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Hello. Sorry to be a dunderbrain, but are we really having a 'gathering' this summer, or is that a long-standing joke? OR . . . is it invitation only, which would be completely understandable. I don't want to show up and end up as fertilizer. Cheers!

I think this got "thought up" one day when Rita took a 10 minute break from the site. I'll be there!

The neighbor with the farm across the road knows some of my clients and has graciously given me a key to his gate. We work on his fence once in a while. It's like sharecropping only different.

Oh I just had SO much fun!!! I got a call from some low-life scum who wanted to take over my computer because of "suspicious activity" and I had him going for several minutes. I played dumb clueless ditz. Finally he told me my computer had been "compromised" and I told him that I *never* left my computer alone in a room with a man. (Guess I've read Jane Austen a few too many times...) Then I told him he had the wrong person - goodbye! I managed to hang up just before I busted out laughing.

Does the venue have quality Wifi? I will be toting my laptop and we can facetime or Facebook video chat, or several other ways to let people be there that can't be in person. Think "Big Bang Theory". Maybe even possibly stream some of it live... It is just the life-long geek coming out in me....

Me, too! I just have to figure out how to get all the Cincinnati Chili fixin's there in good order. No Graeter's ice cream as it would surely melt. We need a count by mid-June, I suggest, to be sure we all bring enough of whatever we're bringing!

It better be real, because I've made reservations already!

Rita, I have to say it again - I just LOVE you!

Do you have enough pasture land to accommodate your tax practice?!

So, my fab client story ( /s): The first person I've seen today brought her 2017 W-2 and a bunch of receipts for furniture she purchased with some of her 2017 $50,000 early IRA withdrawal. We discussed this "move" she wanted to make in July, to pay medical bills, and I told her to pay $100 a month, or something, toward medical bills and avoid taking early withdrawals. She indicated that she just wanted to pay the medical bills and get them behind her. I wonder how far behind her she meant, and when exactly she was going to begin putting them behind her. There's a grand total of one receipt here for one hundred smackers toward a medical bill. She only forgot her 1099-R, her 1098 Mortgage Interest, and her 1095-A. Yes, 1095-A. I am pretty glad I sent her a letter in July memorializing the conversation, and warning her how she'll be repaying the APTC. She does remember the letter. She said she opened it this morning, had laid it aside [how important could it be], and is now worried. You don't say.

I'll have what she's having.

...Good Thinking Rita Also...I like your makeup...Cute

This sounds spectacular. Because it is further than where we get groceries, I can't make it. But...I know it will be a swell time for anyone form this group. Just to see all the smiling faces that we talk to on here, in person,... WoW ! My wife and I are limited to short distance travel. Don't get me wrong... We both like food. My best to whom ever thought this up, and to who ever can make it to the gathering. It will be the cherry on top of this fine community. Elrod

Yes, it's for real, and I'm hosting. No need to bring anything, but I do need a count. If you're not sure, a "maybe" is fine. June 23 in middle TN. Anybody interested please message me for directions!

I had a call the other day that started out with a female thanking me for my recent inquiry about affordable health insurance and if I would just stay on the line she would connect me to an insurance agent. I said, wait, when did I inquire about affordable health insurance? And she just kept talking over me. I repeated myself four times. On the fourth she said, well, don't you want affordable health insurance? I said, mine does not get much more affordable since I will be going on Medicare very shortly. Click! And I kept talking into the phone - wait, I am not done yet. Come back on the line please...........

You should consider an incinerator that generates electricity so these people can contribute a little something to society on their way out... besides just fertilizer.

It's so true. I really wonder why I am surprised anymore. Then I get this very sweet text from another lady saying she got her refund this morning and thanking me for helping her, and my day is made. Thank goodness - backhoe is low on diesel anyway.

You (we) just can NOT save some people from themselves!

It's the little things that bring a tear, right? LOVE it. I have 2 retired military officers who bring huge files, lots of paper, and spreadsheets that bring that joyful tear. I go in alone, and come out refreshed... just like a shower. Ahhhhhh......

I just did some checking. There IS such a thing as a disclaimed interest in a trust. But it can get tricky. Note that a disclaimed interest in an estate is treated as though the beneficiary predeceased the deceased. Therefore, the executor follows the terms of the will as to where the assets go as a result which is why I said "contingent" beneficiaries. Also, disclaimers must be in writing, delivered to the executor/trustee, and cannot specify what to do with the money. The other beneficiaries do not have anything to say in the matter. Again, these things are covered by state law and that needs to be reviewed.

Well-prepared clients are a joy!

Oh My, Coffee just shot through my nose null After my ACA conundrum I really needed a laugh! Thank you!!!

A classic telemarketer prank! https://www.youtube.com/watch?annotation_id=annotation_420523&feature=iv&src_vid=mkdoogjic4I&v=-7OgWcwgB50

I would love to see Rita's back 40, I have a couple that need a hug right now. Sorry I can't be there.

Total Turtle Poop! That is the one day in June that I cannot be in TN. I am Treasurer of my Church, and we are paying a consultant for a retreat to be held that day to deal with some transition and search committee issues. Have so much fun! I would have loved to join you. Perhaps it will go so well that you'll all agree we should do something again next summer. You are all welcome in KS.

There is a way to avoid the distribution via disclaimer, and as Roberts says, you can't 'choose' who gets the money. Without seeing the document, if the 3 were equal beneficiaries with no other qualifiers, it would have gone to the Trustee's (who disclaimed) heir if the wording was 'per stirpes' and not designated by class, or most likely equally to the remaining to beneficiaries if no per stirpes or heirs. There could have been a beneficiary settlement agreement changing the terms as your Trustee desired, but it would have needed to be approved by the Court. Both of these options would have avoided the trustee receiving a K1. However, it sounds like he just 'gifted' his share, as others suggest, so assuming that's the case, he receives a k1 and does a gift tax return. Eeegads. Why do peeps expect us to fix things AFTER the fact?!?

I think you handled it correctly. Sometimes people try to pull shenanigans to shift income to another party to avoid taxes, increase government benefits, avoid losing Medicaid, etc. etc. It's illegal. It is treated as though he got it, then gifted it to another person. He could have reduced the gift by the tax he had to pay, which was his prerogative. There is such a thing as a disclaimer, but it applies to estates. In that case it goes to the contingent beneficiaries. I never heard of it applying to trusts. You need to research state law on this to see if it is available in your state.

...1&2/3 acres, of course...

That can be a mixed blessing.

Great news! Rich

Could be they were well taught by their former provider, either way, enjoy!

Please see my post above. I did not type it in the correct place. Haven't been on this forum in quite a while and stuff has changed. jklcpa note - I fixed it by moving the reply to outside of the quote box.

In the state of Virginia, under a will, a contingent beneficiary(ies) can wind up inheriting if the primary beneficiary disclaims all or part of the inheritance. I don't know if it is the same in other states. But I do know that works in Virginia, and you can disclaim all or part of an inheritance. I don't know if it works for a trust, or for a named beneficiary on an IRA or life insurance.

Burke, you bring up some good points. The executor who gave his share to his sibling is in a much higher tax bracket. However, I doubt that was a consideration. The total amount distributed was only $36K . Contingent beneficiaries only become beneficiaries if another bene dies and the former takes its place.

You elect a fiscal year for an estate when the first return is filed. So that means your deceased client's estate tax year ends June 30, 2018. You can file the return anytime after that up to the 15th of the 4th month following, or October 15, 2018. IF you want a further extension, you must do so prior to October 15. Then you get MORE time to file. Many people file for an extension using the calendar year; especially if they do not yet know whether to elect a fiscal year or not. And that is okay too. Filing an extension does NOT select a fiscal year, and you are not committed to a calendar year by doing so. Only filing the return does that.

1. "maybe [you] were not aware that it is not necessary to do an exact accounting of assets anymore." The jurisdiction that applies here is the local probate court and their instructions. I see you are in NY. Has anyone checked with the local court? In VA, accountings to a court can be waived in the will if all beneficiaries sign off on it; however, they still have the right to demand an accounting from the [preparer/executor/administrator/personal representative] if so desired. 2. Note post reply above says Line 9 & 10 say "required to be distributed." This is not correct. Line 9 says "required to be distributed currently." (Where the will or trust specifies it, and that is whether or not it is received by the beneficiaries). Line 10 says "Other amounts paid, credited.....etc" Note the comma! If the income was paid (distributed), your software will compute DNI and the adjusted income flows through to the beneficiaries. So do the return as it is supposed to be, and send the K-1's and then let the benes put this monkey on their back. 3. Yes, if the money was required, (or not required to be distributed -- as long as it was -- ), it triggers reporting of the income.

I own farmland in Montgomery County, IL, but it's a long way to ship from CT. Weston, CT, is two-acre zoning, but my home is grandfathered in at only 1&2.3 acres!

Maybe you can save them some money if you allocate 50% to the son or 100% to the son. or 99% to the son and 1% to the parents.

In prior years, UBER reported only miles while the "taxi" was occupied with passengers. Last year, they sent the reports including miles that the driver was on line. That makes sense. I do believe that as soon as you start the application, you are working since you cannot be refusing pickups or your ratings will go under. All my uber drivers make money if not, common sense will tell the to get out of the business. I saw another preparer's returns for 3 years where the uber driver made 26K and after repairs AND MILEAGE his profit was 2K. His wife brought him to me because she was not getting a big refund and she wanted to file MFS. I showed her that her 25K filing MFS she was going to get a refund of $400 vs the $1,100 she got for the last three year, she gladly went back to the old preparer. I don't want this type of clients so it is better they go away. My brother was as an Uber driver and for sure he makes money and pays a lot of taxes. As for the employee relationship to Uber... there is no way that the courts, states or IRS will make that relationship become other than independent contractor. Uber doesn't not train these drivers, Uber doesn't control their schedule and there is no employee/employer relationship.

MD realized they had a windfall due to fewer people itemizing for federal purposes and decided to keep 2/3 of the windfall and only give us a minor break. They increased the standard deduction by 500 per person which at an average state/county rate of 7.5% is a whopping $37.50. Meanwhile they're keeping about 200 million per year, supposedly in reserve for future education needs. It's the first time in 30 years the standard deduction has been increased, but they did at least index it for inflation going forward. As the federal standard deduction has increased over the years, we've had to start calculating whether it's better to force itemized on federal to save MD taxes. And also whether it's better to force sales tax instead of income tax to save MD taxes. When you force sales tax for a MD taxpayer, it increases MD itemized deductions and makes the state tax refund not taxable for federal the following year. It's a lot to think about!

Done! Edit: Almost done. I have a few more things to take care of before those last two bullet points are finished. Testing emojis. Modifying style sheets to increase their size a bit. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean aliquam in dolor vitae condimentum. Nullam tincidunt mauris eu congue ornare. Integer sit amet diam nunc. Vivamus vestibulum aliquam neque ac congue. Proin et nibh vitae risus faucibus viverra rutrum id arcu. Phasellus vulputate sem vehicula nisi ullamcorper lacinia. Pellentesque vehicula scelerisque est et sollicitudin. Cras viverra, dui et tristique blandit, quam urna scelerisque lacus, nec semper sem massa quis odio. Nulla vulputate ut ligula at aliquet. In congue mi purus, a molestie tortor congue eu. In mattis gravida egestas. Aenean pharetra pretium hendrerit. Edit2: Alright, seriously this time, all done.

Next time you go to the bank, have the person cash a $ 100 check into $ 1, $ 2 and $ 3 bills.

And you're searching because....... Consider the source and carry on!