Search found 981 matches

by MarkNYC
Wed May 25, 2016 10:45 am
Forum: Personal Finance (Not Investing)
Topic: An AMT warning for retirees
Replies: 10
Views: 2312

Re: An AMT warning for retirees

Mark...........I think I've read that if your income increases (w/ appropriate mix of income), AMT appears, increases (as exemption phases out), and then disappears at very high income levels. Is it possible that OP's situation derives from the reverse situation..........no AMT, then AMT appears (a...
by MarkNYC
Wed May 25, 2016 9:14 am
Forum: Personal Finance (Not Investing)
Topic: An AMT warning for retirees
Replies: 10
Views: 2312

Re: An AMT warning for retirees

As our earned income has decreased in retirement, we fell from the 39.6% income tax bracket to 33%. This carries with it a reduction in the tax rate for qualified dividends and long-term capital gains from 20% to 15%. (I ignore the 3.8% additional Medicare tax.) This in turn exposed us to AMT for t...
by MarkNYC
Tue May 24, 2016 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: An AMT warning for retirees
Replies: 10
Views: 2312

Re: An AMT warning for retirees

As our earned income has decreased in retirement, we fell from the 39.6% income tax bracket to 33%. This carries with it a reduction in the tax rate for qualified dividends and long-term capital gains from 20% to 15%. (I ignore the 3.8% additional Medicare tax.) This in turn exposed us to AMT for t...
by MarkNYC
Sun May 15, 2016 8:37 am
Forum: Personal Finance (Not Investing)
Topic: How to divide up profit on jointly owned house
Replies: 9
Views: 1135

Re: How to divide up profit on jointly owned house

You'll have wait at least one more year before selling if your brother wants to take advantage of the principal residence gain exclusion, since a minimum of two years' ownership and use is required in order to qualify. There are some limited exceptions, but wanting to move to another area is not on...
by MarkNYC
Sat May 14, 2016 10:23 pm
Forum: Personal Finance (Not Investing)
Topic: How to divide up profit on jointly owned house
Replies: 9
Views: 1135

Re: How to divide up profit on jointly owned house

I would agree that the IRS is not likely to care how the net proceeds from the sale are split between the two owners, and how the net proceeds are split will determine how much gain each owner realizes, based on each owner's basis in the property. You'll have wait at least one more year before selli...
by MarkNYC
Wed May 11, 2016 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: What to include on Form 709
Replies: 4
Views: 667

Re: What to include on Form 709

If you are required to file a Gift Tax Return, then all gifts made during the year are required to be reported, after which you deduct the annual exclusion amount that applies to each donee. All gifts to charities are also required to be reported, then offset by a charitable deduction. This particul...
by MarkNYC
Fri Apr 22, 2016 3:12 pm
Forum: Investing - Theory, News & General
Topic: James Dale Davidson's prediction of 2016 collapse
Replies: 42
Views: 4141

Re: James Dale Davidson's prediction of 2016 collapse

bberris wrote:I have a theory that cranks predicting apocalypsi always use three names. Are there any exceptions?


Anyone remember Doug Casey?
by MarkNYC
Thu Apr 21, 2016 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Step down in basis (at death)?
Replies: 15
Views: 1208

Re: Step down in basis (at death)?

A friend of mine’s mother passed away and he inherited a stock portfolio from her. The concentrated stock portfolio was significantly lower at death from her purchase price. For tax purposes does he have to step down the assets at date of death or can he use her original cost basis when she purchas...
by MarkNYC
Wed Apr 06, 2016 6:15 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Property Depreciation Carry over loss in Turbo Tax
Replies: 33
Views: 2234

Re: Rental Property Depreciation Carry over loss in Turbo Tax

MarkNYC, If I am not allowed to carry this loss forward, what happens when I sell the property and have to pay recaptured depreciation? Will I have to pay 25% of $23,000 for recaptured depreciation for all of the years I rented the property but didn't need the deduction? That would be a huge expens...
by MarkNYC
Wed Apr 06, 2016 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Property Depreciation Carry over loss in Turbo Tax
Replies: 33
Views: 2234

Re: Rental Property Depreciation Carry over loss in Turbo Tax

I own 2 rental properties for which I claim significant depreciation which usually off sets my income. This year my income was unusually low and was offset in full by my itemized deductions and exemptions, so even without the $23,000 I claimed in depreciation on the rental properties, i would not o...
by MarkNYC
Tue Apr 05, 2016 7:12 pm
Forum: Personal Finance (Not Investing)
Topic: Any states that tax Roth withdrawals?
Replies: 49
Views: 3727

Re: Any states that tax Roth withdrawals?

markmarz wrote:Could anyone confirm that NY does not tax Roth distributions?


NY does not tax qualified distributions from a Roth. If the Roth distribution is nonqualified, NY like most other states, will tax any earnings that are included in the distribution.
by MarkNYC
Tue Apr 05, 2016 11:53 am
Forum: Personal Finance (Not Investing)
Topic: IRS letter re AIRBNB income
Replies: 12
Views: 2525

Re: IRS letter re AIRBNB income

Son received a letter from the IRS claiming he under reported income because he didn't include income from an AIRBNB 1099. It appears the IRS is in error because he rented for less than 15 days. Some of you may know that Sec. 208A(g) provides that rent received is not included in taxable income if ...
by MarkNYC
Mon Apr 04, 2016 12:47 pm
Forum: Personal Finance (Not Investing)
Topic: Hidden UTMA/Tax Issues
Replies: 49
Views: 1850

Re: Hidden UTMA/Tax Issues

If I were in your position, I would do the following, some or all which you may be able to do yourself. Or you might want the assistance of a tax professional: 1. As others have suggested, first get the account into your husband's name, so that your FIL can have no further access to it. 2. Try to ob...
by MarkNYC
Fri Apr 01, 2016 11:58 am
Forum: Personal Finance (Not Investing)
Topic: IRS Letter 4281G
Replies: 7
Views: 1527

Re: IRS Letter 4281G

The 5071c letter is sent when the IRS suspects someone has filed a fraudulent tax return In your name and SSN. Your situation is different - someone tried to access your IRS transcript, which would explain why you received a different letter. IRS letters are frequently post-dated by their computers.
by MarkNYC
Sat Mar 26, 2016 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: Paying Marriage Penalty Tax vs. Cohabitation
Replies: 99
Views: 8543

Re: Paying Marriage Penalty Tax vs. Cohabitation

One person files as HOH and claims 1 kid. Other person claims 1 kid and takes full mortgage + property tax deduction. Why don't you both file as HOH with 1 child? It doesn't matter who else is living in the same house. That won't work. In order to qualify as "head of household", the taxpa...
by MarkNYC
Sat Mar 26, 2016 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Schedule D Long vs. Short term loss on Trust tax question
Replies: 3
Views: 277

Re: Schedule D Long vs. Short term loss on Trust tax question

On my last year's return I put a loss of around $7500 on Line 5 (Short term loss) when, apparently, it should have been on line 12 (Long term loss). This is from a Trust. I'm considering amending my last year's return if it impacts what I owe or am paid. Anyone know what kind of impact this would b...
by MarkNYC
Mon Mar 21, 2016 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Tax question--using adjusted cost basis on supplemental info sheet
Replies: 9
Views: 652

Re: Tax question--using adjusted cost basis on supplemental info sheet

According to final Treasury regulations issued in 2013, brokers are now prohibited from including equity compensation income in the basis that they report on Form 1099-B for grants issued after Dec 31, 2103. They can only report the amount that was paid at exercise or purchase. For grants issued pri...
by MarkNYC
Fri Mar 18, 2016 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Selling rental property partially used as primary residence?
Replies: 13
Views: 1033

Re: Selling rental property partially used as primary residence?

Here an easier to read version from the Pub 587: Gain on Sale: If you use property partly as a home and partly for business, the treatment of any gain on the sale varies depending on whether the part of the property used for business is part of your home or separate from it. Part of Home Used for B...
by MarkNYC
Fri Mar 18, 2016 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Selling rental property partially used as primary residence?
Replies: 13
Views: 1033

Re: Selling rental property partially used as primary residence?

Was Depreciation taken on the rental portion of the property? In the event that depreciation was not taken, the amount of the calculated gain must be increased by the amount of depreciation that should have been taken ("allowable"). However, the amount of the gain that is ineligible for t...
by MarkNYC
Fri Mar 18, 2016 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Selling rental property partially used as primary residence?
Replies: 13
Views: 1033

Re: Selling rental property partially used as primary residence?

As long as the portion that is principal residence and the portion that is rental/business use are part of the same dwelling unit, gain on sale does not have to be allocated between the two. Assuming the other requirements are met, the full gain is eligible for the principal residence exclusion, exc...
by MarkNYC
Tue Mar 15, 2016 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: K-1 question
Replies: 4
Views: 617

Re: K-1 question

The K-1 only shows the gain or loss within the partnership. It does not show the gain you realized when you sold your interest in the partnership. The brokerage statement showing the sale likely shows a gain based on the purchase amount, but to calculate the correct gain upon sale your original basi...
by MarkNYC
Mon Mar 14, 2016 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: 1099's year after death
Replies: 8
Views: 1311

Re: 1099's year after death

Since your father passed away in December 2015, you should NOT file a 1040 for him for 2016 or any future year. Any income received after the date of death, either in the estate's name and ID number or his name and SSN, should be reported on the estate income tax return Form 1041. When the estate fi...
by MarkNYC
Thu Mar 10, 2016 1:41 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question (NJ state)
Replies: 4
Views: 453

Re: Tax Question (NJ state)

Hi Mark Thank you so much for your help! Luckily I did not file Federal tax for myself, so we can still file join return for the federal return. For NJ state return, I agree with your suggestion: we will do amended 1040X after my husband files his return as married filing separate. For 1040X, do we...
by MarkNYC
Thu Mar 10, 2016 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question (NJ state)
Replies: 4
Views: 453

Re: Tax Question (NJ state)

I'll assume you also filed your own federal return, "married separate," and that you are both full-year NJ residents, such that you must use the same filing status for NJ that you use for federal. You should not at this point file an original joint federal return, because you have already ...
by MarkNYC
Tue Mar 08, 2016 5:21 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's
Replies: 154
Views: 19927

Re: Michael Kitces says IRS auditors disapprove of Backdoor Roth IRA's

In an interview with Christine Benz about Backdoor Roth IRA's back in January, Michael Kitces says: "We’ve heard from a couple of people now who just on a random audit had an IRS agent come in saw it [a Backdoor Roth IRA contribution], caught it, said uh uh that’s not appropriate...." &qu...
by MarkNYC
Tue Mar 08, 2016 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Handling of K1 income [from trust income]
Replies: 3
Views: 360

Re: Handling of K1 income [from trust income]

I am an amateur at this, having prepared a few simple trust tax returns for my mother's bypass trust. The trust doesn't typically pay tax because it gets a deduction for income distributed to the beneficiary (and thus the trust has no taxable income). In your example, the trust had income in 2015 b...
by MarkNYC
Mon Mar 07, 2016 12:31 pm
Forum: Investing - Theory, News & General
Topic: The AMT puzzle
Replies: 14
Views: 2299

Re: The AMT puzzle

We had 417 AMT last year. This year it is 2100. We are both retired. The reasons I can attribute this to what is different from last year: Our Property tax - the timing was such that we had 4 payments as opposed to 3 last year... We can try not deducting all the property tax, but I am sure our regu...
by MarkNYC
Tue Mar 01, 2016 7:39 pm
Forum: Investing - Theory, News & General
Topic: Too much Roth IRA contribution
Replies: 10
Views: 1198

Re: Too much Roth IRA contribution

Or just do a backdoor Roth if it's going to be close. Could still do one for 2015 if he wants.... There is an advantage to direct Roth contributions in that they can be withdrawn penalty-free immediately, while Roth conversions have to wait five years for that treatment. Otherwise they behave the s...
by MarkNYC
Tue Mar 01, 2016 10:59 am
Forum: Investing - Theory, News & General
Topic: Ken Heebner bites the dust
Replies: 19
Views: 4661

Re: Ken Heebner bites the dust

Ken Heebner. Martin Whitman. Bruce Berkowitz. Bill Miller. The list goes on. How many examples are there of fund managers who reach superstar status, only to perform miserably going forward, destroying the wealth of countless individual investors who confidently invested with the "superstars&qu...
by MarkNYC
Tue Mar 01, 2016 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Question about amended returns
Replies: 9
Views: 857

Re: Question about amended returns

If there is tax paid to the resident state and the nonresident state return is amended to generate a refund, there may be a need to also amend the resident state return to reflect a reduction in the credit for tax paid to the nonresident state. Sometimes it's not worth amending the nonresident retu...
by MarkNYC
Mon Feb 29, 2016 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: NY estimated tax safe harbor
Replies: 5
Views: 530

Re: NY estimated tax safe harbor

NY tax instructions include: In general, you may owe the penalty for 2015 if you did not pay at least the smaller of: ... 90% of the tax computed by annualizing the taxable income received for the months ending before the due date of the installment. https://www.tax.ny.gov/pdf/current_forms/it/it21...
by MarkNYC
Fri Feb 26, 2016 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: Question about amended returns
Replies: 9
Views: 857

Re: Question about amended returns

I'm going to disagree a bit with Huey on this. In this situation, the federal return was correct as filed and should not be amended. When state taxes are deducted on the federal return and then some of that state tax is refunded in a subsequent year, the amount refunded is a "recovery" of ...
by MarkNYC
Fri Feb 26, 2016 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: sale of home, capital gains question
Replies: 22
Views: 1635

Re: sale of home, capital gains question

Did you ever defer any gain when it was allowed (before May 1997)? If so, you need to reduce the tax basis of your current home by the cumulative amount of deferred gain. In such a scenario, your gain is even bigger than you thought. This is an aspect of the principal residence gain calculation tha...
by MarkNYC
Fri Feb 26, 2016 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: sale of home, capital gains question
Replies: 22
Views: 1635

Re: sale of home, capital gains question

Thanks for all the serious replies. No one answered if the "rollover rule" still applies. That is the rule where you don't have to pay capital gains if you sell and buy a primary residence within a certain time. Is that rule no longer? The provision of the law allowing a "rollover&qu...
by MarkNYC
Thu Feb 25, 2016 5:31 pm
Forum: Personal Finance (Not Investing)
Topic: sale of home, capital gains question
Replies: 22
Views: 1635

Re: sale of home, capital gains question

[OT post removed by admin LadyGeek]


The spouse would have to live there for at least 2 years prior to the date of sale in order to qualify for the $500K joint exclusion.
by MarkNYC
Tue Feb 23, 2016 8:40 pm
Forum: Personal Finance (Not Investing)
Topic: Question about 2015 taxes - Married filing joint vs sep
Replies: 4
Views: 520

Re: Question about 2015 taxes - Married filing joint vs sep

Most states will allow a married couple filing a joint federal return to file their state returns separately if they are full-year residents of different states, and it usually makes sense to file that way. Some states may not allow it, but I'm not aware of any. It's highly likely you'll pay more st...
by MarkNYC
Sun Feb 21, 2016 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: [AMT issue - How to handle IRS inquiry?]
Replies: 14
Views: 1380

Re: [AMT issue - How to handle IRS inquiry?]

Mark, I don't file 2555 because I get a better result with the tax credit than with the foreign earned income exclusion. (I live in a very high-tax jurisdiction.) About the sales tax, truth is I never considered it, I have lived outside the US for many years and hardly ever have any US tax liabilit...
by MarkNYC
Sun Feb 21, 2016 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: [AMT issue - How to handle IRS inquiry?]
Replies: 14
Views: 1380

Re: [AMT issue - How to handle IRS inquiry?]

Since you live outside the U.S., did you file Form 2555 Foreign Income Exclusion? If so, are you sure you entered the correct amount on line 31 of AMT Form 6251?

Also, why do you think living outside the U.S. precludes you from deducting sales tax on Schedule A?
by MarkNYC
Sun Feb 21, 2016 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: [AMT issue - How to handle IRS inquiry?]
Replies: 14
Views: 1380

Re: [AMT issue - How to handle IRS inquiry?]

Before you respond, go through your tax return and see if the $26,500 amount appears anywhere on the tax return, particularly Schedule A. It's possible it was an IRS keypunch error entering an amount onto the wrong line. It's reassuring to be able to identify the source of an IRS calculation error, ...
by MarkNYC
Sun Feb 21, 2016 11:57 am
Forum: Personal Finance (Not Investing)
Topic: berkshire hathaway annual shareholders meeting - general question
Replies: 10
Views: 1441

Re: berkshire hathaway annual shareholders meeting - general question

On the itinerary: Doors Open 7:00am Company Movie 8:30am Q&A 9:30am – 3:30pm Business Meeting 3:45 – 4:15pm (approximation) NFM Picnic 5:30 – 8pm Also, what is the business meeting and NFM picnic? Since this is an annual shareholders meeting, the directors have to take the time to discuss and v...
by MarkNYC
Sun Feb 21, 2016 11:13 am
Forum: Personal Finance (Not Investing)
Topic: IRC reference for inherited 401(k) to inherited Roth IRA transfer
Replies: 6
Views: 515

Re: IRC reference for inherited 401(k) to inherited Roth IRA transfer

Mike,

Your understanding is correct. The IRS provided clarification in IRS Notice 2008-30 Q-7, A-7, which references Sec 402(c)(11).
by MarkNYC
Sat Feb 20, 2016 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need to pay taxes early on capital gains in order to avoid fines?
Replies: 13
Views: 1349

Re: Do I need to pay taxes early on capital gains in order to avoid fines?

My internet research indicates that if I pay this year at least what I owed last year that I will avoid all potential fines, even if my income is juiced by these sales. Is this true? As long as by "owed" you mean total income tax, not the part that was left to pay when you filed, maybe ye...
by MarkNYC
Thu Feb 11, 2016 1:59 pm
Forum: Personal Finance (Not Investing)
Topic: Confusion About Preventing Theft of IRS Tax Data
Replies: 22
Views: 2012

Re: Confusion About Preventing Theft of IRS Tax Data

I am a bit confused about IRS form 14039 (Identity Theft Affidavit) and the eligibility of IRS IP-PIN. I am not currently a victim of identity theft. But I have been notified by a gov. agency that my personal data was stolen which could lead to identity theft. (1) Should I file IRS form 14039? Is s...
by MarkNYC
Wed Feb 10, 2016 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Company Paid Relocation Expenses, Can't get full understanding of taxes/benefit value
Replies: 12
Views: 598

Re: Company Paid Relocation Expenses, Can't get full understanding of taxes/benefit value

"6) Relocation expenses (Full cost of packing house, moving items, and unpacking at new location). Paid completely by the company is there a tax cost to me?" I would say #6 is non-taxable. Make sure this is not added to your W2 income. Yes, it is taxable, but you can then deduct these ite...
by MarkNYC
Tue Feb 09, 2016 4:43 pm
Forum: Investing - Help with Personal Investments
Topic: Roth conversion and moving to another state (NY)
Replies: 6
Views: 496

Re: Roth conversion and moving to another state (NY)

Keeping the records of the conversion is not a problem. The problem might be how do I prove when I actually moved. I am going to live with a friend for a while so there won't be any lease or something. So let's say I do a conversion on 2/15, but will actually move to NY on 2/20. How can I prove I w...
by MarkNYC
Tue Feb 09, 2016 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Roth conversion and moving to another state (NY)
Replies: 6
Views: 496

Re: Roth conversion and moving to another state (NY)

Hi, I am thinking of converted my IRA to ROTH this year and I will be moving from MD to NY in couple of weeks because of the job change. I think that NY state and NYC taxes are several percent more than in MD , so will it make sense for me to do the conversion before I move? In other words, if I do...
by MarkNYC
Sat Feb 06, 2016 9:52 am
Forum: Personal Finance (Not Investing)
Topic: Tax prep Q - 1st time home purchase
Replies: 18
Views: 1167

Re: Tax prep Q - 1st time home purchase

Is it possible I did not pay/was not charged any points..?? The 1098 says $0 in the points box but I was hopeful I could deduct the Origination Charge (from mortgage lender) listed on HUD-1. Regardless of whether the amount is listed on Form 1098, if the $600 loan origination fee you paid to purcha...
by MarkNYC
Fri Feb 05, 2016 9:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax prep Q - 1st time home purchase
Replies: 18
Views: 1167

Re: Tax prep Q - 1st time home purchase

The origination fee should be reported to you on the Form 1098 that your mortgage servicer sends you. When you read the instructions for Schedule A, it will tell you what to do with the numbers. Is it possible I did not pay/was not charged any points..?? The 1098 says $0 in the points box but I was...
by MarkNYC
Fri Feb 05, 2016 5:03 pm
Forum: Personal Finance (Not Investing)
Topic: Tax prep Q - 1st time home purchase
Replies: 18
Views: 1167

Re: Tax prep Q - 1st time home purchase

The origination fee should be reported to you on the Form 1098 that your mortgage servicer sends you. When you read the instructions for Schedule A, it will tell you what to do with the numbers. Is it possible I did not pay/was not charged any points..?? The 1098 says $0 in the points box but I was...

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