jasdlm

3 hours ago, Possi said:

I do use the comparison, and I'm sure I looked at it. They had 3 W2's and I thought it was his. I really did check it, and thought it was his. I always compare year to year.

Oh well, clean it up, and move on. Like you said, it's an easy mistake to make. When you are doing the volume I do, there will be an error or two. But no error is ok with me. None. I need to pull myself out of this funk. I can't let this defeat me today. Thanks for the input. I appreciate it. 

On a return last year for long-term clients, I missed the fact that they did not give me his W2.  She had changed jobs, and the income was less, (yes, I used the comparison, so don't even go there) but I knew she was unemployed for a period of time, and he had failed to print the document (which wasn't mailed, supposedly), and I gave them the return, they signed, I filed --- fast forward to November and IRS and State want $$$ and not an insignificant amount because it messed with credits, bracket, phaseouts, etc.  Of COURSE I knew that he had a job.

I amended, got checks from them for the tax, mailed separate checks from my account for interest/penalties, told them I was sorry, and moved on.  Most clients will give you grace when you admit the error readily and acknowledge being human.  It is no additional cost to them than it would have been originally without the mistake if you pay the penalty/interest, so they actually got to keep their money a little longer!

Love ya, Possi!  You 'da bomb!

I find that I often have to walk Churches (where the minister is my client) through filing (or amending) the appropriate paperwork for Clergy.  It is often a secretary or volunteer who is preparing the document.

My understanding is that the Church does have to approve the housing allowance once the minister designates the same (i.e. our Church Council 'approves' the housing allowance for our minister every year, and it is in the council minutes).  The housing allowance should be in the call letter.  I have never known of a requirement for an annual contract - just an annual approval by the Church governing body.

Are MAMalody or JJStephens still on this Board?  They are extremely helpful in the Clergy Tax arena.

2 hours ago, RitaB said:

You never know what you've got until it's gone. 

They paved paradise and put up a parking lot.

What did you find out?

Yes.  I apologize for the lack of clarity.  It seemed perfectly clear when I wrote it, which is par for the course.

Danrvan has it right.

My apologies, everyone.  I really do not like wasting your time.

Client bought house for $375k and son moved in to house.  Son provided care for his ailing parent in the house.  Community spouse continued to live in marital residence.

Ailing parent died, and client sold both the marital house and the house son was living in.  The latter was sold to son.

Client made $75,000 on the sale, but this is because the house appraised for $75k more than the original purchase price, and client 'gifted' $50k of equity to son which acted as the down payment.  Shows on the settlement statement as 'equity gift'.

I think that client has $75k gain, but I wonder if anyone has any thoughts otherwise.  PR exclusion used on marital house, although perhaps since ailing parent lived with son in 2nd house for exactly 2 years before death, I could use one spousal exemption of $250 on the marital residence and one spousal exemption of $250 on the second house?  Tricky thing is they were JTWROS on both.

Thanks much in advance!  I appreciate any thoughts.

On 10/12/2018 at 12:59 PM, cbslee said:

Why wouldn't they?  They probably already have you name, address, SSN , DOB and Drivers License info from the Equifax hack last year ! 

They absolutely do.  I have had problem after problem with my major credit cards, store credit cards, and people submitting applications for credit in my name, SSN, etc., with an address in Florida.  It has been the 'account security question' and companies phoning my land line number (yes, I still have one) that has saved me so far.  Eeegads.

4 hours ago, jklcpa said:

I had another thought on this too. Are you sure that no 1099-DIV was issued by whatever state paid out the unclaimed funds?  I know that here DE does issue 1099s for any divs that are more than $10 and issues other 1099s just like the company or original holder would have. Perhaps that is worth contacting the state to see if there is any additional information it would be willing to provide so that as much of that $100K as is possible can be taxed as qualified dividends using the lower cap gain rate.

Thank, Judy.  I called the State Treasurer's Office, and they told me that they do not issue 1099s.  I could try again and see if there is some way I can get a breakdown of the Dividends by year.  They are individual stock dividends, and I think it is likely that many if not all are qualified.  I'll give it a shot.  Thanks again!

I am helping someone with an intestate estate.  I believe the decedent had not filed tax returns for several years (can't find any evidence of returns being filed).  The year before decedent passed, she received a LARGE check (over $100,000) from the State's unclaimed property division for past dividends (multiple years worth; estate is not huge).  State filed no 1099, of course.  

I do not have a list of what the dividends were or what years they represented.  Best I can figure is to file a final return for decedent (which will now be late as decedent passed in 2016) and claim the entire amount as income.  I have no idea what her SS was but can try to back in to it through bank statements.  This is going to cause a huge tax and penalty payable by the estate.  The way I calculate it, the tax will be approximately the value of the estate.

Am I missing anything, or does anyone have any brilliant ideas?

Thanks.

Reading this thread drives home the point that I am a total luddite.    I was proud of myself this year for simply scanning documents in to dropbox as they came in.  ***Sigh***

Congratulations!  Please do not be a stranger next season!  We will miss you.

23 hours ago, SaraEA said:

EXCEPT if the alimony agreement is modified after 12/31/18.  Then it is subject to the new law.

Lawyers beware!  Under the current language, the modifications follow the old law if the modification agreement SPECIFICALLY references the same and says it shall be followed; otherwise, as SaraEA says, subject to the new law.  

This is so amazing!  I'm so sorry to have missed it.  Very glad that you all had such a great time.

I hope it will become an annual event!

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?!?

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!

Let the attorney do the 1041 if he knows so much more than everyone else.

7 minutes ago, Abby Normal said:

You have to report what actually happened, lawyer be damned. Did the lawyer provide you the final accounting for the estate?

 

Agree with this 100%.  Distributions come first from income.  I still think you should get a copy of the will to check for any anomalies before you sign off.

Is there a will? 

Publication 535, Business Expenses, page 20, seems to contradict the law (IRC 162 (I)(1)(A)) which simply states "specified premiums means premiums for a specified qualified health plan or plans for which the taxpayer may otherwise claim a deduction under section 162(l). For purposes of this paragraph (a)(2), a specified qualified health plan is a qualified health plan, as defined in § 1.36B-1(c), covering the taxpayer, the taxpayer's spouse, or a dependent of the taxpayer (enrolled family member) for a month that is a coverage month within the meaning of § 1.36B-3(c) for the enrolled family member. If a specified qualified health plan covers individuals other than enrolled family members, the specified premiums include only the portion of the premiums for the specified qualified health plan that is allocable to the enrolled family members under rules similar to § 1.36B-3(h), which provides rules for determining the amount under § 1.36B-3(d)(1) when two families are enrolled in the same qualified health plan..  The code does not specifically disallow insurance that is not in the name of the business or the self-employed person.

I would have no qualms taking the self employed health insurance deduction if the taxpayer otherwise qualified since the married couple tends to be one 'taxpayer' (joint and several liability, etc.) under the law.  Just my opinion.

Excuse the emphasis . . . that's what happens when you cut and paste from the IRC.

I agree with the majority of the posts here.  The letdown is a really strange phenomena, and it can be overwhelming.  I, too, have started to plan many things for the week or two following the end of the season so that I can ease in to regular life (which is very enjoyable)!  The office feels a little strange now, but I have client meetings again starting next week, so it will regain its energy.

Another thought, if you enjoy working as much as it sounds like you do, is to consider what types of work you might add to make your business 'busier' year-round.  I do financial planing, and I'm a lawyer, so I do estate planning, M&A, and some financial mediation and forensic-type accounting for other attorneys.  It seems to me that there is a fair amount of this type of business 'out there' if you open yourself to the same.  You certainly don't have to be a lawyer to do most of the items listed.  Sky is the limit on what someone with good 'bean counting' skills can offer!  I might not be understanding how you are feeling . . . these are just suggestions.

Jim, please let us know that you are okay.

Woohoo!  Thanks so much.  Love the star!

Thanks, Lynn.  Sad, but not unexpected.

Will this function create electronic filing copies, she asked hopefully, or only paper copies?

My TP just went to the social security office, and they told him he wasn't dead (which I had already figured out).  Seriously, I got a reject that SS has locked his SSN because he is deceased, but SS office does not show that.  They were willing to give the letter saying he wasn't dead, so I will send that with a paper file.

Any thoughts on what is going on?

Thanks.