Leaderboard

It took me a minute or two to figure out what this meant. It comes from a lead posted on Thumb Tack. "Want local, accurate and personable tax preparation after Mercury turns direct. Mercury is now retrograde through March 9. Need to make certain I can get tax preparation sometime after March 11". This comes from Tarot.com "If you've spent the last three weeks or so feeling mentally scrambled, misunderstood or just plain indecisive, relief is near. That's because Mercury, the planet that rules the mind, is turning direct on March 9, 2020," I think I'll take a vacation until Mar 11.

No, he can't do that even though they would have been eligible and able had it been done in 2019 prior to the wife's death. Any contributions after death would be considered excess contribution, subject to the excess contribution penalty each year until removed from the account.

You are right that the trust is now an irrevocable nongrantor trust. Whether it is a simple or complex trust depends on what it distributes. A simple trust distributes all income but no corpus and no charitable distributions. A complex trust is one that isn't a simple trust (that's the real definition!). A trust can be simple one year and complex the next depending on the character of the distributions. If yours is only distributing income this year, it is a simple trust. When it dissolves and distributes both income and corpus, it will be complex that year.

Judy is one of our best Tax Heroes!

i learn so much on this forum.

And here's proof of what Max is saying...... But.... Worry not... for a bigger dude is watching out for Ya...

you can use the MFJ vs MFS worksheet.

From what Christian provided, the trust has gross proceeds but there is no "gross income" because the stocks were sold at a loss. The general definition of gross income in the tax code would include NET gains from sales of stocks, not the gross proceeds. Trusts and estates use the same definition of gross income as for individual returns, and the general definition at IRC sec 61(a)(3) says "gains derived from dealings in property" and more specifically for trusts and estates at sec 1.641(a)-2 that says this: As an example, a person whose only income is $15,000 in social security benefits of which none is includable in AGI, that person's gross income for tax purposes using the general definition is zero. If that same person sold stock for $6,000 with basis of $4,000, the person's gross income for tax purposes would be $2,000, not $6,000.

There is income in excess of $600 since they sold stock for $4000.

It would be wonderful to have that in the program but then I think the program would cost much more. What I have done for several years for a number of qualifying clients, is input all the data and code each amount F or S. I sometimes use J or just half and half. Some J things are not allowed MFS. When the comparison shows a clear advantage to MFS, I estimate the additional charge to do that as you then have to strip out one of them and create a second return. Sometimes the tax savings isn't that great. The clients that do benefit from this are mostly returning clients so I then rollover the MFS return of the S and strip out S data in the MFJ. Clear as mud? It is very important to make very sure that the combined numbers entered match those of the joint with only the tax calculation and disallowed items being different.

If I found the correct Nissan document for the employee Lease Vehicle Program dated in 2012, the imputed income is supposed to take into account the amount paid and be the IRS market value less the amount paid. The way it is spelled out in the agreement is the proper handling...if that is what is really happening. Are you sure that your client is giving you the correct figures? This is on page 5 of the Nissan document: I have 2 clients similar to yours that work for Mitsubishi, and their W-2s each have lease vehicle comp also that runs around $3,500 per vehicle with one of them leasing a total of 3 cars for his family.

Why would I want rentals that are throwing a loss to be qualified? Tom Modesto, CA