Gail in Virginia

This should be "cash in lieu" of fractional share. And when you sell something at a loss, such as a fractional share of stock, you still receive the check for the amount of the sale price. The loss comes from the basis that you have in the fractional share being in excess of the cash you received. I don't think that he received a negative check. And yes, it should go on the sch d and 8949.

I would think that the selling price would be the amount of debt that was cancelled in both cases, and yes the $3500 is probably a condemnation award. The tricky part will be finding out exactly how much debt was cancelled.

Actually, I believe under current law the wife would get 100% unless there are children are from a previous marriage. And I believe the value that requires probate is now $100,000. However, your other comments are spot on - especially the part about how the property is titled. Perhaps if you point out to the heir how much of the value of the farm might be lost to taxes if sold now as opposed to later, he will understand your point. Use actual dollar amounts as examples as well as telling him the percentages. But in the end, you can't control what they decide to do.

By any chance, is the reason the youngest won't use the funds because they are entering a military academy and don't need the money? Or have a tax-free scholarship? Because I think that allows them to withdraw and only pay tax, not penalty. Or if youngest is disabled, and that is why they won't be using the funds. Other than that, I got nothing.

If this is the same plan as last year, and last year it was taxable, I don't think that will have changed for this year. Is there any chance they got the forms and did not realize what they were to bring them to you? Or that they are supposed to go on-line and print them out? Or that they got lost in the mail?

I recently met with my broker, and he had me sign a form that I had not seen before. Basically, what this form does is designate someone that the broker can contact if he thinks that I am losing it and need help managing my affairs. Perhaps tax preparers need a form similar to this that we can have our clients tell us who to call when we think they have lost their minds. I don't know who will hold a form telling our clients who to call when they think we have lost our minds - or if they could tell since most of them have never met me when I wasn't on the crazy end of the spectrum.

What if she wins the lottery? Her 90 year old sister leaves all her millions to her the day before she passes away?

Perhaps they did the estate return to ensure that she was able to use the rest of his estate exclusion along with hers when her estate is settled (portability). I have heard that some firms do this as protection in case the surviving spouse gets rich and needs the extra exclusion.

Rita, I am pretty sure that someone who mistreated you would soon find themselves "hugged" and in the back 40. I can't wait to meet you in person in June.

I'll take my pints anywhere I can get them.

Excellent response! We have to stand up for ourselves - no one else will if we don't. NON-VOTING POST

Payroll isn't an issue - he is basically a one man operation. But thanks for the info about TN corp tax and the links, Rita and Edsel!

I have a client, Virginia S-Corp, who did about $25,000 gross of construction in Tennessee this past year. I would not worry about individual taxes but know nothing about TN corporate taxes. Does he have a filing requirement for Tennessee?

I am so sorry, Judy. This has been a tough season for me so far also, so you have my deepest sympathy. I am glad that I read this near the end of the day, so I can shed a tear for you and for the family of that young woman and hopefully not get caught by a client. We do get attached to our clients, or at least I do, and this is the hard way to lose them. And Catherine - love you back, and all my other friends in this community!

Virginia tends to be sticky about this as well. They want proof that you have changed your state of residence and are not just domiciled out of the country. Changing drivers license, using a different state address on the federal return, changing voter registration - all of these things can be used to indicate you are actually changing your state of residence. Whether or not some bureaucrat in a state department of taxation will accept that is another kettle of fish entirely.

That's why the clients that drop off the paperwork with a phone number where they can actually be reached (or even better, an email address!) are my favorites. Watching them open their mail and try to puzzle out what they have, and remember what they should have, while amusing is a HUGE waste of time. I can slit it open and throw away the envelopes in half them time, and I probably know more about what they are missing than they do if we have done their returns for a year or two. On the other hand, if they were good at this stuff they would not be paying me the (cough, cough) big bucks.

I would think the only way that the employer would report it is as part of their employee's w-2 wages.

I am so glad that I am not locked in either room with either group.

But I used to love multiplying on an adding machine by holding the plus bar down long enough to "add" for each place, putting an extra zero on the end as needed. Miss that sound. Calculators aren't nearly as much fun.

But it would not hurt for her to just politely tell him that he should not report alimony on a 1099, and that if he is concerned that former spouse will have records showing a different amount, he is welcome to send her a letter stating what his records show. Then he will still do whatever he wants, and so will she. That is, if they are being polite to one another and can speak without an arbitrator.

The problem with Pacun's statement is that they aren't going to be getting refunds from the state - they will owe. So it is you can pay me $200 to amend (more like $100 in my neck of the woods) and you will owe the state of Virignia an extra $10. Or you can wait and let them bill you the tax plus penalty and interest, which will probably be between $15 and $20 depending on when they get around to noticing.

I haven't really had time to think about this latest revenue enhancement after the fact change in tax law. I have a few clients that itemize and actually use some of their medical, but I have not gone back and looked at them yet. Virginia is more sensitive about a few dollars than the federal, so I may use a cut off of $10 tax (maybe $5) but I haven't really thought about it yet.

I find this discussion fascinating. We use filing cabinets, have no cleaning crew, and an alarm on the office. We log off computers that aren't in use at the time. But I still think a determined thief will find a way.

If him claiming all of the expenses results in her being eligible for EITC, I would really hesitate to do the return that way. If it is just a matter of him being in a higher bracket and receiving more benefit from the expenses, maybe.

What if you steal something Christmas Eve, and can't return it until after the New Year?