Joel

I had a similar problem, but I called software sales. Got right in and the sales rep walked me through resetting the account.

Catherine, After my wife passed away last September, I received a heartwarming letter from an Academy classmate of mine who also had been a member of our Wedding Party. I will quote part of his letter here, changing the names and gender. "It is hard to face the death of a loved one. And yet, it something we all must do, several time in our lifetime. It is part of the celebration of life. and every life must be celebrated. "Your job now is to take up Eric's ethics, his vision, his wisdom, his respectfulness, his energy and carry it forward as long as you can. It may seem that a library of knowledge and experience has been lost. Not true. Everyone who knew Eric carries that library forward. It is not lost. Memoria Semper / Always Remember" All of our hearts are with you, Catherine. Joel

If there were regular taxes paid in those 2 years, then the taxpayer would have received back that payment based on the 1045 form.

Years ago I had a client give this to me: "A Tax Shelter Complete with Loophole"

If I remember correctly my wife received a bonus of $20,000 one year and that is what was put into the annuity. I don't remember any other contributions. As for records, I have our tax returns back to 1956 but did not keep the Fidelity statements once 5 years had passed after the 1998 1035 exchange to Kemper. I have the 1998 1099R from PFL Life Insurance Co. showing the code 6 distribution, but of course box 2a was zero and box 5 was blank. I like you line 21 adjustment concept. Will wait to see the actual papers that was received from Fidelity by Kemper at the time of the exchange.

Back in the 1980's both my wife and I invested in Fidelity mutual fund accounts. There was one account that my wife opened called 'Fidelity Variable Annuity' marketed as "Fidelity Income Plus". The account was managed by Fidelity Investments but issued by Pacific Fidelity Life Insurance Co. (Yes we both knew it was a variable annuity and it was not a retirement account.) In 1998 it was 1035 exchanged to a Kemper Gateway Annuity where it stayed to 2015. In September 2015 my wife passed away and as beneficiary I received the death benefit. I asked that 10% of the taxable amount be withheld. When I received the distribution I noted that it was taxed at 100%. Since then I have been trying to get the cost basis. Pacific Fidelity Life Insurance Co. was merged into Transamerica Insurance Co. They claim they have no records back that far(1998). Because the original investment was through Fidelity Investments I have contacted them. They claim no accounts or names like "Fidelity Income Plus" have been issued by Fidelity Investments. I just got off the phone again with Kemper and they are sending copies of the paperwork that they received from Fidelity Investments back in 1998 but the cost basis was blank. Once I receive this I will again contact Fidelity Investments. Now the 1099R has been issued and is fully taxable. If I am not successful with getting a cost basis from Fidelity (or Pacific Fidelity Life Insurance Co.) are there any other suggestions this community suggests? Anyone at the IRS I might contact to negotiate a cost basis?

I used to live in Michigan. We also had four seasons. Almost Winter Winter Just Past Winter Pothole Season

Since the short year starts on 01-01-15 I am quite sure you will need tax year 2015 software to file the short year.

For several years I had a client that was on a disability pension. His wife was blind and they had a disabled son who lived with them. I was so happy for then to receive EIC up until the age 62 which was his normal retirement age!!

Don't agree! See below from Pub 554 Disability benefits. If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Minimum retirement age generally is the earliest age at which you could have received a pension or annuity if you were not disabled. Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and are not considered earned income. Taxpayer must still meet all of the other requirements for EIC Joel

That is the easy part. The successor trustee lives out of state, plus we need to get the brokerage 1099B corrected to the correct tax ID number and stepped up basis. The broker is also out of state.

Thanks for all your supporting comments. Since an estate tax ID was never applied for, extension! extension! Will be discussing this with the successor trustees.

If I report the capital gains on the decedents personal return, as is indicated by the tax ID on the broker statements the decedent owes about $15000. If the trust had received a tax ID number and then sold the stocks using the stepped up basis then there would be no tax owed. When the successor trustee first told me (long after the stocks were sold, but I did not know it) that the client had passed away, I sent her written information about revocable living trusts, stepped up basis and estate income tax returns. Apparently she has ignored this information. I just recently received the 1099B from the broker.

A long time client of mine (age 98) had a revocable living trust and passed away Oct 20, 2014. The successor trustee sold all the stocks in the trust on Oct 24, 2014. The broker sent a 1099B with the original basis and with the clients tax ID number. Would not the trust get the stepped up basis on the date of death? Shouldn't the trust have gotten a tax ID number and reported the sale of the stock in that ID number with a stepped up basis?

Thanks for all your comments and opinions.

So, I guess the question is, Is the various agencies that he volunteers for sub units of the US Government or state/local governments?

If we can determine that the organizations are qualified organizations, then the expenses would be deductible as follows: "Car expenses. You can deduct as a charitable contribution any unreimbursed out­of­pocket expenses, such as the cost of gas and oil, directly related to the use of your car in giving services to a charitable organization. You cannot deduct general repair and maintenance expenses, depreciation, registration fees, or the costs of tires or insurance. If you do not want to deduct your actual expenses, you can use a standard mileage rate of 14 cents a mile to figure your contribution. You can deduct parking fees and tolls whether you use your actual expenses or the standard mileage rate. You must keep reliable written records of your car expenses. For more information, see Car expenses under Records To Keep, later. Travel. Generally, you can claim a charitable contribution deduction for travel expenses necessarily incurred while you are away from home performing services for a charitable organization only if there is no significant element of personal pleasure, recreation, or vacation in the travel. The deduction for travel expenses will not be denied simply because you enjoy providing services to the charitable organization. Even if you enjoy the trip, you can take a charitable contribution deduction for your travel expenses if you are on duty in a genuine and substantial sense throughout the trip. However, if you have only nominal duties, or if for significant parts of the trip you do not have any duties, you cannot deduct your travel expenses." I agree that the interest expense for purchasing the RV would not qualify for a charitable deduction but might qualify as a second home mortgage deduction.

Jack, Pub 526 has a list of types of qualified Organizations and #5 is as follows: "The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes.)" I would say that the U.S. Army Corps of Engineers is for public purposes and is part of the US Govt. Therefor qualifies.

I received an email from a client which included the following paragraph: "I occasionally do summer volunteer work that requires the use of an RV as a place to live while working for the US Army Corps of Engineers, the US Forestry Service, and other such local, regional, state, and national public and governmental agencies. My question to you is can my expenses be deducted as charitable contributions or any such things? This includes deducting the interest on a loan for purchase if it would be advantageous to do so." I know that charitable travel expenses are deductible if there is no significant element of personal pleasure, recreation, or vacation in the travel. Also Qualified Charitable Organizations include federal, state and local governments, if gifts are solely for public purposes, including nonprofit volunteer fire departments, public parks facilities and civil defense organizations. I think this qualifies but would appreciate other opinions.

Yes, but where is your computer and monitor that you actually use for work and not show?

Every time I see the "SQL Server Error" I picture a squirrel making an error!!!

Heartwarming!!!!!!!!!

Check out the 74 year old singer on America's Got Talent.

John, The $3K-per-year had a requirement that it be entered on the tax return, but in some cases it is not lost but carried forward because the taxpayer does not have sufficient income to use up all or any of the capital loss. Check out the Schedule D carry forward tab if you have a client that you think had a wasted $3K deduction and you may find the capital loss is carried forward.