Search found 1752 matches

by MarkNYC
Wed Jul 01, 2020 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax implications of paying parents' estimated taxes via pay1040.com?
Replies: 16
Views: 993

Re: Gift tax implications of paying parents' estimated taxes via pay1040.com?

The problem is that Form 709 Instructions on who must file are confusing if not down right misleading. Sometimes, the IRS finds the absolute worst language in their publications that imply the opposite of what is required. For example, if you continued past the sentence you quoted in that bullet po...
by MarkNYC
Sat Jun 27, 2020 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Confused about NY State marginal tax rate
Replies: 11
Views: 681

Re: Confused about NY State marginal tax rate

There are phaseouts of exemptions, deductions, credits, or the benefit of the lower brackets. The effect is a notch with a higher marginal rate. Notches are common in the tax law whenever an exemption, deduction or credit, or the benefit of the lower brackets, is phased out above a certain income o...
by MarkNYC
Fri Jun 26, 2020 10:19 am
Forum: Personal Finance (Not Investing)
Topic: Confused about NY State marginal tax rate
Replies: 11
Views: 681

Re: Confused about NY State marginal tax rate

I don't live in NY or Yonkers. The numbers I listed come directly from the NY State tax return: 38 Taxable income 39 NYS tax on line 38 amount I did look at the tax computation worksheet that shows how it is computed but don't really understand what that worksheet is doing. When your NY Adjusted Gr...
by MarkNYC
Fri Jun 26, 2020 9:06 am
Forum: Personal Finance (Not Investing)
Topic: IRS to Pay Interest on Tax Refunds
Replies: 23
Views: 2593

Re: IRS to Pay Interest on Tax Refunds

If I apply my refund to my 2020 taxes, then will I still get interest from the IRS and how? Based on certain parameters, the IRS will pay interest on the delayed payment of tax refunds. When a taxpayer elects to have their 1040 tax overpayment applied to the next year's estimated tax, the taxpayer ...
by MarkNYC
Fri Jun 26, 2020 8:41 am
Forum: Personal Finance (Not Investing)
Topic: Confused about NY State marginal tax rate
Replies: 11
Views: 681

Re: Confused about NY State marginal tax rate

With $1K additional income, are you sure NY "taxable income" increased by the exact same amount?
by MarkNYC
Wed Jun 24, 2020 9:15 pm
Forum: Personal Investments
Topic: 1031 exchange to a different state
Replies: 1
Views: 212

Re: 1031 exchange to a different state

Unlike CA and a few other states, NY (AFAIK) does not have any clawback provision, so in the situation you describe it's likely that the federally taxable gain would fully escape NY taxation. I say "likely" because laws can change. If future events unfold as you anticipate, you should probably consu...
by MarkNYC
Wed Jun 24, 2020 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: US Capital Loss and unused foreign capital gain tax credit
Replies: 5
Views: 345

Re: US Capital Loss and unused foreign capital gain tax credit

Thanks for your response. But the key question is can I still take credit of India equity Capital gain taxes which I already paid in India but the underlying India equity capital gain is offset by USA equity capital loss? In other words, I am not showing India capital gain as income in usa tax retu...
by MarkNYC
Mon Jun 22, 2020 9:17 pm
Forum: Personal Finance (Not Investing)
Topic: US Capital Loss and unused foreign capital gain tax credit
Replies: 5
Views: 345

Re: US Capital Loss and unused foreign capital gain tax credit

You must carefully prepare and file Form 1116 to determine how much, if any, of the foreign tax paid can be taken as a credit in the current year, and how much, if any, is available for carryback or carryover for potential credit in other year(s).
by MarkNYC
Sat Jun 20, 2020 1:22 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie Tax advice (with 2020 rule changes in mind)
Replies: 19
Views: 1802

Re: Kiddie Tax advice (with 2020 rule changes in mind)

2) Gift Shares worth 5000$ to each kid. Cost basis is $3000, so profit is $2000. Short Term ... I didn't see anywhere in the tax filing that we have to file if income is below $2100 limit. I am not sure of CA tax implications With $2000 STCG, fed tax on $900 will be $90. CA tax on $900 will be $9. ...
by MarkNYC
Sat Jun 20, 2020 1:03 pm
Forum: Personal Finance (Not Investing)
Topic: Odd CA Tax Refund
Replies: 5
Views: 506

Re: Odd CA Tax Refund

The first place to look would be the amount of payments. Carefully check the payment amounts on lines 71 -74 of your CA tax return (assuming resident return) vs. your tax records, including any overpayment applied from the prior year. The next place to look would be the accuracy of any credits liste...
by MarkNYC
Wed Jun 17, 2020 10:14 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Check
Replies: 18
Views: 1359

Re: IRS Check

If I were you I'd chalk it up to experience and enter the amount that they owe you (~20k right?) in the box marked "carryover from 2018 taxes" when you submit your 2019 tax return now or on July 15th. I'm assuming that this is an amount agreed upon by the IRS and not 18K plus interest that you've c...
by MarkNYC
Wed Jun 17, 2020 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Check
Replies: 18
Views: 1359

Re: IRS Check

We did owe them money in 2015 tax revisions/auditions and paying them off now. The 18k owed in 2019 were in 1040. To clarify, we sent them 2 checks [by mistakes], both checks were processed/cashed by IRS. They were suppose to send us 18000 refunds with IRS checks in late summer 2019 but never did. ...
by MarkNYC
Tue Jun 16, 2020 9:54 pm
Forum: Personal Finance (Not Investing)
Topic: Need some state tax help (NY/NJ)
Replies: 3
Views: 304

Re: Need some state tax help (NY/NJ)

This gets a bit complicated. Pending all relevant facts, you will probably have to do the following: For NY: file a combination Part-year Resident/Nonresident Tax Return Form IT-203, including all income while a NY resident and wage income earned in NY while a NJ resident. If you lived in NYC, you'l...
by MarkNYC
Tue Jun 16, 2020 3:54 pm
Forum: Personal Finance (Not Investing)
Topic: Depreciation Recapture
Replies: 7
Views: 848

Re: Depreciation Recapture

Are there any circumstances under which I won't have to pay tax on depreciation recapture? I keep telling my tax accountant about this, but he insists that form Unrecaptured Section 250 Gain Worksheet does not apply to me and is using the Qualified Dividends and Capital Gains Tax Worksheet instead ...
by MarkNYC
Sun Jun 14, 2020 8:59 pm
Forum: Personal Finance (Not Investing)
Topic: Depreciation Recapture
Replies: 7
Views: 848

Re: Depreciation Recapture

For tax purposes, the $40K portion of the gain attributable to depreciation is not called "depreciation recapture"; it is called an "Unrecaptured Section 1250 Gain". Refer to line 19 of Schedule D and the detailed instructions for that line.
by MarkNYC
Sat Jun 13, 2020 3:01 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax issues
Replies: 12
Views: 1111

Re: Estimated tax issues

I don't understand how NY can claim that payments in February and July (however labeled) don't satisfy the requirement to make payments by June and July, but tax law doesn't always make sense. Asking NY phone help is unlikely to prove rewarding. Please post a link to a document at the web site of t...
by MarkNYC
Thu Jun 11, 2020 11:49 am
Forum: Personal Finance (Not Investing)
Topic: Estate 1041 & K-1
Replies: 6
Views: 447

Re: Estate 1041 & K-1

Does an estate have the choice between either using a deduction for administrative expenses at the estate level or passing it along to beneficiaries on K-1s, so that the beneficiaries can use the deduction on their tax returns? The estate(executor) does not have a choice. Excess deductions on an es...
by MarkNYC
Sat Jun 06, 2020 12:40 pm
Forum: Investing - Theory, News & General
Topic: When are gift recipients liable for gift taxes or other donor taxes?
Replies: 8
Views: 409

Re: When are gift recipients liable for gift taxes or other donor taxes?

Can we please not focus on the donor, and answer the question on the impact to the recipients? The topic question is about what happens to the recipients. Under Code Sec 6324(b), recipients of gifts can be held personally liable for any gift tax that cannot be collected from the donor, but only to ...
by MarkNYC
Sat Jun 06, 2020 12:35 pm
Forum: Investing - Theory, News & General
Topic: When are gift recipients liable for gift taxes or other donor taxes?
Replies: 8
Views: 409

Re: When are gift recipients liable for gift taxes or other donor taxes?

If you were to give a billion dollars to your children, you need to file tax forms declaring that for the year(s) when transfers were made. Since a billion dollars is over the gift tax exclusion of $15K for each recipient for each year, when the donor dies, their estate will have a huge tax bill. N...
by MarkNYC
Fri Jun 05, 2020 10:40 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes? Legal Issues? Grandmother sent large check to Cousin she's estranged from
Replies: 59
Views: 3305

Re: Grandmother sent large check to Cousin she's estranged from

Specifically addressing the gift tax issue, while the tax would be the responsibility of the gift giver ... A couple (Grandmother and grandfather) is allowed to give any person $15k each, so both of them to another couple, $60k would have no issue. I would cash it, and write a gracious non-snarky n...
by MarkNYC
Fri Jun 05, 2020 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 question
Replies: 32
Views: 2611

Re: Rule of 55 question

I am 55 now. There will be a different name on my paycheck come 1/1/23. No interruption of work. Can I withdrawal from my old company 401K while working for the new company? The plan does allow for it. I'm thinking I can unless the funds are automatically put into the new company's 401K plan. At wh...
by MarkNYC
Thu Jun 04, 2020 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 estimated tax dates
Replies: 30
Views: 2167

Re: 2020 estimated tax dates

If you pay state estimated taxes, better check your own state's rules. NY and a number of other states retained June 15 as the 2nd quarter due date. Illinois, while moving the filing deadline for 2019 returns to 7/15, made no changes to estimated due dates - still 4/15 and 6/15 for the 1st and 2nd ...
by MarkNYC
Thu Jun 04, 2020 4:27 pm
Forum: Personal Finance (Not Investing)
Topic: 2020 estimated tax dates
Replies: 30
Views: 2167

Re: 2020 estimated tax dates

It seems that the 2nd quarter estimated tax payment deadline has also been extended to July 15. From this news release : Besides the April 15 estimated tax payment previously extended, today’s notice also extends relief to estimated tax payments due June 15, 2020. This means that any individual or ...
by MarkNYC
Tue Jun 02, 2020 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Filing taxes with new business
Replies: 4
Views: 257

Re: Filing taxes with new business

You'll also have to report any expenses you incurred. Most businesses have expenses and to report income with no expenses can be a red flag to IRS depending on your business. I'm not saying its impossible to not have expenses but it is unusual. pshonore -- Could you explain your reasoning? I can't ...
by MarkNYC
Mon Jun 01, 2020 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Rental property depreciation - how does it interact with the standard deduction?
Replies: 10
Views: 737

Re: Rental property depreciation - how does it interact with the standard deduction?

Rental depreciation is re captured when you sell the property, whether or not you actually took it. This is a myth - it's not true. Depreciation, whether taken or not, will reduce adjusted basis. But upon sale, the amount of gain attributable to depreciation and subject to the special "recapture" t...
by MarkNYC
Sat May 30, 2020 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Estimated Tax Payment
Replies: 6
Views: 412

Re: Estimated Tax Payment

You need to review the safe harbor rules. Basically, you are ok if you pay 90% of the taxes owed for the current year, or 100% of the taxes you owed for the previous year. If you make over 75k single or 150k joint, you must pay the lower of 90% of the tax shown on the current year’s return or 110% ...
by MarkNYC
Fri May 29, 2020 8:31 am
Forum: Personal Finance (Not Investing)
Topic: Two accountants disagree - Bogleheads for the tiebreaker
Replies: 64
Views: 3968

Re: Two accountants disagree - Bogleheads for the tiebreaker

Gill wrote:
Fri May 29, 2020 8:08 am
simplesauce wrote:
Fri May 29, 2020 7:05 am
They have the option to decide who earns the income on each sale throughout the year.
Is anyone bothered by this assumption?
Gill
Yes, it bothers me. I would like to know what provision in the law allows two taxpayers the option to retroactively decide how to divide-up earned income.
by MarkNYC
Sun May 24, 2020 8:37 pm
Forum: Personal Investments
Topic: Can I open a Roth IRA
Replies: 9
Views: 569

Re: Can I open a Roth IRA

I am aware that I have to file taxes married filing jointly in order to contribute to a roth ira. This year we did married filing seperately. Can I open one now as long as I file jointly next year or do I have to wait? Presumably you do not have taxable compensation and would be contributing throug...
by MarkNYC
Sat May 23, 2020 1:18 pm
Forum: Personal Finance (Not Investing)
Topic: Radiologist here needing help regarding cross-state teleradiology work/taxes
Replies: 21
Views: 1434

Re: Radiologist here needing help regarding cross-state teleradiology work/taxes

Maybe every state is different, but I worked remotely for a service in another state (Mass) and was subject to taxes even though I never stepped foot there. Turbotax showed I owed Mass $0; I didn't trust that result. I called Mass DOR and they told me I was subject even though I had no physical pre...
by MarkNYC
Sat May 23, 2020 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Radiologist here needing help regarding cross-state teleradiology work/taxes
Replies: 21
Views: 1434

Re: Radiologist here needing help regarding cross-state teleradiology work/taxes

A teleworker would not even qualify as a nonresident taxpayer in California, unless they have some temporary physical presence in California. The FTB may be aggressive in trying to collect but that doesn't mean they'd actually owe. it’s a unique situation as a radiologist. The patient is in a CA me...
by MarkNYC
Thu May 21, 2020 9:57 pm
Forum: Personal Finance (Not Investing)
Topic: Renting house to in-laws
Replies: 22
Views: 1665

Re: Renting house to in-laws

are there potential tax consequences if you fail to charge market rent? I would assume as long as the difference is less than the yearly exemption $15,000 per person, there wouldn't be an issue. Even if it were more than that, as long as it's not more than the lifetime exemption ($11.58 million), w...
by MarkNYC
Thu May 21, 2020 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Renting house to in-laws
Replies: 22
Views: 1665

Re: Renting house to in-laws

are there potential tax consequences if you fail to charge market rent? I would assume as long as the difference is less than the yearly exemption $15,000 per person, there wouldn't be an issue. Even if it were more than that, as long as it's not more than the lifetime exemption ($11.58 million), w...
by MarkNYC
Thu May 21, 2020 9:19 pm
Forum: Personal Finance (Not Investing)
Topic: Renting house to in-laws
Replies: 22
Views: 1665

Re: Renting house to in-laws

are there potential tax consequences if you fail to charge market rent? I would assume as long as the difference is less than the yearly exemption $15,000 per person, there wouldn't be an issue. Even if it were more than that, as long as it's not more than the lifetime exemption ($11.58 million), w...
by MarkNYC
Tue May 19, 2020 8:24 pm
Forum: Personal Finance (Not Investing)
Topic: Non State Resident Tax
Replies: 11
Views: 639

Re: Non State Resident Tax

I was surprised to find out that over the last few years I have only paid about $500 more in taxes being in NYC as opposed to NJ. My taxable income in NY was about 10k less due to NY having a higher standard deduction and HSA not being tax deductible in NJ. Does that make sense? I don't think it ma...
by MarkNYC
Tue May 19, 2020 2:23 pm
Forum: Personal Finance (Not Investing)
Topic: Non State Resident Tax
Replies: 11
Views: 639

Re: Non State Resident Tax

I currently live in NYC and work in NJ . Are the state taxes on my NJ nonresident tax form what I would pay if I lived in NJ? In most cases, the tax is not the same. As a NJ nonresident, you pay tax to NJ only on your income that was earned in NJ. A NJ resident would pay tax to NJ on all income fro...
by MarkNYC
Tue May 19, 2020 2:14 pm
Forum: Personal Finance (Not Investing)
Topic: Discarding old tax returns
Replies: 62
Views: 5552

Re: Discarding old tax returns

Did it used to be seven years? If you claim a loss on your taxes, you must keep records for seven years. If not, three years. Whether or not "you claim a loss on your taxes" is not really relevant regarding how long you must retain tax records, with two notable exceptions: (1) loss from a worthless...
by MarkNYC
Fri May 15, 2020 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Correcting excess IRA contribution for deceased person
Replies: 1
Views: 133

Re: Correcting excess IRA contribution for deceased person

In this situation, there may not be one correct solution, and any solution might have its own set of potential problems. So I would look for a solution that seems most equitable and also minimizes the chances of generating IRS correspondence. I could be persuaded differently, but if I was in her pos...
by MarkNYC
Thu May 14, 2020 10:09 pm
Forum: Personal Finance (Not Investing)
Topic: Utilize 2020 losses to offset 2019 capital gains
Replies: 6
Views: 729

Re: Utilize 2020 losses to offset 2019 capital gains - declared disaster area

Looks like the $3K limit is net. I.e if you had $100K in capital gains in 2019 and $105K in losses in 2020, you could wipe out the $100k in gains, and then realize only $3K of the additional $5K in losses. It would still achieve the goal of cancelling out the $100K capital gain. Seems like this wou...
by MarkNYC
Tue May 12, 2020 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: IRS July 15 deadline impact on 2019 (not 2020) estimated taxes interest
Replies: 9
Views: 460

Re: IRS July 15 deadline impact on 2019 (not 2020) estimated taxes interest

The subtle part which is not explained well by IRS releases, is this: If we file and pay taxes on July 15th instead of April 15th, will the penalty/interest stop on April 15th or continue to increase? Lets say I had to pay 5K interest on April 15th in my example, would I pay more in July (at 5% rat...
by MarkNYC
Mon May 11, 2020 9:53 am
Forum: Personal Finance (Not Investing)
Topic: Utilize 2020 losses to offset 2019 capital gains
Replies: 6
Views: 729

Re: Utilize 2020 losses to offset 2019 capital gains - declared disaster area

Not sure if this has been posted before, but it seems that this federal bulletin (https://www.federalregister.gov/documents/2019/10/16/2019-22376/election-to-take-disaster-loss-deduction-for-preceding-year) affirmed the ability to use losses in 2020 to offset gains in 2019. It applies only to areas...
by MarkNYC
Sun May 10, 2020 8:58 pm
Forum: Personal Investments
Topic: K-1 Excess Taxable Income
Replies: 3
Views: 500

Re: K-1 Excess Taxable Income

ETI $100 - EBIE 0 = $100 ETI Is the remaining ETI added to one's income via a flow-through to the 1040 or does it die on 8990 as a non-taxable event? The remaining ETI does not get added to one's income. The rules pertaining to Sec. 163(j) can be complicated. You should refer to the instructions fo...
by MarkNYC
Thu May 07, 2020 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 136
Views: 9029

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

I am not a real estate professional though and I do not have 2 million of capital to invest in RE. I only have 1.2 mill. And don't you see RE crashing soon due to recession? Seems like I would lose more money than I would save? I realize that but for $800k I would bust my ass for the rest of the ye...
by MarkNYC
Thu May 07, 2020 7:42 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 136
Views: 9029

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

I have said it’s going to be difficult but again, for $800k its certainly worth looking into. The title says $800k tax so I assume that’s the actual tax and not the number he’s being taxed on. In the OP's second post on 4/30, he states "I have already realized $800K in gains." On 5/6 at 1:04 PM you...
by MarkNYC
Thu May 07, 2020 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 136
Views: 9029

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

I am not a real estate professional though and I do not have 2 million of capital to invest in RE. I only have 1.2 mill. And don't you see RE crashing soon due to recession? Seems like I would lose more money than I would save? I realize that but for $800k I would bust my ass for the rest of the ye...
by MarkNYC
Wed May 06, 2020 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: Best Way to Handle Unfiled Tax Returns?
Replies: 25
Views: 1614

Re: Best Way to Handle Unfiled Tax Returns?

There is no easy answer, but some additional information may be useful: 1. How old is he? Single or married? 2. Approximately how much did he earn annually over those years, before expenses? 3. What is the nature of his business, and how much is he currently earning (or was before Covid shutdown)? 4...
by MarkNYC
Tue May 05, 2020 12:49 pm
Forum: Personal Finance (Not Investing)
Topic: 40% tax / penalty for cashing out inherited Ira?
Replies: 13
Views: 1137

Re: 40% tax / penalty for cashing out inherited Ira?

When figuring your federal tax rate, don't forget that a large withdrawal can trigger both the Net Investment Income Tax and Additional Medicare Tax. For a single taxpayer, both are triggered if total MAGI exceeds $200k. MAGI is not a factor in the calculation of Additional Medicare Tax. The tax ap...
by MarkNYC
Sat May 02, 2020 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 136
Views: 9029

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

Move from California to a no state tax on capital gains so that your a permanent resident of that state. That should save you about $70k in taxes. That doesn't work. Tax is owed to the resident state on all income earned and capital gains realized during the period of residency. I realize that to b...
by MarkNYC
Sat May 02, 2020 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 136
Views: 9029

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

EnjoyIt wrote:
Sat May 02, 2020 9:23 am
Move from California to a no state tax on capital gains so that your a permanent resident of that state. That should save you about $70k in taxes.
That doesn't work. Tax is owed to the resident state on all income earned and capital gains realized during the period of residency.
by MarkNYC
Fri May 01, 2020 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Sibling inheritance of Traditional IRA - sharing with other siblings
Replies: 31
Views: 2040

Re: Sibling inheritance of Traditional IRA - sharing with other siblings

These issues may be more for the lawyer handling the estate than for the accountant. This is a retirement plan with a person as a named beneficiary. Why would the executor be involved except maybe for notification unless there are federal estate tax issues or state estate/inheritance tax issues. Pr...
by MarkNYC
Thu Apr 30, 2020 10:11 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to lower tax on short term capital gains. Do conservation easements work?
Replies: 136
Views: 9029

Re: Trying to lower $800k tax on short term capital gains. Do conservation easements work?

This link from the IRS seems relevant: https://www.irs.gov/charities-non-profits/conservation-easements Thanks for getting the rest of us up to speed on this scheme! This sounds like a very bad idea, just pay the taxes due. In the worst case scenario of an audit, they told me they are insured and t...