TAXMAN

I also would like to hear from others about this as I have a client that may be in the same situation.

Can you post a link to that guide. I tried to find but no luck thanks.

Do you have a link to that site?

TP deceased. Administrator cashes in IRA(600K) puts into estate checking account. Administrator pays Heirs 300K. No other distributions. Heirs pay tax on their 300K. Who pays tax on remainder? Not a final 1041 being filed as off this date. I think the estate on form 1041 owes the tax. What say you?

I too have done this and had to reenter all the info.

I just finished 44 years. Plans are to try to get to 50. I must be a glutten for punishment.

I had this happen. TP had 2 savings accounts. Gave the one to get $ out of however it was the wrong one. IRS sent a letter very quickly. I guess they really need the $. BTW the penalty was $35.00

Big Thank you to Judy for being moderator and keeping us in Line. I believe we also need to thank Eric for keeping the site running as smooth as it did.

TP only holds note now. I really didn't mean to stir up a whole can of worms but it has been interesting. Yes attorney got a whole bunch of $.

update to all. First thanks for all the insight. TP and attorney have for tax purposes decided to treat it as paid off so that his heirs would only have to pay on the interest when TP dies instead of continuing the installment sale. TP is in very bad health and spouse just recently passed on. Is their an election for this?

After discussion with elder tax attorney his thoughts. TP and spouse were paid off regardless of where $ came from thus creating taxable income. I went and got a copy of the closing and at the very top it indicates PAYOFF. I guess TP was too smart. Now they owe IRS. MY cya is now covered.

I have always seen them come back payable to the person on the 1310.

And I thought I was the only that still use the old T-Accounting. Makes things easy to trace.

TP and spouse hold a first deed of trust on an installment agreement with taxable gain. (form 6252) Spouse becomes very mentally challenged. TP and attorney decide it would be better that he hold the installment note sole holder. TP and original buyer go into their bank accounts gets out enough $ to pay off note. Attorney holds money in escrow. Attorney rewrites first deed of trust to TP only. Returns money back to tp and buyer. (same amounts). The terms and amounts of the first note never changed. Attorney said he had to show that first note got paid off even though it really didn't. TP got his money back and so did the buyer according to the closing statement. What the heck do I have? Things attorneys and TP's do to protect assets. A check through the TP'S bank statements proves he didn't get any extra money. Your help in what to report if any thing.

No payment tab like there is in Federal.

Or all the tax exempts in there that they do not make clear to which state it belongs to.

22 minutes ago, Abby Normal said:

Color me confused.

I am sorry. I use ATX and was looking to see if there was a way to set Virginia estimates on a dd plan like I can in the Federal. I am sorry if I confused all.

I have been waiting for over a year for IRS to send me the code.

Yes all the screens I use quite a bit. Just seeing if ATX offers the set up that Proseries offers. I have never seen them on ATX. Just thought maybe I was missing them. Any way thank you for your comment. I'll send an email over to atx and wait a year for an answer.

In ATX Va estimated does not show a place where I can preset them like Federal does that I can find. Maybe I don't have the right place or I can't do it. Just thought maybe somebody else has it figured out.

Don't know how that got in there. My question on VA est pymts. Does anyone know in ATX if we can set up qtr payments like in federal?

Tp pulled $ from roth account(ok here) Bought into va 529 same $ then 2 days later pulled all but a $100 from 529 sent to college. Question becomes :is tp eligible for the Virginia subtraction up to 4k. My thought is because of the short time frame of in and out I cannot see this as a subtraction. I need some help from somebody that may have insight on this transaction.

Tp pulled $ from roth account(ok here) Bought into va 529 same $ then 2 days later pulled all but a $100 from 529 sent to college. Question becomes :is tp eligible for the Virginia subtraction up to 4k. My thought is because of the short time frame of in and out I cannot see this as a subtraction. I need some help from somebody that may have insight on this transaction.

I can't do 20 a day. My partner tells me I mess up a simple return(what is that these days) quicker that a hard one.

So far the ones that I have seen like this the broker says they will prepare if needed. I personally do not like them inside a IRA.