applies for the year of the cont...
by MarkNYC
Sat May 16, 2015 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: Letter from IRS (I think they are wrong)
Replies: 21
Views: 2980

Re: Letter from IRS (I think they are wrong)

...On the Social Security 1099, it explictly states that copies of the Social Security 1099's are not to be returned to the IRS. So I did not return the 1099's. And the IRS did not think that the withholdings occurred. I called the IRS and after a conversation of about 20 minutes, the agent agreed ...
by MarkNYC
Tue May 12, 2015 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: Trust help received K-1 but no cash
Replies: 50
Views: 6336

Re: Trust help received K-1 but no cash

OK, I misrepresented for simplicity but now need to clarify ; I'm in the process of finding another accountant and have not broached this with the guy I have now. Meanwhile, I've been looking for advice online here and elsewhere and just got a direct answer, which I was trying to corroborate elsewh...
by MarkNYC
Wed Apr 22, 2015 9:16 pm
Forum: Personal Finance (Not Investing)
Topic: Do I Need to Amend My Taxes if No Change in Tax Liability?
Replies: 28
Views: 3772

Re: Do I Need to Amend My Taxes if No Change in Tax Liabilit

So, whether or not a taxpayer files an amended return, if the IRS discovers an unpaid tax obligation, it will assess penalties and interest for nonpayment or late payment. The IRS will charge interest on any additional tax due on an amended return, or resulting from a tax assessment for unreported ...
by MarkNYC
Thu Apr 16, 2015 8:52 am
Forum: Personal Finance (Not Investing)
Topic: Amending tax return
Replies: 17
Views: 1379

Re: Amending tax return

MarkS wrote: The late payment penalty is no more than 25% of the additional tax due... Interest would probably be about 7% per annum

Late payment penalties do not apply in this situation, and the interest rate the IRS currently charges on tax underpayments is 3%.
by MarkNYC
Thu Apr 16, 2015 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Amending tax return
Replies: 17
Views: 1379

Re: Amending tax return

If you do owe tax they can add interest and late penalties and transform a few dollars into thousands. L. This cannot happen, for 3 reasons: 1. If the IRS matching program sends a tax assessment for unreported income, it will happen about 15-18 months after filing the return. 2. The IRS currently c...
by MarkNYC
Fri Apr 03, 2015 8:23 am
Forum: Personal Finance (Not Investing)
Topic: IRS makes Tax Error - Wrong Invoice - How to Fix?
Replies: 15
Views: 1525

Re: IRS makes Tax Error - Wrong Invoice - How to Fix?

This is Part 2 on TurboTax Error. Now it seems IRS also made an Error. https://www.bogleheads.org/forum/viewtopic.php?f=2&t=162166 The IRS invoice we received stated that $12,978 in Vanguard taxable dividends was missing from our 2013 return. This is correct and we verified it with our Vanguard...
by MarkNYC
Thu Apr 02, 2015 11:40 am
Forum: Personal Finance (Not Investing)
Topic: IRS makes Tax Error - Wrong Invoice - How to Fix?
Replies: 15
Views: 1525

Re: IRS makes Tax Error - Wrong Invoice - How to Fix?

One big item on the IRS bill which nobody has mentioned yet: the "substantial tax understatement penalty" of $3,962. Basically, the IRS says that small mistakes (like leaving a small amount of dividends off your return) are more understandable than big ones (like omitting $13K of dividend...
by MarkNYC
Thu Apr 02, 2015 11:26 am
Forum: Personal Finance (Not Investing)
Topic: IRS makes Tax Error - Wrong Invoice - How to Fix?
Replies: 15
Views: 1525

Re: IRS makes Tax Error - Wrong Invoice - How to Fix?

It is difficult to determine the nature of the IRS calculation error without viewing various items on the tax return. However, on the additional taxable income of $13,575 the IRS' additional tax is $5,447 (40%) vs your calculation of $3,956 (29%). This suggests you may be paying AMT, so out of curio...
by MarkNYC
Wed Apr 01, 2015 7:41 pm
Forum: Personal Finance (Not Investing)
Topic: Multi-state tax puzzle
Replies: 25
Views: 1321

Re: Multi-state tax puzzle

It would be easier just to have a form letter drafted to respond to any state notices. Easier, yes; effective, probably not. If a state receives a copy of a 1099, or W-2, or K-1 that indicates you received income sourced to that state, sending the state a form letter that states differently will be...
by MarkNYC
Wed Apr 01, 2015 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Multi-state tax puzzle
Replies: 25
Views: 1321

Re: Multi-state tax puzzle

But again, the question remains, how would one determine filing requirements across all 50 states?? You should not have to file a tax return in (and pay tax to) a nonresident state if you did not perform services in the state. For compliance purposes, you should check the various 1099-MISC forms. W...
by MarkNYC
Wed Apr 01, 2015 7:57 am
Forum: Personal Finance (Not Investing)
Topic: Quick NY Tax Question
Replies: 8
Views: 614

Re: Quick NY Tax Question

Edit.
by MarkNYC
Thu Mar 26, 2015 5:21 pm
Forum: Investing - Help with Personal Investments
Topic: What would you do with 1.25 million dollars for 1 year?
Replies: 39
Views: 4030

Re: What would you do with 1.25 million dollars for 1 year?

With incomes over $1M some of the safe harbors do not apply, e.g. in California no safe harbor amount... Thanks for this - I am going to look into. Was with tax accountant on Tuesday and he assured me that as long as we follow safe harbor, we will be fine. If there is state income tax due, then jus...
by MarkNYC
Tue Mar 24, 2015 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: Best tools to understand the AMT?
Replies: 14
Views: 1501

Re: Best tools to understand the AMT?

.................................. Yes, as I noted before, my AMT marginal tax rate would have been 53.8% in 2014. ............................ Do you understand why it is that high? I was under the impression that it should be the basic 26/28% rates increased by 25% (for the exemption phaseout) so...
by MarkNYC
Fri Mar 20, 2015 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Received Confusing IRS Letter
Replies: 8
Views: 1472

Re: Received Confusing IRS Letter

Here's my theory. Something in the IRS computers was looking for Form 1116 to substantiate the foreign tax credit on the tax return, and in the absence of Form 1116, the credit was reduced to zero, causing a potential credit carryover. Then the computer recognized that no Form 1116 was needed since ...
by MarkNYC
Tue Mar 17, 2015 9:14 pm
Forum: Investing - Help with Personal Investments
Topic: Better to file taxes separately if married?
Replies: 23
Views: 2431

Re: Better to file taxes separately if married?

What about when saving tax deferred, or in a roth. Spouse one makes $350k, spouse two makes $60k, Spouse two is saving at the tax deferred max, $22,500. and looking to put more money away tax deferred or at least let it grow tax free). Would it make sense to MFS, qualifying spouse two to at least p...
by MarkNYC
Tue Mar 17, 2015 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Distribution of RMD when trust is Inherited IRA beneficiary
Replies: 3
Views: 518

Re: Distribution of RMD when trust is Inherited IRA benefici

Reported on line 5 of the K-1, as "Other portfolio and nonbusiness income."
by MarkNYC
Fri Mar 13, 2015 12:41 pm
Forum: Personal Finance (Not Investing)
Topic: Rental properties
Replies: 25
Views: 3210

Re: Rental properties

For those who own rental properties jointly with their spouse, I'm curious how many (if any?) report the income and expenses properly on Federal Schedule E. A rental property owned jointly by spouses is considered by the IRS to be a partnership requiring the filing of partnership tax return Form 106...
by MarkNYC
Thu Mar 12, 2015 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: How do I calculate depreciation/basis for rental?
Replies: 38
Views: 2283

Re: How do I calculate depreciation/basis for rental?

If a certain amount of depreciation was "allowable" during the rental years, say $75K, and zero depreciation was taken, the adjusted basis for calculating gain or loss will include a reduction for the $75K depreciation allowable. However, assuming the taxpayer has records to show no deprec...
by MarkNYC
Thu Mar 05, 2015 9:27 pm
Forum: Investing - Help with Personal Investments
Topic: S. Corp Salary Amount and Retirement Contributions
Replies: 41
Views: 3033

Re: S. Corp Salary Amount and Retirement Contributions

--> I understand I do not have to pay interest to the IRS on taxes that are owed if I get an extension- is that correct? <-- That is incorrect. You will have to pay interest and a Failure to Pay penalty on any amount you owe. Currently he effective interest rate (sum of FTP penalty and interest) is...
by MarkNYC
Thu Mar 05, 2015 6:03 pm
Forum: Personal Finance (Not Investing)
Topic: How are Carry forward Capital Losses handled in Divorce?
Replies: 10
Views: 547

Re: How are Carry forward Capital Losses handled in Divorce?

See page 38 of pub 544 Joint and separate returns. On a joint return, the capital gains and losses of spouses are figured as the gains and losses of an individual. If you are married and filing a separate return, your yearly capital loss deduction is limited to $1,500. Neither you nor your spouse c...
by MarkNYC
Thu Mar 05, 2015 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Rapid amending of tax return
Replies: 14
Views: 900

Re: Rapid amending of tax return

We once got hit with a penalty for amending the return after April 15th when we owed additional taxes. It was due to a late arriving 1099 for merchandise received for contests won at work by my wife. It wasn't a lot of money, but they still hit us with a penalty. In a situation like that, where you...
by MarkNYC
Wed Mar 04, 2015 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: Step-up in basis for inherited assets - Question
Replies: 8
Views: 756

Re: Step-up in basis for inherited assets - Question

For stocks and bonds, the FMV on the date of death is the mean between the highest and lowest selling price quoted on the valuation date (usually day of death). For a mutual fund, where only the closing price is available, the FMV is the mean between the closing price on the valuation date and on th...
by MarkNYC
Wed Mar 04, 2015 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Estate - Stepped-Up Value of House
Replies: 6
Views: 739

Re: Estate - Stepped-Up Value of House

The rules are set up so that you do not benefit from both the step up in basis AND the full 500k exclusion. Should you pass first, the basis is stepped up to DOD value (lets assume 800k) which will leave little gain, but the exclusion for your spouse is 250k, not 500k. Essentially, both spouses mus...
by MarkNYC
Mon Mar 02, 2015 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit
Replies: 9
Views: 1333

Re: NYC Taxes (NYC-208) credit for Real Prop. Tax Credit

From what I've read, only about 4% of NYC properties are totally exempt from real estate tax, so almost all tenants will meet this qualification item. The credit ranges from zero to $500. However, as Grabiner noted, meeting all eligibility requirements does not automatically mean you will receive th...
by MarkNYC
Sat Feb 28, 2015 9:55 am
Forum: Personal Finance (Not Investing)
Topic: Long-term gain (or loss) held less than a year?
Replies: 17
Views: 1124

Re: Long-term gain (or loss) held less than a year?

Here's the likely explanation: Under IRC Sec 852(b)(4), if a shareholder purchases mutual fund shares, and receives a capital gain dividend (reinvested) and then sells the shares at a loss within six months after purchasing the shares, the loss is treated as a long-term loss to the extent of the ca...
by MarkNYC
Fri Feb 27, 2015 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Long-term gain (or loss) held less than a year?
Replies: 17
Views: 1124

Re: Long-term gain (or loss) held less than a year?

Is it possible that she had some additional shares of the same fund that were purchased earlier, and it was actually those shares that were sold- as in first in first out? Then those first shares would have been a long term loss. She hadn't owned anything with Vanguard previously, and all the share...
by MarkNYC
Wed Feb 25, 2015 2:44 pm
Forum: Personal Finance (Not Investing)
Topic: [Protection against fraudulent IRS tax returns]
Replies: 39
Views: 2121

Re: Preventing IRS Fraud

the IRS would be crazy to give a filer a 4 (or more) figure estimated tax credit that was not reported on the return. Glenn Why do you believe the IRS would be crazy to correct estimated tax information on a tax return and adjust the amount of refund or taxes owed? What should the IRS do if they de...
by MarkNYC
Wed Feb 25, 2015 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: [Protection against fraudulent IRS tax returns]
Replies: 39
Views: 2121

Re: Preventing IRS Fraud

If you paid estimated taxes and forget to include them, the IRS will add those to your return (and increase your refund or lower your balance due) Really! Do you have any personal experience in this regard? I seriously doubt that the IRS would do this for a large estimated tax balance, especially i...
by MarkNYC
Tue Feb 24, 2015 3:25 pm
Forum: Personal Finance (Not Investing)
Topic: Taking RMD this year
Replies: 13
Views: 1079

Re: Taking RMD this year

There are penalties if RMDs aren't taken in the year required, but my rough understanding is that the IRS will waive them given a reasonable explanation and request. So when someone passes away, it takes time to settle the estate. I would think quite often an inheritor of an RMD obligation would mi...
by MarkNYC
Sat Feb 21, 2015 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Pay the IRS now for shares sold in 1st quarter of 2015?
Replies: 12
Views: 797

Re: Pay the IRS now for shares sold in 1st quarter of 2015?

If you owe more than $1000 to the federal government at the end of the year, they will penalize you for not making quarterly estimated payments. The only exception to this is if the the 2015 tax year your total tax already paid exceeded your total due for 2014 (even if you owe more than $1000 on yo...
by MarkNYC
Thu Feb 19, 2015 9:47 am
Forum: Investing - Help with Personal Investments
Topic: NY 529 - Withdrawing/Contributing Same Year - Tax Deduction?
Replies: 4
Views: 388

Re: NY 529 - Withdrawing/Contributing Same Year - Tax Deduct

Grt2bOutdoors wrote:
Do you have earned income of $5,000 or more in NYS during 2015? If yes, and you make a contribution to your NYS 529 plan you may take the deduction.

Unlike IRAs, there is no earned income requirement for making contributions to a NY 529 plan, or for taking the deduction.
by MarkNYC
Wed Feb 18, 2015 4:26 pm
Forum: Personal Finance (Not Investing)
Topic: Define: participate in a retirement plan at work
Replies: 43
Views: 2755

Re: Define: participate in a retirement plan at work

Thanks for all the input. Right now I am waiting to see if I hear back from the employer. Without a clear answer I will probably go the conservative route. However, for arguments sake, how would the IRS know whether my wife had access to a workplace retirement plan if her W-2 had nothing in listed ...
by MarkNYC
Wed Feb 18, 2015 11:27 am
Forum: Personal Finance (Not Investing)
Topic: Define: participate in a retirement plan at work
Replies: 43
Views: 2755

Re: Define: participate in a retirement plan at work

I believe if she is eligible to participate in a 401(k) whether or not she chooses to participate, Box 13 should be checked yes. yes +1 - see page 28 of link below . http://www.irs.gov/pub/irs-pdf/iw2w3.pdf Take another look at the instructions on the chart on page 28 of the link you provided. In t...
by MarkNYC
Tue Feb 17, 2015 5:09 pm
Forum: Personal Finance (Not Investing)
Topic: Define: participate in a retirement plan at work
Replies: 43
Views: 2755

Re: Define: participate in a retirement plan at work

I don't understand the question. You’re covered by an employer retirement plan for a tax year if your employer (or your spouse’s employer) has a: * Defined contribution plan (profit-sharing, 401(k), ... Taking out extraneous words: You are covered by an employer retirement plan if your employer has...
by MarkNYC
Tue Feb 17, 2015 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Making a substantial donation
Replies: 11
Views: 653

Re: Making a substantial donation

I have no problem justifying the value of the books. They are going to a very respected public institution that has accepted the collection, not just the individual volumes. L. If the appraised value of the book collection exceeds $5,000, then page two of Form 8283 (which must be attached to the ta...
by MarkNYC
Thu Feb 12, 2015 2:30 pm
Forum: Personal Finance (Not Investing)
Topic: Forgot to take RMD.. now what?
Replies: 29
Views: 3648

Re: Forgot to take RMD.. now what?

Alan S. wrote:I think we can conclude that a waiver request will very often be granted...

Alan,

You say "will very often be granted." Are you aware of any specific case(s) where the Form 5329 waiver request was denied? If so, did the IRS give a reason for the denial?
by MarkNYC
Wed Feb 11, 2015 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: Forgot to take RMD.. now what?
Replies: 29
Views: 3648

Re: Forgot to take RMD.. now what?

My spouse moved an inherited IRA and forgot to setup the RMD. It was a similar amount. It was very simple to do an extra distribution and we filed the 5329 (this took about 5 minutes). Simple fix. The waiver was granted. I have filed a few waivers for TaxAide clients. All were accepted. Just curiou...
by MarkNYC
Tue Feb 10, 2015 5:22 pm
Forum: Personal Finance (Not Investing)
Topic: Fully Depreciated Rental Condo - Question
Replies: 31
Views: 1691

Re: Fully Depreciated Rental Condo - Question

The IRS will not tell you over the phone how much depreciation was taken, and a tax transcript is not likely to show this information. You will probably need to request a copy of the actual tax return (including all forms schedules) for one or more years. The particular form needed is Form 4562. Th...
by MarkNYC
Tue Feb 10, 2015 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Fully Depreciated Rental Condo - Question
Replies: 31
Views: 1691

Re: Fully Depreciated Rental Condo - Question

The IRS will not tell you over the phone how much depreciation was taken, and a tax transcript is not likely to show this information. You will probably need to request a copy of the actual tax return (including all forms schedules) for one or more years. The particular form needed is Form 4562. The...
by MarkNYC
Sun Feb 08, 2015 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Does the IRS object to summarization of W2-G forms?
Replies: 7
Views: 799

Re: Does the IRS object to summarization of W2-G forms?

Summarizing should not be a problem. On line 21 of form 1040 write "gambling winnings" and list the $79 income. Show the $19 tax withholding on page 2. If you paper-file, you must attach form W2-G if it shows federal withholding.
by MarkNYC
Thu Feb 05, 2015 4:37 pm
Forum: Investing - Theory, News & General
Topic: Successful investing: Is it luck or skill?
Replies: 26
Views: 2823

Re: Successful investing: Is it luck or skill?

For a few it may be luck, or skill. But for most investors I think it's primarily from wisdom - the wisdom gained from both experience and accumulated investing knowledge.

(wisdom: Insightful understanding of what is true, right, or enduring )

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