Roberts

It's my understanding (and I could be 100% wrong) is that 1231 losses must be offset against 1231 gains only.

Many 1099's that I've done show $0 cost basis on their non-reported sales but then disclose the cost basis that is in their records on other pages. For example I brought in a bunch of securities for a client and provided a cost basis. Those ended up as E's on their 1099 with the cost basis noted. I've notice the last few years it is VERY rare that someone doesn't have something for a cost basis on the 1099.

Revocable trusts while the person is still alive can use their SSN.

Many years ago you were required to file a 1041 for a revocable trust while still alive. They voided that and allow you to include it on your personal return since it ends up there anywhere. Have one client who INSISTS on filing a 1041 for his trust but oddly he doesn't require it for his wife's small trust. I put his social security number on there as that's what the prior CPA did and his attorney dictated I do. He's been doing it for 40 years and the IRS has never once commented on it.

If you pay me $x, we can eliminate all those expensive profits you hate.

This is the time of year where the little bothersome tick in the software becomes a full blown outrage. Why is it that on every freakin return I have to navigate through 4 clicks to check that one box that every paid preparer in his right mind would check? Why is it not the freakin default to have it checked?????????

The theory was that he wouldn't tell the minor about the gift and then take it back later. In other words, steal it from them.

So you oppose 401K and IRAs also?

A QDRO on a defined asset plan (IRA or 401k type account) is rather easy and I've done many of those. The administrator has a form to achieve it. Defined benefit plans can be far more difficult and time consuming. A QDRO is a legal form which is involved in a current legal dispute so in most states a lawyer is required to be involved.

Is he eligible for social security? It is a law that if you aren't eligible for social security because your pay is exempt (because of the pension) that it isn't considered a marital asset anymore than Social Security (which isn't).

If it's coming directly from the ex - it very likely is alimony. JMO but if the receiving spouse were my relative I'd be upset that was the agreement. If he died, she's out of luck. She doesn't get spousal benefits as an EX. I think Jack is right - Alimony ends at death or re-marriage and legally has to dictate that. If it continues after death, it isn't alimony. Now child support and alimony like was also mentioned are co-mingled a lot and argued by the IRS. You can't end alimony in a certain period of time around the kid turning of age.

Possibly except she's 83 years old and they won't ever come even remotely close because of the trusts. Their entire net worth outside of the trust is maybe $1.5 million and $500k of that is in an IRA. They have about $6 million in their trusts between the two.

I also agree. Plus they specific alimony versus asset distribution because there are obvious tax consequences. Alimony in every case I've worked on is VERY specifically labeled as such.

I think it depends on the asset values. $3-4k is very likely. If a lot of money is in play, $5k is likely. Have a new client who's husband died in 2016 and the previous firm did a 706 tax return to declare that his estate passed to her tax free even though his assets were about 1/2 the estate threshold. They charged her $4,500. I showed it to the estate attorney I work with and he just laughed and declared it genius. They gave her this huge packet and it includes a copy of his will, his trust agreement, instructions for the 706 and tax forms that are completely irrelevant with nothing on them. They charged her this to show that she didn't owe taxes on the assets she inherited from her husband.

If the person isn't able to receive Social Security benefits (teachers often times), their pension is not considered a marital asset and unable to be divided. FYI - it's actually pretty rare that QDROs are completed. Attorney's hate to do them and clients usually hate the idea of paying thousands of dollars to get an asset they won't touch for years. I spoke with a divorce attorney who estimated he had over 100 of them in his files not completed because the clients had an outstanding bill sitting on the books. They can take 3-4 months to be completed, generate a legal liability to the attorney if not done correctly and clients protest paying for all the hours. People will have 3-4 accounts needing them and they'll only do the largest.

I was just writing it up, if it's alimony it will be written as such in the divorce decree. I've never heard of dividing the pension and calling it alimony because she would lose her right to receive it if he died. The QDRO would guarantee her the benefit for HER life - not his. If nothing else, ask the divorce attorney. Most states limit alimony to just a few years and instead divide assets to adjust accordingly.

Since it's a condo - is he personally responsible for any of the upkeep versus what the association would be responsible for handling? I'd maybe attribute part of the association fee and not depreciate. It literally is LAND and he pays a monthly fee to cover maintenance and repairs I'm guessing.

Does anyone on this board still use OLTPro? Other than me?

Had a deceased return last year with a refund filed in March 2017. They received the refund in mid-February 2018. The IRS proposed a change last April which we agreed with (seems an Est Tax pmt wasn't made as proclaimed by the daughter). Since the court didn't appoint anyone as executor of the estate (didn't have much in assets), the IRS wouldn't talk to anyone about the return so it was in limbo. Client's daughter was 100% sure it was all my fault until the check arrived.

The State of Missouri will not allow a citizen to move their address to another state as they leave the country. They will want proof you lived there for several months before leaving or they'll declare you never actually moved your residency at all.

I've been to their house - I don't see the wife as a big spender. It's a nice house and they drive nice cars but they've had them all a few years. It's certainly not clothing or jewelry from what I've seen. I have another couple about 30 years of age and no kids. She makes $100k and he makes $130k. They live in a $150k home (with a full mortgage) and have no assets outside of their retirement plan (they do contribute about $30k there). WTF is the money? I have friends who make exceptionally similar money at 50 years of age - NO dividends or interest and a full mortgage (they just built a new / slightly larger house but nothing massive).

Idiot clients? Client makes a solid salary and is a single earner in the household - last few years he'd made about $150k. They always received a $7k refund which they used on vacation. Nothing changed from what I can tell in their lives except he took a new position in the company and this year earned $345k. Nice. Except now they owe about $4k with the return. The wife informed me she didn't have a clue how they were ever going to be able to afford to pay that and is wondering about a monthly payment plan. How is that possible?

Do you have a reference to this or is it a guess? They can still withdraw it and make a charitable contribution. The QCD allows them to lower their AGI which has obvious advantages but why is that benefit linked to the RMD age and not the age of penalty free distributions? Many middle class families in retirement aren't itemizing.

Foxit Reader has a free e-sign service of 5 per month. Honestly, probably all I need. I can physically sign / scan the rest.

Very interesting. Hadn't thought of that.