Search found 1089 matches

by MarkNYC
Fri Feb 24, 2017 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Filing For Extension?
Replies: 8
Views: 227

Re: Filing For Extension?

If a federal extension is filed and tax is due with the eventual filing of the tax return after April 15th (18th this year), the late payment penalty of 0.5% per month will be charged on the additional tax due unless there is reasonable cause for failure to pay enough tax by April 15th. The taxpayer...
by MarkNYC
Tue Feb 21, 2017 4:49 pm
Forum: Investing - Help with Personal Investments
Topic: Why no 1099-B for a C corp?
Replies: 4
Views: 242

Re: Why no 1099-B for a C corp?

Thanks for the reply Mark I don't see this language on my 1099-DIV (which also has 1099-B instructions, but no 1099-B). Are you saying that Vanguard does not have to supply a 1099-B for my C corp account? The Form 1099-B instructions provide various requirements and exceptions for when the form mus...
by MarkNYC
Tue Feb 21, 2017 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Why no 1099-B for a C corp?
Replies: 4
Views: 242

Re: Why no 1099-B for a C corp?

bumping my own thread After a few days I received a brief response from Vanguard - "we are researching your inquiry, please give us a month to review." !? I will call them of course. Anyone have insight? If you check the instructions to Form 1099-B, you'll see that brokers (see definition...
by MarkNYC
Fri Feb 17, 2017 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: When the IRS won't take their money
Replies: 8
Views: 1059

Re: When the IRS won't take their money

The federal tax filing deadline for 2015 was Tuesday April 18th, 2016. Since April 15 was on Saturday, the due date moved to Monday the 17th, but the Washington DC Emancipation Day was observed on the 17th, so the due date was moved to the 18th. So your IRA contribution on April 18th was not late. T...
by MarkNYC
Mon Feb 13, 2017 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Vang.1099-DIV and Wisconsin tax on munis
Replies: 7
Views: 485

Re: Vang.1099-DIV and Wisconsin tax on munis

Yes, the total (annual) amount from VWIUX is reported in Box 10 of the 1099-DIV. But I don't get it. Why would this total amount be "dividends" rather than "interest"? And, does it make any difference (in terms of tax treatment or other) whether they are listed as "interest...
by MarkNYC
Mon Feb 13, 2017 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: Small Retirement Distribution Without 1099-R
Replies: 9
Views: 284

Re: Small Retirement Distribution Without 1099-R

Since the MIL died in July and the check was paid in December, the income does not belong on your MIL's final year individual income tax return. It should be "other income" on her estate income tax return Form 1041, assuming such a tax return is required to be filed. Even though it was ac...
by MarkNYC
Mon Feb 13, 2017 7:01 pm
Forum: Personal Finance (Not Investing)
Topic: Small Retirement Distribution Without 1099-R
Replies: 9
Views: 284

Re: Small Retirement Distribution Without 1099-R

Since the MIL died in July and the check was paid in December, the income does not belong on your MIL's final year individual income tax return. It should be "other income" on her estate income tax return Form 1041, assuming such a tax return is required to be filed.
by MarkNYC
Sun Feb 12, 2017 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: Legal Expenses Taken Against Settlement
Replies: 8
Views: 995

Re: Legal Expenses Taken Against Settlement

The legal fees were paid periodically over the three-year course of the case right up to the settlement in mid-2016. According to the IRS, IRC § 62(a)(21) specifies an above the line-deduction for attorney fees and court costs associated with suits involving discrimination and whistleblower claims....
by MarkNYC
Sun Feb 12, 2017 9:09 pm
Forum: Personal Finance (Not Investing)
Topic: Broker withheld wrong amount from RMD, how do we report on taxes?
Replies: 17
Views: 879

Re: Broker withheld wrong amount from RMD, how do we report on taxes?

I agree with spectec that obtaining a corrected 1099-R would be best. If that can't be done, here's what I would do: I would ask the broker to confirm that the extra payment was not paid as withholding, since there is no 1099 that reflects any additional withholding. If not withholding, and since t...
by MarkNYC
Sun Feb 12, 2017 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Broker withheld wrong amount from RMD, how do we report on taxes?
Replies: 17
Views: 879

Re: Broker withheld wrong amount from RMD, how do we report on taxes?

Thanks for all the replies. This is pretty much what we thought of as well, since the funds came from the other account it's technically no longer withholding. It seems like claiming this as estimated taxes makes sense, and being prepared for the IRS to question this. The broker is Morgan Stanley (...
by MarkNYC
Sun Feb 12, 2017 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Broker withheld wrong amount from RMD, how do we report on taxes?
Replies: 17
Views: 879

Re: Broker withheld wrong amount from RMD, how do we report on taxes?

I agree with spectec that obtaining a corrected 1099-R would be best. If that can't be done, here's what I would do: I would ask the broker to confirm that the extra payment was not paid as withholding, since there is no 1099 that reflects any additional withholding. If not withholding, and since th...
by MarkNYC
Sun Feb 12, 2017 7:09 pm
Forum: Personal Finance (Not Investing)
Topic: Legal Expenses Taken Against Settlement
Replies: 8
Views: 995

Re: Legal Expenses Taken Against Settlement

The deduction of legal fees can be complicated. When legal fees related to a lawsuit are allowed as a deduction, they are generally deductible as a miscellaneous itemized deduction, subject to 2% of AGI. Sometimes, when the legal fees are associated with income from a trade or business, the deductio...
by MarkNYC
Tue Feb 07, 2017 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Form 2210 questions
Replies: 17
Views: 1129

Re: Form 2210 questions

If the instructions for a tax form lists conditions for which the form is to be filed, and those conditions are not met, then don't file the form. This is a good general rule. After all, why make your tax return more voluminous than it needs to be. There are, however, some situations where I think ...
by MarkNYC
Tue Feb 07, 2017 11:27 am
Forum: Investing - Help with Personal Investments
Topic: Tax Loss Harvesting--Carry Forward
Replies: 6
Views: 638

Re: Tax Loss Harvesting--Carry Forward

In 2015, wife and I had income of $10K, no schedule A. Therefore owe no taxes with standard deduction and exemptions. Also had capital loss of $4K. Even though we owed no money in taxes, $3000 (capital loss) was applied to $10,000 to lower our AGI to $7000. Did the $3000 have to be applied to 2015 ...
by MarkNYC
Sat Feb 04, 2017 11:18 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block would have messed up a spousal IRA
Replies: 47
Views: 2179

Re: H&R Block would have messed up a spousal IRA

2. Technically this would not be a regular IRA contribution made by the non-compensated spouse, but a "spousal IRA" contribution made by the compensated spouse to the IRA account of the non-compensated spouse. Seems unlikely the program would get this technical, but perhaps. (A "spou...
by MarkNYC
Sat Feb 04, 2017 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block would have messed up a spousal IRA
Replies: 47
Views: 2179

Re: H&R Block would have messed up a spousal IRA

2. Technically this would not be a regular IRA contribution made by the non-compensated spouse, but a "spousal IRA" contribution made by the compensated spouse to the IRA account of the non-compensated spouse. Seems unlikely the program would get this technical, but perhaps. (A "spou...
by MarkNYC
Sat Feb 04, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block would have messed up a spousal IRA
Replies: 47
Views: 2179

Re: H&R Block would have messed up a spousal IRA

I'm not familiar with the H&R Block program, but I can think of two items which might cause the disallowance of the IRA deduction and a penalty for the contribution: 1. Is the spouse's date of birth indicating over age 70.5? 2. Technically this would not be a regular IRA contribution made by the...
by MarkNYC
Tue Jan 31, 2017 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Search 1099's claimed against you?
Replies: 17
Views: 1022

Re: Search 1099's claimed against you?

You can mail or fax Form 4506-T to the IRS and check box 8 and they'll tell you: https://www.irs.gov/pub/irs-pdf/f4506t.pdf. I'll use this if necessary You should be aware that when obtaining 1099 information by use of Form 4506-T, the information is generally not available until the year after the...
by MarkNYC
Tue Jan 31, 2017 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block would have messed up a spousal IRA
Replies: 47
Views: 2179

Re: H&R Block would have messed up a spousal IRA

In situations like this, although it's possible that it's a program error, it's much more likely to be a user input error.
by MarkNYC
Tue Jan 31, 2017 3:58 pm
Forum: Personal Finance (Not Investing)
Topic: Filing 1040X for One(1) dollar / H&R Block Deluxe
Replies: 7
Views: 465

Re: Filing 1040X for One(1) dollar / H&R Block Deluxe

To the best of your knowledge, your original tax return was accurate at the time you filed it. An additional 94 cents of income will not change the tax, and even if it did you have no legal obligation to file an amended return to report it. The IRS is understaffed and has limited resources. You woul...
by MarkNYC
Mon Jan 30, 2017 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-SSA and 1099-R reporting for deceased taxpayers
Replies: 7
Views: 717

Re: 1099-SSA and 1099-R reporting for deceased taxpayers

Your mother in law can also file a married filing jointly for 2 years after her husbands death. Wrong. You need to read the IRS rules again. What is correct then? A surviving spouse can file for the following two years as a "qualifying widow(er)" and use joint tax rates only if he/she rem...
by MarkNYC
Sun Jan 29, 2017 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Capital Gains Tax on selling your house
Replies: 11
Views: 999

Re: Capital Gains Tax on selling your house

The tax rule is that you only have to report the gain on the sale of your house if it is over the excluded amount ($250K in your case). That is not a full description of the tax rule for reporting the sale of a principal residence. Per the instructions to federal Schedule D, the sale of a principal...
by MarkNYC
Fri Jan 27, 2017 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited IRA and Form 1099-R
Replies: 3
Views: 321

Re: Inherited IRA and Form 1099-R

This sounds like an error by UBS. For clarification, was the 1099-R issued in the name and ID# of the trust, and the 1099-R reflected federal tax withholding? If so, what was the purpose of each individual trust beneficiary filling out paperwork, if not for the purpose of providing SS numbers in ord...
by MarkNYC
Fri Jan 27, 2017 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: Calling the IRS for tax questions?
Replies: 15
Views: 789

Re: Calling the IRS for tax questions?

I wouldn't rely on the IRS for advice on complex tax questions. The answer you get may depend on which person you talk to. And to boot, the IRS disclaims responsibility for any bad answers they give you. Seek out a reputable CPA or tax accountant. I agree with this. IRS phone representatives are pr...
by MarkNYC
Fri Jan 27, 2017 10:14 am
Forum: Investing - Theory, News & General
Topic: BRK - thoughts on interesting stock
Replies: 66
Views: 6168

Re: BRK - thoughts on interesting stock

I bought BRK shares 27 years ago and it is the only individual stock I own. Years ago I exchanged the A shares for B shares so I could gradually reduce my ownership as both Buffett and I got older, and that is what I have done. Although I'm not overly concerned with owning the stock going forward, I...
by MarkNYC
Tue Jan 24, 2017 4:38 pm
Forum: Investing - Theory, News & General
Topic: ROTH IRA Early Withdrawal and taxes
Replies: 35
Views: 1553

Re: ROTH IRA Early Withdrawal and taxes

Box 2a should be blank, and "taxable amount not determined" checked in 2b. These two boxes must be coordinated properly. Alan, Are you saying the default case for box 2a for a Roth is blank? I believe the default case for an IRA (if 2b is checked) is the gross amount in box 1 is put into ...
by MarkNYC
Tue Jan 24, 2017 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Reporting inherited Roth IRA distributions from trust on 1041 and K-1
Replies: 2
Views: 282

Re: Reporting inherited Roth IRA distributions from trust on 1041 and K-1

"Other income" Line 8 of trust Form 1041 would only include the portion of a 1099-R distribution that would be treated as ordinary income. Assuming the Roth distributions are "qualified distributions," none of the distribution is taxable thus nothing would be reported as income o...
by MarkNYC
Mon Jan 23, 2017 1:29 pm
Forum: Investing - Theory, News & General
Topic: ROTH IRA Early Withdrawal and taxes
Replies: 35
Views: 1553

Re: ROTH IRA Early Withdrawal and taxes

Is there a reason the 1099-R would have the X marked off for taxable amount not determined? Wouldn't this box be the $9? Remember that all Roth IRA accounts must be aggregated for tax purposes, and Vanguard does not know if you have any other Roth IRA accounts. Let's say you also have a Roth accoun...
by MarkNYC
Mon Jan 23, 2017 10:21 am
Forum: Investing - Help with Personal Investments
Topic: What to do with Passive Rental Loss?
Replies: 9
Views: 1267

Re: What to do with Passive Rental Loss?

:greedy Here is a suggestion for those who prepare their own tax returns, and have suspended losses from a rental property that has been converted to a personal residence. In each succeeding year, leave the rental property on page one of Schedule E of the tax return until the property is sold. On Pa...
by MarkNYC
Fri Jan 13, 2017 4:10 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule K-1 on Undistributed Profit in S-corp - Possible TurboTax Error
Replies: 7
Views: 435

Re: Schedule K-1 on Undistributed Profit in S-corp - Possible TurboTax Error

Technically, an S-Corp distributes all income. Technically, I would disagree. A "distribution" refers to an actual payment of cash or property. Per the IRS instructions to S Corporation Schedule K-1: "Shareholders are liable for tax on their shares of the corporation's income...Share...
by MarkNYC
Fri Jan 13, 2017 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Schedule K-1 on Undistributed Profit in S-corp - Possible TurboTax Error
Replies: 7
Views: 435

Re: Schedule K-1 on Undistributed Profit in S-corp - Possible TurboTax Error

When preparing a tax return, if you don't understand the reason for a question being asked by the tax program, you should not assume it is a program error. While the amount distributed does not affect the taxable income on the K-1, the amount distributed does go on line 16 (code D) of the K-1 as an ...
by MarkNYC
Thu Jan 12, 2017 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: How to build passive income
Replies: 45
Views: 4429

Re: How to build passive income

Some have commented that interest and dividends from stocks, bonds and mutual funds will provide "passive income" but that rental income from being a landlord is not really "passive income" because there's work involved. Logically this seems correct but in the world of taxes it's...
by MarkNYC
Wed Jan 11, 2017 5:25 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question on a Jointly Owned Property
Replies: 8
Views: 619

Re: Tax Question on a Jointly Owned Property

I don't know if you're filing taxes correctly or not; however, I would also be asking your tax professional what happens if the other couple doesn't report/file/pay their half? That's an even larger concern in my opinion. If the other couple does not report/file/pay their half, then the other coupl...
by MarkNYC
Wed Jan 11, 2017 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Tax Question on a Jointly Owned Property
Replies: 8
Views: 619

Re: Tax Question on a Jointly Owned Property

I have a property that is jointly owned by myself, my husband and another married couple. My current accountant has been splitting the income/expenses between us and we have reported the rental income on schedule E. I briefly explained our current arrangement with a new accountant and he mentioned ...
by MarkNYC
Tue Jan 10, 2017 4:49 pm
Forum: Personal Finance (Not Investing)
Topic: Quarterly taxes with W2 and K1 income
Replies: 12
Views: 411

Re: Quarterly taxes with W2 and K1 income

I have not been able to find an answer to this question. I have both W2 and K1 income. The majority is K1 income. Is it possible to not withhold anything from my W2 and pay quarterly taxes on both W2 and K1 income or am I required to withhold from my W2 and pay quarterly on my K1 income? I don't be...
by MarkNYC
Tue Jan 10, 2017 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: AMT and taxable portion of state tax refund
Replies: 17
Views: 1442

Re: AMT and taxable portion of state tax refund

ryman554, Your analysis is correct. A refund of state tax that was deducted in the prior year is a "recovery" in IRS language, and is taxable in the year received up to the amount by which the deduction reduced your tax in the earlier year. Usually a state tax refund is either fully taxabl...
by MarkNYC
Mon Jan 09, 2017 5:29 pm
Forum: Investing - Help with Personal Investments
Topic: kiddie tax
Replies: 15
Views: 1366

Re: kiddie tax

http://www.forbes.com/sites/troyonink/2015/11/30/2016-kiddie-tax-rates-rules-and-ways-around-it/#4c0d52423c31 This article from Forbes provides a bit of a summary. Key points: In 2016, the only way that college students under age 24 will be able to avoid the kiddie tax is if they provide over half ...
by MarkNYC
Mon Jan 09, 2017 5:23 pm
Forum: Investing - Help with Personal Investments
Topic: kiddie tax
Replies: 15
Views: 1366

Re: kiddie tax

kiddie tax only applies to dependent children. If your parents are not claiming you, you file as a single. 1. The instructions to Form 8615 clearly state that the "kiddie tax" rules apply regardless of whether or not the child is a dependent. 2. If the child is unmarried, the child files ...
by MarkNYC
Fri Jan 06, 2017 9:15 am
Forum: Personal Finance (Not Investing)
Topic: Estimated taxes
Replies: 16
Views: 1477

Re: Estimated taxes

I honestly don't even calculate my estimated taxes. I just pay the IRS what I think is a fair share and pay the penalty at the end. Ends up being $200 or so, which is ok by me. Just pay 100% of what your total tax was last year and no penalty, It's not always that simple. It is not uncommon for the...
by MarkNYC
Wed Jan 04, 2017 4:56 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate the IRA Deduction Limits
Replies: 17
Views: 629

Re: How to calculate the IRA Deduction Limits

According to IRS website, if you are married filing jointly And Your Modified AGI is more than $99,000 but less than $119,000 and you are Covered by a Retirement Plan at Work, then you are eligible to a partial IRA deduction. I couldn't find any rules or tables to calculate that partial deduction a...
by MarkNYC
Wed Jan 04, 2017 4:43 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate the IRA Deduction Limits
Replies: 17
Views: 629

Re: How to calculate the IRA Deduction Limits

According to IRS website, if you are married filing jointly And Your Modified AGI is more than $99,000 but less than $119,000 and you are Covered by a Retirement Plan at Work, then you are eligible to a partial IRA deduction. I couldn't find any rules or tables to calculate that partial deduction a...
by MarkNYC
Wed Jan 04, 2017 4:16 pm
Forum: Personal Finance (Not Investing)
Topic: How to calculate the IRA Deduction Limits
Replies: 17
Views: 629

Re: How to calculate the IRA Deduction Limits

According to IRS website, if you are married filing jointly And Your Modified AGI is more than $99,000 but less than $119,000 and you are Covered by a Retirement Plan at Work, then you are eligible to a partial IRA deduction. I couldn't find any rules or tables to calculate that partial deduction a...
by MarkNYC
Thu Dec 29, 2016 2:16 pm
Forum: Personal Finance (Not Investing)
Topic: 2016 Federal Taxes underwithheld
Replies: 37
Views: 2732

Re: 2016 Federal Taxes underwithheld

The last example would not be correct. There are 3 basic safe harbors from the underpayment penalty: 1. Pay in 90% of current year tax 2. Pay in 100/110% of prior year tax 3. Owe less than $1,000 on your tax return The third item is not correct as written. There is no underpayment if the tax for th...
by MarkNYC
Fri Dec 16, 2016 5:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax withholding rules for S Corp
Replies: 9
Views: 801

Re: Tax withholding rules for S Corp

I have operated a S-Corp for years. I pay myself a salary and any excess profit is taxed to me as a distribution when I file taxes. I have never withheld federal or state tax from my salary, though I file a quarterly 941 to pay my (and employee's FICA tax). I personally make quarterly estimated pay...
by MarkNYC
Fri Dec 16, 2016 2:42 pm
Forum: Investing - Theory, News & General
Topic: Indexing: When being 'average' is a lot better than average
Replies: 19
Views: 1831

Re: Indexing: When being 'average' is a lot better than average

As a low-cost index investor, here is how I view accepting "average returns" each year, using estimated percentages: The annual returns are only average before expenses (expense ratio and portfolio transactions costs). The annual returns are slightly above average after expenses, putting m...
by MarkNYC
Wed Dec 14, 2016 3:19 pm
Forum: Personal Finance (Not Investing)
Topic: 2 RMD Questions
Replies: 22
Views: 2217

Re: 2 RMD Questions

I am not Alan, but the answer to the RMD question can be found in Treasury Reg. 1.402(c)-2 Q&A-7.
by MarkNYC
Wed Dec 14, 2016 1:29 pm
Forum: Personal Finance (Not Investing)
Topic: How is it possible to pay less income tax with more Qualified Dividends?
Replies: 10
Views: 564

Re: How is it possible to pay less income tax with more Qualified Dividends?

I suspect you are entering $35,000 "qualified dividends" without also entering $35,000 "total dividends."
by MarkNYC
Sun Dec 11, 2016 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: 2016 Federal Taxes underwithheld
Replies: 37
Views: 2732

Re: 2016 Federal Taxes underwithheld

The last example would not be correct. There are 3 basic safe harbors from the underpayment penalty: 1. Pay in 90% of current year tax 2. Pay in 100/110% of prior year tax 3. Owe less than $1,000 on your tax return The third item is not correct as written. There is no underpayment if the tax for th...
by MarkNYC
Sat Dec 10, 2016 5:11 pm
Forum: Personal Finance (Not Investing)
Topic: 2016 Federal Taxes underwithheld
Replies: 37
Views: 2732

Re: 2016 Federal Taxes underwithheld

Just a FYI, there is another safe harbor. There is only a penalty on the amount owed > $1000. I wish it was less than $1,000 :( I think you misunderstand: ⋅ $500 owed, $0 subject to penalty ⋅ $1000 owed, $0 subject to penalty ⋅ $1500 owed, $500 subject to penalty The l...
by MarkNYC
Fri Dec 09, 2016 8:49 pm
Forum: Personal Finance (Not Investing)
Topic: Who gets taxed on trust distributions?
Replies: 28
Views: 1145

Re: Who gets taxed on trust distributions?

There are several principles that apply to a complex trust, which is one where the trustee has the discretion whether or not to distribute income. If a check is paid to a beneficiary, or the trust directly pays an expense on behalf of a specific beneficiary, these payments will be considered a distr...

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