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Sometimes it takes a village...?

It's not a mistake. Line C is the gross farm, or nonfarm, income allocated to the partner. The total of this line for all partners' shares would tie to line 3 of the 1065 and line 14c on page 4.

Me too!

Margaret, my husband turned 65 this month, so I shared the picture below with him. I am 10 years younger and a kid working retail gave me a senior discount today without asking.

Thanks for posting this, Catherine. I enjoyed this so much that I had to share it with my friends that teach.

Randall, to answer your original question, I've never had a letter for any client that chose to take distributions all from one account except the year that one client completely missed taking a distribution altogether.

Adding to the above, it's separate for each account because the beneficiaries can vary and might not be the same for all of the IRAs that the account holder has, and so the life expectancy and table used to calc the RMD may vary from one IRA to the next. Choose the life expectancy table to use based on your situation. Joint and Last Survivor Table - use this if the sole beneficiary of the account is your spouse and your spouse is more than 10 years younger than youUniform Lifetime Table - use this if your spouse is not your sole beneficiary or your spouse is not more than 10 years youngerSingle Life Expectancy Table - use this if you are a beneficiary of an account (an inherited IRA)

http://www.irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Required-Minimum-Distributions#4 According to the IRS, the RMD is to be calculated on each account separately but can then take the year's distribution all from one account. Specifically see the sections "How is the amount of the required minimum distribution calculated?" and the next one after that labeled "Can an account owner just take a RMD from one account instead of separately from each account?" where it says: An IRA owner must calculate the RMD separately for each IRA that he or she owns, but can withdraw the total amount from one or more of the IRAs. Similarly, a 403(b) contract owner must calculate the RMD separately for each 403(b) contract that he or she owns, but can take the total amount from one or more of the 403(b) contracts. However, RMDs required from other types of retirement plans, such as 401(k) and 457(b) plans have to be taken separately from each of those plan accounts.

Haha, I'll take a few of each, thanks! The picture on my screen was big enough to see only the first one and I thought to myself, "look at that cute pup and all that wool to spin into yarn". Then I scrolled down and saw the treat I could have when I was done playing.

Oh, I think that the value would be minimal because it's a start-up with no name recognition, no established customer base, closely held, it's probably limited to one small geographic area, etc. I don't even think a gift tax return is required between H & W anyway. Husband would pick up wife's basis. Again, not familiar with the state laws though.

What about the wife gifting her shares in the LLC to her husband? The gift would create a technical termination on the date of the gift from a tax standpoint since there would be only one owner after the gift and the LLC would then become a single-member disregarded entity on that date. There should be no gift tax consequences since it is from one spouse to the other. I am not familiar with Iowa law to know the ramifications this might cause, but I do know that Iowa is not a community property state, so this couple is not able to use the provision that says a husband-wife-owned LLC can be a disregarded entity, which I assume you already knew and the reason for your question.

Randall and cbslee, these links below regarding the passive activity rules should help each of you with the proper reporting: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Passive-Activity-Loss-ATG-Exhibit-2-7-Vacation-Rentals-Condos-B-Bs-Hotels-Reg-1-469-1Te3ii-and-Reg-1-469-5Ta Also this one has a discussion and lists the 6 exceptions to when an activity isn't a rental under reg § 1.469-1T(e)(3)(ii): http://www.cmorrisonlaw.com/rental-real-estate-losses-passive-activity-rules/ Finally, a succinct blog by an EA that hits the important points of this issue and what to watch out for. From five years ago but still good info here: https://urtaxlady.wordpress.com/2010/10/21/tax-guide-for-vacation-rentals/

The odd thing about this is that the custodial parent is paying the noncustodial parent and calling it child support. If this was their attempt, or their attorney's, at keeping this from being alimony, they certainly didn't have to call it child support. According to tax law, even if it otherwise qualified as alimony, the payments are not alimony for tax purposes as long as they both sign a written agreement or include that in the divorce or separation agreement stating that the payments aren't deductible as alimony by the payer and aren't includable in the income of the recipient. The above is for agreements post-1984. Different rules were in place for pre-1985 agreements.

If you read the entire topic, Mr Pencil had already given the answer to your question 17 months ago. Nonconforming treatment would be disclosed on Form 8275. Are you a tax professional?

Because the corporation has a short year that ends in 2015 and the 2015 forms are not yet available, the IRS will allow the final short year return to be filed on the 2014 forms. However, because the OP's year ended on 7/31, the final return's due date is 10/15 and its due date could be extended to 4/15/16 allowing the final return to be filed on the 2015 forms. I'd probably request the extension and file next year using the 2015 forms unless there is a state requirement that must be met by filing sooner or there is some other reason why an extension is impractical.

Very entertaining. It was edited from 2 performances or more though, one inside and the other one outside.

Yes, you are correct. If the deceased IRA owner had reached the required beginning date to start distributions and was required to take a distribution for 2015: if the deceased grandma HAD taken IRA distributions that were enough to satisfy her 2015 RMD, then the beneficiary distributions would begin in 2016 as I described in my earlier post. if the deceased grandma was required to take an RMD for 2015 and HAD NOT done so, either because she usually took it later in each year, or the pay frequency was such that she hadn't met the minimum amount yet for the year, then the beneficiary is required to take a distribution in the year of death so that the deceased IRA owner's RMD is satisfied. This distribution is paid to the beneficiary, and is taxable to the beneficiary that receives the RMD, not the estate. If the beneficiary fails to take enough in 2015 so that grandma's RMD isn't met, then the beneficiary is subject to the 50% penalty on the shortfall.

Yes. The first RMD he is required to take will be in 2016, the year following the year of grandma's death. If he only wants to take the minimum out, he will use is life expectancy from the single life expectancy table for the 2016 year, and then subtract 1 year from that number for the subsequent year distributions and not go back to the table each year. There is no 10% early withdraw penalty for him because he is required to take these distributions, no matter his age. If he doesn't take enough of a distribution in any year to meet the RMD requirement, he is subject to the penalty that is 50% of the shortfall though.

Tom, there is no step-up, and no recalculation of the GP % or other figures used to report the installment sale. The recipient "steps into the shoes" of the decedent and continues to report the installment sale in the same manner.

From pub 537 - Transfer due to death. The transfer of an installment obligation (other than to a buyer) as a result of the death of the seller is not a disposition. Any unreported gain from the installment obligation is not treated as gross income to the decedent. No income is reported on the decedent's return due to the transfer. Whoever receives the installment obligation as a result of the seller's death is taxed on the installment payments the same as the seller would have been had the seller lived to receive the payments. However, if an installment obligation is canceled, becomes unenforceable, or is transferred to the buyer because of the death of the holder of the obligation, it is a disposition. The estate must figure its gain or loss on the disposition. If the holder and the buyer were related, the FMV of the installment obligation is considered to be no less than its full face value.

From Pub 925: Dispositions by death. If a passive activity interest is transferred because the owner dies, unused passive activity losses are allowed (to a certain extent) as a deduction against the decedent's income in the year of death. The decedent's losses are allowed only to the extent they exceed the amount by which the transferee's basis in the passive activity has been increased under the rules for determining the basis of property acquired from a decedent. For example, if the basis of an interest in a passive activity in the hands of a transferee is increased by $6,000 and unused passive activity losses of $8,000 were allocable to the interest at the date of death, then the decedent's deduction for the tax year would be limited to $2,000 ($8,000 − $6,000). If you inherited property from a decedent who died in 2010, special rules may apply if the executor of the estate files Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent. For more information, see Publication 4895, Tax Treatment of Property Acquired from a Decedent Dying in 2010, and the Instructions for Form 8939.

Last night after this post was updated I started looking at the differences in Win 10 compared to earlier versions and noticed that it doesn't include any software or drivers to run any floppy drives or CD/DVD drives, so if you want a machine with anything other than a hard drive, have any software that still updates on CD on DVD, or have anything stored on that type of media, you'll have to purchase add-on software to run a drive. More and more things will be moving to cloud-based software.

I don't have any plans to upgrade any current device either. Why mess with a machine that is working perfectly now? The upgrade offer begins on 7/29/15 and will be available for one year until 7/29/16. If a person accepts the free offer, it is free forever on that device. The person would not be required to pay for it after that time. http://www.microsoft.com/en-us/windows/windows-10-faq?ocid=win10_auxapp_context What are the basic facts of the Windows 10 upgrade?Microsoft is making Windows 10 available as free upgrade for qualified Windows 7, Windows 8.1, and Windows Phone 8.1 devices. It will be available starting July 29, 2015; people can reserve their free upgrade today. You only have until July 29, 2016 to take advantage of this offer. Once you upgrade, you have Windows 10 for free on that device.

Goodness, what an update. I'm glad you, your husband, and cousin are all doing well and are getting back to good health.