Search found 1316 matches

by MarkNYC
Wed Jul 11, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Must I submit a revised tax return?
Replies: 23
Views: 1726

Re: Must I submit a revised tax return?

Let's assume the IRS has no record of the additional income from a corrected 1099. You acknowledge there is no legal requirement to file an amended return, but claim there's a legal obligation to pay the additional tax that would be due if an amended return was filed? I disagree. Without an amended...
by MarkNYC
Wed Jul 11, 2018 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: Must I submit a revised tax return?
Replies: 23
Views: 1726

Re: Must I submit a revised tax return?

Let's assume the IRS has no record of the additional income from a corrected 1099. You acknowledge there is no legal requirement to file an amended return, but claim there's a legal obligation to pay the additional tax that would be due if an amended return was filed? I disagree. Without an amended...
by MarkNYC
Wed Jul 11, 2018 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Must I submit a revised tax return?
Replies: 23
Views: 1726

Re: Must I submit a revised tax return?

If a corrected 1099 is submitted the IRS and state might adjust your return and send you a refund anyway. The IRS will not do that. The IRS does routinely do this. I have clients that get the checks. Heck, I just cashed one today for myself. I have never seen or heard of this. Can you provide some ...
by MarkNYC
Wed Jul 11, 2018 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: RMD from Inherited IRA
Replies: 12
Views: 1247

Re: RMD from Inherited IRA

14.6 is the correct divisor for 2018. ..Therefore, there has been a small shortfall in the RMD for 2015-2017 which needs to be made up. Then a 5329 should be filed for those years requesting the penalty waiver. The 5329 can be filed by itself and no 1040 X is needed. Alan, The OP has indicated an a...
by MarkNYC
Wed Jul 11, 2018 12:01 pm
Forum: Investing - Help with Personal Investments
Topic: Must I submit a revised tax return?
Replies: 23
Views: 1726

Re: Must I submit a revised tax return?

You are under no obligation to amend a return if it’s in the government’s favor. They appreciate your donation. There is no legal obligation to file an amended tax return, regardless of whether the amended return would result in you owing more to the IRS or the IRS owing you a refund. There is no l...
by MarkNYC
Wed Jul 11, 2018 11:18 am
Forum: Investing - Help with Personal Investments
Topic: Must I submit a revised tax return?
Replies: 23
Views: 1726

Re: Must I submit a revised tax return?

If a corrected 1099 is submitted the IRS and state might adjust your return and send you a refund anyway. The IRS will not do that. The IRS does routinely do this. I have clients that get the checks. Heck, I just cashed one today for myself. I have never seen or heard of this. Can you provide some ...
by MarkNYC
Wed Jul 11, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Must I submit a revised tax return?
Replies: 23
Views: 1726

Re: Must I submit a revised tax return?

If a corrected 1099 is submitted the IRS and state might adjust your return and send you a refund anyway. The IRS will not do that. The IRS does routinely do this. I have clients that get the checks. Heck, I just cashed one today for myself. I have never seen or heard of this. Can you provide some ...
by MarkNYC
Tue Jul 10, 2018 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Accounting question about inherited Roth IRA
Replies: 6
Views: 512

Re: Accounting question about inherited Roth IRA

On my tax return, I noticed that my accountant had placed the required minimum distribution from my inherited Roth IRA on a line that said it was a non-qualified distribution. ......................... according to this chart (Fig 2.1) https://www.irs.gov/publications/p590b#en_US_2017_publink100023...
by MarkNYC
Tue Jul 10, 2018 7:39 pm
Forum: Investing - Help with Personal Investments
Topic: Must I submit a revised tax return?
Replies: 23
Views: 1726

Re: Must I submit a revised tax return?

NotWhoYouThink wrote:
Tue Jul 10, 2018 7:29 pm
If a corrected 1099 is submitted the IRS and state might adjust your return and send you a refund anyway.
The IRS will not do that.
by MarkNYC
Tue Jul 10, 2018 7:06 pm
Forum: Investing - Help with Personal Investments
Topic: Must I submit a revised tax return?
Replies: 23
Views: 1726

Re: Must I submit a revised tax return?

AerialWombat wrote:
Tue Jul 10, 2018 5:57 pm
You are under no obligation to amend a return if it’s in the government’s favor. They appreciate your donation.
There is no legal obligation to file an amended tax return, regardless of whether the amended return would result in you owing more to the IRS or the IRS owing you a refund.
by MarkNYC
Tue Jul 03, 2018 12:38 pm
Forum: Personal Finance (Not Investing)
Topic: Will I ever be able to itemize?
Replies: 64
Views: 4222

Re: Will I ever be able to itemize?

Most people who come out behind under the new rules are those who had very high itemized deductions in the past (or would in the future). Particularly those with his high SALT. I would revise this by adding: those who were previously subject to zero or minimal Alternative Minimum Tax. Here's a real...
by MarkNYC
Mon Jul 02, 2018 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16510

Re: IRS publishes draft 2018 1040 - Huge changes made

Given this language, I don't see any validity to a claim that dividend income from REITs constitutes "qualified business income" for purposes of the 20% deduction. Strictly speaking, dividend income from REITs is not qualified business income. However, 20% of certain dividend income from REITs is i...
by MarkNYC
Sun Jul 01, 2018 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Required minimum distributions from IRA
Replies: 18
Views: 1459

Re: Required minimum distributions from IRA

Am I supposed to receive a form from each IRA trustee, advising RMD and asking if I am them to withhold a certain percent for federal taxes? Fidelity will you tell online (no form) what they estimate to be your RMD for the year based on the accounts they have. The required annual RMD statement I me...
by MarkNYC
Sun Jul 01, 2018 5:19 pm
Forum: Personal Finance (Not Investing)
Topic: Required minimum distributions from IRA
Replies: 18
Views: 1459

Re: Required minimum distributions from IRA

Am I supposed to receive a form from each IRA trustee, advising RMD and asking if I am them to withhold a certain percent for federal taxes? Every traditional IRA custodian/trustee must send a notice annually (by Jan 31) to each IRA owner who must receive an RMD, informing the owner of the RMD requ...
by MarkNYC
Fri Jun 29, 2018 7:21 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16510

Re: IRS publishes draft 2018 1040 - Huge changes made

Bruce, The 20% deduction will apply to "qualified business income". REIT dividends and income from publicly traded partnerships (MLPs) are excluded from the definition of qualified business income. IRC Sec 199A(c)(1) Mark Not sure I read it that way. QBI does indeed exclude qualified dividends (i.e...
by MarkNYC
Fri Jun 29, 2018 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16510

Re: IRS publishes draft 2018 1040 - Huge changes made

WSJ article on the new form: [*]Similarly AMT forecast to go from 5M to 200k households [/list] I suspect that the answer is "yes," but if you have AMT Foreign Tax Carryovers and, because of the new tax law, you are no longer subject to the AMT, do you lose the carryovers and no longer need to trac...
by MarkNYC
Fri Jun 29, 2018 11:47 am
Forum: Personal Finance (Not Investing)
Topic: IRS publishes draft 2018 1040 - Huge changes made
Replies: 156
Views: 16510

Re: IRS publishes draft 2018 1040 - Huge changes made

One new adjustment on page 2 of the 1040 is line 9 for “qualified business income deductions (see instructions)” which I assume is for the 20% small business deduction under Section 199A. The following is all I could find on line 9, from the WSJ https://www.wsj.com/articles/the-new-1040-tax-form-it...
by MarkNYC
Wed Jun 27, 2018 3:37 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated taxes question
Replies: 12
Views: 684

Re: Estimated taxes question

I am not sure of any rule that prevents sending a voucher for the same due date more than once at different times before that due date. Maybe someone else can chime in if that somehow causes a problem. It does not cause a problem. If you have already sent in a 2nd quarter estimated payment along wi...
by MarkNYC
Sat May 26, 2018 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Does IRS penalize for overpayment of taxes?
Replies: 19
Views: 2064

Re: Does IRS penalize for overpayment of taxes?

Just this week a coworker and I were talking about estimating taxes and he said you can be assessed fines for both underpaying and overpaying. I was surprised but he was confident that is the case. Your coworker is mistaken. There is no penalty for overpaying estimated income tax or any other type ...
by MarkNYC
Fri May 25, 2018 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Selling ‘Gifted’ property
Replies: 7
Views: 1268

Re: Selling ‘Gifted’ property

If it's within 9 months from the first transfer, the child might be able to disclaim it, thus avoiding two taxable gifts. In this instance, I doubt there are any taxable gifts. For 2017, the gift tax exemption was $5.5M (IIRC) and has increased to $11M (IIRC) for 2018. The term "taxable gift" refer...
by MarkNYC
Wed May 23, 2018 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Helping a friend injured in a car crash file a few years of back tax returns, missing a weird K-1...
Replies: 6
Views: 586

Re: Helping a friend injured in a car crash file a few years of back tax returns, missing a weird K-1...

Will they run into difficulties if they do not report that missing income? If you think they might run into trouble, what is the best solution? As a part of the Schwab portfolio they owned a teeny-tiny share of something called PowerShares DB Commodity Index, which I have learned is some kind of we...
by MarkNYC
Sun May 20, 2018 6:21 pm
Forum: Investing - Help with Personal Investments
Topic: Tax related questions
Replies: 17
Views: 1487

Re: Tax related questions

Are withdrawals from 401K subject to state tax? If so, how is taxed if I end up living in my home country after age 59.5 (in which case I will not be tied to any state)? Your last state of residency before you leave the USA will consider you a resident and continue taxing your income while you are ...
by MarkNYC
Thu May 10, 2018 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax question
Replies: 21
Views: 1745

Re: Estimated tax question

It's very much a semantic issue: what is the definition of "safe harbor" in this situation? Those who define it as "not having to pay a penalty" will reach conclusions different from those who define it as "any one of the three conditions leading to the 'You are NOT required to pay estimated tax' b...
by MarkNYC
Thu May 10, 2018 3:41 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated tax question
Replies: 21
Views: 1745

Re: Estimated tax question

Since a single first quarter installment is not four equal installments it does not exactly follow the description of the safe harbor. Note that form 1040-es specifically says: Payment Due Dates You can pay all of your estimated tax by April 17, 2018, or in four equal amounts by the dates shown bel...
by MarkNYC
Tue May 08, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!
Replies: 92
Views: 8994

Re: Don't leave your non-spouse heirs TIRAs with basis, unless you hate them!

I suspect those who have both their own 8606 as well as an inherited IRA with basis and thus an inherited 8606 usually have more complex tax returns... The complication comes for those using tax software, none of which can handle this situation. It’s not just a matter of having to do an 8606 by han...
by MarkNYC
Sun May 06, 2018 3:55 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Filing [Should 1040X be filed?]
Replies: 7
Views: 950

Re: IRS Filing

My son is in college, so I helped him file his taxes electronically on about 23 March and he was due about a $100 refund. After we filed, I realized we left some income off and he owed about $1000, assuming the $100 refund came through. I expected the $100 refund to show up before 17 April, but it ...
by MarkNYC
Tue Apr 17, 2018 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Relative Never Took RMDs on Inherited IRA From 2004
Replies: 19
Views: 2700

Re: Relative Never Took RMDs on Inherited IRA From 2004

I have never heard of an instance where the IRS assessed the 50% penalty tax either proactively or as a result of a denial of a waiver request on Form 5329. If it ever happens it is rare. I had an opportunity recently to speak briefly with a former IRS Commissioner and asked him about this, that is,...
by MarkNYC
Sun Apr 15, 2018 6:05 pm
Forum: Personal Finance (Not Investing)
Topic: HELP - IRS says I owe close to $12,000 for 2016 taxes
Replies: 26
Views: 4568

Re: HELP - IRS says I owe close to $12,000 for 2016 taxes

The IRS realized the mistake and sent her a bill this week. Gross proceeds not reported: $37,000 Taxes owed: $9,100 Tax understatement penalty: $1,800 Interest: $440 I assume the IRS used a cost basis of 0 and assumed everything was a short-term gain. She's in the 25% tax bracket and that seems to ...
by MarkNYC
Sat Mar 31, 2018 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Residential Energy Credits-Non owned property
Replies: 14
Views: 826

Re: Residential Energy Credits-Non owned property

barberakb wrote:
Fri Mar 30, 2018 2:26 pm
The way I read it would be no.

Both the first and last sentence state "your home"

IMO it isn't your home unless you own it.
So would you consider a person who rents to be a homeless person? :wink:
by MarkNYC
Thu Mar 29, 2018 1:47 pm
Forum: Personal Finance (Not Investing)
Topic: SS Taxation -Please Clarify
Replies: 12
Views: 1367

Re: SS Taxation -Please Clarify

After reading the Bogleheads wiki on the subject [Taxation of Social Security benefits] ... $90,000 AGI [?] exceeds couple's upper base of $44,000 so 85% of SS is taxable, 85% of $20,000 = $17,000 Your $90,000 is correct. (However it is not called AGI (Adjusted Gross Income) -- that refers to somet...
by MarkNYC
Thu Mar 29, 2018 11:43 am
Forum: Personal Finance (Not Investing)
Topic: No income but sold a house... (taxes)
Replies: 29
Views: 2772

Re: No income but sold a house... (taxes)

Since the home was inherited, it's probably eligible for LTCL treatment - so even though you don't get a refund, that Long Term Capital Loss will carry forward. In the original post, the OP says "sold my home in Colorado and moved to Nevada." This suggests the home was used as a personal residence....
by MarkNYC
Tue Mar 27, 2018 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 7287

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

The grandparent's cost basis will be the fair market value at the time of the donation, so if the grandparent immediately sells it, their capital gains will be zero. That's not correct. The basis for the recipient of the gift will be the same as the basis for the person who made the gift. Not accor...
by MarkNYC
Tue Mar 27, 2018 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition
Replies: 121
Views: 7287

Re: Gifting Appreciated Stocks to Grandparent to pay Child's Private School Tuition

willthrill81 wrote:
Tue Mar 27, 2018 4:48 pm
The grandparent's cost basis will be the fair market value at the time of the donation, so if the grandparent immediately sells it, their capital gains will be zero.
That's not correct. The basis for the recipient of the gift will be the same as the basis for the person who made the gift.
by MarkNYC
Sat Mar 17, 2018 11:08 am
Forum: Personal Finance (Not Investing)
Topic: I owe $50k in 2017 taxes. Where can I find a good accountant/ bookkeeper? Or DIY?
Replies: 26
Views: 3595

Re: I owe $50k in 2017 taxes. Where can I find a good accountant/ bookkeeper? Or DIY?

Note that filing for an extension does not relieve you of the obligation to pay the tax by April 15. If you pay 90% of the tax by April 15 (including the payment with the extension, plus any payments already made by withholding and estimated tax), you can file for an extension, and owe only interes...
by MarkNYC
Thu Mar 15, 2018 6:54 pm
Forum: Investing - Help with Personal Investments
Topic: Help with the new tax laws and deductions for a w2 salesman
Replies: 8
Views: 582

Re: Help with the new tax laws and deductions for a w2 salesman

As an employee who works as a travelling salesman, you should check your W-2 to see if box 13 is checked. If it is, you qualify as a "statutory employee", which means you can report on Schedule C both your wage income and your unreimbursed business expenses (without paying self-employment tax).
by MarkNYC
Thu Mar 15, 2018 4:54 pm
Forum: Personal Finance (Not Investing)
Topic: Not Claiming Dependant to Get Saver’s Credit
Replies: 13
Views: 1280

Re: Not Claiming Dependant to Get Saver’s Credit

The important part about dependency is that you cannot decide who is a dependent and who is not. The support tests are clear about dependency, so if you legally can be claimed as a dependent of another individual, then you cannot claim yourself (which is to say take your exemption). Just because so...
by MarkNYC
Wed Mar 14, 2018 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Trad IRA Conversion to Roth: Should I bother? [What is "earned income"?]
Replies: 23
Views: 1367

Re: What constitutes earned income for trad/Roth IRA contributions?

* Report $3000 income on your Schedule C. * Do not take any business deductions. * You will have to compute Self-Employment tax on Schedule SE. * Compute Form 8880. You will garner a Savers Credit of $1000 for your (>$2000) IRA contribution, whether it is Traditional IRA or Roth IRA. * In your othe...
by MarkNYC
Tue Mar 13, 2018 7:29 pm
Forum: Personal Finance (Not Investing)
Topic: MLP Taxation Confusion [Master Limited Partnership]
Replies: 27
Views: 1807

Re: MLP Taxation Confusion [Master Limited Partnership]

Your original basis is increased by any income items on the K-1s, and is decreased by any loss or deduction items on the K-1s as well as any distributions received. The losses on the K-1s are generally not deductible until the year of sale, so be sure to indicate on your tax program input that 2017 ...
by MarkNYC
Tue Mar 13, 2018 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Inhertiance beneficiaries and tax deductions
Replies: 5
Views: 699

Re: Inhertiance beneficiaries and tax deductions

My friend, Roger, and his sister are the only beneficiaries. They have donated some stuff to goodwill such as clothing and medical equipment. For this the "estate" has some donation receipts which all together total about $2,000. When filing their taxes, it's my understanding that both Roger and hi...
by MarkNYC
Mon Mar 12, 2018 6:45 pm
Forum: Personal Finance (Not Investing)
Topic: When does a trust file?
Replies: 10
Views: 883

Re: When does a trust file?

Mark, what’s your reaction to my idea of filing a return in order to generate a K-1? Gill Gill, I think your suggestion makes sense, because it would be very helpful to the beneficiary. Perhaps the "under $600" part of the filing requirements is analogous to the 1099-MISC filing requirement, where ...
by MarkNYC
Mon Mar 12, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: When does a trust file?
Replies: 10
Views: 883

Re: When does a trust file?

Without looking up the reference, I believe “Taxable Income” here refers to to a positive non zero number on the 1041 line 22. This is not the same as just having a couple of hundred dollars of interest. Yes, you might be correct; I assumed the OP didn't have deductions from lines 11 - 21, as he wa...
by MarkNYC
Tue Mar 06, 2018 9:07 am
Forum: Personal Finance (Not Investing)
Topic: 1099-MISC from SOFI - Am I self employed?
Replies: 18
Views: 1327

Re: 1099-MISC from SOFI - Am I self employed?

The OP can decide if he wants to attach a statement or not. In the past, I had clients getting letters from the IRS because the amounts shown in box 7 were not reported as SE income. Sure, you can wait for the IRS to contact you but I prefer to be proactive. I agree with Huey. It's not the statemen...
by MarkNYC
Mon Mar 05, 2018 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: 2011, 12, 13 forgot to deduct very large deferred SavBond INT on State Tax Return ..
Replies: 2
Views: 525

Re: 2011, 12, 13 forgot to deduct very large deferred SavBond INT on State Tax Return ..

I believe CA has a 4-year statute of limitations on filing for tax refunds, so still time for a 2013 amended CA return. Probably out of luck for 11 and 12.
by MarkNYC
Mon Mar 05, 2018 1:00 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Accountants: NJ / NY double taxed income
Replies: 10
Views: 1097

Re: Tax Accountants: NJ / NY double taxed income

Which line do you report the $5k contribution? I don’t see anything in the instruction for IT-203 to allow for the contribution to a NY 529. It goes on line 29 In any case, I don’t think you are really saving any taxes by contributing to a NY 529 because while it will reduce your NY tax, NJ is just...
by MarkNYC
Thu Mar 01, 2018 11:19 am
Forum: Personal Finance (Not Investing)
Topic: Missed 1099-R on taxes
Replies: 19
Views: 1689

Re: Missed 1099-R on taxes

Would $1.54 ($2 rounded for income reporting) additional income really increase his tax bill? I think it would if he were right on the edge of a taxable income range, but I don't think it would otherwise. What say you? That was my original thought. But I guess the tax would increase if it's compute...
by MarkNYC
Tue Feb 27, 2018 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: 1st year I have to pay AMT - Legitimate or an Error?
Replies: 14
Views: 1470

Re: 1st year I have to pay AMT - Legitimate or an Error?

There are two systems used to compute your income tax. The regular tax, which I will abbreviate RT Tentative Minimum Tax, TMT, which computes the tax using what most people call the " ATM " rules. In short you compute both and pay the larger of the two. If RT is larger you pay that and there is no ...
by MarkNYC
Mon Feb 26, 2018 8:39 pm
Forum: Personal Finance (Not Investing)
Topic: Paying estimated taxes for MRD
Replies: 8
Views: 763

Re: Paying estimated taxes for MRD

Epsilon Delta wrote:
Mon Feb 26, 2018 7:39 pm
... the under withholding penalty is 3% per year simple interest. More of an annoyance than a financial calamity.
The federal underpayment penalty rate increased from 3% to 4% in the 2nd quarter of 2016 and has remained at 4% since. Still not too severe at 4%.
by MarkNYC
Sun Feb 25, 2018 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Tax return looks to be significantly less than what was filed
Replies: 4
Views: 886

Re: Tax return looks to be significantly less than what was filed

Another possibility, and my first suspicion when the difference is a round number, is a discrepancy between the amount of estimated tax payments listed on the tax return and the amount the IRS has on record.
by MarkNYC
Fri Feb 23, 2018 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Misc Income [how to report with no 1099]
Replies: 87
Views: 4293

Re: Misc Income [how to report with no 1099]

For those convinced that a Schedule C is required, I suggest they re-read the bolded section of the post above by tomd37, where he quotes the IRS instructions: Use Schedule C... for a business you operated or profession your practiced...the activity qualifies as a business if the taxpayer is involve...
by MarkNYC
Thu Feb 22, 2018 9:31 pm
Forum: Personal Finance (Not Investing)
Topic: Turbotax: forgot to enter estimated payment last year
Replies: 2
Views: 500

Re: Turbotax: forgot to enter estimated payment last year

You should bring over the prior year's tax return as originally filed. If, for example, your 2016 VA tax return showed a $100 refund, and you omitted a $500 VA estimated tax payment, so the actual refund received was $600, you should only include $100 as a taxable state refund on your 2017 federal r...