Yardley CPA

Do as I say, not as I do.

It sounds like you've done your due diligence. Make notations of the conversations you've had with the client, prepare the Schedule C and move on. What move can you do besides telling the client to take their return somewhere else?

I'm directly across the river from Trenton, NJ. New Jersey's minimum wage will rise to $15 in 2024. Today, many businesses are having issues retaining employees who pay below that wage. In many instances, they have to pay well above that wage to even attract new talent. Everyone wants a "Work Life Balance" with many only looking for jobs that allow them to work from home five days a week. In my state, Pennsylvania, the minimum wage is $7.25 and has not changed in 13 years.

By summary, are you referring to using code M and just listing the total? That's what I've done when there are six months worth of transactions and never had an issue.

Logic is not welcome, Abby.

I'm scheduled for an "auto-donation" that Eric provides as an option, and on a yearly basis a set dollar amount is pulled directly from my bank account to the Eric. Some may be uncomfortable using PayPal, Venmo, or ACH...it's not at all an issue for me.

Absolutely beautiful!

I've found posting completed returns to the portal has saved me a ton of time. I still put together paper packets for a few clients, but the majority have transitioned to electronic and it is much less time consuming.

I never intended to answer a question incorrectly. I'm asking what is the downside to doing that? Assuming the client says they didn't receive one, but actually did...if you check "No", is that an issue? I currently have a client who "doesn't remember" receiving one. I checked no on the return but was just wondering the ramifications if he did in fact receive one. I assume the IRS is looking to match the sales price to the amount reported on the 1099-S.

If the client doesn't recall or indicates they did not receive a 1099-S upon selling a home, what is the downside to indicating you did receive one on their tax return?

Are you able to amend the 2020 return to show the amount attributed to 2020 and use the rest on the 2021 return? Is that an option, given it was Oregon's fault?

New MFJ, highly compensated, client. In 2017, he started receiving RMD's from an IRA which was funded by a direct rollover of his previous employers 401k. Every year since 2017 the gross distribution, Box 1 and the taxable amount, Box 2a, of the 1099R have been the same amount. Client reaches out to Vanguard who the 401k was rolled into (direct rollover took place in 2005, funds were then rolled into a Schwab account in 2010) and received a letter showing the balance at the time of the rollover of $1million, the post-tax contributions amounted to $250k. All of his distributions since 2017 have been shown to be fully taxable on the 1099R's. This year, He received information from Schwab showing what the correct figures should have been on the 1099R's since 2017. How to start showing distributions allocated between pre and post tax?? Am I using 8606 in this instance? He will also be reaching out to Schwab but are amendments needed for prior year returns?

I have. We supplied a copy of the W2 / 1099, showing the withholdings. That satisfied their inquiry.

Appreciate all the comments. All the beneficiaries are in the highest tax brackets. Assuming the 2021 1041 return will show the sale of the home on it? What happens to the gain on the 1041 since it is not distributed to the beneficiaries until their 2022 K1's?

I appreciate your response. The estate remains open and will close during 2022 once the proceeds of the sale are distributed. Since the proceeds have yet to be distributed, the 2021 K1's would be zero and the 2022 K1's would show the gain for each beneficiary, correct? The 2022 return will be the final return.

The estate cannot pay the tax? The gain has to be split equally on the K1's? I was under the impression the estate could pay the tax and the K1's would have no income or expenses reflected.

On the closing statement it lists the seller as: "Sally Doe Executrix of the Estate of Mary Doe Deceased"

The information I received is that the home remained in the estate. Again, I'm not experienced in estate matters but that is what I was told.

Here is some additional information: - Estate remains open as of this post. - Date of Death 2018 - the residence was the deceased primary residence for over 50 years. - Upon death, the residence was willed to the three beneficiaries. - There has been zero activity in the estate since the date of death. The only estate activity has been the sale of that home in 2021. - FMV at date of death was $320K Sale price was $425K. There were selling expenses, and improvements to the home were made since the DOD. - Determining if 1099-S was issued. - Is it safe to assume (and I know what happens when you assume) that the estate will pay the tax on the gain. Beneficiaries will receive K-1's with basically no income or expenses reflected. - Proceeds from the sale of the home will be distributed to the beneficiaries equally, as they are 33% owners. - Final estate return will be prepared in 2023. I would appreciate any other input.

House was owned by all three beneficiaries.

I rarely prepare estate returns. Two siblings and deceased siblings spouse are the beneficiaries. No activity at all until 2021 when the deceased home was sold by the estate. Profit is in the 40K range. Can the estate pay the tax on the gain so that the K1 is distributed with no income transferring to the beneficiaries? I believe so, but want to make sure. It's a New Jersey estate. Thank you.

Yes, just confirmed with the client, it was rolled to a Roth.

Has anyone ever had a 1099-R, coded as G - Rollover but with an amount in Box 2a: Taxable Amount? Program is not allowing any of the taxable amount to flow to the 1040.

Attach the pdf. See if it works.

It unfortunate that some folks focus is to take advantage, to commit fraud. These programs were developed to help those truly in need. I'm not surprised though, there are always a few bad apples. I'm happy when they get caught though.