ILLMAS

To bring the cost to sales price, correct?

I entered the 1099B sale of stock on Sch D, Short-term, Sales Price $20K, Cost $10K, Gain $10K, I know there were withholdings on the 20K reported as wages, but the 10K is also being taxed, this is the part I having trouble with. From this example, it appears they are making the cost the same as the sales price. 2. Exercise your option to purchase the shares, and then sell those shares within the same calendar year Grant date 12/31/2014 Exercise date 06/30/2015 Exercise price $20 Sale date 06/30/2015 Sale price $45 Number of shares 100 Bargain element $2,500 The bargain element is the difference between the exercise price and the market price on the day you exercised the options and purchased the stock ($45 - $20 = $25 x 100 shares = $2,500). This amount should already be included in the total wages reported in Box 1 of your 2015 Form W-2 because this is a disqualifying sale (meaning you are disqualified from taking it as a capital gain and being taxed at the lower capital gains rate because you sold the shares less than a year after exercising the option). If this amount is not included in Box 1 of Form W-2, add it to the amount you're reporting on your 2015 Form 1040, line 7. Report the sale on your 2015 Schedule D, Part I as a short-term sale. The sale is short-term because not more than one year passed between the date you acquired the actual stock and the date you sold it. For reporting purposes on Schedule D: The date acquired is 6/30/2015 The date sold is also 6/30/2015 The cost basis is $4,500.This is the actual price paid per share times the number of shares ($20 x 100 = $2,000), plus any amounts reported as compensation income on your 2015 tax return ($2,500) The sales price is $4,500 ($45 x 100 shares). This should match the gross amount shown on your 2015 Form 1099-B you receive from your broker after the end of the year. You end up reporting no gain or loss on the stock sale transaction itself, but the $2,500 overall profit will be taxed at your ordinary tax rate. Because you exercised the options and sold the stock in the same year, you do not need to make an adjustment for Alternative Minimum Tax purposes.

The $20K

When someone exercise shares and receives the sales proceeds as taxable compensation, are they also supposed to receive a 1099B for the same proceeds? TP exercised $20K, it was included in TP wages and had withholdings and also received a 1099B with 20K in sales & 10K in cost, in an ordinary situation would seem this person is paying reporting the income twice, however I wanted to ask if I need to mark off anything to indicate it's certain type of stock option plan? The form 1099B is very plain and this is the first time I have encountered this. Thanks MAS

My associate once told an appeals officer and his peer reviewer, "I have no independence with my clients, if I did, my client would fire me and find someone else to help them cheat", they both agreed with him.

These whipper snappers buy investment properties for themselves (Rental units), just this time they bought it as a group, but they are in the real estate investment business.

Crosia knitting buddies decided to buy a property, fix it, then sell it, everything was done in 5 months (bought, rehabbed, sold). There was no deprecation taken nor deducted, I entered the information of Form 4797, and the gain is appearing on part II (Ordinary Gains and Losses) and flowing into the 1040 ln 14, it's been awhile since I had a case like this but I don't remember if it also has to flow to Sch D? Thanks MAS

Under 1099-R entry tab, there is pull down menu to enter distribution for Railroad Retirement and Military, however if I enter the information based on the green part of form RRB-1099, the information doesn't flow through to the 1040. Does this entry work for others or I'm I missing a step? RRB 1 RRB 2 Green Box 3: 60K 0 Employee Contributions Box 4: 45K 21K Contributory Amount Paid Box 5: 0 0 Vested Dual Benefit Box 6: 100 0 Supplemental Annuity Box 7: 45K 21K Total Gross Paid Box 8: 0 0 Repayments Box 9: 4K 1K Federal Income Tax Withheld

See the following: https://www.healthcare.gov/quick-guide/eligibility/

I know of a CPA that has an adding machine with worn out numbers, calc you later.

I missed that but good luck.

I think I can top yours, last week client is slowly emailing me their documents and that he would like to get it out of the way as soon as possible As Jack has said before, your emergency is not mine.

Your client doesn't have tax attorney? Hopefully your hourly rate is equal to a tax attorney rate, last time my associated contacted a tax attorney, cost him $150 for a 10 minute question.

Wouldn't it be easier to get Mary Kay to issue a corrected 1099's Box 3, instead of Box 7, or could it be it's really a commission for people she brought into Mary Kay and she is getting a cut from the sales? Found this http://www.journalofaccountancy.com/news/2016/may/self-employment-tax-for-consultants-201614534.html MAS

TP spouse was in the process of becoming a resident alien (for immigration) purpose about 13 years ago, due to a family emergency the wife had to leave the U.S was and penalized for leaving the country. The husband is a U.S citizen and also leaving abroad until 2015, his wife and U.S born children are still in central American, can the father claim the wife and children because he is a US citizen?

TP went through bankruptcy under a chapter 11 and confirmed plan/section 363, my question is on disposing of the property in ATX, I have an understanding there are no capital gains or losses under these two plans, under disposition of assets, would it be proper to select "Do not calculate gain/loss" and also is there any other special reporting required to inform the IRS of the sale? Thanks MAS

Then you have IRS agents that allow you (wink wink) to recreate a mileage log and then there the ones that cut you no break.

Figured it out, you have to double click on the paper clip next to the form. MAS

I have signed Form 2553 (Election by a small business corporation) and I cannot figure out how to attached the scanned copy, anyone? Thanks MAS

Thank you everyone for your concerns and excellent question for the client, sometime I feel both you and I are more worried then the clients, shouldn't it be the other way around

Excellent questions, I am afraid the TP might not have the best answers

TP took the liberty of adding them back to the books with dates dating back to 2011 after the 2012 to 2014 returns were prepared.

It's a trucking company, average cost of 5 trucks is $18,000 and 5 trailers $15,000,

TP is really not a magician, but he made some fixed assets appear on the books dating back to 2011. Last year I prepared TP's 2012 to 2014 1120S and he only had two assets on the books, I recognized them and prepared the return, this year he included additional assets, he never took depreciation for them and have been placed in service is 2011, would it be safe to date them back to 2011 (2015 tax return) and just let ATX calculate depreciation or put them in service in 2015?

They said no, so a payment plan it is.