jasdlm

My husband is off chasing the Jayhawks (Rock Chalk Jayhawk Go KU! - Bart, back me up here.) I am doing taxes all weekend, but I will take time to dye eggs with my 7 year old son tomorrow night, enjoy the Easter bunny with him in the morning, and take him to Church (he is very excited about his new suit). Go Hawks!

Would someone please confirm that the entire amount (less employee contributions amortized over life expectancy) reported on form RRB-1099-R goes on Line 16b? I'm really confused about the RR Retirement. Everything I read indicates there is Tier I and Tier II. I thought Tier I was akin to SS. Why isn't part of the benefit sent through on a RRB-1099 instead of an RRB-1099-R? Seems like this guy doesn't get the 15% break on part of the income (85% taxable) that he would get if he had an RRB-1099. Sorry. First Railroad Retirement Client. Thanks for any clarification.

Expired or exercised?

I didn't think they would charge the 'return' penalty given that the tax has already been paid. Agree completely if the tax was still due and owing. You might be right . . . I just hate to see the client out the money twice for 7 or 8 weeks.

If there is any way they can stop payment on the check, I would have them do it. This happened to one of my clients one year. Although I called the Feds immediately, and they acknowledged they could see both payments, it took 7 weeks to get the overpayment returned.

I wish I could, because I would love to have the spreadsheet. Rock Chalk Jayhawk!

I like the calculator better than previous versions.

Things like that really bug me. I also feel that the people who do this type of thing are the people I've done the most for. Sorry, Yardley!

She is closing the account. It still makes me frownie face .

Okay . . . because I have never seen Jainen post anything inaccurate, I had to quickly research this just a bit. While Pub 527 states that a new roof is an 'improvement', ergo Capitalize, I just discovered that there is definitely case law supporting expensing. I withdraw my 'ditto'. Sheesh . . . I want to download a few of the brains on this board. I will send a thumb drive. Please password protect. You know who you are.

Taxpayer died in 2012 (my client) and the person who handled his affairs (also my client - not spouses) received a 1099-int for all of the interest from a large account deceased taxpayer held at a credit union. (Ownership of the account was transferred late in the year.) The Credit Union issued 1 1099 in my living clients name/social. When she called them about it, they told her that since the account number didn't change when ownership transferred, they didn't have to issue two different 1099s. Really? Anyway, deceased taxpayer was in a nursing home so has high medical deductions. I would rather take the income on his return. I can nominee the interest to him, no problem, but he was subject to backup withholding. Is there any way I can move that withholding to his side? Doesn't matter, I guess, if not, but it would be an accurate reporting of what actually occurred. The credit union also continued the backup withholding when my client transferred the account to her name. They will not remove it, even though my living client isn't and never was subject to backup withholding. I clearly do not understand credit union laws. Thanks for any help.

Ditto

Thanks much. I'll submit the efile.

I just did one of these. Client actually met with his financial advisor in August and thought he took his minimum distribution, but it was never actually transferred to his after-tax account. I called him when I did not see a 1099 when preparing his taxes. He called the adviser and discovered the transfer didn't actually happen. I did have him immediately withdraw the amount required, and I prepared a 5329 and completed Line 52, which I thought was the appropriate way to handle it. This is the first time I have had this happen with a client. I haven't efiled yet. Jainen, in your experience, is this not a very successful strategy? Is there something else I should do? Thanks much.

I agree with your basis calculation; disagree with the FMV at time of distribution as basis suggestions. Apologies for misunderstanding your original question.

Did you reboot your computer? (I'm sure you did, but just trying to think of something. I would not be calm if I were you.)

Do you have the software on a network? When this has happened to me, I have been able to open the return from a different machine/log on, save it and close it. Then I have to close the software on both that machine and my machine. I have then been successful at opening the return on my machine. I know it sounds crazy, but it's worked so far for me.

A joint undertaking merely to share expenses is not a partnership. Mere co-ownership of property that is maintained and leased or rented is not a partnership. However, if the co-owners provide services to the tenants, a partnership exists. This is from the instructions to form 1065 (Definitions). I'm actually not sure how it is interpreted by the IRS (i.e. when a co-owned rental property would have to file a 1065 vs splitting income/expenses on Schedule E). I would be really appreciative to hear how this is interpreted by the Feds from those with experience in this area. Terry, I hope you don't mind the slight Hijacking of your thread, but given a separate post this season by Michaelmars, I believe, regarding the Trust/beneficiary issue, I am very curious about this.

Terry, page 13 of the 2012 Pub 946 might be helpful. I believe that because the mistake was repeated for more than 2 years, you have 'adopted a method of accounting', thus requiring Form 3115. I know it's a pub, but it gives some guidance.

That is the way I have treated it in the past (if the buyback was done with after-tax dollars; I try to encourage clients to use IRA dollars to buyback if they have them).

So the partnership is a partnership of the trust and your client? Shouldn't there be a 1065 then, with k1s to the trust and your client? I agree that your client should share in the depreciation deduction, but I don't see how you manage this other than through a 1065, even if the partnership is informal. Maybe someone can set me straight.

Yes - FICA and Medicare .

I would 'disagree with proposed changes' and attach a 1040X with the explanation in the appropriate place on the 1040X. If you have 2848, you can get a record (online) of what the IRS has, so you will see the source of the interest income.

Is the trust still running for the other two kids? If it's an informal partnership, wouldn't the k1 she's receiving give income after the depreciation was taken? Am I misunderstanding the facts?

I feel like a total slacker. Did you do all 611 yourself?