Search found 2117 matches

by MarkNYC
Tue Aug 03, 2021 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Redirect tax refund (not received) to estimated taxes?
Replies: 11
Views: 502

Re: Redirect tax refund (not received) to estimated taxes?

I don't think they can specifically be redirected to estimated payments, but they could be applied to 2021's tax liability, which is about the same thing. File an amended return? I'm thinking this way too. Not sure if this will work. The amendment normally needs to be processed after the original r...
by MarkNYC
Tue Aug 03, 2021 8:27 am
Forum: Personal Finance (Not Investing)
Topic: "Silent Partner" in LLC - How to Minimize Taxes
Replies: 7
Views: 900

Re: "Silent Partner" in LLC - How to Minimize Taxes

So I talked to the attorney servicing this business, who also holds 10% interest in the business. He is recommending that since the expectation is that the proceeded will be at least 50K and probably more that I create an S-Corp in VA that will hold the 10% in stock and then take any earnings as st...
by MarkNYC
Sun Aug 01, 2021 8:19 am
Forum: Personal Investments
Topic: Inherited Traditional IRA [when are RMDs required?]
Replies: 33
Views: 2279

Re: Inherited Traditional IRA [when are RMDs required?]

... I called to make a appointment at the local IRS office. I talked to someone for about 10 minutes. She was trying to determine if available staff would be able to help. She then said she could transfer me to the IRS law office (I think that's what she called it) to discuss the situation with the...
by MarkNYC
Sat Jul 31, 2021 5:26 pm
Forum: Personal Investments
Topic: Inherited Traditional IRA [when are RMDs required?]
Replies: 33
Views: 2279

Re: Inherited Traditional IRA [when are RMDs required?]

... I called to make a appointment at the local IRS office. I talked to someone for about 10 minutes. She was trying to determine if available staff would be able to help. She then said she could transfer me to the IRS law office (I think that's what she called it) to discuss the situation with the...
by MarkNYC
Mon Jul 26, 2021 6:39 pm
Forum: Personal Investments
Topic: RETIREMENT: Does Non Statutory Stock Options Exercise & Sale reported on W2 count as earned income?
Replies: 24
Views: 1600

Re: RETIREMENT: Does Non Statutory Stock Options Exercise & Sale reported on W2 count as earned income?

I had a situation in which the exercise of stock options was reported as W2 and taxed accordingly but it was also reported on a 1099. Not accounting for the 1099 on my return got me a letter from the IRS stating I owned them something like 35k. Fortunately, I was able to straighten it out with the ...
by MarkNYC
Mon Jul 26, 2021 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Gifting from joint account
Replies: 58
Views: 3082

Re: Gifting from joint account

Here is how the IRS views it: Gift tax: If A fully funds a nonspousal joint bank account with B, that will not create a gift to B subject to gift tax. A gift to B will take place if and when B withdraws funds from the account for his own benefit. Estate tax: When the first co-tenant of the account d...
by MarkNYC
Mon Jul 26, 2021 5:20 pm
Forum: Personal Investments
Topic: RETIREMENT: Does Non Statutory Stock Options Exercise & Sale reported on W2 count as earned income?
Replies: 24
Views: 1600

Re: RETIREMENT: Does Non Statutory Stock Options Exercise & Sale reported on W2 count as earned income?

I had a situation in which the exercise of stock options was reported as W2 and taxed accordingly but it was also reported on a 1099. Not accounting for the 1099 on my return got me a letter from the IRS stating I owned them something like 35k. Fortunately, I was able to straighten it out with the ...
by MarkNYC
Mon Jul 26, 2021 3:01 pm
Forum: Personal Consumer Issues
Topic: Rock Bands/performers that Have Stood the Test of Time
Replies: 48
Views: 1890

Re: Rock Bands/performers that Have Stood the Test of Time

Dion
Drifters
Springsteen
Billy Joel
by MarkNYC
Sun Jul 25, 2021 8:23 pm
Forum: Personal Finance (Not Investing)
Topic: State Income Tax Quandary
Replies: 10
Views: 1338

Re: State Income Tax Quandary

You may have some difficulties. Let's say you were earning $8K per month and your employer withheld VA tax for the first 3 months even though you moved out of VA on Jan 1. It is likely you will receive a VA W-2 showing $24K VA wages and around $1,200 VA tax withheld. When you file a 2021 full-year n...
by MarkNYC
Thu Jul 22, 2021 1:52 pm
Forum: Personal Finance (Not Investing)
Topic: Multi-state tax (am I understanding this correctly?)
Replies: 12
Views: 1091

Re: Multi-state tax (am I understanding this correctly?)

Thanks for the responses. This seems to point me in a certain direction, but doesn’t give me 100% confidence. Let’s say I earn $195k in PA and $5k in VA on vacation. Since this is below the reporting threshold, I don’t need to claim anything for VA, right? No, that is not correct. Your VA adjusted ...
by MarkNYC
Wed Jul 21, 2021 7:28 pm
Forum: Personal Investments
Topic: Sale of "non-covered" and "covered" mutual fund shares received as gift
Replies: 11
Views: 895

Re: Sale of "non-covered" and "covered" mutual fund shares received as gift

The only special rule is the prohibition against gifting a capital loss. If a share has a lower cost than the giver's basis when given, then the recipient uses the giver's basis for capital gains, but the basis on the gift date for capital losses. For example, if a share was bought for $20 and give...
by MarkNYC
Thu Jul 15, 2021 9:17 pm
Forum: Personal Investments
Topic: Hoping to retire early, rule of 55/Rule 72(t)
Replies: 28
Views: 4963

Re: Hoping to retire early, rule of 55/Rule 72(t)

I'm not sure how the terms such as "72(t)", "Rule of 72(t)" and "72(t) distribution" gained such widespread use as meaning Substantially Equal Periodic Payments (aka SEPP). Maybe the terms are just easier to type? IRC Section 72(t) deals with the 10% additional tax on d...
by MarkNYC
Wed Jul 14, 2021 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: [Discrepancy in IRS refund, no explanation given. What to do?]
Replies: 9
Views: 781

Re: [Discrepancy in IRS refund, no explanation given. What to do?]

If you don’t hear anything (I’m sure the backlog is huge), on your 2021 return, you can claim a rollover of $1,000 in taxes already paid. In fact that’s an option every year. Just to verify, look at your 2020 return to see if that’s what you did. Depending on the date they received the $1,000, they...
by MarkNYC
Mon Jul 12, 2021 7:17 pm
Forum: Personal Investments
Topic: Question on Kiddie Tax - Capital Gains
Replies: 8
Views: 637

Re: Question on Kiddie Tax - Capital Gains

But basically, you have the option on how to file. From the wiki, since the "income" is < $11k, you can include the income on your return . But doing so (as I understand it) would lose the $2.2k of tax-free "income" if the children filed their own returns. No, the OP has no fili...
by MarkNYC
Mon Jul 12, 2021 6:18 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard not sending out Form 5498 any longer?
Replies: 10
Views: 1060

Re: Vanguard not sending out Form 5498 any longer?

A Vanguard agent told me that Vanguard does not send out Form 5498s if there were no relevant transactions like contributions made to an IRA, for that tax year. Fidelity sends me a Form 5498, rain or shine, every year, even if I made no contributions or other transactions to the Fidelity IRA. Am I ...
by MarkNYC
Sat Jul 10, 2021 5:00 pm
Forum: Personal Finance (Not Investing)
Topic: real estate question - Carryover passive loss options on sale of house
Replies: 11
Views: 815

Re: real estate question - Carryover passive loss options on sale of house

Just to confirm, we can use the carried over passive losses in 2022 (when we sell house) to offset passive gains (taxed at 32% for us) from private RE syndication deal instead of using it to reduce the cost basis of the house? The passive rental loss carryovers have nothing to do with the cost basi...
by MarkNYC
Sat Jul 10, 2021 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: real estate question - Carryover passive loss options on sale of house
Replies: 11
Views: 815

Re: real estate question - Carryover passive loss options on sale of house

There is no election that can be made, or needs to be made, in this situation. If you have unused prior year passive rental losses coming into in 2021, those losses along with any current year rental losses can offset 2021 passive income from any other passive activity. If you sell the rental proper...
by MarkNYC
Thu Jul 08, 2021 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Trust Distribution Capital Gain, Income and Tax
Replies: 4
Views: 405

Re: Trust Distribution Capital Gain, Income and Tax

When I read about UPIA provisions with respect to capital gains and income I am not sure if the trust needs special language to give trustee tax based distribution ability to distribute where taxes will be the lowest. 1) Do I need to give to the trustee a power so that the trustee can consider the ...
by MarkNYC
Wed Jul 07, 2021 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: IRS says my deceased mother filed/paid taxes- MYSTERY SOLVED
Replies: 32
Views: 5059

Re: IRS says my deceased mother filed/paid taxes- MYSTERY SOLVED

Now that I had more information, I wondered about the trust for my nephew..... so checked brokerage statement and saw that my sibling had written checks for the federal tax amounts both years-- albeit just a hair after the IRS deadline. Asked sibling to confirm taxable amount for trust, and she sen...
by MarkNYC
Wed Jul 07, 2021 2:43 pm
Forum: Personal Finance (Not Investing)
Topic: Excess IRA Contribution Tax Questions
Replies: 3
Views: 211

Re: Excess IRA Contribution Tax Questions

For tax compliance purposes, the IRS considers all traditional IRA accounts owned by the taxpayer as one, and all Roth IRA accounts as one. There was a $6K excess contribution to the tIRA. so a 6% penalty. But Form 5329 shows that the 6% is applied to the smaller of the excess contribution amount or...
by MarkNYC
Wed Jul 07, 2021 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Treatment of Reimbursed Legal Fees
Replies: 35
Views: 2003

Re: Tax Treatment of Reimbursed Legal Fees

The complicating factor is that the IRC Sec. 61 definition of "gross income" starts off with an important qualifier: "Except as otherwise provided in this subtitle, gross income means all income from whatever source derived." The subtitle provides that many types of income are e...
by MarkNYC
Wed Jul 07, 2021 10:02 am
Forum: Personal Finance (Not Investing)
Topic: Tax Treatment of Reimbursed Legal Fees
Replies: 35
Views: 2003

Re: Tax Treatment of Reimbursed Legal Fees

The outcome in your favor represents an accession to wealth and is therefore taxable unless there is an exception in the code. Where did this theory come from that an “accession to wealth” is taxable unless specifically excluded? Gill IRC section 1. An accession to wealth is the definition of incom...
by MarkNYC
Mon Jul 05, 2021 8:27 am
Forum: Personal Finance (Not Investing)
Topic: 1031 exchange where replacement property is mom's house
Replies: 4
Views: 606

Re: 1031 exchange where replacement property is mom's house

Looking for advantages, disadvantages and considerations as I consider a 1031 exchange where the replacement property is my mom's house and my childhood home. Our rental property may sell to a developer around the end of this year, proceeds from sale will be approximately 400K. I'm estimating the t...
by MarkNYC
Wed Jun 30, 2021 9:22 am
Forum: Personal Finance (Not Investing)
Topic: New York City Local Taxes for part year residency - IT 360.1 Form Line 1 Column B seems off
Replies: 1
Views: 125

Re: New York City Local Taxes for part year residency - IT 360.1 Form Line 1 Column B seems off

It is difficult to say what caused the error. It may just be a coincidence, but 75% of 75% is 56%, the remainder being 44%. Depending on the tax program you used, can't you review your input to see what produced the incorrect number? Regardless of the cause of the error, it appears that you underpai...
by MarkNYC
Mon Jun 28, 2021 7:24 pm
Forum: Personal Finance (Not Investing)
Topic: IRS says my deceased mother filed/paid taxes- MYSTERY SOLVED
Replies: 32
Views: 5059

Re: IRS says my deceased mother filed/paid taxes

Can you go to the Post Office where she had her box to inquire who has been paying for the box? Also, inquire if mail has been coming in with your mother’s name? I would bring the death certificate and anything showing you gave up the box. It was stated in the original post that the PO Box belongs ...
by MarkNYC
Sun Jun 27, 2021 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: IRS says my deceased mother filed/paid taxes- MYSTERY SOLVED
Replies: 32
Views: 5059

Re: IRS says my deceased mother filed/paid taxes

OP here-- One clarification- the letters came with her estate ID, not her SSN. I did not leave it to the funeral home to let the IRS know, I sent in a death certificate, and established an estate account with a new TIN. Given this new fact, it's clear that the issue involves estate income tax, not ...
by MarkNYC
Thu Jun 24, 2021 8:56 am
Forum: Personal Finance (Not Investing)
Topic: Home sale tax exemption (started as rental for 9 years)
Replies: 7
Views: 707

Re: Home sale tax exemption (started as rental for 9 years)

Generally, if you have owned the house since 2009 and you and your spouse have used the house as your residence for a total of 24 months within the past five years, you are eligible for the full $500k exclusion. It's all spelled out pretty clearly in the IRS pub you linked to. That is not correct. ...
by MarkNYC
Wed Jun 23, 2021 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Home sale tax exemption (started as rental for 9 years)
Replies: 7
Views: 707

Re: Home sale tax exemption (started as rental for 9 years)

Generally, if you have owned the house since 2009 and you and your spouse have used the house as your residence for a total of 24 months within the past five years, you are eligible for the full $500k exclusion. It's all spelled out pretty clearly in the IRS pub you linked to. That is not correct. ...
by MarkNYC
Tue Jun 22, 2021 6:59 pm
Forum: Personal Finance (Not Investing)
Topic: Definitive source on how soon Roth conversion can be withdrawn over age 60
Replies: 31
Views: 2373

Re: Definitive source on how soon Roth conversion can be withdrawn over age 60

Schwab has a very clear Roth page: https://www.schwab.com/ira/roth-ira/withdrawal-rules Very clear, except they need to add a sentence to this section Over age 59½ Withdrawals from a Roth IRA you've had less than five years. If you haven't met the five-year holding requirement, your earnings will b...
by MarkNYC
Tue Jun 22, 2021 6:17 pm
Forum: Personal Finance (Not Investing)
Topic: Definitive source on how soon Roth conversion can be withdrawn over age 60
Replies: 31
Views: 2373

Re: Definitive source on how soon Roth conversion can be withdrawn over age 60

Schwab has a very clear Roth page: https://www.schwab.com/ira/roth-ira/withdrawal-rules I have to disagree. I think the Schwab summary is poorly written, contains several misleading statements, makes no distinction between taxation/penalties for distributions of annual contributions vs conversion c...
by MarkNYC
Mon Jun 21, 2021 10:12 pm
Forum: Personal Finance (Not Investing)
Topic: Definitive source on how soon Roth conversion can be withdrawn over age 60
Replies: 31
Views: 2373

Re: Definitive source on how soon Roth conversion can be withdrawn over age 60

Since I am older than 59 1/2, with a new Roth account, must I wait 5 years or not to withdraw conversion dollars? And , can anyone point me to an IRS or similarly definitive site for this info? It’s very critical to my tax planning, and I can’t afford to be wrong. Since you are over age 59 1/2, you...
by MarkNYC
Mon Jun 21, 2021 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 question...
Replies: 16
Views: 2514

Re: Rule of 55 question...

The Rule says you must separate from service after your 55th birthday. Someone posted the law as passed by Congress and codified in the US Code (if I'm not mistaken). Might have been you? And it did say after your birthday. I was surprised. However, I believe it was later modified or the IRS has ch...
by MarkNYC
Sun Jun 20, 2021 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Are there federal taxes paid by individuals other than form 1040 line "total tax"?
Replies: 77
Views: 8153

Re: Are there federal taxes paid by individuals other than form 1040 line "total tax"?

[Thread merged into here --admin LadyGeek] Are there federal taxes that an individual pays to the IRS, not captured on the "total tax" line on form 1040 (line 24 on the 2020 form 1040)? For example, filed through a different return or some other manner, such that it does not eventually fe...
by MarkNYC
Sat Jun 19, 2021 1:50 pm
Forum: Personal Finance (Not Investing)
Topic: IRS tax penalties: underpayment, late payment, and all that
Replies: 12
Views: 1312

Re: IRS tax penalties: underpayment, late payment, and all that

They do care "when" -- you should be paying your taxes at least quarterly on your investment income. However, W2 income counts for the entire year, regardless of when it is received. So, if you make an error and under-pay in Q1 on your investments, you can have your employer withhold extr...
by MarkNYC
Fri Jun 18, 2021 7:48 pm
Forum: Investing - Theory, News & General
Topic: What Is Your Longest-Held Investment?
Replies: 127
Views: 9492

Re: What Is Your Longest-Held Investment?

Berkshire Hathaway shares, bought in 1990.
by MarkNYC
Sat Jun 05, 2021 5:59 pm
Forum: Personal Finance (Not Investing)
Topic: LLC units and capital gains
Replies: 20
Views: 998

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: 3275

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: 3785

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: 3524

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: 3785

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: 3785

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: 3785

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: 456

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: 3008

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: 3008

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: 786

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: 2565

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: 2565

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: 637

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: 9604

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...