Leaderboard

I did take the time to watch this video and it is very disturbing to say the least. All I can say is my prayers are with this family and I do hope they prevail in the end. While the ultimate goal is to regain custody of their child, and once that is met, I hope they are able to sue the pants off of all who were involved in this tragedy.

>>Paper file 1040 and attach 1099R so the IRS can see where the withholding is coming from.<< A form 1041 is the 1040 income tax return for a deceased person.

>>Don't see how I can put this on a 1041 as no estate exist.<< >>If income is received in 2013 by surviving spouse<< There was an estate and it was the 1099R distribution. The 1099R says the deceased received income (which is received by the deceased estate), not a surviving spouse. The estate then distributes the money to the surviving spouse. There is an estate taxable income that requires a 1041 tax return either paying the income tax or passing the taxable income to beneficiaries for tax. Just because the surviving spouse got the money does not mean it is the surviving that should have gotten the money or report it as taxable income. edit: The Master Tax Guide is talking about IRD taxable payments made directly to the surviving spouse on a 1099 with the surviving spouse's social security number.

None of us are crazy. It's the rest of the world!!!!!

Client had to track the form down with Fidelity. She emailed me the 1099R with code G. All is good. Client got a bit annoyed I was bugging her for the document especially since it is a non-taxable event. After I explained to her it needs to be filed with her return, if it does not the IRS will send a nasty-gram. Once I told her about the IRS nasty gram, she was all about tracking the 1099 down. Thanks for confirming I wasn't crazy.

If income is received in 2013 by surviving spouse, then surviving spouse can show the income on line 21 form 1040 as "income in respect of a decedent" and claim the tax w/h on page two of 1040 with rest of w/h. Will need a statement with return explaining. Master Tax Guide 2014 code section 182 (page 143)

I once had a cashier that tried to keep my $100 saying it was fake, I asked her if she passed a certification class at the us treasury and if she was certified as a forged document tech. blah blah blah. No way would I let a kid that is using a $20 pen say my money is fake and keep it. They don't have to accept it but they can't keep it, who says they are right. I told her the only way she can keep it is if she replaced it. And since I probably came from my prior transaction at that store then I was going to charge them with passing counterfeit money. And if she didn't hand it back then I am calling the police to report a theft.

Actually, I would check that. You state this is the "Primary Residence" being sold? The T/P received $25k as an EM deposit? I would treat that as a reduction in their basis in the home, and then add the expenses for lawyers/construction to the basis. IF the T/P was selling a rental, or commercial property, then it is treated like an Option, and that would be taxable. Rich

File the kids return and NO kiddie tax is involved.

I like to report Izzet. No one should ever mention "Vista" It creates turmoil and chaos in our lives

I was very happy with ATX in prior years... but last year was so stressful I couldn't bear the thought of taking a chance again this year. Glad to hear you guys are doing well! I myself am doing very well with Drake, doing returns faster and smoother than I can remember. Was a challenge to get used to a new software but life is good. I like to keep up on my old friends here in ATX land as I am interested in how it is running now, and in the future. But I am glad I learned a second software, now I have a "back-up" software if I need one. Overall learning to be proficient in a second software is a good idea. Pam Taxtrio

Yep credit gone and I bet KC is right on this one. Sort of like those barbershop preparers and mechanics.

Last year I didn't have any issues whatsoever and this year I hope to have less issues. I am very happy with ATX this year. As I said last year "ATX is fixing so many issues in 2012 that the 2013 version will be a very robust package out of the shelf". I also said that the ones that jumped the boat in 2012, they will purchase the 2014 version when they realize how good this year was.

I show the in and out so that if questioned it tracks with the paper trail.

Speak for your self, Marilyn. Being crazy is sometimes my only defense!

He could even print the check register once a month and deliver that to you for your use in inputting his disbursement ledger.

Not just the investments, but also if they are held in "street name" in the account. That means the brokerage hose holds the securities FOR the client -- and the client does business with the US-based brokerage house. Holding $20K worth of shares in, say, Royal Dutch Shell, via street name through Pershing or First Clearing, is NOT the same as having $20K in a bank on the other side of the pond.

Just like an adult with a stock sale, file the return to report the basis, and in this case loss. You can put on parents' return if interest and dividends ONLY, not for stock sales.

There is always an estate. The estate might not have a filing requirement. But in that case, you're probably filing due to the portability of the estate's unused deduction so it can go to the surviving spouse and not be lost.

File the child return and carry forward the capital loss for future use on child returns. Also track 1099-Div for basis even though brokerages and fund companies are supposed to track that now.

With a lot of these options, there ends up being a small short-term capital loss. All of what would have been the "gain" gets included in the W-2 under that Code V and so is taxed at OI rates. After trade fees etc., there is usually a small loss.

not just health care, when anyone with a little power runs amok. I can't believe this really happened, but I know it did. I would love to hear the doctor's and the hospital's side of things. If I were the parent I certainly would not have stayed quiet for a year.

KIddie tax kicks in based on net income not the gross sales price. this sale belongs to the kid and the loss carryover will stay till the kid has taxable income.

I sort of explained that to her.. sent her back to give me line and form AND year... Thx

Wow, I think tax preparation is one that shows profit the very same year of inception. I doubt I will spend three years of pressure of dealing with people without remuneration. If I do, I would check my business plan or my hobby plan.

Sure, the loss is $150. This is the usual effect of a same day excercise & sale of non-qualified options.

NOL dies with the deceased it belonged to. But all the assets should be started on the heir's return at FMV . There is no relevance to the previous book value.

Careful - either of these this could be you as a tax preparer:

my bank just informed me that as of 3/18 I have to keep a $25,000 balance to avoid a newly imposed $35 a month service charge for an account which for over 15 years has been free. My assistant was given the task of finding us a new bank; we go Sturday to interview the new, local, bank to open a new account there,