Leaderboard

To new members and everyone: #1 - We have a lot of new members this year, so welcome to the forum. We hope you find it helpful. #2 - Lately I am moving many posts to their own topics. If a topic is fairly recent AND the original poster has received sufficient answers to have resolved their issue, feel free to post in that same topic. If your question is not the same issue, please make a post of your own so as not to derail the original topic before the original poster has his or her answer. #3 - Please don't revive posts that are many years old, or even from last year. Again, start a new topic of your own. We've had many law changes and some old topics shouldn't be relied, and also some members in older posts no longer visit the forum or have retired. #4 - A few members pose the same question across multiple forums, and I saw one recently on 3 separate forums and that may have been on more that I don't visit! I can't stop anyone from doing this and don't know how anyone else feels about this, but to me it seems somewhat disrespectful of members here that generously and patiently take time from their own work or family time to provide answers, and those that do answer may be unaware that the poster has already receive sufficient advice elsewhere to solve their problem and has already moved on. #5 - If you are going to take time to answer, please try to be respectful and try to post a helpful answer, a link that leads to the information, etc. rather than some snark about having already answered elsewhere, or suggesting that the poster needs to take a course. Please remember that your answer may also help others that are struggling with the same tax problem, program, or input issue, and there may be others that will learn something new and remember it in future. #6 - If you have a problem with a post or poster, please use the report function and leave the moderating to me. I receive an email directly for each report, and I check in frequently throughout the day as time allows. If you type out some nasty snark, step back from the keyboard for a few minutes, then come back and rethink your reply and whether you would like to be on the receiving end, if that is how you would like to be treated by your peers, and if that is how you would respond in person. I've been guilty of this and have to remind myself too when I'm short on patience, so please know that I'm not picking on anyone or any post in particular. /end of rambling PSA

File your extensions now while you have the energy to do so. For everyone. Then if you have the energy to complete them, no harm no foul. That way you are covered if either you or your husband have worse than a mild case.

Judy thank you for all the time and effort you put into moderating this forum and keeping us in line!

Possi, thanks, I needed a good laugh

Is there ANYBODY in government standing in the gap for Tax Pros? #askingforafriend

And please don’t forgot to donate to cover the maintenance cost for this wonderful forum.

Why wait to announce this? If the plan is to extend to July 15, make the announcement and allow everyone to plan accordingly. We're less than a month away from the normal due date. It's not like this is a new concept. Put all politics and ulterior motives aside.

I can't offer to help with extensions since I don't use ATX and would probably cause more problems than I would solve, but I will keep you and ESPECIALLY your husband in my prayers. I sincerely hope you have mild cases that you recover from both quickly and completely.

Thank you Judy and I agree with ILLMAS, donations to pay for the server that host this site, the electricity it consumes, the programming hours and maintenance for this site, etc. are welcome. Thank you Eric for allowing us to get answers to our questions and to the moderators to keep this site as friendly, courteous and efficacious (Dr. Fauci's word) as possible.

Check the states, though. Not all are in lock-step with the TCJA.

I mean it sincerely, so shout out (or pm :)) if you need help.

My grandson, my daughter and my son in law all had covid 19 in early December. They had a tough week, but they are all fine now. Focus on taking care of your husband and yourself.

I've seen an Edward Jones that shows a column for wash sales. But the gain/loss column is labeled 'unadjusted gain/loss'. When I input the wash adjustment, gain is increased. On some others, I've seen the wash adjustment already included.

@NECPA in NEBRASKA Oh no, I'm sorry to read this! I hope you both have mild cases and feel better soon. Do you have any other help in the office, maybe to prepare extensions?

They both get it. Check out the last "plus mark" on this page: https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-2020-tax-return I can't tell you where I originally heard this, but I caught it in training somewhere. Filling out the reconciliation automatically gives you the extra payment if you are truthful about the amount you actually got. BTW, the same works if your client was a dependent last year and claiming herself this year.

Rita, I recently lost my Dad at 99 and at his funeral eulogy I quoted from Billy Graham who once said " At some point you will hear that I have died, don't believe it, I have only changed addresses." May the Lord bless you and your family.

Thank you, everyone. Mother was 97, and she has moved to heaven. I am so happy for her. Thank you all, again, for your prayers and kindness!

Check the Corona related box near the bottom of the 1099R input. That will put the amount on 8915-E and eliminate the penalty. The fiduciary probably coded it correctly. As far as it knew, there were no exceptions. If it wasn't covid related and an exception applied, fill out the 5329 and list the exception.

Aren't you supposed to use 8915-E and choose distribution due to coronavirus in order to waive the penalty?

The use of a code "1" in box 7 does not preclude you from using any of the tax penalty exceptions. A code 1 is probably misused on tens of thousands of 1099 Rs every year!

weirdities Yay, I've learned something new today

Normally at this time of tax season the IRS has less than 2 million unprocessed tax returns. Reports indicate that the IRS currently has about 7 million 2020 unprocessed tax returns, many of which were filed when tax season opened in February which are trying to claim additional Recovery Rebate Credits. Golly, Gosh and they still have 6 million 2019 unprocessed tax returns. I guess they don't know about the "rule of holes" "When you're in a hole stop digging"

Obviously not official. Would like 7/15, but will take 5/15 / 5/17. https://www.bloomberg.com/news/articles/2021-03-17/irs-plans-to-delay-tax-deadline-to-mid-may-after-chaotic-year

From the horse's mouth https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline

Drake has now corrected the problem with California and it is flowing correctly now.

He inherited that IRA (she died in 2020) and moved it to his own IRA. There isn't a 1099 for that move, so next year when she is off the return, I believe I can move her basis onto his 8606. It will come out the same. Yes, I'll wait.

On the 1040 there's nowhere to report it; that deduction is suspended per TCJA til 2026.

It might be a good idea to answer the question at that time then. If I am not mistaken, you keep record of the basis by having 8606 forms. Let's say the IRA value is $30,000 and the basis was $20,000. If your client takes out $3,000 then the taxable portion is $1k.

If you enter the adjustment and code 'W', ATX will adjust the basis (assuming you are using ATX), and your gain/loss will match. I've seen it for several years (usually in amounts of a dollar or two on managed accounts; sheesh).

For 2020, the APTC repayment is temporarily suspended under the American Rescue Plan Act. The ARPA increased the ACA PTCs for 2021 and 2022.

Yeah, it's the number of kids and not which kids. The number of people on the 2020 return are how many who get the 2020 RRC. Just focus on 2020. 2018 and 2019 EIP were only advances on the 2020 RRC. You just have to know if THIS client (not the ex or anyone else) received any advances to enter on the worksheet. (Don't look ahead to EIP# yet!!!)

But if they have the auto extensions like last year, it will save a lot of time not to deal with the individual ones. Form 8878, etc.

I hope and pray a speedy recovery for both of you.

To determine basis of timber you need to know: -estimated age of timber sold -volume sold -growth rate for the species -price per mfb date of acquisition. You then work backwards to determine the volume and mill price at date of acquisition. There lies the basis of the timber sold which you subtract from the land basis. Another CPA I know uses the "Look Up" method. That is where you look up at the ceiling and pull out a number. That is evident from some of his work I have followed. A timber cruise or appraisal will estimate the value of the standing timber at a given time; but it won't tell you the basis of the timber that was loaded on a truck and hauled to the mill. A timber consultant or forester involved in the sale can be a great resource. Also need to consider the cost vs potential tax benefit.

I am so sorry. I wish there was something we could do to help. I live in KS; I could figure out a way to help file extensions if need be.

If you don't use the reconciled balance (the balance after all checks she wrote/deposits she made during the year are accounted for), your balance sheet will not balance, because your expenses will affect net income but your cash will not reflect the subtraction of those expenses.

Were you talking to Secretary Yellen?

JKL answered your question in the first reply. The balance sheet amount is the reconciled cash balance, not what is on the bank statement.

But.... DON'T ANNOUNCE AN EXTENSION! ermagerd

Clearly meets the rules for penalty waiver and three year reporting.

Just a bit of follow up to my original post on the early IRA withdrawal. Clients readily admit that distribution was not Covid related and had based their decision on assurance from financial advisor that there would be no penalty. There is a bit of irony in that if they had taken funds from the wife's IRA it wouldn't have been an issue as she is over 59 1/2. To their credit, they have kept emails from advisor of this assurance and to the advisor's credit they have said that if indeed this is not Covid related they will reimburse my clients for the $5K penalty incurred. This topic has stirred some very interesting and thought provoking discussion.

Lets give you credit for being partially correct. The CAA extended Qualified Disaster Distributions (not related to covid 19 ) and Qualified Plan Loans for 180 days.

Has not been created yet. I think the IRS just released the form and instructions to the software community on Friday. Tom Modesto, CA

They will never figure out this rat's nest. Like I said just the other day, "Hold my beer and watch THIS!" LOL

We better watch these states, everybody. Don't double dip! VA is very slow to act on anything.

I'm not sure the IRS has released that yet.

Alternatively, if they planted the trees, then you have a completely different scenario i.e. possibly capitalized reforestation expenses etc.

Unless your client provides you a lot more information, the basis is $ 0 For starters date of acquisition, purchase price, allocation of purchase price, was there a timber cruise valuation etc etc

TimberTax.org is a wealth of information. Look for the appraisal of the timber at the time of purchase/inheritance/gift or maybe an appraisal when they sold some timber.