Randall

Congrats.  Where did he get his flying training?  Military?  Air Force?  or civilian?

10 hours ago, Sara EA said:

Ha Ha!  "Normal" these days consists of stimulus payments they don't remember, advance child tax credits they don't remember, cryptocurrency dabbling, NIIT, different phase out ranges for almost everything on the return that you have to explain, ability to use 2019 income in some cases, different rules for every type of retirement plan contribs and distribs, paying tax on 2021 retirement distribs over three years, should I go on?  Normal for me will be if the tax laws don't change again before the end of filing season.

Amen to that.  That's why I'm probably only going to be around a few more years.

5 hours ago, joanmcq said:

I just flat out told an inquiry about tax prep that I was no longer taking new business returns.

nope, not gonna do it.

Me too.  I've only got a few more years and I'm trying to cut back.  No business returns, no rentals, side business Sch Cs, no farming, no high volume stock trading on your own.  And even the fairly normal 1040s, I'll only be around a few more years so if they're looking for a long term preparer, I'm not the person.

7 hours ago, DANRVAN said:

Just curious, is this a real or hypothetical situation?   

Since the grantor did not retain the right to revoke, alter...etc, without consent, then it would not be included in his estate or receive a stepped up in basis.

It's real alright.  Too real.  And it's more weird than mentioned.

One more add on.  If Grantor has the right to revoke, but it has to be unanimous with the two beneficiaries (his two children), does this change his status of sole power to revoke.  And thus eliminate the stepped up basis eligibility on the date of 2nd death (grantor). 

On 1/15/2022 at 8:45 AM, JSC CPA said:

I survived the 2012 ATX FIasco, but think next year I am out. I am a one man shop and dont have an IT department needed to run the unstable ATX product. I am a stand alone install and apparently the servers are screwed up. Any ideas? 

I'm a one man shop too and don't have an IT department.  And I'm no techie.  But I've found ATX to be quite good for me.  There have been several times I've had to call but not too often.

Not sure if it's the same problem but last year, I got a new computer.  I had downloaded the software on my old computer, then later on my new computer.  I'm not sure what happened but the tech rep had to walk me thru to rename the old Server file 'old' and start a new Server file.  Either way, this will require a phone call as joanmcq said.  I definitely wouldn't try this on my own.

27 minutes ago, mcbreck said:

50% of Americans retire with about $250k in retirement assets or less. They would be better off with a traditional IRA because most likely their IRA distributions (if timed properly) would achieve $0 in taxes or very little. My in-laws retired with those type of funds and never paid a dollar in income taxes after retiring at 62. He could have easily had more like $350,000 because he ran out of retirement funds at 82 years of age.

Did the taxes for a lady about 2008 and she did a Traditional to Roth conversion and paid taxes on her distribution (while she was still working). When I told her this she yelled at me - not her CFP who suggested it.

Blanket statements rarely work, you need to look at the situation and run the numbers. I have another client who doesn't have an IRA but his money is invested in dividend paying stocks (all qualified) and some muni bonds. He also pays $0 in federal tax (he does owe at the state level). He has a very comfortable retirement. Investing in a Roth IRA could have benefited him (avoid potential capital gains realizations) but he never sells so it doesn't matter.

I've thought from the beginning the biggest benefit of the Roth is for people who will never need the money themselves and have a long time horizon for the investments.  Let it grow tax free and leave it to heirs tax free.  Most people think the opposite.  They hear 'tax free' and take it now, think short term.

On 1/12/2022 at 8:14 PM, JSC CPA said:

Actually, do I need access? I tried to log in via my Google account, but was denied. Your my only hope. ATX and my sales rep have left me high and dry!

Have you gotten this resolved yet?

I'm in that situation too.  I plan to contribute.  My understanding is that the tax rules changed for contributions when they raised the age to 72for RMDs.  If you are working and have earnings, you are now eligible to continue to contribute and get the IRA deduction.

1 hour ago, DANRVAN said:

By nature of the beast, a revocable trust become irrevocable upon the death of the grantor and therefore included in his estate.  The trust and the grantor are basically the same entity.

Therefore in your case, son inherited property from mom and receives stepped up basis.  Upon his death the trust becomes irrevocable and goes to his estate.  His estate also receives stepped up basis.

Look up the definition and operation of revocable  trust.

 

I think IRC 1014 covers this.  Specifically IRC 1014(b)(3) which mentions a trust.  Thanks for pointing in a direction.

13 minutes ago, Abby Normal said:

Also, you should turn off two factor authentication once you get logged in.

I think there's a check box for this but it only says 60 (or 90) days.  I'm not sure if it's permanent.

2 minutes ago, Bart said:

Son's trust does get a stepped up basis five years later.

Do you have any reference on that?  Everything I see refers to date of death but nothing regarding a second stepped up basis when property is owned by a trust.  I was thinking that the trust became the legal owner of the property at the time of the first death.  Then I wondered about it being a grantor trust and perhaps the 2nd stepped up basis.  It would knock out the gain.  I would like some authoritative reference to support this though.

Unfortunately ATX doesn't have the option available on the initial login to change your email address.  And they don't have the setup to use a mobile phone number to receive the code by text.

I had a similar problem.  I did not change my email address but I tried logging into support and it was taking a long time to receive the email with the authentication code.  By the time I received the email, my time was stopped out.  I called tech support.  The rep asked if I had another email address.  I happened to have a gmail account and email address (I don't use it much).  The rep gave me a new temp password to log in and there was an option to change my email address.  Using the new email address, I received my code immediately and was able to log in to the website.  You might be able to change your email address with ATX this way.  But you should be able to get into the ATX website in the future so you'll want to get this resolved.

10 hours ago, DANRVAN said:

What was the relationship between the 1st person to die and the 2nd one five years later?

Mother died.  One son took the property as his share, other siblings got their share.  Son (grantor) put the property in the trust.  Son (grantor) died 5 years later.  Trust sells house.  2 beneficiaries, children of son, grandchildren of 1st deceased.  

My question is regarding stepped up basis.  Son received stepped up basis 5 years ago, which would be basis of property owned by the trust.  So would the trust (grandchildren) receive a stepped up basis again 5 years later because the grantor dies.  Or would the trust retain its cost basis from 5 years ago since the trust is the owner of the property, not the individual who died?  Or would the individual who died be considered owner of the property since it was a grantor trust?

10 hours ago, Bart said:

Why and how did the trust receive property from someone who was not the grantor

Trust did receive the property from the grantor.

A trust receives property upon death of a person (say 5 years ago).  But the trust is revocable.  Then grantor of the trust dies and the trust becomes irrevocable (say current date).  Is the stepped up basis as of the date of the first death (5 years ago) or the date of the 2nd death (current date)?  The revocable trust becomes an irrevocable trust (tax entity) at the date of the 2nd death.  But title to the property was transferred to the trust (revocable) 5 years ago.  Any opinions?  References?

I just have a manual file.  Billings, one file for unpaid, one for paid.  I do enter in QB late in the year and my checks written to get a summary of my income, expense, profit.

Thanks Catherine.

Anyone care to list some of the questions they've added?  I put in a couple but not sure of my wording.

1 minute ago, Margaret CPA in OH said:

Randall, good for you for braving the T-Day race!  As I recall it wasn't the nicest weather.  I ran it for many years until my group, Queen City Running, began recreating the original one-way route from KY.  I didn't do it this year due to a stress fracture in my ankle incurred one week after the Queen Bee Half. Side plank with stacked feet, if you know what that it.  Won't do that any longer!  Walking is my mode now with a knee replacement probably in 2023 but I so miss running.  I have resumed lots of swimming since the gym reopened so, as we age, we do what we can (or break bones trying ).

Thanks for the comment.  I'm 72 now.  Finished 6th out of 46 in my age group (yes, it was rainy).  So far, no injuries.  But you never know as we get older.  Sorry to hear about your injury.  I do some backpacking and I recently got a bicycle, just east stuff.  

What I really dread is if they finally pass a new law and delay the filing season.  Especially if they get something passed in 2022 and make it retroactive for 2021.

I believe you have the option on the first 1041 return of selecting the year.  Either calendar or fiscal.  So in your case, calendar year of 12/31/2021 and final return (short year ending whatever month) for 2022.  Or selecting fiscal year and the first 1041 return would end 2/28/2022.  I think this would dictate which year the K-1 would be issued.  Reported by beneficiaries on their calendar year 2021  or 2022 depending on which year selected on the 1041.

My general plan is four more years.  But we'll see how things go.  I have an office but it's small and very (very) close to where I live.  Margaret, I run, but not long distance.  I ran the 10K in Cincinnati Thanksgiving Day morning.  And hike/backpack.