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As an FYI to fellow accountants: Company near our office recently had one of their passthroughs audited SPECIFICALLY for claiming the (newish) health care credit. Their accountants are claiming that their "software wasn't calculating the credit correctly" and that the IRS is now having special task forces assigned to audit these credit claims. Hoping everyone's read the instructions!
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Apr 12, 2012 23:33
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Admiral101 posted:As an FYI to fellow accountants: We had the IRS sit on a return last year for seven months to "review the calculations." The credit was for $900. Thanks for the heads-up though.
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Apr 13, 2012 00:00
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furushotakeru posted:If you aren't going to tax court over your issue you probably do not actually need a "tax attorney". If it is an administrative or collection issue with the IRS then most likely your friendly local EA or CPA can assist you. I didn't want to pry why the poor guy needs an attorney.
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Apr 13, 2012 00:00
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AbbiTheDog posted:I didn't want to pry why the poor guy needs an attorney. I'm not prying, just observing that at least 8 out of 10 times someone asks for a tax attorney referral it is something that I can easily handle.
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Apr 13, 2012 00:04
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OK. I had a guy come in today, and drop his, unfiled 2009 and 2010 information off, along with his 2011 info. Works as a rural mail carrier, paid on a 1099-Misc. Fun item 1- The 1099 had 50k per year, with NO withholding. Fun item 2- Guy still has an outstanding balance from his 2008 taxes. Fun item 3- A portion of that 50k listed on the 1099 was reimbursement for gas and vehicle maintenance. 3b- He has used at least 4 vehicles to deliver mail in the past 3 years. Fun item 4- Trying to figure out if he can actually CLAIM those reimbursements as business-related expenses makes me want to shove a pen in my eye. At one point, I was estimating this guy owing the IRS and NY somewhere around 56,000 in taxes and penalties for these. Someone give me one good reason why I should go back to Block for next tax season to do this again, and jump through the testing hoops?
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Apr 13, 2012 00:26
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I know you guys are busy - I may have lost my W-2 for my current job, do I have to attach that to my return, so long as the numbers on the return are correct? I can pull my wage info and withheld taxes from my company's internal website.
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Apr 13, 2012 02:03
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entris posted:I know you guys are busy - I may have lost my W-2 for my current job, do I have to attach that to my return, so long as the numbers on the return are correct? I can pull my wage info and withheld taxes from my company's internal website. If you had the same job last year the efile info (company EIN, state number) should be the same and you should be fine. If you're paper filing you need to fill out the substitute W-2 forms (federal and state).
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Apr 13, 2012 02:31
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furushotakeru posted:I'm not prying, just observing that at least 8 out of 10 times someone asks for a tax attorney referral it is something that I can easily handle. I don't know why you're so testy, I haven't had a day off since the Super Bowl.
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Apr 13, 2012 02:32
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AbbiTheDog posted:If you had the same job last year the efile info (company EIN, state number) should be the same and you should be fine. If you're paper filing you need to fill out the substitute W-2 forms (federal and state). Well, I've had this job from Aug. 2011 until now, so this is the first time that I will be including it on a tax return.
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Apr 13, 2012 02:50
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entris posted:Well, I've had this job from Aug. 2011 until now, so this is the first time that I will be including it on a tax return. Way to wait until the last minute. 
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Apr 13, 2012 02:54
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I know, I think my accountant is going to kill me. I thought I had my W-2 to send him, like I told him that I would days ago, but I can't find the damned thing. Not sure what to do now. I guess request a replacement from the accounting department at my job...
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Apr 13, 2012 03:14
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entris posted:I know, I think my accountant is going to kill me. I thought I had my W-2 to send him, like I told him that I would days ago, but I can't find the damned thing. Not sure what to do now. I guess request a replacement from the accounting department at my job... You can ask for another copy, and have your CPA extend.
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Apr 13, 2012 04:33
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Kwik posted:. Someone give me one good reason why I should go back to Block for next tax season to do this again, and jump through the testing hoops? Because it is fun working working 90 days straight.
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Apr 13, 2012 04:36
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AbbiTheDog posted:I don't know why you're so testy, I haven't had a day off since the Super Bowl. You took the Superbowl off?! Pssht 
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Apr 13, 2012 04:56
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If I need to include a certain multiple page form with my return, but only one section on the first page actually applies to me, should I include all the pages of the form, even the blank ones, or only the pages I've actually had to write something on? Sorry for the really dumb question (it's my first time doing US taxes).
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Apr 13, 2012 05:07
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furushotakeru posted:You took the Superbowl off?! Pssht I know, pansy. The only fun I have nowadays is trolling the dingbats in "my mom can't read her loan statement" thread.
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Apr 13, 2012 15:57
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My company's payroll department is printing me a new W-2 right now, which I will scan and email to my accoutant, and then I will attach the hardcopy to my return on Monday I guess. Thank god oh lord.
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Apr 13, 2012 16:17
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entris posted:My company's payroll department is printing me a new W-2 right now, which I will scan and email to my accoutant, and then I will attach the hardcopy to my return on Monday I guess. If you efile there is no attachment.
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Apr 13, 2012 16:38
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nemesis_hub posted:If I need to include a certain multiple page form with my return, but only one section on the first page actually applies to me, should I include all the pages of the form, even the blank ones, or only the pages I've actually had to write something on? Sorry for the really dumb question (it's my first time doing US taxes). Are you literally filling out your tax return by hand ? Please don't. There are several online options. To your question, I think it is a good idea to include all the pages, even if blank, of a paper form when filing a return if any part of the form is required.
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Apr 14, 2012 01:09
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seymore posted:Are you literally filling out your tax return by hand ? Please don't. There are several online options. 
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Apr 14, 2012 01:12
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scribe jones posted:I filled out a CA nonres return by hand the other day Your boss too cheap to pay the software cost?
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Apr 14, 2012 01:32
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Well, this is the first tax return I've seen that contributes to the Presidential Election Campaign Fund: http://www.forbes.com/sites/kellyphillipserb/2012/04/13/president-obama-and-vice-president-biden-release-2011-tax-returns/
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Apr 14, 2012 03:02
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AbbiTheDog posted:Your boss too cheap to pay the software cost? nah, was doing it at home (for a friend) and couldn't be assed to remote in. Mandalay posted:Well, this is the first tax return I've seen that contributes to the Presidential Election Campaign Fund: 
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Apr 14, 2012 03:10
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Hopefully this isn't too far out in the weeds. I have a weird inheritance/gift situation. My grandfather recently passed. He listed my father as the sole beneficiary of his estate. This wasn't meant as a snub to my sister and I: apparently he wanted us to have a big chunk of it, but he wanted my father to make sure the money was spent wisely. Sort of like this: Father, can I use grandfather's money to fill a swimming pool with jello and make a reality TV show about it? No. Father, can I use grandfather's money to buy this gently used Honda Accord? Sure.Unfortunately, gift tax. Grandpa didn't know about it and didn't factor this into his plan. Is there any way for my father to give my sister and I what had been set aside for us as inheritance rather than as a gift? Solutions that don't involve my father's untimely demise are preferred!
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Apr 14, 2012 03:59
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Console Parade posted:Hopefully this isn't too far out in the weeds. I have a weird inheritance/gift situation. My grandfather recently passed. He listed my father as the sole beneficiary of his estate. This wasn't meant as a snub to my sister and I: apparently he wanted us to have a big chunk of it, but he wanted my father to make sure the money was spent wisely. Sort of like this: I am sorry about your grandfather. To answer this question correctly requires a LOT more information. To start, what does the will say about disclaiming gifts, what does your state laws say about disclaiming. How much time has passed, was the will probated, and many other issues. It must have been a pretty big estate if taxes were due. There is a five million dollar federal exclusion. Was there no estate tax attorney invovled ? Your father can give each one of you $ 13,000 a year gift tax free. So can your mother. And they also have the federal exclusion available.
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Apr 14, 2012 06:29
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seymore posted:I am sorry about your grandfather. Thank you. quote:what does the will say about disclaiming gifts There is no written will. My father is the only beneficiary on his various accounts. quote:what does your state laws say about disclaiming. How much time has passed, was the will probated, and many other issues. I didn't even know about disclaiming until Google searching, FWIW, he lived in Flordia. We may need to consult with a tax attorney but search terms like this are a very helpful start. He passed on two weeks ago. quote:It must have been a pretty big estate if taxes were due. There is a five million dollar federal exclusion. The estate is nowhere near this big, but the problem seems to be that any money passed from my father to my sister or I would be considered a gift rather than inheritance. She could pay off her house for example, but that would be more than 13K. Console Parade fucked around with this message at 08:58 on Apr 14, 2012 |
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Apr 14, 2012 08:50
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Console Parade posted:Thank you. I don't think you'll need a tax attorney, but it wouldn't hurt to consult with an accountant or financial planner.
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Apr 14, 2012 09:23
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MiTEG posted:In 2012 there is a lifetime gift tax exclusion of $5,120,000. Take a look at IRS publication 950. If your father disclaims some inheritance (and he's still alive, which is obvious) the disclaimed part might be subject to the generation skipping rules.
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Apr 14, 2012 16:29
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seymore posted:Are you literally filling out your tax return by hand ? Please don't. There are several online options. Thanks for the reply, that's what I'll do. I did my federal return online but I had to my state one by hand, or least that was my interpretation of the instructions for someone in my status (non-resident alien).
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Apr 14, 2012 19:18
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We'll probably end up going with the unified credit, with my father still acting as the gatekeeper. Thanks everyone!
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Apr 14, 2012 19:39
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I'm lost and would appreciate any help entering the sale of a rental property into Turbotax. Bought a 4-plex in 2004 for $180k. Let's say the only adjustments to the basis were $5k for commissions. Sold it in 2011 for $220k. Commission was $10k. I lived in 1 of the 4 units since purchase. On the Schedule E, I've always claimed only 75% of expenses. In the TT Business section, I allocated the sales info between Land (25%) and Asset (75%). Is it correct then to calculate the Asset Sales Price at $180,00 x 75% x 75% = $101,250? I multiplied by 75% twice because only 75% of the property was for business use. But since I initially entered "75% Business Use" prior to the sale info section, will TT automatically allocate the sales price at 75%? Also, I'm wondering what if anything I have to do in the Personal Income section under Sale of Home. Since I lived in 1 unit, I understand that 25% of the gain will be excluded from capital gains. Do I enter the full Sales Price here? 25% of the sales price? Or will TT do this all automatically? Sorry this is so long but wanted to provide the details. Thanks very much for any help.
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Apr 14, 2012 19:59
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quote:I'm lost and would appreciate any help entering the sale of a rental property into Turbotax. I doubt anyone in this thread will be able to tell you how TT handles rental property sales. Your end result should be that 3/4's of the sale price and 3/4's of the basis needs to be reported on 4797. Remember that ALL the depreciation you took against rental income in prior years must be recaptured as well (not just 3/4's of it).
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Apr 14, 2012 21:33
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Admiral101 posted:I doubt anyone in this thread will be able to tell you how TT handles rental property sales. Thanks for the reply. I'll play around with the inputs and see if I can get the results you're talking about, and I appreciate the reminder about depreciation recapture.
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Apr 14, 2012 21:36
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socketwrencher posted:Thanks for the reply. I'll play around with the inputs and see if I can get the results you're talking about, and I appreciate the reminder about depreciation recapture. You need to be careful on reporting the sale. You need to report the full amount of the gross sale that's on the 1099-S, that's what the IRS computers tie to. Might need to "monkey" with the cost of sale to get the net gain that you need to pay tax on and adjust out the gain attributable to the home sale.
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Apr 14, 2012 21:41
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AbbiTheDog posted:You need to be careful on reporting the sale. You need to report the full amount of the gross sale that's on the 1099-S, that's what the IRS computers tie to. Might need to "monkey" with the cost of sale to get the net gain that you need to pay tax on and adjust out the gain attributable to the home sale. Whichever way I go seems to be a roll of the dice, but involving a monkey might at least avoid the initial flag if I'm catching your drift. Looks like I may be reverse engineering some numbers then. Thanks for the feedback.
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Apr 14, 2012 22:14
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I doubt anyone here knows estate law but if an estate is the beneficiary of an IRA and it is liquidated, can the estate distribute the income to the heirs to offset the tax liability? Basically, the question is who takes the tax hit the estate or the heirs?
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Apr 15, 2012 01:35
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Ardennes posted:I doubt anyone here knows estate law but if an estate is the beneficiary of an IRA and it is liquidated, can the estate distribute the income to the heirs to offset the tax liability? It is distributable income on the 1041. If the estate doesn't distribute it the estate will be liable for the tax.
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Apr 15, 2012 03:37
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furushotakeru posted:It is distributable income on the 1041. If the estate doesn't distribute it the estate will be liable for the tax. Yeah thats what I feared, one of my relatives is using an accountant that is trying to put all of the income on the estate return. I am trying to tell them to not turn that return in until they get a second opinion from a more qualified accountant/estate lawyer. Granted, the individual died in late may 2011, so it might be too late too distribute the income. Now I have to find a way to get this person to believe me that they might be making a pretty giant tax mistake by trusting this guy.
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Apr 15, 2012 04:02
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Ardennes posted:Yeah thats what I feared, one of my relatives is using an accountant that is trying to put all of the income on the estate return. I am trying to tell them to not turn that return in until they get a second opinion from a more qualified accountant/estate lawyer. Don't confuse "distribute cash" with "distribute taxable income". When I talk about distributing income I am just talking about who is paying the tax on the income, the trust or the beneficiaries. Whether cash was actually distributed or not is completely irrelevant on the 1041 for most things.
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Apr 15, 2012 06:12
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furushotakeru posted:Don't confuse "distribute cash" with "distribute taxable income". When I talk about distributing income I am just talking about who is paying the tax on the income, the trust or the beneficiaries. Whether cash was actually distributed or not is completely irrelevant on the 1041 for most things. Okay, so the heirs would have to had that income on their 1040s so the estate could claim that distribution of income. However, I expect most of the heirs/beneficiaries already submitted their 2011 taxes without any estate income. However, I heard that you maybe some times split up IRA income over 2-5 years even the estate is the beneficiary. Really, I want to tell this person not to have the estate take as a lump sum of income in one year because the tax liability is massive. However, it is pretty tough to find out the actual deadlines where you can claim distributed income, especially since there is a push to end probate by April 30th. If the estate files its return, it takes the maximum tax penalty and there really isn't much to do about it at that point. Honestly, qualified professionals were suppose to handle it but they seem completely incompetent. I wish I had some wikipedia of estate tax law I could point to.
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Apr 15, 2012 08:40
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