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peggysioux5

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About peggysioux5

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  1. From Pub 721: If your annuity starting date is before 1987, you can continue to take your monthly exclusion figured under the General Rule or Simplified Method for as long as you receive your annuity. If you chose a joint and survivor annuity, your survivor can continue to take that same exclusion. The total exclusion may be more than your cost. Peggy Sioux
  2. Yes, you have answered my question. Thank you!! Peggy Sioux
  3. Is unemployment income considered funds belonging to person supported or funds provided by others (state)? Peggy Sioux
  4. Thank you so much for info. Peggy Sioux
  5. Taxpayer lives in CA, a community property state. Taxpayer has not filed 2018 tax return yet. In 2018 taxpayer was married and lived with spouse all year. Per taxpayer, taxpayer and spouse planned to file jointly when they did file. However, spouse decided to file on her own last month. She did not ask taxpayer for his tax info and he was under impression that they would be filing together. I understand there are exceptions that allow for spouses to only claim their income in instances where spouses don’t have knowledge of other spouse’s info. However, this situation is convoluted (much like
  6. S-Corp has a SBA loan in 2020 for which SBA made six payments of principal and interest due to COVID. The second stimulus enacted December 27, 2020 amended the CARES Act to provide that the SBA's payments of principal and interest made on behalf of the borrower were not taxable income to borrower. Bank that handles loan submitted a 1099-Misc reflecting the loan payments as "other income" in Box 3. Being the payments are non-taxable, should a 1099-Misc be issued? Peggy Sioux
  7. peggysioux5

    RMD

    Taxpayer has several IRA accounts and turned 70 1/2 in 2019. Financial institutions provided the information of RMD amounts needed for for each IRA account. Taxpayer cashed in an annuity that was over the required minimum distribution of all IRA accounts and received a 1099-R for the distribution from the annuity. The 1099-R for the annuity distribution is not marked as an IRA. My question - does the distribution from the annuity satisfy the RMD requirement for the IRA's? Or being the annuity was not part of an IRA, the RMD's are still required from the IRA accounts? Peggy Sioux
  8. Taxpayer received a Partner K-1 showing an "Other Decrease of $5,000" in L - Partner's Capital Acct Analysis with an explanation of decrease of "Miscellaneous Deduction on Books and Not on Return". I use Drake Software and the only way I can reflect the $5,000 decrease in basis is if I input the $5000 in box 18, code C "nondeductible expenses". However tax preparer did not input anything in box 18. Being the K-1 does not show anything in box 18, I am unsure if there would be an issue if I input the $5000 in box 18 to get the correct basis. How would other tax preparers handle? Peggy
  9. Thank you all for your valuable input and information; it is very much appreciated. Would other tax preparers see this error as a "change in accounting" and eligible for 3115? In my research, I read that posting and mathematical errors are not eligible for 3115. Unsure if this issue would be a considered posting error or a change in accounting. Peggy Sioux
  10. I found an article from Spidell's CA Tax letter from January 2018 stating FTB issued Notice 2017-3 which states CA generally follows federal law in the area of unclaimed depreciation as long as: 1. CA follows the underlying federal law (e.g., MACRS for personal income taxpayers and S-Corps); and 2. The taxpayer made the same election for CA purposes as it did for federal purposes. Letter also states CA does not have an independent automatic consent procedure in place, so if a taxpayer wants to make a change in accounting method different that the method used on the federal ret
  11. Taxpayer had asset set up in 2014 correctly with bonus depreciation of 50% and depreciation has been correct on the federal side for 2014 through 2018. However, for CA return even though asset set up originally correct in 2014 for full amount of asset with no bonus depreciation, in 2015, tax preparer somehow began calculating depreciation on the basis for federal (which was 50% less) so there is missed depreciation for CA from 2015 through 2018 of over $65,000. Would this be considered a posting or mathematical error and thus not eligible for 3115 filing for CA only? Peggy Sioux
  12. That was my thinking as well but wanted input to confirm. So would you (or any other tax experts) also agree with the below : "If taxpayers ceased using the acreage for business use two years prior to sale (and continued to live on property but converted the 45 acres to personal use), then the property as a whole would be included in home exclusion deduction." Thank you for your input. Peggy Sioux
  13. Taxpayer buys home that sits on 50 acres and he decides to use 45 of those acres for ranching. If taxpayer prorates mortgage interest between home/5 acres and remaining 45 acres and applies the mortgage interest from acreage to Farm Schedule, when he decides to sell 10 years later, will the gain of the sale pertaining to the acreage be excluded from the home exclusion deduction? Peggy Sioux
  14. Taxpayer received a 1099-Misc from Union for working on a committee of Union. Would other tax preparers determine that self-employment tax needs to be calculated? He did say he will continue to be on committee ongoing so not a one-time thing but he is not looking to make a profit and it is not a business. Peggy Sioux
  15. She is going to have the same issue for 2019 as the ex has already filed for 2019 as well so her return will be rejected if efiled.
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