Search found 2082 matches

by MarkNYC
Sat Jun 05, 2021 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: LLC units and capital gains
Replies: 20
Views: 935

Re: LLC units and capital gains

I am a Jimmy and with the prospect of selling on the horizon, asked my CPA (whom is partner at one of the larger firms in town) about this. Was told it is a laborious and non-trivial calculation. I get the same impression, after reading the docs provided by other posters. Jimmy is hoping the LLC CF...
by MarkNYC
Sat Jun 05, 2021 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: Gift tax
Replies: 53
Views: 3083

Re: Gift tax

I don't know why, but gift taxes seem to be one of the most misunderstood topics in the tax code. The quote below neatly sums up the issue. You do NOT have to pay taxes on gifts larger than $15k per year per recipient; If you gift $120,000 to your daughter in 2019, $105,000 of the gift is taxable b...
by MarkNYC
Sat Jun 05, 2021 11:35 am
Forum: Personal Finance (Not Investing)
Topic: IRS included interest on refund
Replies: 36
Views: 3615

Re: IRS included interest on refund

Info_Hound - That's interesting. We haven't received letters notifying us of changes to our 2020 returns, just received more that asked. Maybe its too soon? The amounts calculate spot on to 3% so I'm confident its interest, but notification would be prudent. I also did not receive a letter for the ...
by MarkNYC
Fri Jun 04, 2021 10:55 am
Forum: Personal Finance (Not Investing)
Topic: Maybe I don't understand the Capital Gains Tax Rates
Replies: 28
Views: 3394

Re: Maybe I don't understand the Capital Gains Tax Rates

I did double check my input into the tax software and it was long term CG. When preparing a tax return, or in this case a hypothetical tax return, it is not enough to double check the input. It is also necessary to check the output, to see if the result produced by the input appears correct. In the...
by MarkNYC
Thu Jun 03, 2021 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: IRS included interest on refund
Replies: 36
Views: 3615

Re: IRS included interest on refund

So here is the IRS explanation. The May 17, 2021 filing deadline is considered a disaster-related postponement of the deadline. When a disaster-related postponement exists, the law requires that interest paid on refunds be calculated from April 15th, as long as the taxpayer files by the postponed d...
by MarkNYC
Thu Jun 03, 2021 2:55 pm
Forum: Personal Finance (Not Investing)
Topic: IRS included interest on refund
Replies: 36
Views: 3615

Re: IRS included interest on refund

So I filed my taxes at the beginning of May, and the IRS issued my refund fairly promptly. For some reason, they added $1+change to the refund amount of roughly $800. I'm wondering if this was interest, and if so, why. Like I said, they issued the refund promptly (less than 2 weeks) and it's on me ...
by MarkNYC
Wed Jun 02, 2021 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: IRS included interest on refund
Replies: 36
Views: 3615

Re: IRS included interest on refund

So I filed my taxes at the beginning of May, and the IRS issued my refund fairly promptly. For some reason, they added $1+change to the refund amount of roughly $800. I'm wondering if this was interest, and if so, why. Like I said, they issued the refund promptly (less than 2 weeks) and it's on me ...
by MarkNYC
Wed Jun 02, 2021 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: taxes and Form 709 filings on gifts to family
Replies: 5
Views: 430

Re: taxes and Form 709 filings on gifts to family

All my experience with Form 709 relates to gifts to an irrevocable trust with it's own EIN. Those gifts are directly to the trust. We do Crummey letters since it is a GST. The trust benefits my daughter and granddaughter, but not my SIL. My granddaughter is 3 YO. Our daughter and husband are lookin...
by MarkNYC
Wed Jun 02, 2021 1:25 pm
Forum: Personal Finance (Not Investing)
Topic: Issue with a parent's former CPA
Replies: 25
Views: 2901

Re: Issue with a parent's former CPA

It is a CP2000 with the penalty being 'substantial tax understatement penalty.' Digging into the form more it looks like a chunk of the discrepancy comes from her TRK-1 form. The IRS notes "her" reporting $0 but notable dollar amounts "reported by others". Was she the beneficiar...
by MarkNYC
Tue Jun 01, 2021 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Issue with a parent's former CPA
Replies: 25
Views: 2901

Re: Issue with a parent's former CPA

I’m not sure why the feds would forgive the penalty. Perhaps you need to talk to the CPA about paying it. If the taxpayer qualifies for First-Time Abatement , the IRS routinely waives penalties if a relatively straightforward letter requesting First Time Abatement is submitted in a timely manner. T...
by MarkNYC
Sat May 29, 2021 12:08 pm
Forum: Personal Investments
Topic: Newlywed - Real Estate Capital Gains Tax
Replies: 2
Views: 350

Re: Newlywed - Real Estate Capital Gains Tax

There's no need to file separate tax returns. On a joint return, if the couple does not qualify for the $500K exclusion on the sale of a principal residence, then the maximum amount the couple can exclude is the sum of the limitation of each spouse computed on a separate basis as if they were not ma...
by MarkNYC
Fri May 28, 2021 10:46 pm
Forum: Personal Investments
Topic: titling of inherited IRAs as beneficiary
Replies: 15
Views: 1511

Re: titling of inherited IRAs as beneficiary

As a spouse, you can roll them over into your own IRA. I got the impression that the OP was aware of that option, but wants to keep the accounts (particularly the SEP IRA) as inherited accounts in order to be able to take withdrawals prior to age 59.5 without the 10% early withdrawal penalty. Inher...
by MarkNYC
Fri May 28, 2021 10:27 pm
Forum: Personal Investments
Topic: titling of inherited IRAs as beneficiary
Replies: 15
Views: 1511

Re: titling of inherited IRAs as beneficiary

Although custodians are allowed flexibility here, these titles look clumsy to me. I agree. Two things in the titling seem odd to me: 1. " benef wife's name' -- wife was owner, not beneficiary? 2. " primary owner's birth date - my birth date" -- you are not the primary owner, you are ...
by MarkNYC
Wed May 26, 2021 8:06 pm
Forum: Personal Finance (Not Investing)
Topic: Safe Harbor Using Estimated Taxes
Replies: 6
Views: 586

Re: Safe Harbor Using Estimated Taxes

AGI for 2021 is not relevant. 2021 safe harbor based on 2020 tax will be 100% or 110% of 2020 tax depending on whether 2020 AGI exceeded $150K.
by MarkNYC
Wed May 26, 2021 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.
Replies: 70
Views: 9334

Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Guaranteed fraud. "Guaranteed' ? Really? The OP's case and others like it reinforces the message that reporting an incorrect amount of w/h and/or estimated taxes on the tax return is the most likely reason for an unexpected tax refund. I disagree along with 200K+ others impacted by the TT secu...
by MarkNYC
Wed May 26, 2021 9:05 am
Forum: Personal Finance (Not Investing)
Topic: One Schedule C or Two for LLC Owned by Spouses in Community Property State?
Replies: 12
Views: 897

Re: One Schedule C or Two for LLC Owned by Spouses in Community Property State?

... in the Instructions for Schedule C ( right here ), it says: "If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state... you can treat your wholly owned, unincorporated business as a sole proprietorship, instead of a pa...
by MarkNYC
Tue May 25, 2021 6:37 pm
Forum: Personal Finance (Not Investing)
Topic: NYS Audit Advice ( Moved out of State)
Replies: 109
Views: 5979

Re: NYS Audit Advice ( Moved out of State)

Yep, new information. I would still argue that the convenience rule doesn't apply, because, although the PEO is HQ'd in NY, OP is still actually assigned to the office in FL, but it's certainly becoming a more complicated case. I agree that there are likely arguments to make here. It is possible th...
by MarkNYC
Tue May 25, 2021 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: NYS Audit Advice ( Moved out of State)
Replies: 109
Views: 5979

Re: NYS Audit Advice ( Moved out of State)

Back in June of 2020 I moved from New York State to North Carolina with my family. My company is based out of Florida. I work from my home office , I am a w2. I filed a part time non resident return with New York state and a resident return with North Carolina. I used a CPA. For NY, I assume you me...
by MarkNYC
Tue May 25, 2021 12:39 pm
Forum: Personal Finance (Not Investing)
Topic: NYS Audit Advice ( Moved out of State)
Replies: 109
Views: 5979

Re: NYS Audit Advice ( Moved out of State)

Big picture, they are now trying to get tax revenue from a large number of non-residents who physically worked in the NY offices of various companies, shifted to remote related to COVID, and want to say their income is no longer NY source. There have been threads about this here, a person worked in...
by MarkNYC
Tue May 25, 2021 12:22 pm
Forum: Personal Finance (Not Investing)
Topic: NYS Audit Advice ( Moved out of State)
Replies: 109
Views: 5979

Re: NYS Audit Advice ( Moved out of State)

...The OP lived in NYS, the OP paid income taxes to NYS, and the OP moved out of NYS for OP's convenience (per NYS), and not the employer's directive. Hence, OP still owes NYS income tax. IMO, the simplest solution is for OP has to prove is that the move to NC was not for OP's convenience, but a bo...
by MarkNYC
Mon May 24, 2021 7:11 pm
Forum: Personal Finance (Not Investing)
Topic: Didn’t deduct rental property depreciation for 10+ years. Can I fix?
Replies: 21
Views: 3073

Re: Didn’t deduct rental property depreciation for 10+ years. Can I fix?

TiredLawyer wrote: Mon May 24, 2021 3:44 am
runswithscissors wrote: Mon May 24, 2021 1:15 am Curious as to what happens if you sell. Would the depreciation recapture still apply even if you didn't depreciate it?
Yes, recapture still applies irrespective of whether you actually took the depreciation.
That's not correct, per Code Sec 1250(b)(3).
by MarkNYC
Mon May 24, 2021 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: Depreciation, Capital Gains, AGI and Medicare Magi
Replies: 3
Views: 502

Re: Depreciation, Capital Gains, AGI and Medicare Magi

Mark NYC thank you so much for such nice, short and lucid summary. Actually when we bought the condo in 2003, daughter and myself were the buyers. subsequently in 2013, DW and I created a living trust and transferred the deed to the living trust. In fact the living trust is the recent seller. Since...
by MarkNYC
Sun May 23, 2021 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Depreciation, Capital Gains, AGI and Medicare Magi
Replies: 3
Views: 502

Re: Depreciation, Capital Gains, AGI and Medicare Magi

Here's how the condo sale should work, using rounded numbers for simplicity: Improvements increased the basis to $178K. Total depreciation of $72K reduced the basis to $106K. With net sale proceeds of $232K, there is a gain of $126K. Since you owned and lived in the condo at least 2 of the 5 years o...
by MarkNYC
Sat May 22, 2021 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Estimated taxes when all income in first quarter
Replies: 13
Views: 1213

Re: Estimated taxes when all income in first quarter

I too have read all those rules. I must pay estimated tax on 2022 income which will all occur in Q1. My difficulty comes from one path through the docs saying I should be okay with four equal payments and another path saying I must comply with the “pay as you go” criterion. Which is it? The instruc...
by MarkNYC
Mon May 17, 2021 9:03 am
Forum: Personal Finance (Not Investing)
Topic: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.
Replies: 70
Views: 9334

Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Buddtholomew wrote: Wed Apr 21, 2021 8:35 am
Guaranteed fraud.
"Guaranteed' ? Really?

The OP's case and others like it reinforces the message that reporting an incorrect amount of w/h and/or estimated taxes on the tax return is the most likely reason for an unexpected tax refund.
by MarkNYC
Wed May 12, 2021 8:30 pm
Forum: Personal Investments
Topic: Extreme Roth IRA contribution penalty
Replies: 20
Views: 2094

Re: Extreme Roth IRA contribution penalty

The reason that the penalty is not barred by a statute of limitations is that there is no statute of limitations when you fail to file a tax form. The IRS has ruled that Form 5329 is a separate form from Form 1040, so if you have not filed a Form 5329 in a past year, the penalty (legally a tax) can...
by MarkNYC
Wed May 12, 2021 10:15 am
Forum: Personal Finance (Not Investing)
Topic: what to do if USPS lost my certified mailing of IRS return?
Replies: 50
Views: 4288

Re: what to do if USPS lost my certified mailing of IRS return?

You should file an extension as a precaution. There's absolutely no downside to filing a "protective" extension in this situation, and it gives you breathing room from now until Oct to wait for things to sort out. Use actual figures on the extension request. If for some reason you decided...
by MarkNYC
Tue May 11, 2021 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie tax question
Replies: 17
Views: 1582

Re: Kiddie tax question

Why are you going past line 3 of Form 8615 ? Good question, you got me, I tried to simplify my question to my own detriment. The total unearned income is actually $2199.97, but because of how the individual components are rounded up by the tax forms, Turbotax is calculating total unearned income as...
by MarkNYC
Mon May 10, 2021 9:33 pm
Forum: Personal Finance (Not Investing)
Topic: Kiddie tax question
Replies: 17
Views: 1582

Re: Kiddie tax question

Why are you going past line 3 of Form 8615 ? Good question, you got me, I tried to simplify my question to my own detriment. The total unearned income is actually $2199.97, but because of how the individual components are rounded up by the tax forms, Turbotax is calculating total unearned income as...
by MarkNYC
Mon May 10, 2021 6:01 pm
Forum: Personal Finance (Not Investing)
Topic: Received W2 next year after leaving employer
Replies: 39
Views: 2580

Re: Received W2 next year after leaving employer

Were NY taxes withheld? If your income is properly not NY source (see my comment above on special accruals and nonresident sourcing), you have a couple options. 1) File a NY return and show $0 in NY source income, so your tax should be $0. 2) Wait for a non-filer notice, if any, and respond accordi...
by MarkNYC
Fri May 07, 2021 3:00 pm
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 75
Views: 6672

Re: IRA rollover problem. Please help

Code Sec 408(d)(3)(B) states that a 60-day tax free rollover of an IRA distribution will not be allowed if during the prior 12 months the taxpayer "received any other amount from an IRA which was not includible in his gross income because of the application of this paragraph" (ie rollover...
by MarkNYC
Fri May 07, 2021 11:21 am
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 75
Views: 6672

Re: IRA rollover problem. Please help

What surprises me is that the Custodian has any say at all and can just make an arbitrary decision based on what they think happened. I guess that's why Alan has been pretty conservative with his suggestions - maybe he has dealt with this before and seen it go both ways. As a layman, I just assumed...
by MarkNYC
Thu May 06, 2021 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Investment Interest Carryforward (Taxes)
Replies: 2
Views: 211

Re: Investment Interest Carryforward (Taxes)

The amount of investment interest allowable as a deduction for the current year is limited to investment income, and is calculated on Form 4952. Any interest expense in excess of the amount allowable can be carried forward and is listed on line 7 of the form. The interest expense allowable transfers...
by MarkNYC
Thu May 06, 2021 12:40 pm
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 75
Views: 6672

Re: IRA rollover problem. Please help

Update: Someone from Ally bank called me. She was from IRA dept. Very nice lady and very helpful. She said they are okay with big check to be rolled over and the small check to be converted to Roth IRA She said she needs time. She said she had a meeting with analysts and tax people to make sure if ...
by MarkNYC
Thu May 06, 2021 11:45 am
Forum: Investing - Theory, News & General
Topic: RIP David Swensen
Replies: 57
Views: 8906

Re: RIP David Swensen

About 8 or 9 years ago, I had the good fortune of being seated next to him at a luncheon in honor of Jack Bogle. He was very personable and engaging, and freely shared his views on a variety of issues. Swensen's accomplishments were significant, and his personal investing book Unconventional Success...
by MarkNYC
Wed May 05, 2021 6:09 pm
Forum: Personal Finance (Not Investing)
Topic: Inherited trust question
Replies: 20
Views: 1378

Re: Inherited trust question

Aside from the practical suggestions already provided, I will add this for perspective. I'm guessing the trust provides around $10K - $15K annual income to you. As a couple in their 30s with a seven-figure investment portfolio, and annual income currently or soon-to-be over $600k, the underperforman...
by MarkNYC
Wed May 05, 2021 11:36 am
Forum: Investing - Theory, News & General
Topic: IRA with estate as beneficiary
Replies: 12
Views: 860

Re: IRA with estate as beneficiary

There is also the issue of the delinquent RMD for 2019, and possibly for 2018 also if the IRA owner died before taking her RMD for the year. Since there was no designated beneficiary for the IRA, if the executor assigned the interest in the IRA to each of the estate beneficiaries, then each benefici...
by MarkNYC
Mon May 03, 2021 5:52 pm
Forum: Personal Finance (Not Investing)
Topic: What if filing taxes late
Replies: 3
Views: 495

Re: What if filing taxes late

Any federal tax unpaid by the original due date of the tax return (May 17th this year) is subject to interest, currently assessed at an annual 3% rate. If the unpaid tax is greater than 10% of the total tax liability for the year, then a late-payment penalty of 1/2% per month will be also be assesse...
by MarkNYC
Mon May 03, 2021 11:29 am
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 75
Views: 6672

Re: IRA rollover problem. Please help

Here's their blog post that probably covers the first item and seems to support what I said about counting the day you received each check, not when they were deposited: https://www.irahelp.com/slottreport/what-year-means-when-it-comes-your-ira-rollover , read down to the 4th paragraph. Here's the ...
by MarkNYC
Sat May 01, 2021 8:38 pm
Forum: Personal Finance (Not Investing)
Topic: How to handle when IRS wrongly adjusts 1040
Replies: 14
Views: 1716

Re: How to handle when IRS wrongly adjusts 1040

After going through the transactions their computer/calculation definitely made an error. They gave me the full $6,000 Child credit and then applied another $4,200 refundable Child credit, but did not apply the $7,500 electric credit. So, the IRS fully disallowed the electric vehicle credit, which ...
by MarkNYC
Fri Apr 30, 2021 10:16 pm
Forum: Personal Finance (Not Investing)
Topic: How to handle when IRS wrongly adjusts 1040
Replies: 14
Views: 1716

Re: How to handle when IRS wrongly adjusts 1040

Before assuming the tax return you filed was accurate and the IRS adjustment was wrong, you need to find out what specific item or items on your return were changed by the IRS, then go back and double-check your calculation and entry for that amount. It's possible you're right and the IRS is wrong, ...
by MarkNYC
Thu Apr 29, 2021 9:22 pm
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 75
Views: 6672

Re: IRA rollover problem. Please help

Here are my thoughts, and perhaps Alan can comment. Code Sec 408(d)(3)(B) states that a 60-day tax free rollover of an IRA distribution will not be allowed if during the prior 12 months the taxpayer "received any other amount from an IRA which was not includible in his gross income because of ...
by MarkNYC
Thu Apr 29, 2021 6:01 pm
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 75
Views: 6672

Re: IRA rollover problem. Please help

Here are my thoughts, and perhaps Alan can comment. Code Sec 408(d)(3)(B) states that a 60-day tax free rollover of an IRA distribution will not be allowed if during the prior 12 months the taxpayer "received any other amount from an IRA which was not includible in his gross income because of ...
by MarkNYC
Thu Apr 29, 2021 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Sch K Line 13W - can I use it to offset rental income?
Replies: 6
Views: 437

Re: Sch K Line 13W - can I use it to offset rental income?

The Home LLC is not a passive activity Can you explain why the Home LLC is not passive? I hope to convey this info to DH and sibs. Thank you! A passive activity is either a trade or business in which the taxpayer does not materially participate, or a rental activity. From your description, the Home...
by MarkNYC
Thu Apr 29, 2021 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Sch K Line 13W - can I use it to offset rental income?
Replies: 6
Views: 437

Re: Sch K Line 13W - can I use it to offset rental income?

The Home LLC is not a passive activity so the deductions on that K-1 cannot be used to offset any passive income. The K-1 for the Home LLC should have a footnote or statement identifying what the amount is on line 13 (code W). In all likelihood, it represents real estate tax (and perhaps mortgage in...
by MarkNYC
Thu Apr 29, 2021 9:45 am
Forum: Personal Finance (Not Investing)
Topic: spend year in 2 different states: which gets cap gains taxes?
Replies: 13
Views: 1161

Re: spend year in 2 different states: which gets cap gains taxes?

Let's say your income (with the cap gains) is $100K in State A. and your income the rest of the year is $50K Some states part year returns will let you clearly allocated the 100K to them, and the $50K to others If State B uses a ratio, they will want to tax you on 7/12 of your total income of $150K...
by MarkNYC
Wed Apr 28, 2021 7:59 pm
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 75
Views: 6672

Re: IRA rollover problem. Please help

Here are my thoughts, and perhaps Alan can comment. Code Sec 408(d)(3)(B) states that a 60-day tax free rollover of an IRA distribution will not be allowed if during the prior 12 months the taxpayer "received any other amount from an IRA which was not includible in his gross income because of ...
by MarkNYC
Tue Apr 27, 2021 11:24 pm
Forum: Personal Investments
Topic: IRA rollover problem. Please help
Replies: 75
Views: 6672

Re: IRA rollover problem. Please help

Here are my thoughts, and perhaps Alan can comment. Code Sec 408(d)(3)(B) states that a 60-day tax free rollover of an IRA distribution will not be allowed if during the prior 12 months the taxpayer "received any other amount from an IRA which was not includible in his gross income because of t...
by MarkNYC
Tue Apr 27, 2021 3:34 pm
Forum: Personal Consumer Issues
Topic: Snowbirds establishing FL residency from Northeast- Residency audits
Replies: 81
Views: 8048

Re: Snowbirds establishing FL residency from Northeast- Residency audits

The NYS audit guidelines (and according to NS_Bane's it's the same in MA) explicitly say the burden of proof is on the party claiming residency has changed. Thus if you're a FL resident who lives part time in NY, not a previous NY resident, NY has to prove you were there *more than* 183 days (which...
by MarkNYC
Sun Apr 25, 2021 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Is it better to file child's interest income separately or with your own return
Replies: 11
Views: 925

Re: Is it better to file child's interest income separately or with your own return

On page 3 of IRS Pub 501 under the subsection titled Election to report child's unearned income on parent's return it states: "You may be able to include your child's interest and dividend income on your return. If you do this, your child won't have to file a return." It goes on to list t...