Corduroy Frog

I am seeing many of the problems I've described with Schwab are in the process of being corrected, caught up, resubmitted, etc. To the effect that all will be well, especially for those who haven't filed yet. Some time ago I opened a post that tax season was getting shorter. We have LLCs now due March 15th, and if you have to wait until after March 1 to make appointments with clients who have brokerage statements, you have to cram those appointments into less than 45 days. I would estimate that 2/3 of my clients have brokerage statements.

1098-T. Many of the forms are scarce because the issuers want to bail out of printing them and paying postage. When you ask the client, either he doesn't know he has them, or else you get: "Oh yeah, I've got that right here on my phone!!" [Scroll...Scroll...Scroll...Scroll 95 more times] 20 minutes later they hand you the phone which you can barely read. "Can you print this out?" "Oh no we don't have a printer anymore. We keep everything on our phone!!!"

I'm amazed at the "Here to Help You" with our expertise. "We are experts in the field and are able to advise ignorant people like you to help you." Bankers are experts in banking and "help" their customers by talking them into a $100,000 CD paying less that 1/2 of one per cent. Stockbrokers are experts in investing and "help" their customers by investing their money in mutual funds, where $$$ is skimmed off the top for the brokerage company and their cronies. To speak nothing of their fees. Online colleges are experts in "help" training people for the variety of professions in their curriculum. I worked with an Accountant with a Masters Degree from University of Phoenix who couldn't even reconcile a bank account. Big-box Tax Preparation firms and TurboTax will "help" customers to get the "Maximum" Refund. Better than going to people on this message board. In fact, Turbo Tax wants to help customers so badly that they will perform their service "Free." I could go on-and-on-and-on., but Lion knows what I'm talking about.

Yes they do. And that turns out to be the saving factor. If one takes time to look at the account number, they would send a message as well because they would be different. Update on the "wrong" Schwab statement referred to in the earlier post. The late statement finally arrived, and it was from TD Ameritrade. Much easier to understand.

Good question, Judy. The client who had the Schwab statement that was portrayed incorrectly also will have a Schwab statement for the TD Ameritrade period. His stockbroker told the client that the portion for TD Ameritrade would not be sent to him before March, so I was unable to complete his taxes. Situation with the Ameritrade takeover has turned into a real snake-pit. Held up my dead brother's estate from being closed out, and with as many different accounts of problems, I've got to wonder whether the Schwab issuing office for these statements is centralized or issued from different locations.

I don't know why that happened. I've seen a few Schwab brokerage statements this year, and only one where the qualified dividends were split out differently from the ordinary dividends. I don't know why that happened, and possibly Schwab will issue a corrected copy. This post is a different situation from the one described above - why I began a separate discussion.

I prefer someone who charges based on a percentage of portfolio value. That way they prosper if you prosper, and suffer if you suffer. The sure-fire way for rewards to follow performance. Generally a percentage over 2% is too much. I have seen so many statements showing $1500 as dividend income, and custodial fees of $1800. Customer is being duped.

A new topic, because the issue is different. Schwab is not doing anything wrong (perhaps). Sat down to two Schwab Brokerage statements: The first is 1099-DIV: starts ABC $96.00 DEF $128.00 GHI $144.00 .....All "qualified". The second 1099-DIV: starts ABC $96.00 DEF $128.00 GHI $144.00 .....All "qualified." Dealing with a duplication, right? So ignore the second document and put it away. Not so fast. We notice another listed company XYZ $118.00 on the first statement, and $128.00 on the second statement. Yikes!! What's happening? Schwab bought out TD Ameritrade. Didn't wait for year-end, bought out during the year. Some companies kept their quarterly dividends the same. The afotementioned ABC paid $24 four times during the year, twice under TD Ameritrade, and twice under Schwab. In like fashion, the others did the same. However, XYZ paid $59 twice under TD Ameritrade, but then increased their dividends to $64, and then paid twice under Schwab. Total $246. So at first glance these two brokerage statements from Schwab appear to be duplicates. They are not. Taxpayer must report the total of BOTH statements as income.

Tom, it might be the biggest one out there -- Schwab.

I thought so Brew. The issuer is a major stockbrokerage company.

Assume FROG Mutual Fund dividends are $100, with $90 being "Qualified".. I am accustomed to seeing Dividends reported in the following manner: Frog Dividends $100, Qualified Dividends $90. But now I am seeing a 1099-DIV as follows: Frog Dividends $10, Qualified Dividends $90. Has something changed this year, or is the issuer of the 1099-DIV improperly reporting?

Tom, you make sense. I'm going to file the girls return for free with explanation, as her parents have paid me handsomely.

Thank you. Item 3 on the link defines the "gain" and not the "selling price."

Parents have a stockbrokerage account for 10-year old daughter. Dividends were minimal ($200), However one of the securities sold for $7000. The gain on the sale was $500. The "taxable income" (before std deduction) from all this is only $700. However, the "Gross Income" well exceeds the filing requirement. Is the daughter required to file? TTB only states "income." Depends on the definition of "income" I would think.

Any way he could take a deduction for "Theft"? Not as a casualty as in the old days, but if he has a business it might work.

When we applied, the user fee was $1200. The cemetery does well to receive $300 per year.

I was (unfortunately) appointed Treasurer of our family cemetery. I do know that the IRS does not challenge the deductible contributions to a church, but outside of that, I believe the only way to assure deduction for anything else is to exercise Form 1024 for a 501(c)3. I tried to do that for our cemetery association, but the IRS sent back the 1024 asking for a huge user fee. More money than donated revenue for five years. We declined. We do have a FEIN but I've told donors that the deductibility of their contributions could not be guaranteed. So few people in Tennessee are able to itemize anyway so it makes little difference to them.

Going back to 2018, the employer would have been required to add to his W-2: the difference between FMV and the purchase price. His basis should therefore be the FMV as of the purchase date in 2018. This assumes there have been no subsequent activity for those shares between 2018 and the selling date of 2023.

Thank you. I did query the Tax Book, but could not find where Guaranteed Payments were addressed with respect to QBI.

For an LLC filing as a partnership Guaranteed payments to partner - $40,000 It is treated as an expense to the partnership, but is income to the partner. Does the $40,000 reduce the QBI income of the partnership? Doesn't seem like it should if W-2 wages paid by the partnership doesn't reduce the QBI.

Has probably been asked before, but the board is very active these days. What about the well-publicized change for more "Additional" Child Tax Credit and 100% Bonus Depreciation? Has this happened yet? I'm holding a couple tax returns waiting, and for Drake to update when it does... Thanks,

From Judy's post: with the husband paying the mortgage from an account solely in his name, he would get the entire interest deduction, and she would have to itemize even though the standard is higher. I have been aware that if he itemizes, his wife must itemize even if not having enough to meet the std deduction. The question centered around his ability to claim all the interest even though the bank has made both of them responsible for the loan. Reading Judy's post, it appears he can do this, so long as he is paying from an account in his own name. Thanks to all for responding.

A married couple wants to see if they can save any taxes by filing separate. Their incomes (all W-2s) are almost equal. Husband $51,500 Wife $52,000. Should help quite a bit. Husband has paid ALL home mortgage interest himself, out of his own checking account. Wife has paid some taxes and charity, but not enough to meet the standard deduction for MFS. Sounds good? Well,,,,maybe. The husband has paid all the interest himself, but the loan is the responsibility of BOTH parties. What say ye?

All of you are correct. Problem solved. Thank you.

Remember all those PoP-Up ads that were a nuisance, so you had to get an ad-blocker? They seem to work. Except for Google. I can't even call home or go to any website that Google does not block my screen trying to sell me their latest service. I've always been a subscriber to the idea that "Big money ruins everything it touches." Everything from Professional Sports to Radio. I apply this mindset to Google also. Obviously they are not my favorite. Why should I have to put up with Google every time I crank the car??