Search found 1262 matches

by MarkNYC
Sat Feb 17, 2018 2:19 pm
Forum: Personal Finance (Not Investing)
Topic: Amended 2016 taxes applied to 2017, but not included in wired return
Replies: 2
Views: 226

Re: Amended 2016 taxes applied to 2017, but not included in wired return

If I understand correctly, you mailed your 2016 amended return in mid-January 2018, requesting the overpayment be applied to 2017 taxes, then a week or two later efiled (probably) your 2017 return which included the 2016 amended overpayment as a credit. If that's what happened, it was naive for you ...
by MarkNYC
Fri Feb 16, 2018 1:18 pm
Forum: Investing - Help with Personal Investments
Topic: How to File Separately after Joint Estimated Payments
Replies: 4
Views: 335

Re: How to File Separately after Joint Estimated Payments

If filing separately after filing joint estimated payments, the payments can be divided any way that both spouses agree upon. If the spouses don't agree, such as in a divorce situation, then there is a required method to use to make the allocation. This policy is stated in both IRS Publications 504 ...
by MarkNYC
Thu Feb 15, 2018 5:27 pm
Forum: Personal Finance (Not Investing)
Topic: When can a married person file Single or Head of Household? [temporary absence question]
Replies: 28
Views: 1028

Re: When can a married person file Single or Head of Household? [temporary absence question]

If there is an intention to return, then the absence is temporary, so both would have to file as MFJ or MFS. You can file in each state as MFJ but show the nonresident spouse as a nonresident in each case. it can be a bit awkward to get this to work on the state forms but it's possible, and is the ...
by MarkNYC
Thu Feb 15, 2018 2:24 pm
Forum: Personal Finance (Not Investing)
Topic: kiddie tax rules for 2018
Replies: 2
Views: 479

Re: kiddie tax rules for 2018

1) The amount after the dependents $1,050 standard deduction and the amount $1,050 taxed at the dependent's rate was changed from parent's rate to trust tax rates $2,000: ordinary dividends subject to ordinary income tax rates. $4,000: qualified dividends and capital gains subject to capital gains ...
by MarkNYC
Thu Feb 15, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: When can a married person file Single or Head of Household? [temporary absence question]
Replies: 28
Views: 1028

Re: When can a married person file Single or Head of Household? [temporary absence question]

You can file in each state as MFJ but show the nonresident spouse as a nonresident in each case. it can be a bit awkward to get this to work on the state forms but it's possible, and is the correct treatment. I have done this for clients in the past. Not allowed for NY State. For NY, even if they f...
by MarkNYC
Sun Feb 11, 2018 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: How to file 1099-R to trust from inherited Roth IRA
Replies: 7
Views: 307

Re: How to file 1099-R to trust from inherited Roth IRA

The 1041 instructions do not specifically address the reporting of a Roth distribution, but instruct that the taxable portion of an IRA distribution should be reported on the "other income" line. 1099-R Code T suggests the Roth distribution is not Qualified, in which case some of the distribution c...
by MarkNYC
Sun Feb 11, 2018 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: How to file 1099-R to trust from inherited Roth IRA
Replies: 7
Views: 307

Re: How to file 1099-R to trust from inherited Roth IRA

The 1041 instructions do not specifically address the reporting of a Roth distribution, but instruct that the taxable portion of an IRA distribution should be reported on the "other income" line. 1099-R Code T suggests the Roth distribution is not Qualified, in which case some of the distribution co...
by MarkNYC
Fri Feb 09, 2018 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes for Surgical Resident
Replies: 78
Views: 3583

Re: NYC Taxes for Surgical Resident

You are making the main issue more complicated than it is. The point is simple: only NY city residents are subject to NY city income tax. (not "maybe, maybe not"). Resident or not, he will be taxed by NY and NYC on his income he makes in NY/NYC, Not true for NYC, as has been explained previously .....
by MarkNYC
Fri Feb 09, 2018 11:21 am
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes for Surgical Resident
Replies: 78
Views: 3583

Re: NYC Taxes for Surgical Resident

My understanding is that any money earned on a job or through a partnership or other business entity in a state is subject to the income taxes of that state and city. Regardless of your state of domicile. I ve been dealing with this for yesrs, Your understanding is incorrect with regards to NY City...
by MarkNYC
Fri Feb 09, 2018 10:33 am
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes for Surgical Resident
Replies: 78
Views: 3583

Re: NYC Taxes for Surgical Resident

My understanding is that any money earned on a job or through a partnership or other business entity in a state is subject to the income taxes of that state and city. Regardless of your state of domicile. I ve been dealing with this for yesrs, Your understanding is incorrect with regards to NY City...
by MarkNYC
Thu Feb 08, 2018 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes for Surgical Resident
Replies: 78
Views: 3583

Re: NYC Taxes for Surgical Resident

My understanding is that any money earned on a job or through a partnership or other business entity in a state is subject to the income taxes of that state and city. Regardless of your state of domicile. I ve been dealing with this for yesrs, Your understanding is incorrect with regards to NY City...
by MarkNYC
Thu Feb 08, 2018 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes for Surgical Resident
Replies: 78
Views: 3583

Re: NYC Taxes for Surgical Resident

My understanding is that any money earned on a job or through a partnership or other business entity in a state is subject to the income taxes of that state and city. Regardless of your state of domicile. I ve been dealing with this for yesrs, Your understanding is incorrect with regards to NY City...
by MarkNYC
Tue Feb 06, 2018 8:21 pm
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes for Surgical Resident
Replies: 78
Views: 3583

Re: NYC Taxes for Surgical Resident

If he moves to and lives in NYC for a year to work, and has no intention of retaining domicile in his previous state and has no intention of returning there, NYS is going to consider him a resident unless he is domiciled in a third state and could make him prove otherwise. That is not New York Stat...
by MarkNYC
Tue Feb 06, 2018 7:45 pm
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes for Surgical Resident
Replies: 78
Views: 3583

Re: NYC Taxes for Surgical Resident

If he moves to and lives in NYC for a year to work, and has no intention of retaining domicile in his previous state and has no intention of returning there, NYS is going to consider him a resident unless he is domiciled in a third state and could make him prove otherwise. That is not New York Stat...
by MarkNYC
Tue Feb 06, 2018 7:25 pm
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes for Surgical Resident
Replies: 78
Views: 3583

Re: NYC Taxes for Surgical Resident

I know the answer definitively. You will file as a part year resident for the time you live there. You will then file for the other 8 months in your current state... Just read the instructions for N.Y. state income tax form IT 201. Your definitive answer is almost certainly wrong, and the instructi...
by MarkNYC
Tue Feb 06, 2018 10:42 am
Forum: Personal Finance (Not Investing)
Topic: [New MA & VT Tax reporting]- 1099-K threshold reduced to $600
Replies: 99
Views: 5240

Re: New to me tax issue - Paypal 1099-k for selling personal property

The IRS has given specific guidance on online garage sales. Someone else already posted the link, but it seems to have been ignored. If your online auction sales are the Internet equivalent of an occasional garage or yard sale, you generally do not have to report the sales. In a garage sale, you ge...
by MarkNYC
Tue Feb 06, 2018 9:43 am
Forum: Personal Finance (Not Investing)
Topic: [New MA & VT Tax reporting]- 1099-K threshold reduced to $600
Replies: 99
Views: 5240

Re: New to me tax issue - Paypal 1099-k for selling personal property

The IRS has given specific guidance on online garage sales. Someone else already posted the link, but it seems to have been ignored. If your online auction sales are the Internet equivalent of an occasional garage or yard sale, you generally do not have to report the sales. In a garage sale, you ge...
by MarkNYC
Mon Feb 05, 2018 5:51 pm
Forum: Personal Finance (Not Investing)
Topic: NYC Taxes for Surgical Resident
Replies: 78
Views: 3583

Re: NYC Taxes for Surgical Resident

docjok, NY City tax is assessed only on NY City residents, and on all of their income. NY State, however, not only taxes NY St residents on all of their income, but also taxes NY nonresidents on NY-source income, which includes income from services performed in NY. If you have persuasive evidence th...
by MarkNYC
Mon Feb 05, 2018 10:06 am
Forum: Personal Finance (Not Investing)
Topic: [New MA & VT Tax reporting]- 1099-K threshold reduced to $600
Replies: 99
Views: 5240

Re: New to me tax issue - Paypal 1099-k for selling personal property

So, even though you got the 1099-K, since you don't meet the IRS guidelines of "gross payments that exceed $20,000, AND more than 200 such transactions," I would ignore it. As the above poster said I'd just print off transaction receipts so if you get audited you can show it was just your old stuff...
by MarkNYC
Thu Feb 01, 2018 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Doubling of Standard Deduction--Really??
Replies: 56
Views: 6980

Re: Doubling of Standard Deduction--Really??

Another point that I noticed was used very effectively was that while all the brackets dropped 2-3%, only the top bracket is unlimited. I.e. all the other brackets produce a finite savings per person, but the the top bracket's numbers can become huge (e.g. 2.6% off 100m income) which the critics us...
by MarkNYC
Thu Feb 01, 2018 1:19 pm
Forum: Personal Finance (Not Investing)
Topic: Doubling of Standard Deduction--Really??
Replies: 56
Views: 6980

Re: Doubling of Standard Deduction--Really??

Or people like me with well over $60k in itemized deductions. Could you share a rough list of the itemized deductions for that 60K. This is more of an academic interest. Why is this interesting? .. I'm sure there are plenty of people with $100K of mortgage interest alone in the Bay Area! Anyone who...
by MarkNYC
Thu Feb 01, 2018 12:54 pm
Forum: Personal Finance (Not Investing)
Topic: State (MO) tax deadline (for amended return) different from Fed?
Replies: 2
Views: 194

Re: State (MO) tax deadline (for amended return) different from Fed?

MO Rev Stat 143.801 states that a claim for refund must be filed no later than 3 years from the date the original return was filed or 2 years from the date the tax was paid, whichever is later. Since you filed the amended return at the last minute, MO may require proof that you filed timely. If you ...
by MarkNYC
Wed Jan 31, 2018 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: Recovery of Vanguard's goof and 10099-Misc
Replies: 7
Views: 763

Re: Recovery of Vanguard's goof and 10099-Misc

So yes we were hit with under withholding penalty, which amount they they reimbursed , because they acknowledged it was their fault. They did not reimburse any tax, we paid the tax... I am not complaining we got the money, but if there was no error none of this would matter. I feel this amount cann...
by MarkNYC
Tue Jan 30, 2018 10:20 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Depreciation Recapture
Replies: 12
Views: 1005

Re: Rental Depreciation Recapture

jebmke wrote: You are missing the depreciation that lowers the cost basis. If the original cost was $165K and the depreciation taken in prior years was, say, $20K, then the basis is $145K and the total gain is 35+20 = $55K. Of the total gain, $20K is recaptured as ordinary income and the $35 is con...
by MarkNYC
Tue Jan 30, 2018 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Recovery of Vanguard's goof and 10099-Misc
Replies: 7
Views: 763

Re: Recovery of Vanguard's goof and 10099-Misc

chabil wrote:
Tue Jan 30, 2018 6:49 pm
livesoft wrote:
Tue Jan 30, 2018 6:39 pm

Another question is can you call the extra penalty and tax an "Investment expense" elsewhere on your 1040 (Schedule A line 23?)?
Exactly what I am wondering why not.
A penalty for underpayment of tax is not a tax deductible expense.
by MarkNYC
Tue Jan 30, 2018 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Rental Depreciation Recapture
Replies: 12
Views: 1005

Re: Rental Depreciation Recapture

You need to know what the land is worth since you only depreciate the house. You should have to pay depreciation recapture on the difference between the sales price and your depreciation adjusted basis. Say the land is worth $30k. Your basis in the house is actual basis when you convert to rental o...
by MarkNYC
Tue Jan 30, 2018 4:41 pm
Forum: Investing - Help with Personal Investments
Topic: First year with AMT, 1040 Line 45 worksheet contradiction
Replies: 6
Views: 465

Re: First year with AMT, 1040 Line 45 worksheet contradiction

It is difficult for anyone to pinpoint the error without looking at your tax return and your line 45 worksheet. But if the tax program shows AMT and your manual line 45 worksheet shows no AMT, my guess is you're making an error on your worksheet calculation. I suggest you go through the line 45 work...
by MarkNYC
Mon Jan 29, 2018 10:39 am
Forum: Investing - Help with Personal Investments
Topic: ROTH Ira for kids
Replies: 38
Views: 3051

Re: ROTH Ira for kids

Is Form 8814 still an option after tax year 2017? If the "kiddie tax" switches to trust rates, does it still work? Good question. I haven't read anything about it, but my guess would be that the Form 8814 will continue. I think most 8814s report income in the range of $1,500 - $4,000, so the Form's...
by MarkNYC
Mon Jan 29, 2018 9:13 am
Forum: Investing - Help with Personal Investments
Topic: ROTH Ira for kids
Replies: 38
Views: 3051

Re: ROTH Ira for kids

Children must file their own return if they have any earned income. The parents can only elect to file their children's unearned income on their return if there is no earned income and the unearned income < $10,500. The rules for filing Form 8814 are more restrictive than this. Parents can elect to...
by MarkNYC
Sun Jan 28, 2018 10:24 pm
Forum: Investing - Help with Personal Investments
Topic: ROTH Ira for kids
Replies: 38
Views: 3051

Re: ROTH Ira for kids

Children must file their own return if they have any earned income. The parents can only elect to file their children's unearned income on their return if there is no earned income and the unearned income < $10,500. The rules for filing Form 8814 are more restrictive than this. Parents can elect to...
by MarkNYC
Fri Jan 26, 2018 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect mortgage int tax doc: what to do?
Replies: 11
Views: 722

Re: Incorrect mortgage int tax doc: what to do?

My mortgage is with BofA. It sent me form 1098 dated Dec. 19th 2017. I was very surprised that BofA didn't wait until the end of year to issue this document. By doing it, it fails to include my mortgage payment made on Dec. 22 (the due day is Jan 15th but I made it a bit earlier). While it does ack...
by MarkNYC
Tue Jan 23, 2018 8:27 pm
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 is it official?
Replies: 38
Views: 5257

Re: Rule of 55 is it official?

You are all 100% incorrect. The age 55 rule is most definitely "on or after the year you turn 55", "not after you turn 55. Yes, 26 code 72(t)(2)(A)(v) says; "made to an employee after separation from service after attainment of age 55," Finally IRS Notice 87 - 13 that started it all: “a distributio...
by MarkNYC
Tue Jan 23, 2018 5:56 pm
Forum: Personal Finance (Not Investing)
Topic: Rule of 55 is it official?
Replies: 38
Views: 5257

Re: Rule of 55 is it official?

Both the separation from service and distribution must be after the employee attains age 55. The employee cannot separate at age 54 and then a year later after reaching age 55 make the distribution. That would not qualify. Also, changing from an employee to independent contractor for the same compan...
by MarkNYC
Sun Jan 21, 2018 8:35 pm
Forum: Personal Finance (Not Investing)
Topic: Father inlaw taxes: pension taxation
Replies: 19
Views: 1987

Re: Father inlaw taxes: pension taxation

1) In short, you would file amended state returns. If that changes state tax amounts, and those state tax amounts were used as itemized deductions on the federal returns, amended federal returns may also need to be filed... Amended federal tax returns would NOT need to be filed, because the amount ...
by MarkNYC
Sun Jan 21, 2018 8:12 pm
Forum: Personal Finance (Not Investing)
Topic: Father inlaw taxes: pension taxation
Replies: 19
Views: 1987

Re: Father inlaw taxes: pension taxation

1) Is there a mechanism to get tax refund from CA, and re-file in NY? 2) For 2017, is it possible to file NY state instead of CA? 1) In short, you would file amended state returns. If that changes state tax amounts, and those state tax amounts were used as itemized deductions on the federal returns...
by MarkNYC
Sun Jan 21, 2018 7:26 pm
Forum: Personal Finance (Not Investing)
Topic: Father inlaw taxes: pension taxation
Replies: 19
Views: 1987

Re: Father inlaw taxes: pension taxation

1) Is there a mechanism to get tax refund from CA, and re-file in NY? 2) For 2017, is it possible to file NY state instead of CA? 1) In short, you would file amended state returns. If that changes state tax amounts, and those state tax amounts were used as itemized deductions on the federal returns...
by MarkNYC
Sun Jan 21, 2018 7:16 pm
Forum: Personal Finance (Not Investing)
Topic: Father inlaw taxes: pension taxation
Replies: 19
Views: 1987

Re: Father inlaw taxes: pension taxation

It's true that CA and NY can be aggressive in challenging taxpayers who have questionable residency situations. But given their limited resources, the likelihood of either state challenging a specific taxpayer's tax return is generally correlated with the amount of potential tax involved. So, how mu...
by MarkNYC
Fri Jan 19, 2018 7:20 pm
Forum: Personal Finance (Not Investing)
Topic: Clothing donation and IRS form 8283: appraisal required?
Replies: 11
Views: 960

Re: Clothing donation and IRS form 8283: appraisal required?

If a deduction is taken for more than $5,000 for any group of similar items (eg. "Clothing", or "furniture"), then an appraisal is required and the appraiser must sign and date page 2 of Form 8283. Can you cite your source for this? See the IRS instructions to Form 8283, section B, and page 2 of th...
by MarkNYC
Fri Jan 19, 2018 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: Clothing donation and IRS form 8283: appraisal required?
Replies: 11
Views: 960

Re: Clothing donation and IRS form 8283: appraisal required?

If a deduction is taken for more than $5,000 for any group of similar items (eg. "Clothing", or "furniture"), then an appraisal is required and the appraiser must sign and date page 2 of Form 8283.
by MarkNYC
Mon Jan 08, 2018 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: Retirement 4/2018 question
Replies: 5
Views: 893

Re: Retirement 4/2018 question

In any case, you'll be paying the 3.8% NII tax on a large chunk (but not all) of the $800K in LTCG... Not necessarily. If the S Corp shares represent the OP's ownership in a passive activity, then yes, the gain is subject to NII tax. But if the shares represent ownership in a business that is a non...
by MarkNYC
Wed Jan 03, 2018 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?
Replies: 18
Views: 920

Re: Is this a bug in the law, in TurboTax, or in me? (re: excess IRA contributions)?

..it calculates the penalty as 6% of the smaller of the excess contribution or of the Traditional IRA account value on the last day of the year. My traditional account value on the last day of the year was $0 because it had been converted to Roth, hence no penalty. This can't be right, so what's go...
by MarkNYC
Wed Jan 03, 2018 2:27 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2095

Re: Roth IRA 5 year rule

Given that, will I be taxed on earnings from post-2013 conversions if I withdraw them in 2018? No. The first question to ask is "Is the withdrawal qualified?" Since you are over 59.5 and your first Roth was opened more than five years ago the answer is yes. Qualified withdrawals are tax and penalty...
by MarkNYC
Wed Jan 03, 2018 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2095

Re: Roth IRA 5 year rule

Given that, will I be taxed on earnings from post-2013 conversions if I withdraw them in 2018? No. The first question to ask is "Is the withdrawal qualified?" Since you are over 59.5 and your first Roth was opened more than five years ago the answer is yes. Qualified withdrawals are tax and penalty...
by MarkNYC
Wed Jan 03, 2018 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2095

Re: Roth IRA 5 year rule

@MarkNYC: Thank you. So my 30December 2013 conversion is indeed counted as 01January 2013? It doesn't have to been made before 15April? Any time in 2013 is good? From the posted article, it sounds like I can only withdraw tax-free from that first conversion. Subsequent conversions each have their o...
by MarkNYC
Wed Jan 03, 2018 11:45 am
Forum: Personal Finance (Not Investing)
Topic: Roth IRA 5 year rule
Replies: 32
Views: 2095

Re: Roth IRA 5 year rule

Given the information from the link you provided, your glib answer doesn't make any sense. I think livesoft is referencing this part of the linked article: For others, the reality is that the Roth conversion 5-year rule is a moot point anyway, because they already meet another exception to the earl...
by MarkNYC
Tue Jan 02, 2018 10:51 am
Forum: Personal Finance (Not Investing)
Topic: How can I move back to NYC with such high taxes? (State/City tax, Unincorporated Business Tax)
Replies: 110
Views: 8185

Re: How can I move back to NYC with such high taxes? (State/City tax, Unincorporated Business Tax)

I think effectively the total may be closer to 12.5% - 13% since you can: 1. Take a deduction against your business income on your federal return for the UBT taxes paid during the year. (The deduction must be added back on your state and UBT return) 2. As a city resident you can take a partial cred...
by MarkNYC
Tue Jan 02, 2018 10:21 am
Forum: Personal Finance (Not Investing)
Topic: How can I move back to NYC with such high taxes? (State/City tax, Unincorporated Business Tax)
Replies: 110
Views: 8185

Re: How can I move back to NYC with such high taxes? (State/City tax, Unincorporated Business Tax)

From where I stand, it looks like I'd pay about 7%~ of my income to New York State, 4%~ to New York City, and another 4% for my unincorporated business income. All for a grand total of 15% income in SALT. I think effectively the total may be closer to 12.5% - 13% since you can: 1. Take a deduction ...
by MarkNYC
Mon Jan 01, 2018 8:41 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Questions Concerning Trust and Net Operating Losses
Replies: 5
Views: 295

Re: Tax Questions Concerning Trust and Net Operating Losses

... pub 536 says that "a loss from operating a business is the most common reason for an NOL." The pub doesn't say that a business loss is the only reason that an NOL comes into existence or that an NOL can only be used for tax purposes by a going business. I guess I've made the assumption that my ...