Search found 1010 matches

by MarkNYC
Mon Sep 19, 2016 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Please Help me Calculate Tax on Rental Sale (Former Homestead)
Replies: 11
Views: 592

Re: Please Help me Calculate Tax on Rental Sale (Former Homestead)

On a joint return, up to $500K of gain can be excluded, but eligibility is determined separately for each spouse. Since you meet the qualifications but your spouse does not, you can exclude up to $250K on the joint return. (Reg 1.121-2) Having rented it out 2-3 years prior to sale does not disquali...
by MarkNYC
Sun Sep 18, 2016 7:13 pm
Forum: Personal Finance (Not Investing)
Topic: Please Help me Calculate Tax on Rental Sale (Former Homestead)
Replies: 11
Views: 592

Re: Please Help me Calculate Tax on Rental Sale (Former Homestead)

On a joint return, up to $500K of gain can be excluded, but eligibility is determined separately for each spouse. Since you meet the qualifications but your spouse does not, you can exclude up to $250K on the joint return. (Reg 1.121-2) Having rented it out 2-3 years prior to sale does not disqualif...
by MarkNYC
Sun Sep 18, 2016 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: Definition of gambling winnings/losses
Replies: 20
Views: 797

Re: Definition of gambling winnings/losses

I won $7,500 in a "raffle" at a casino. I say "raffle" because no bet was made. We were given tickets in envelopes and you opened it to reveal what you had won. I did not have to pay any money to get in this raffle. The casino issued me a 1099-MISC form that listed the $7,500 as...
by MarkNYC
Fri Sep 09, 2016 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: How do taxes work for rental income
Replies: 26
Views: 2313

Re: How do taxes work for rental income

Pretty much. You can also take depreciation, property taxes, and any other related expenses. It all gets reported on Schedule E. you "must" take depreciation, since it will be recaptured later on. However, per Sec 1250(b)(3), if the taxpayer can establish by records or other adequate evid...
by MarkNYC
Fri Sep 09, 2016 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: How do taxes work for rental income
Replies: 26
Views: 2313

Re: How do taxes work for rental income

Pretty much. You can also take depreciation, property taxes, and any other related expenses. It all gets reported on Schedule E. you "must" take depreciation, since it will be recaptured later on. Technically, you don't have to. You just pay recapture as if you took deprecation. So, it's ...
by MarkNYC
Thu Sep 08, 2016 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Lien
Replies: 13
Views: 1027

Re: Tax Lien

A federal tax lien attaches to all assets of the taxpayer, not just a specific asset. In some situations, a specific asset can be "discharged" from the lien prior to the tax liability being paid. One of those situations is if an agreement is reached with the IRS allowing the property to be...
by MarkNYC
Wed Sep 07, 2016 12:23 pm
Forum: Personal Finance (Not Investing)
Topic: Question about capital gains on home sale.
Replies: 35
Views: 1962

Re: Question about capital gains on home sale.

Interesting issue regarding a loss, which no one here really knows about. If there was a true loss in 2009 which she COULD have declared but did not, it might be beneficial to file amended tax returns for all of those years. The IRS generally wants to file an amended return within three years of wh...
by MarkNYC
Wed Aug 31, 2016 4:04 pm
Forum: Investing - Theory, News & General
Topic: Passive Income relating to IRA questions
Replies: 9
Views: 547

Re: Passive Income relating to IRA questions

I know the government's rule is earned income only for IRAs. Why do they limit this to earned income and why not passive income? I would think a heady lawyer could tear this apart in court. Example, if I own rental properties, which I do, they view that as a passive income stream, which is total BS...
by MarkNYC
Tue Aug 23, 2016 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Timing on estimated federal tax payments
Replies: 11
Views: 889

Re: Timing on estimated federal tax payments

Isn't the penalty only something like 2% on an annual basis? If so, the OP may just decide to sort it out when it's time to file the tax return. I think a lot of folks do that since it is "Penalty," but with a small "p." If I'm mistaken, I would appreciate somebody clarifying, a...
by MarkNYC
Tue Aug 23, 2016 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Timing on estimated federal tax payments
Replies: 11
Views: 889

Re: Timing on estimated federal tax payments

Your situation may present you with a bit of a dilemma. When you received the $57K conversion income in January, the IRS will assume the income was received evenly throughout the year, so you can spread the tax payments on that income evenly throughout the year. Fair enough. Now, if you have additio...
by MarkNYC
Fri Aug 19, 2016 10:00 am
Forum: Personal Finance (Not Investing)
Topic: Recommend CPA in the NYC/NJ Area
Replies: 9
Views: 751

Re: Recommend CPA in the NYC/NJ Area

I know at least a few hundred of them...They're unlikely to help you save money. Bruce, I'm a bit surprised that you would make this comment. An experienced, competent, tax-oriented CPA can help save money for a high-income professional in many ways, including but not limited to: 1. Making sure all...
by MarkNYC
Tue Aug 16, 2016 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for clarification on IRA Rollover One-Per-Year rule
Replies: 16
Views: 576

Re: Looking for clarification on IRA Rollover One-Per-Year rule

ddb, If you read § 408(d)(3)(B) carefully, you will see that the 1-year limitation period for rollovers starts from the date of the original distribution. In your example, it was 7/1/2016. The subsection of this code says: "This paragraph does not apply to any amount described in subparagraph ...
by MarkNYC
Tue Aug 16, 2016 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for clarification on IRA Rollover One-Per-Year rule
Replies: 16
Views: 576

Re: Looking for clarification on IRA Rollover One-Per-Year rule

I've read through each of the above sections, and it's still not clear to me if a rollover contribution is allowable on multiple distributions from the preceding 60 days. e.g. let's say an IRA owner makes the following distributions. 07/01/2016: $5,000 (60-day window ends 08/30/2016) 07/15/2016: $3...
by MarkNYC
Tue Aug 16, 2016 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited ROTH IRA Disribution Options - I don't get the advantage of the 5-yr method
Replies: 10
Views: 932

Re: Inherited ROTH IRA Disribution Options - I don't get the advantage of the 5-yr method

(1) If, during the first 4 years the beneficiary either forgot to take RMDs or thought they weren't required, and in the 5th year has an immediate need for most of the Roth IRA funds, then a full distribution in the 5th year might make sense, to avoid dealing with 4 years of potential 50% penalties...
by MarkNYC
Tue Aug 16, 2016 9:21 am
Forum: Personal Finance (Not Investing)
Topic: Inherited ROTH IRA Disribution Options - I don't get the advantage of the 5-yr method
Replies: 10
Views: 932

Re: Inherited ROTH IRA Disribution Options - I don't get the advantage of the 5-yr method

Option #1 Lump Sum Distribution is not actually a separate option. It would simply fall within the scope of Option #2 - 5 Year Method. I can think of two situations where selecting the 5 Year Method might make sense: (1) If, during the first 4 years the beneficiary either forgot to take RMDs or thou...
by MarkNYC
Fri Aug 12, 2016 7:07 pm
Forum: Personal Finance (Not Investing)
Topic: Capital loss on a house
Replies: 1
Views: 367

Re: Capital loss on a house

With the facts that you've presented, I would say that the property that was sold was a 2nd personal residence, since it was never formally converted to investment property. A loss on the sale of a personal residence is nondeductible.
by MarkNYC
Thu Aug 11, 2016 4:24 pm
Forum: Personal Finance (Not Investing)
Topic: Direction on a couple of early retirement questions
Replies: 5
Views: 580

Re: Direction on a couple of early retirement questions

Does SEPP apply to 401k plans or just to traditional IRA (which we don’t have). The wiki page on SEPP mentions only traditional IRA, but the IRS page seems to be referring to qualified employer plans as well. For IRAs, there are 12 separate exceptions to the 10% early distribution penalty. For qual...
by MarkNYC
Tue Aug 09, 2016 3:16 pm
Forum: Investing - Theory, News & General
Topic: Articles that have provoked thought and reflection
Replies: 21
Views: 2611

Re: Articles that have provoked thought and reflection

Even though it was back in 2009, the article's insights have stayed with me, and a certain prominent TV financial guru might benefit by reading it: "Bond Funds vs Individual Bonds" by Litman Gregory Investment Research Team.
by MarkNYC
Wed Jul 27, 2016 10:13 am
Forum: Personal Finance (Not Investing)
Topic: Selling House that was a Partial Rental
Replies: 3
Views: 451

Re: Selling House that was a Partial Rental

Since the rental unit was part of his home (not separate from it), there is no need to allocate basis and sales proceeds between the rental unit and the principal residence portion of the property. Thus no part of the gain needs to be reported on Form 4797. The $22,000 depreciation taken is not elig...
by MarkNYC
Fri Jul 22, 2016 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Person Died, RMD Not Paid
Replies: 17
Views: 1804

Re: Person Died, RMD Not Paid

Why are the IRAs in the estate at all? Presumably, they passed to the beneficiaries without even getting into the estate. I used the term 'estate' in a broad generalized sense to encompass all the assets. They're not subject to probate and do get passed on as you describe. But my question remains. ...
by MarkNYC
Thu Jul 21, 2016 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!
Replies: 37
Views: 2644

Re: Tax help - IRS asking for money for 2014- messed up backdoor ROTH - form 8606 - PLEASE HELP!!!!!!!

No, I didn't do anything for year 2013 or 2015. This money was put in 2014 only, I tried to do the back-door roth ira thru vanguard, and then I needed the money for an emergency, so I pulled it out within a few weeks. That's good. I still can't figure why they think you owe for $22k, not $11k unles...
by MarkNYC
Thu Jul 21, 2016 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: IRS questioning my backdoor roth?
Replies: 46
Views: 5746

Re: IRS questioning my backdoor roth?

I agree with the IRS that if you rolled the money to the Roth, the money coming out of the tIRA as a distribution would be taxed (at 0% since it had been post-tax, and should have a penalty for not having been in the tIRA long enough). And dollars being contributed to the Roth would be taxed going ...
by MarkNYC
Mon Jul 11, 2016 9:03 am
Forum: Personal Consumer Issues
Topic: IRS refund statute of limitations expired - any options
Replies: 8
Views: 891

Re: IRS refund statute of limitations expired - any options

When the amount of estimated payments listed on the tax return does not match the amount in the IRS records, the IRS will normally mail a notice of adjustment within 6 months of the filing of the tax return. It seems very unlikely that this type of adjustment notice would be mailed 4 years after the...
by MarkNYC
Wed Jul 06, 2016 2:37 pm
Forum: Personal Finance (Not Investing)
Topic: Suspended Passive Activity Losses for Rental (sale)
Replies: 5
Views: 371

Re: Suspended Passive Activity Losses for Rental (sale)

One other related point, which might not apply in your case. If you have a 2nd rental property or other passive activity that has suspended losses, if a gain is realized on the sale of the 1st rental property, it is "passive" gain, and any suspended passive losses from any other passive ac...
by MarkNYC
Wed Jun 29, 2016 4:17 pm
Forum: Investing - Theory, News & General
Topic: I think Buffett got this wrong
Replies: 87
Views: 5109

Re: I think Buffett got this wrong

Surprising to see. I recall looking at most recent annual return (N=1) and subsequent annual return (M=1) and not finding anything. I'll try some other timescales and see what happens. If this holds true then you can all call me a fool. I won't call you a fool. But I must say, it takes a lot of sel...
by MarkNYC
Wed Jun 29, 2016 11:33 am
Forum: Personal Finance (Not Investing)
Topic: IRS Form 1041
Replies: 7
Views: 487

Re: IRS Form 1041

I would like to submit an estate income tax return (IRS Form 1041) for estate income received between 4/30/2016 (date of death) and 10/31/2016 (end of fiscal year). However, the only forms available are preprinted with a date of “2015.” Can these forms be used by simply crossing out 2015 and writin...
by MarkNYC
Sun Jun 26, 2016 9:21 pm
Forum: Investing - Theory, News & General
Topic: Calculating Partial Deductions for Traditional IRA Contributions
Replies: 3
Views: 251

Re: Calculating Partial Deductions for Traditional IRA Contributions

I work for an employer with a pension plan. Accordingly, I only get a partial deduction on Traditional IRA contributions. Does anyone know how to calculate this? Thanks! Here's a simplified example of the calculation of the limited deduction for 2015, filing single, with a maximum allowable contrib...
by MarkNYC
Thu Jun 16, 2016 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: CFP for CPA Worth It? Does Tax Work Count for "Experience" Requirement?
Replies: 10
Views: 980

Re: CFP for CPA Worth It? Does Tax Work Count for "Experience" Requirement?

I've been looking into getting my CFP credentials and trying to understand the experience requirement. Does anyone know if work at a small CPA firm predominantly on tax-related matters counts towards the 3 years of experience? I've looked through some similar old threads here and on other sites but...
by MarkNYC
Fri May 27, 2016 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: tax question retirement distribution
Replies: 6
Views: 773

Re: tax question retirement distribution

It was vanguard IRA to my jobs 401k plan. I did not receive any 1099 R forms regarding this distribution, but not certain if this is standard for rollovers A Form 1099-R was definitely issued by Vanguard. Otherwise, the IRS would have no record of the IRA distribution and would not have issued an a...
by MarkNYC
Wed May 25, 2016 10:45 am
Forum: Personal Finance (Not Investing)
Topic: An AMT warning for retirees
Replies: 10
Views: 2520

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: 2520

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: 2520

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: 1268

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: 1268

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: 706

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: 8229

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: 1372

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: 2448

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: 2448

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: 3976

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: 2671

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: 2077

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: 1659

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: 9263

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: 303

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: 705

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: 1128

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: 1128

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: 1128

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: 666

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...

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