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GraceNY

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About GraceNY

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  1. TP had an existing mortgage of 75k on a home valued at 250k. In October of 2018, did a cash out refinance of 185k. If I understand the new rules, the interest on the 75k portion is still deductible. The 110k balance of the loan, which was NOT used to improve residence, is considered "home equity debt" and is no longer deductible? Also, OLD rules would have allowed the interest on 100k of the 110k to be deducted? (I am asking as I am in a state that is not following 2018 federal changes). Thanks in advance for your feedback. Grace
  2. What about the "kiddie tax?" Aren't taxable scholarships taken into consideration?
  3. My 2 ¢. The 1st 1099R looks like the TP cashed in a non-qualified annuity. TP had made contributions of $8,900 (Box 5) and cashed it out for $10k (Box 1). Only the $1,100 should be taxable. I just did one of these recently in ATX and only the box 2a amount showed up as taxable. Check your input. The 2nd 1099R is a nontaxable exchange (Box 7, Code 6). I am confused by the fact that the company checked the box "taxable amount not determined." If it was truly a non-taxable exchange, then none of it would be taxable and that's why Box 2a was blank. Perhaps you need to get more info from the TP. It may be that the TP exchanged an annuity, life insurance or LTC policy for a new LTC policy or a hybrid life insurance/LTC contract. Maybe the $25k that went to the company was too much and they refunded the $2,589? Also had a similar one recently. It was an exchange between 2 non-qualified annuities. Box 1 $94K, Box 2a blank, Box 2b Total distribution box checked, Box 5 $61k, Box 7 Code 6. I believe that the fact that yours had the "taxable amount not determined" box checked is what's causing ATX to tax the whole $25K. If the TP did not received the $2,589 as a refund and actually received the whole $25K, the company should not have put a Code 6 in box 7. Then, I would put the $2,589 in as the taxable amount.
  4. Schedule 1, Line 28. I've done a few of these.
  5. Would anyone know for sure if a death benefit received by a beneficiary qualifies for this subtraction. It's 1099R with a Code 4 in box 7. I know about the 20k limitation. It's only 2k and there's only 1 beneficiary. Thanks. Grace
  6. My whole beef with this driver's license info is that it has to be entered in the federal filer's info tab (at least with ATX and my understanding is Federal is optional for now) and it gets transferred to the NYS EF form with the exception of the document number. The IRS's systems have been hacked 3 times (tax info, PIN system, and now FAFSA filing system). It's really comforting to know that if anyone hacks the IRS now not only do they get name, DOB, SSN, and address, but now they'll get enough info to put together a fake NYS Driver's license and slap their own picture on it.
  7. Nope. NYS no longer accepts Federal Form 4868. I think NYS is also looking for so-called "Non-Residents." Still using NYS Driver's License. Hmmmm maybe not a non-resident at all.
  8. Was this the first RMD (i.e. turned 70 1/2 during 2016)? If so they had until 4/1/17 to take the 2016 RMD. If not, the distribution gets reported on 2017 return along with 2017 RMD. And, I agree with jklcpa and filing 5329. Grace
  9. Taxpayer retires, sells house and moves from NYS to NC on 5/2/2016. He was in insurance sales as independent agent. Gets renewal commissions on insurance policies previously sold while a resident of NYS. Reported on 1099-MISC. Will continue to get these in NC. Is this considered income sourced to NY for NYS income tax purposes? And, if so, they would have to continue to file a non-resident return 2017 + to report these? Thanks in advance for any feedback. Grace
  10. GraceNY

    My First 1095A

    Perhaps your client could contribute to an IRA, if eligible, and get out of paying back the APTC. You don't have to add back the IRA contribution to calculate Modified AGI. It won't take much of a contribution to get back to say 399% of MAGI. I've done this a few times and saved the client a lot of money. Grace
  11. NYS imposes a personal income tax on a nonresident individual's taxable income that is derived from NY sources (Sec 601(e) NYS Tax Law). NY provides some guidance on how one can be exempted from paying nonresident taxes if you meet certain factors. See TSB-M-06(5)(I) at www.tax.ny.gov. See also "Huckaby v. NYS Division of Tax Appeals" wherein an individual was liable for taxes on 100% of the wages earned from a NY employer while working from his home in Tennessee. Looks like your client may have to file a NYS Non-Resident Return (IT-203) as well as a Resident return for the state she resides in. Grace
  12. I am reconstructing the partner's basis via an original purchase document and the prior K-1's issued in connection with it. No Nonrecourse liability listed on prior year K-1's until the 2015 K-1. There is a Nonrecourse liability listed in the amount of $14,694. Am I correct in adding this amount to the partner's basis? On the 2016 K-1 there is a Nonrecourse liability listed in the amount of $15,631. If 2015 Non recourse liability gets added to basis, then in 2016, I would just add in $ 937 ($15,631 - $14,694) as the increase in the partner's share of partnership liabilities? Thanks in advance for the help. Grace
  13. I'm with Jack on this. Read an article from NAPT. And, I'll quote some of the relevant information: "Section 5000A imposes a penalty on taxpayers who failed to maintain minimum essential coverage for him/herself and his/her spouse and dependents (household). Section 5000A has not been repealed by the executive order." "In addition, tax professionals are liable for the understatement of tax under §6694 based on an unreasonable position that is not based on tax law. An unreasonable position exists if it is not based on substantial authority under Reg. § 1.6662-4(d). The standard is based on objective analysis of law and application of law to the relevant facts. Under Reg. §1.6662-4(d)(3), which gives greater weight to the code unless it is overruled by a body with the power to modify the authority relied upon, such as the IRS[Reg. §1.6662-4(d)(3)(ii)]." "Under Circ. 230, Sec. 10.34, a practitioner may not willfully or recklessly sign a tax return that the practitioner knows contains a position that is not reasonable, as defined in §6694, which the regulations refer to §6662." "A practitioner who calculates the penalty, but finds out later that the IRS issues further guidance that it will not enforce the penalty, can consider amending the tax return to remove the penalty based on further IRS guidance." Grace
  14. Talked to a CPA/Partner at a relatively large firm the other day. She received an email with the subject line being the return of an e-file authorization form. Suspicious. CPA did not recognize the name/sender and also the e-file authorizations are not returned to any of the CPAs/Partners. They go to the dedicated e-file support staff. She checked with the e-file support staff and sure enough not on their client list. IT department got involved and determined it was a malicious email. Also, this same email was sent to all 9 of the other partners. Scammer probably got their email addresses from the firm's website. Grace
  15. Never have a credit card issued to you. Unless, of course, the fraudster retrieves your personal info (name, dob, ssn, etc) and applies for a credit card in your name.... I have a client who is a detective in one of my local precincts who has arrested a number of fraudsters carrying dozens and some times 100's of credit cards on their person. Going from store to store buying stuff and gift cards. One was a jewelry purchase at close to $10k. So I asked him how these people were getting away with this. Hackers get into computer systems at any number of places (banks, super markets, department stores, etc). They steal the credit card number. Those numbers are then offered on the black market. Fraudsters buy the list of credit card numbers. They, or they pay someone to, emboss a blank credit card ( I guess there are either blank cards to purchase or someone is manufacturing them) with the fraudulently obtained credit card number and their own name or a fictitious name. They either use their own identification (i.e. drivers license) or have more fraudsters make up fraudulent identification items for them. So when they go to a place of business even if the clerk asks for id, it's mute. It's going to match. If the transaction doesn't go through they just keep whipping out cards until one works. The suspicious and smart clerks have called the police. The last crew arrested had receipts for a motel nearby. Police got warrants and not only obtained 100's of credit cards but also the embosser. Now, on another note, you have to be very careful when you use your credit card. It doesn't matter about letting it out of your sight. There's been a ring up and down the east coast recently who put skimmers in bank ATMs. One slick fraudster also installed a tiny camera to capture the pin numbers being put in. I don't know if this person has been caught yet but they have accessed quite few ATMs and have taken thousands of dollars from unsuspecting bank customers. Even if you buy gas and use your card at the pump. Look where you insert that card to make sure it doesn't look suspicious (i.e. skimmer). We even had one incident at a local do-it-yourself car wash wherein a skimmer was installed where the credit card is inserted. My client has spent countless hours on the job requesting credit card statements from the victims in order to determine any commonality among them (i.e. shopped at XYZ store) just prior to fraudulent purchases on their cards. What a blow to law enforcement in terms of man hours working on this when they could be out solving more pressing crimes. Ah, the stories he tells me. Fascinating, how these folks get away with so much. And, then there are other stories about welfare fraud, etc. etc. etc. Terrible stuff going on out there....
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