Max W Posted March 13, 2014 Report Share Posted March 13, 2014 She was not "willing" to pay anything...this little old lady did not even know this activity in her investment account was happening....These gains increased her wealth on paper, but they also took her $227 refund and turned it into a $984 balance due. Sure, part of her is happy that her investments are worth more, but she did not anticipate nor does she have the funds to cover her $984 tax bill....regardless of how much of a fee I deserve...or think I deserve, I cannot and will not do that to her. Are you sure that these are reportable transactions? It does not sound like she was doing any trading. If they were in her investment account, they may be the mutual fund transactions and the report you have shows realized gains not reportable. I had to look at a Schwab 1099B and the realized gains, for a few minutes, to be sure which was which. If they are reportable trades, someone is churning her account. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted March 13, 2014 Author Report Share Posted March 13, 2014 I wondered that myself....and you are correct....SHE was not doing any trading....the activity was all within her investment account....how would I determine if these are reportable trades? To be quite honest, I thought these gains were always reportable....Do I need to re-take a tax course? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 13, 2014 Report Share Posted March 13, 2014 You have to look at the 1099B to see what needs to be reported. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted March 13, 2014 Author Report Share Posted March 13, 2014 1099-B states that all of these transactions were reported to IRS...is that what you mean? Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 14, 2014 Report Share Posted March 14, 2014 they might be managed funds where the fund manager trades all day long and you have to report each transaction. a lot of my wealthier clients are in these funds. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted March 14, 2014 Author Report Share Posted March 14, 2014 It what circumstances would mutual fund gains NOT be reportable and taxable? This is not a tax deferred account such as a 401k or 403b...simply a personal investment account (mutual fund) managed by a broker who churned it in 2013 resulting in approx. $5,200 in short and long term gains Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 14, 2014 Report Share Posted March 14, 2014 Yep, my clients with managed funds are the ones with the most trades too. JB, you were right to begin with. Those trades are on the 1099B and you need to report them. 1 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted March 27, 2014 Report Share Posted March 27, 2014 Then you can't use exception 3 by entering directly on sch D. You can use exception 1 that allows you to enter the summary totals on 8949 and attach a pdf of the broker statement or mail it in with the 8453. I just had the same situation only not quite so many transactions. I'm going to attach a pdf. 1 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 27, 2014 Report Share Posted March 27, 2014 Or she could have been in the Vanguard Total Stock Market and she would have been guaranteed to do as well as the average of the US stock market. Fees would have been pennies on the dollar ($1.70 per thousand, to be exact), and she would have been exposed to zero decision-making risk, only market risk. Absolutely. The market has more than doubled in the past five years. If you had money parked in VTSMX, your money more than doubled since 3/10/09. There is no reason to try to be creative, or pay somebody that amount of money to make you think HE'S creative. My engineer guy paid $19,700 in investment fees. He would have made 20.57% per year over the past five years with a pineapple as his advisor. I printed info from both Vanguard and Morningstar about Vanguard Total Stock Market Index, and I'm telling him I'm not a financial advisor, and you should be happy about that, read this. http://quotes.morningstar.com/fund/VTSMX/f?t=VTSMX Warren Buffet is no slouch when it comes to investing, and my good friend JohnH posted this article on another forum: http://www.marketwatch.com/story/warren-buffett-to-heirs-put-my-estate-in-index-funds-2014-03-13?pagenumber=1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 27, 2014 Report Share Posted March 27, 2014 So if his investment advisor charged him $19,700, then how much are you going to charge him to report his investment activity? I vote for $1,970 or more because you're not a pineapple. (I really vote for $19,700, but you're in TN.) 2 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 27, 2014 Report Share Posted March 27, 2014 So if his investment advisor charged him $19,700, then how much are you going to charge him to report his investment activity? I vote for $1,970 or more because you're not a pineapple. (I really vote for $19,700, but you're in TN.) No, I'm not a pineapple, but I am incredibly reasonable with fees. I charged him $425 for Sch A, Sch B, Sch D, 8949 with 14 entries, Sch F, 4562, AMT, 1116, 8283 with 4 entries, 8959 (which ATX did for me and I still don't know how they knew the amount withheld for MC AND that it was off $85, but thanks), TN return. He whined a little cause the CPA in Nashville charged him $465 last year and he found two mistakes. Things are different here. He's pretty sharp (except about the financial advisor); he might use my return and do it himself next year if I charge him the correct fee. I have two kids in college and zero help from their dad. I need him. Oh, yeah, he actually took pictures of the hay he sold, had bills of sale, took pictures of the stuff he donated. He's more anal about record keeping than I am. That's saying a lot. Plus he lives two miles from me and said next time I need help with a cow and my boys are gone, call him. 1 Quote Link to comment Share on other sites More sharing options...
Carolbeck Posted March 27, 2014 Report Share Posted March 27, 2014 Oh...and paid $1,700 in transaction fees. I have one of these every year. 3 different accounts, all I get is a pdf that I convert (Try to) to excel. Import as a csv file. This year over 560 transactions, Net LT Gain $349! But "Investment Advisory Fees" over $4,000. Makes you wonder if people even look at these statements. This couple is not that old. You would think they would know better. Do Not get me started with the advise they decided upon with same advisor to convert every IRA / 401K to a ROTH. Mind you close to a $1M value. Yes 2010 was a good year to do it, but it still cost mucho taxes even spread over 2 years. They are at the height of earnings, and they will never recoup this cost in retirement. Best time to do this is in your 20's or 30's - not late 50's. 2 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 27, 2014 Report Share Posted March 27, 2014 Oh, yeah, he actually took pictures of the hay he sold, had bills of sale, took pictures of the stuff he donated. He's more anal about record keeping than I am. That's saying a lot. Plus he lives two miles from me and said next time I need help with a cow and my boys are gone, call him. Well, in that case, I would show detail on his bill adding up to $1,970 and then give him a Loyal Client Discount or Organized Client Discount of ($1,500) or so. I'd probably aim for what the prior preparer charged -- because you're not a pineapple and you don't make mistakes and the prior would've had a price increase anyway. But, help with a cow is priceless. 2 Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 27, 2014 Report Share Posted March 27, 2014 But, help with a cow is priceless. Truth. Quote Link to comment Share on other sites More sharing options...
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