kcjenkins

Does not bother me. This is the Chat' section, and it's marked NT, so anyone that objects should just move on.

The basic rule is that your economic gain (market value of new stock plus cash received less cost basis in your original shares) is only taxable to the extent of cash received . You can apply the formula: GAIN = Lesser of (CASH RECEIVED) or (Market value of NEW company's stock received plus CASH received less OLD company's cost basis) Heres a link to a useful calculator for calculating this sort of transaction. http://www.costbasis.com/stocks/cashtoboot.html Here's an even better discussion, with more examples: https://schwabpt.com/downloads/docs/pdflibrary/spt010960.pdf

They had probably ALREADY been to H&R, and did not like the answer they got there, which is why they are 'shopping' now. At this point, you don't need them. Let them go and be happy that you will not have to deal with that attitude from them.

What an adorable Corgi. Bet you two have a lot of fun each summer. You can see from his face how much he's enjoying it.

But there were expenses, and those should be claimed. At least the tax deduction will ease a bit of the pain of the loss.

Hmmmm, interesting. I'll take a look at it as soon as I get a chance, up to my eyeballs right this minute.

No, but have you de-fraged your hard drive recently? Is your hard drive very full? How many other programs do you have open when you do this? Have you tried rebooting, then doing the import with nothing else open except the tax program? Trying that might give us some clues to your problem.

I believe that line is for ALL 'qualified plan' adjustments, SEP, SIMPLE, IRA, etc. So I think the form is working correctly.

Well, I agree that as a general rule, I like to know that they have funded it. BUT, when they fund it with a direct deposit to the IRA by using form 8888, that is the same thing, for all extents and purposes, as long as it is filed early enough to avoid any timing problems. And as long as I know that they do not have any IRS or other debt problems. I'm pretty usre that is the case here.

If you look at the top of page 2 of Form MO-A, the black like states that "Public pensions are pensions from any Federal, state or local government." Therefore, any military pension is clearly a 'public' pension.

Get it filed now and it should, hopefully, make it in time. But if in doubt, have her full refund come to her regular bank account, and warn her that if it is not deposited in time, she needs to make the deposit herself, on the 14th or 15th.

I agree. No 2008 return. The IRS, if it does kick out, should match to SSA, and discover that the t/p died two years before, so they will not be looking for a 1040, they will be looking for the 1041.

I usually list it as "ABC Corp 71-1111111- excess distributions", where 71-1111111 is the EIN of the corp. If the name is too long, I'll shorten the name rather than leave out the EIN, because that is a better identifier, [to both the IRS and ME] than the name.

I don't believe so. As I am reading that, the gave her $100 then took it back.

You guys are killing me......................................................... STOP THAT !!!!!!!!!!!!!!!!!!!!!!!!!! RIGHT NOW !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! I love to bake, and my kids adore my yeast rolls and Cinnamon rolls, but I have not had time to bake all YEAR. PLEASE, stop talking about them. It's torture.

Yes, the divorce was started then, but did not become effective until the date it becomes final. Some of them drag on for a year or more, when there are lots of assets to squabble over. Or custody issues, etc. It's one of those true 'it's not over till it's over' situations.

Yep, you are just confusing two ways of saying the same thing. If you do not have enough basis, it's the same thing as not having enough 'at risk'. In other words, your 'basis' is what you have at risk. Also , in the 1120 [and in the 1065] you can enter basis information in the K-1 input, which will then populate the basis statements. That is the form that you are talking about attaching. But using the Permanent file to track the basis is also good, especially for those clients who get K-1's from returns you do not prepare.

I don't really understand your post. How could they 'received divorce in Dec' if it was not final until March? You don't get divorced until it is final. So they were still married in Dec. And in Jan and Fed too, as far as that goes.

If I'm sure the client is not going to start the business back up, just sell the assets when he can, I move them to 'unassigned' and then delete the C. But if I have any doubt at all, I'll do the $1 routine, so that I don't have to set it all back up and move everything back, etc, if he does start back. At least for one year. That has saved me a lot of time on a couple of them, when the t/p's health improved and he started back up, after all.

You guys need a break, and a nice glass of a good wine, or a beer, if that is your choice. [ugh] You've clearly been working too hard, for too long. Get some rest, we are not even to April yet. [Thank goodness]

Yes, the good thing is that it will automatically, when you amend to the new form, change it from repayable to not repayable in the IRS system. That was the part that was worrisome to me.

Be sure that those 'reimbursements' were not included in the total on the 1099. Many companies call them reimbursements because they are based on tickets turned in, but if the company then shows all the payments to the driver on the 1099, you should still deduct those 'reimbursed' expenses, because they are in the income as well. I've never had a driver for KLLM, but I've seen it reported both ways from different companies.

How were they coded?

A very I'm just weeks away from my 65th, so I know what it's like.

OK, so they bought it for $2281, took $1396 of §179 plus $177 regular depreciation. So it had a basis of $708 when they sold it, and they sold it for $456, giving them a loss of $252. No recapture, since it was sold at a loss. Had it been sold at a profit, the client would have had recapture of some of the §179 depreciation.