Pacun
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Posts posted by Pacun
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Remember, like kind exchange only exists in real estate. All gains are taxable in your situation.
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As we know, each year is different and a separate entity for EVERYTHING not just for stimuli. Amend if necessary.
I just filed 2021 and amended 2020 because a client had the second stimulus check in his hand but lost it. My partner (not tax preparer) gave me a message that this person didn't get the second stimulus. Since I have done their taxes for years, I said: "it is impossible that the IRS didn't send the second stimulus". When I talked to the client, he gave me his version and I amended.
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I have done the following on one about 10 years ago, another about 4 years ago and a couple this year. So far I have not heard anything.
This year I had a client who had two reports. On one report they had only short term gains. I entered it on the top of Sch D.
On the other report, they had short term gains with wash sales and long term gains. I entered the long term gains on Sch D. I used form 8949 to enter the totals of proceeds, basis and adjustment of short term gains.
I try to separate reports as much as I can. So if I ever have 5 reports, I would enter the simplest one on Sch D directly and the others would go on 8949 individually.
ADDED AFTER Terry:
I use the totals and they list all the wash sale losses that are not allowed. I just glance at the full report and used the totals. I wonder if someone has had an audit because he/she was using the totals vs more detailed entries.
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"with intentional or reckless disregard for the facts"
I would file with 0 or 1 dollar income. I would also inquire if they did some work and were paid cash.
So, going to the quote above, who will determine if they intentionally disregarded the facts? We as preparers don't have the skills, knowledge, competence and drive to determine that, correct?
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Does he have any tax liability? Since he has EIC QBI might make 0 difference on the return.
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Schedule C, SE and fire him.
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1 minute ago, Marie said:
GUESS I'M NOT BY MYSELF
Welcome to the club. I never had a problem before and I start to wonder if my printer is getting old.
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I find this forum very useful when I don't know what to do and I don't have time to research. Please consider donating so that Eric feels that we appreciate his efforts.
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I noticed that fewer people are participating in this valuable forum and based on the overwhelming response to my post, it is understandable.
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check the name and number. Spaces sometimes cause similar issues.
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2 hours ago, Slippery Pencil said:
Suggesting to efile on 1/24 is definitely not a suggestion to efile a complete return.
millions of people are ready to file on that date.
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Good idea. I donated something today.
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3 minutes ago, Slippery Pencil said:
That won't tell what the irs has on file, it just confirms that a return was filed. If the return isn't completed, it's idiotic to efile a fake or incomplete return just to see if one has already been filed.
No, we are suggesting to efile a complete return as soon as possible. If it gets rejected, then mail it before April 15th so it supersedes anything filed previously. In addition, we have suggested to report it to authoriest/agencies.
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I am sure that Eric will appreciate a donation from you. Let's use Fiat for now since we don't know if he will accept a whole bitcoin.
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That happens to me when I have a large return and try to print. I wonder if others have that issue only when invoking the print subroutine.
By the way, this didn't happen on Windows 10 but now that I have Windows 11, it happens.
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I would say it is half of the original cost plus $200,000.
Did she live in the house 2 out of the 5 years immediately before the sale? Is the profit more than $250K?
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8 minutes ago, Gail in Virginia said:
I thought that the partial exclusion only applied if you meet a further test - moving for work, health, unforeseen circumstances, or other facts and circumstances that qualify as hardship.
I agree... but the original poster, I believe, has that sorted out and the question was more about ATX taking out 100% of the profit.
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I used to know how to enlarge a field so that on the dependents last name field I can enter Washington Ramirez and be visible on the 1040 form.
Thank you in advance.
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That's one of the features of crypto. They are decentralized and therefore they reside everywhere and nowhere. Technically you could have them in your pocket. I would think that they are like the million dollar pennies. You pull out all your change and look for the pennies that have extra value and go to the bank or where ever and cash those pennies. In this case you go to your computer, connect your hard wallet and your computer is like a branch of the bank and gives you the money.
US citizens are not allowed to buy anything from some foreign exchanges such as binance.com. Binance.com had to open a "branch" called binance.us because of US regulations so I doubt FATCA will play any roll in crypto at the moment.
Keep in mind that about only 5 percent of the population have crypto. Imagine when 90% of the population do. Our tax preparation will be changed and the sooner we embrace these changes, the better.
In my list above, I forgot to mention NFTs and that's a whole new subject.
From 1 to 10, I feel my confidence level is 1 when it comes to crypto and tax preparation... how about you?
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If staking is income and therefore not listed on form 8949 given by Coinbase, then you will have to read all those reports to hand pick it.
These are a few things that will trigger a taxable event when the event is over or a sale occurs: (too many things that even we, preparers, don't know, so don't expect the regular taxpayer will know).
Staking
Coins given for opening an account
Coin Airdrop
"sale" of ether to pay for gas at a gain o loss
liquidity pool investment
coins given for playing in block chain
Coins given for being part of a DAO
Profits from coin appreciation
Coins Given for mining.
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I would try to efile. If it goes through, then nothing has been filed. It is gets rejected, file police report, contact credit companies as suggested by Judy and mail the return to supersede the fake return and deal with situation with the IRS.
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3 minutes ago, joanmcq said:
You forgot reporting the $200 as income. Other income .
Not really. You used your fiat to purchase some luna and you staked it. By staking it, you earned $200 worth of Luna. Now you have more Luna. You sell everything for $11,000. You report earnings of $1,000.
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3 minutes ago, jklcpa said:
Well, if the thief e-filed the day IRS opened the season, there's no way that the client instantaneously received a notice in the mail and could have known about this and filed that early as you suggested.
you are right. I went back to read and it is for 2021.
So, something is very odd. Are we sure that that letter comes from the IRS? My clients who e-filed at the very beginning of the season have not received their bill from the IRS.
Knowing that most, if not all, of the fraudulent returns asks for refunds, the IRS either asks for more information or sends a letter and not a bill. Plus the IRS is not in a position of billing someone since they don't have the payroll information uploaded yet, unless they efiled a Schedule C with a lot of income.
If a return was filed already, you have no choice but to send it my mail so, send it before April 15 and your return will supersede the other return and your issue should be soften.
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3 minutes ago, jklcpa said:
How is that even remotely helpful if the client just received the notice and didn't know about the fraudulent filing until now?
We are both assuming as to when the letter was received.
Another Crazy Situation
in General Chat
Posted
If H and R was correct, the situation is harder since letters have been ignore. There is nothing to amend and time is against client as mentioned by others. Unless, he still has to pay penalty even if reported on line 7, in which case an amended return is in order.