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Terry D

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About Terry D

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    ATX Guru

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  1. Terry D

    Conversion Problem with Depreciation

    Just one more thing. A short cut for deleting a form/screen click CtrlD. You will be prompted with a question like "Are you sure". Click delete and the form is gone.
  2. Terry D

    IRS Letter

    Need a bit of assistance here. The client in my scenario is not 59 1/2 years old but has made contributions to this IRA for over 10 years. Still working on trying to get my hands on the 5498 forms to show the character of the contributions but that might be a tough hurdle to cross. In the mean time, and due to the fact my client does not meet both of the requirements for the earnings from the Roth to be tax free, but the contributions are, does the early withdrawal penalty exist on the earnings? I looked at section 408 and there is no clear language regarding this area. What I have done is calculated the earnings that would be taxable and included that amount as taxable income. My client will include the check for the amount in the response to the notice. If there is any penalties due, I will let the IRS calculate them. I a, getting the feeling the IRS will ask for additional information. Also, I realized that this response will not extend the deadline to petition the tax court. We will discuss this at length.
  3. Terry D

    IRS Letter

    Thanks for replies., I did push the heck out of the broker. He was able to come up with a statement that shows the figures I need to address the letter. While they are for TY 2013, the adjustments mean a very small tax due using those figures. So, I am including a breakdown of the statement and how the taxable portion was obtained. Now, it will be the waiting game to see if the IRS accepts the response. Doing it this way still keeps the tax court petition option open.
  4. Terry D


    I agree on the attorney being out foxed here. I believe the opposing party attorney knows the new rules and signing after 12/31 means the opposing spouse or payee does not have to include the amounts as taxable income either.
  5. Terry D

    IRS Letter

    Client received a letter from the IRS regarding a distribution from a Roth IRA for TY 2016. This is not a CP2000. The 1099R was coded J, no exceptions apply from a Roth IRA. The IRS is stating the full amount of the distribution is taxable. I am currently waiting on information from his broker regarding the character of the distribution. I have advised them of the ordering rules that principal is distributed first, then earnings. They are having a difficult time trying to come up with the character of this distribution or any documents supporting what the principal and interest was. What I know is my client started contributing to the IRA several years ago beginning sometime in the early 90's. He is under 59 1/2 years old. But no tax on the principal only the earnings. In TY 2017 the 1099R was marked the same way for a smaller distribution but the total distribution box was checked. Certainly some of these funds are earnings. My client has until Tuesday Nov 13th to respond to keep his rights to petition the tax court available. I can't believe that no one seems to know what the principal and earnings were for this account. The IRS is going to assess 20K+ for 2016. Don't know how to address this situation. I can't even assume the ordering rules were followed as of this moment, no proof of anything. How would anyone here handle this?
  6. Terry D

    DPAD form 8903

    My thought exactly. However, it is nice to double check with others. Thanks so much!
  7. Terry D

    DPAD form 8903

    Would an automotive repair business be considered a qualified business activity for the domestic production activities deduction? I have looked at several articles and I don't think this is a qualifying business simply because it is a service industry and not manufacturing or producing anything. What do others think? If anyone thinks this is a qualifying business, please post a reference with your response.
  8. Terry D


    I have been dealing with this for some time now. The pain goes a little further south of the lower back area and usually resides chronically in the same area I sit.
  9. Terry D

    Vehicle Donation of $5k+

    >>>>>>>please don't pay the mechanic but rather make the check to the non profit and have the non profit pay the mechanic.<<<<<<<<<<<<< This statement sets the condition of the contribution. This from Pub 526 Conditional gift. If your contribution depends on a future act or event to become effective, you can't take a deduction unless there is only a negligible chance the act or event won't take place. The original post stated the charity did not sell the car as they planned on using it. The OP also questioned the need for the 1098C or would the statement received at the time of donation be suffice. Also from pub 526 Exception 1—Vehicle used or improved by organization. If the qualified organization makes a significant intervening use of or material improvement to the vehicle before transferring it, you generally can deduct the vehicle's fair market value at the time of the contribution. But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value , later. The Form 1098-C (or other statement) will show whether this exception applies. I would advise the client they can only deduct the FMV of the vehicle. Normally, needed maintenance or other repairs don't increase the FMV value. These repairs may increase the price at which the vehicle is sold. FMV is always the trade in value or lowest value given. I would tell the client to donate the value of the repair cost in a separate donation without any stated condition. If total of the FMV of the vehicle plus repairs exceeds the FMV, you can only deduct FMV. >>>>>>>>So, If a Donor says this $5,000 can only be used to buy food for the hungry... The donor doesn't get a deduction? <<<<<<< Maybe I wasn't clear but that is not what I was stating. Yes, the donation you mention is deductible. This would be the same a stipulating a donation to a specific cause or mission, fund or other charitable need.
  10. Terry D

    Vehicle Donation of $5k+

    I have to agree with this. To receive a tax deduction for a charitable donation, you cannot stipulate what the donated amount is to be used for. Pacun your suggestion, in my opinion, does exactly that. I am confused with your reasoning. The donor gets the full 5K with the proper paperwork without separating any amounts. Separating the two donations into two different categories, really does not have any additional impact but could cause the allowable deduction to be the 4K.
  11. Terry D

    Capital Gain/Loss or Wash

    DANRVAN, thank you for the references. Your explanation of the my client's thought is no doubt spot on. I will be discussing this with him in the next two days.
  12. Terry D

    E-fax recommendations

    cbslee we were typing at the same time. RingCentral will port a number as well.
  13. Terry D

    E-fax recommendations

    I have used RingCentral for years. They are reliable and only cost about $12.99 per month. I think I started using them in 2007 and have had no reason to change. In case you're interested, they also have VOIP phone services. My business line is part of my package with Verizon so for $9.95 per month, I can't beat it. I know some folks hate links but here is a link to their site. https://www.ringcentral.com/sem/fax.html?BMID=GGECUSEP&CID=sem&RCCN=Google_US_Search_Brand_Exact&RCAG=AAA_Brand_High_Volume_Fax_[Exact]&RCKW=ring central fax&RCMT=e&AD=247353180181&gclid=CjwKCAjw5ZPcBRBkEiwA-avvk_8I5SREPNOQyDcg1Wn62-A4yu_1lDkuYtJ5PVAJ7jAZRPBSxdUDiBoCy-kQAvD_BwE
  14. Terry D

    Capital Gain/Loss or Wash

    Thanks to everyone for the support. My client inherited some land or lot, if you will from his father, on that land or lot is some rusted out worthless equipment that an agreement is being reached with a scrap dealer to remove it at scrap prices minus a removal fee. No, this has never been used by anyone who inherited it for any purpose. The land was not investment property nor was the left over scrap equipment used for anything other than personal use by his father. The scrap equipment was not itemized in the will. Only the lot/land was part of the estate. No values for the scrap equipment had every been established. Please provide references to the case law you mention so I can see if this fits. I do agree with your statement if it was a residence that was never rental property or anything else. If that property was sold, then FMV is basis at date of death Any gains are taxable to the heir(s) Loss is deductible if the property was never converted to personal use by the heirs before they sold it. In my case, I still don't believe a loss is allowed. I think to do so, these items would have to listed as an inheritance and FMV determined. Then maybe. As far as I can tell, the FMV established of the land this junk is on was included the value of the land only. I will still be interested to see the case law and how this maybe determined to be investment type property. On another note, I just received a phone call from a gentleman in the US from the Comcast fraud division that has escalated my case, says I need to do nothing else and that upon completion of the investigation all three CB's will notified to reverse the entries and clear up any damage this may have caused me. He also stated that in his position he could see the notes from the other fraud agents that I had spoken with, listened to the recorded conversations and those employees will be "coached" as they handled it completely wrong. HIs words not mine. However, there was no disagreement or sympathy from me. He was also interested in the fact the credit was granted without proving the identity of the person applying for the credit was actually me when an extended fraud alert was placed on my credit. They will be looking for the employee who was involved in that transaction and correct that problem. Now, do I believe all of this????? I want to so I can rest better but I will remain skeptical. When I get the final results in black and white, my credit restored, and the collection dogs called off, then I will finally rest. I thought it was really bizarre that every time I called the fraud division, they asked if I was a subscriber and if not would I want to be. Are you kidding me???? Burn me, rake me through the coals so I will over jump through every hoop possible to get your services. NOT!!!!! Thanks again to all for listening. You guys are indeed the best!
  15. Terry D

    Capital Gain/Loss or Wash

    Wow, I'm gonna say this at the risk of offending someone. The responses to this post have gone all around and away from the original question. Judy pretty much summed it up. If this property is personal then no loss. That was the only thing I was looking for. I initially took the wrong road and was not thinking about the character of this so called equipment. I do apologize for that bit of confusion So, I am at the point of saying that the day the scrap dealer picks up the junk or equipment or whatever it is, the price received is FMV because this is indeed personal property and therefore a wash. No gain and no loss. Plain and simple by the code, basis is FMV on inherited personal property at the date of death. I can't believe the trip this post had taken. It turned into various scenarios and ended being compared to logging transactions. I mean really, all of us, and me included should stay with the facts stated in the original or updated post to help the poster. Even if there appears to be missing information or more information needed, it is better to ask for the additional information than to put one's spin on it or making it a contest to prove one's position. I must say some of this was not helpful. Now, shoot me for my opinion. I'm trying my best here. I am not angry at anyone and if I come off that way, I apologize. I have been dealing with my identity being stolen for the 4th time in a year and a half. Dealing with Equifax is like dealing with 3 year old children. I don't think they have anyone located in the US answering the phones. When they do, if you can find a number, they're dumber than a dead rake. Experian, no problem, dispute settlement crap removed from my credit report. Transunion, no problem same as Experian. Equifax, don't ask. All I know is my credit is now frozen everywhere. One week and three days of dealing with idiots on the phone is mentally exhausting. I asked Equifax the magic question. It is MY credit, I cannot access it, get denied every time online. The so called security questions are wrong and bam I'm locked out. But.....the thieves can get it like nothing. I have better luck seeing a friend at the bank to get my credit report from Equifax. They can get it and I can't. Yes, I can get it in fifteen to 20 days. By that time the dispute clock will time out. I mean what the hell? I need to know if I can sue the crap out of Comcast for granting credit in my name when there was a 7 year fraud alert placed on my credit with all three bureaus, with a contact number to verify if the person applying for credit is actually me. No, they never contacted me. Just the collector did when the bill was never paid. I would think this activity would violate some fair credit reporting act or something. Probably another inside job. Here's the best part, Comcast doesn't even offer services where I live in NC. Okay rant over, I'm sorry to bore you all with this so I am going to bed now.