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  1. Never mind, it's taxable in 2010, the deferral to 2012 is reduced. Code Sec. 402A©(4)(D), as added by the 2010 Jobs Act; Code Sec. 408A(d)(3)(E)(ii)).
  2. Let me re-phrase this question. I know the $6000 distribution is subject to the 10% penalty because of the early distribution on the conversion, but is the regular tax that was to be deferred until 2011/2012 accelerated back into 2010 on the amount distributed?
  3. The taxpayer converted a $21000 traditional IRA to a Roth IRA in 2010. Later in 2010, the taxpayer took a $6000 distribution from the Roth IRA (He had no other Roth $$, it was from the converted amount). Is the Roth distribution tax fee? Technically, he doesn't pay the tax on the conversion until 2011 and 2012. Does he have basis for the 2010 distribution??
  4. It's also the basis if the property is sold at a loss. Check it out on Pub. 551, page 10. http://www.irs.gov/pub/irs-pdf/p551.pdf
  5. The loss on the sale of the rental house can be deducted in the year it is fully disposed, as well as any passive losses not previously allowed. However, don't forget that the basis in the rental property is the LOWER of their cost or the FMV on the date of conversion.
  6. I appreciate the fact that people are sharing the fact that a deal is available. Just curious, what do you guys use for tax research and what is the cost?
  7. I purchased the Total Tax Office. I received and input the product activation codes to Trial Balance and Document Manager in addition to TTO. I'm not sure if it loaded them or not, because I can't seem to figure out how to start it. Any help would be appreciated.
  8. Taxpayer receives K-1 from LLC which shows the following: Ordinary income/(loss)(Box 1) (31,000) Guaranteed payments (Box 4) 18,000 Int. Income (Box 5) 248 Self-employment earnings (Box 14a) (13,000) The taxpayer has zero basis in the LLC, so the loss is limited due to At Risk limitations. Does the at risk limitation have any effect on the amount of loss carried to the Sch SE? (Taxpayer does have SE income from a Sch C.)
  9. The wording in the trust instrument is as follows: On the death of the Settlor, Trustee shall divide the trust estate, including undistributed income and any subsequent additions, as follows: (as discussed in previous post, specific distribution of $25K, the remainder divided by two charities.)
  10. My client died in 2009. All of her assets were in a revocable trust which became an irrevocable trust upon her death. She did not have enough assets to file a 706. She has no direct descendants, so she left $25000 to a cousin, and the rest of the assets in the trust are to be distributed to two charities. For 2009 the trust received interest income of $5,000 and a 1099-R for $48,000. The trust made a distribution of $50,000 to the charities in 2010. I am making an election to treat the 2010 charitable contribution as a charitable deduction on the 2009 return, thus wiping out any taxable income. Does anyone see a problem with this? Also, my client was a resident of Arizona, the assets (cash & bonds) are all located in Arizona, but the trustee (successor trustee) is located in Iowa. The trust document is silent on the location. Which state should I file a return in?
  11. How do I do a multiword search without getting results that don't include both words such as - employee leasing -, I want only results that yield the term "employee leasing", not "employee" or "leasing"?
  12. I have this same problem, early distribution, but the 1099R box 2a is blank. So my choice is to enter something on the input sheet that's different from the 1099R received, or override box 1 on the 5329. I'm waiting on a response from ATX.
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