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Tracy Lee

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  1. TP receives two 1099R's from State Street Retiree Services for United airlines. Gross Distribution shows $2149.94 and $10,749.70, taxable amounts are blank. The money he receives is because he gets it from the Pension Benefit Guaranty Corp, because United Airlines went bankrupt in 2002 and TP lost all his $80,000.00+ in employee stock ownership and his $30,000.00 + annual pension. I can't seem to find alot of information on how much of this gross distribution is actually taxable. TP knows nothing about it and prior tax preparer only claimed a small portion of it, but I have no worksheets to see why. TP says he never had to fund anything into his pension or the employee stock ownership, so there would be no basis. I will go back and ask TP to bring me all the 2020 tax data to see if I can piece it together. Does anyone have any insight into this or links to see if it is all taxable or not? I was wondering if it wasn't taxable because it is such a small amount compared to what he lost?
  2. I have several TP's on extension that have started receiving their disbursements from the Paradise Fire in California in 2021. They now live in Oregon. All have different scenarios that will require different ways to file their TR. Is anyone familiar with this? I would like to be able to reach out for guidance on best way to handle these; probably mid May after my tired brain has had time to recuperate. Also, do I have any fellow Oregonian tax preparers on here?
  3. I just needed affirmation on the Form 709. Thanks. I didn't think to ask why basis was so high, my brain is fried! Maybe they bought is at the height of the market at that time? I did make sure to ask that they actually got a market analysis and sold it for FMV, which they did. They said they could have sold it higher but chose the lowest FMV because it was for their daughter. The daughter lives down in California and I'm a Oregon preparer so I won't need to address the daughters TR at any point. I'm wondering....how do I respond to an individual answer like I see in these posts?
  4. TP sold their primary home of 17 years to daughter. Basis was $520,000.00 sold for $495,000.00 and a market analysis was done to come up with that FMV of $495,000.00. Title company paid off the original mortgage of $320,000.00 and parents gifted their daughter the $175,000.00 equity in the house. There is a paper trail on the Settlement Statement. I believe all I need to do is File a Form 709 reporting the gifted house equity and the house still qualifies for the maximum exclusion, is this right or am I missing something else?
  5. I agree! Exhausted. I have never had so many new clients in one year. More tax preparers and CPA's are retiring in my area and no new people coming in and replacing them. New client brought me huge tax return with 27 K1s and 4 Charles Schwab statements totaling 264 pages, marketplace and the list goes on. I did do a little crying over that then called him and said EXTENSION!!! And I am so tired of every other TP telling me they didn't get any stimulus!!! It took ALL my will power to get out of bed this morning and come to my office. 10 more days, 10 more days, 10 more days!!! Thanks for the encouragement!
  6. TP bought new home with small apartment attached to back of the house. They rent this out as AirBnB; this I know goes on a Schedule C because they rent it out short term and provide services. They also have a studio apartment also attached to the house above the garage that they rent out to traveling nurses, that come and go anywhere from 1 month to 6 months. No services provided for them. Everything under one roof and all utilities, TV... are all on one bill that I will have to split. Would you put the Garage studio apartment separate on a schedule E or C or just put all rental activity on one Schedule C because it's all under one roof?
  7. I agree with Lion EA. I have a clergy that I have done his taxes for several years. I did a lot of research on this to make sure I did it right. Read PUB 517 for clergy and here is some instructions as well. It is lengthy but has alot of good information. IRS Instructions for SE tax.pdf
  8. That is where I had put it; I appreciate the extra advice and the affirmation that I had it in the right spot!
  9. I had TP and spouse that got married and bought a house together and both sold their own primary homes in 2021, that they both lived in for over 2 years. They both qualify for the maximum exclusion. I do not see a way in ATX Max to do two primary home sales, does anyone have a suggestion, guidance or an answer to what I'm not seeing?
  10. TP gave me his Coinbase Gain/Loss Report showing a Short term $1629.45 gain. No 1099 issued, even though Coinbase states that if he received $600 or more a 1099 would be issued. Should I enter this on Sch 1 Line 2 as Coinbase Crypto? SOME OF MY RESEARCH: 'However, the crypto universe is expanding fast — there’s just so much more to do than simply buying and selling, and crypto reporting can be tricky, as gains you receive from certain activities count as ordinary income. It’s important to note: you’re responsible for reporting all crypto you receive or fiat currency you made as income on your tax forms, even if you earn just $1. If you earn $600 or more in a year paid by an exchange, including Coinbase, the exchange is required to report these payments to the IRS as “other income” via IRS Form 1099-MISC (you’ll also receive a copy for your tax return).'
  11. I had this exact same situation last year. I just put in his W2 and made sure the expenses were correct on his P & L report. As you said, it was all a wash and he was still paying in all the appropriate social security and medicare. Then he got the 'TALK' about why he could not do that anymore. He listened! This year, no problems!
  12. Self Employed Schedule C TP (real estate broker) opened a Solo 401K this year and wants to fund it, which form am I looking for in ATX? This is my first one. Any words of advice I need as I figure out what his contribution can be?
  13. Thank you for the advice. I agree. I don't feel sorry for her, just frustrated that our government is so careless about 'we the people'!
  14. If Oregon had done two separate 1099s, one for each year, showing it was for year 2020 but they didn't. They combined both years into one 1099.
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