kcjenkins

Judy has it just right. Used to be a real pain when we had to do the SS Lump Sum Worksheet by hand, but the program makes it easy now.

But even if you are able to resuscitate the old drive, start planning on it dying for good. Check for new programs that can replace the old ones, while you still have access to them. Because it will die one day, and you've already been warned that day is getting close. Besides, while we all like those old programs we know so well we don't have to think about them, many times when we are forced into a new one we find it's actually a lot better, or does more, and usually does it faster. It's easier to switch, too, if we still have access to the old data. Like creating a cvs file of an old database, that may make populating the new program relatively simple.

Could there have been a typo on the date?

As to the actual tax treatment this year, I would report it on Line 21 [for matching reasons] but then offset it as nontaxable, since you already know that had it been received when it should have been, it would have been non-taxable due to his insolvency, even if not discharged by the Bankruptcy.

I agree with Atticus, setting the default as PDF is the smart thing to do. It only takes seconds to select the actual printer if you want to, but printing to PDF first also allows you to preview and perhaps delete something like a worksheet that you don't need to give the client, and then with one more click you can print the PDF to the printer.

I'm confused, if no 1099-C was filed, it sounds like a wash? What did I miss?

Then I think you should just GO AWAY. It is clear, reviewing your posts, that why ever you decided to join, it was not to participate in ta discussions and helping solve problems. What we discuss has nothing to do with whether you bought ATX, that only applies on the official ATX board, where CCH makes the rules. This board was created when CCH banned us all, by shutting down their Community board. You might not know that, but many of us remember April 10, 2007 as the day we lost all respect for CCH. But just the same, this is not a place for bashing them, it's a place were fellow professionals can get together to help each other, share with each other, build friendships and professional relationships,, etc. Clearly you are not a fit here.

Washington, D.C. (February 7, 2014) By Michael Cohn The Internal Revenue Service has issued a revenue procedure to help taxpayers with so-called “mezzanine” financing in workouts and similar circumstances when they have debts that have been discharged in connection with real property. Revenue Procedure 2014-20 provides a safe harbor under which the IRS will, under certain defined circumstances, treat indebtedness that is secured by 100 percent of the ownership interest in a disregarded entity that holds real property as indebtedness that is secured by real property for purposes of Section 108©(3)(A) of the Tax Code. The revenue procedure will assist taxpayers with mezzanine financing in workouts and similar circumstances. The IRS noted that borrowers will often incur debt in connection with real property used in a trade or business. If the debt is later discharged, the income from the discharge of indebtedness may be excluded from gross income if certain requirements are met. In some cases, the real property is held by the borrower in an entity that is wholly owned by the borrower, and is, for federal tax purposes, disregarded as an entity separate from its owner. In these cases, the debt may be secured by the borrower’s ownership interest in the disregarded entity holding the real property. Revenue Procedure 2014-20, will be included in Internal Revenue Bulletin 2014-09 on Feb. 24, 2014.

Thanks, Judy, I can always use a hug from a friend!

A qualified plan is an employer-sponsored retirement plan that qualifies for special tax treatment under Section 401(a) of the Internal Revenue Code. (c ) Qualified retirement plan For purposes of this section, the term “qualified retirement plan” means— (1) a plan described in section 401 (a) which includes a trust exempt from tax under section 501 (a), (2) an annuity plan described in section 403 (a), (3) an annuity contract described in section 403 (b ), (4) an individual retirement account described in section 408 (a), or (5) an individual retirement annuity described in section 408 (b ). There are many different types of qualified plans, but they all fall into two categories. A defined benefit plan (e.g., a traditional pension plan) is generally funded solely by employer contributions and provides you with a specified level of retirement benefits. A defined contribution plan (e.g., a profit-sharing or 401(k) plan) is funded by employer and/or employee contributions. The benefits you receive from the plan depend on investment performance.

I could only watch one at a time. That first one hit me really hard. Some day I might be able to talk about why. I will just say that my twin brother went from my birth mother's room to the hospital in a bag similar to that, the night I was born. I was in a paper bag from the grocery store. Thank God for my wonderful adoptive parents.

There's an app for that!

Sent you a PM

OK, you quoted the list of exceptions, so what is your question? Exception 5, "not in excess of the amount allowable as a medical expense deduction for the year, whether or not the distributee itemizes" means just what it says. ALL of it is subject to tax, of course. The only part the exception protects is the penalty for early withdrawal. And that is not as inclusive as clients often assume The way I calculate it is by doing a Sch A even if the client is not itemizing, to determine how much of his medical costs would be DEDUCTIBLE on the A if he did itemize. That amount then goes on the 5329 Line 2 with Code 05. Keep the Sch A in your notes, even if not used in the return, to back up your amount you excluded on the 5329.

Glad it worked out well. And totally agree that we should never just trust ANY program's auto backup as full protection. It's just too important, and it's also true that all electronic devices are so vulnerable to multiple dangers.

JohnH, lets's not go there. Trying to put out fires, not start up new ones!

Man, Tom, I wish I could. But I'm committed this evening. Enjoy a piece for me!

Only if the 9 year old has enough other income to make the SS benefit taxable.

Did that work?

Well, the basic rules is that Realized Gain is recognized to the extent of net boot received. FS-2008-18, February 2008 WASHINGTON — Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free. The exchange can include like-kind property exclusively or it can include like-kind property along with cash, liabilities and property that are not like-kind. If you receive cash, relief from debt, or property that is not like-kind, however, you may trigger some taxable gain in the year of the exchange. There can be both deferred and recognized gain in the same transaction when a taxpayer exchanges for like-kind property of lesser value. If cash or other proceeds that are not like-kind property are received at the conclusion of the exchange, the transaction will still qualify as a like-kind exchange. Gain may be taxable, but only to the extent of the proceeds that are not like-kind property. Here's a link I've found helpful http://www.realtor.org/field-guides/field-guide-to-1031-exchanges

THAT IS SO VERY TRUE. And it can be a royal pain to have to waste time re-educating the client, because they got the original bad advice from "an expert".

Just For Fun – How Observant Are You? Do you see the arrow between the “E” and “x” (in white)? The 2nd and 3rd “T’s” are two people sharing (or fighting over) a tortilla and a bowl of salsa. The world’s most famous bike race. The “R” in “Tour” is a cyclist. The yellow circle is the front wheel of a bicycle, the “O” is the back wheel. The arrow means Amazon has everything from A to Z. The gap between the “K” and the “I” is a sideways chocolate kiss. There is a dancing bear above the “ble”. Toblerone chocolate bars originated in Berne , Switzerland , whose symbol is the bear. Ever notice the ” 31″ embedded in the ” BR”? Thirty one-derful flavors! Northwest Airlines. The circle is a compass. The arrow in the upper left corner is pointing..?

Darn, just saw this! Or I would be on my way to your house now! LOL