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I'm not sure where to ask this, but my friend's mother recently passed away, and he is kind of lost and I'm not sure where to start. He has a 401k disbursement to deal with, and has been told that me may/may not have to pay income taxes on the life insurance disbursement and what not. His mom died under 60. Since I'm not an expert, what do you look for in a professional in this type of situation? Do you get a lawyer/CPA/H&R Block type person, or is it something you can handle with enough research? Thanks for the help in advance.
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Jul 1, 2014 20:56
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Veskit posted:Do you get a lawyer/CPA/H&R Block type person, or is it something you can handle with enough research? Lawyer? Probably not. CPA/LTC? Yes, but make sure they have experience with (possibly) a taxable estate and Form 1041. H&R Block? Nope. Yourself? Nope. There's two parts to the "death tax." There's the "estate tax" itself, which is a tax on the "snapshot" of the net worth of an individual at their date of death. There's then a possible income tax (form 1041) form that's due for the income/expenses generated by the assets of the deceased between the date of death and the date of the final distribution of estate assets.
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Jul 1, 2014 23:12
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AbbiTheDog posted:Lawyer? Probably not. I called around a bit and landed on a guy. He gave me a quote of about $1100, but that includes all the tax filings and recommendations on how to handle the assets. He seems legit. I'll shop around a little bit more but I like this guy. He gave me these notes for how it would work out: File a 706 form -Probably no tax about 1100 dollar job need information, death certificate, will, trust document. Legal description appraisal done on the house. Higher the price the higher the basis of the house is in the hands of the person that receives it. Gives a higher priced house in his hands, thus it will be "less taxes" when you sell it. High basis is good. Filings, establishes the tax bases, 401k (establishes what needs to be done on income), Life insurance. 706 tax return. If there is a treatment of the 401k differently then included. Possibly deferred asset. You can redirect it into asset. http://www.quirozllp.com/ Seem legit?
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Jul 1, 2014 23:53
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Veskit posted:I called around a bit and landed on a guy. He gave me a quote of about $1100, but that includes all the tax filings and recommendations on how to handle the assets. He seems legit. I'll shop around a little bit more but I like this guy. He gave me these notes for how it would work out: If she's not worth over $5mm+ why file a 706? Not needed, but it might be for state reasons (here in Oregon the estate tax kicks in at $1mm and requires a federal 706 to be filed with a state auxiliary form).
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Jul 2, 2014 16:45
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I just got a notice from the IRS saying that back in 2012 I failed to report the interest I earned from redeeming a bunch of savings bonds (over $1500 total). I never received a 1099-INT from my bank that year reflecting that, and can't get one from them now because the combined total interest on my accounts was less than $10, they're telling me. So I'm confused, my bank reported to the IRS all that interest I made on those savings bonds, but I haven't found a way to get my hands that same information myself. I'm sorry if this doesn't make total sense, or if I'm not totally understanding what's going on. I'm kinda overwhelmed and not used to dealing with this kind of stuff. I'll try to clarify anything that's confusing. Any advice on what I should do next would be really appreciated.
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Jul 3, 2014 20:04
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Call the number on the notice and ask them.
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Jul 3, 2014 20:18
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PatMarshall posted:Call the number on the notice and ask them. In particular, get them to send you a transcript showing the information from the purported Form 1099-INT.
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Jul 3, 2014 21:39
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ThirdPartyView posted:In particular, get them to send you a transcript showing the information from the purported Form 1099-INT. Thank you for the help. I was able to find a copy of it on the IRS website. Looks like my bank really did send them the information about the interest on those bonds. So now I'm not really sure what, if anything, I could do to fight this. It seems like either my bank just didn't send me a 1099-INT regarding all that interest, or they did and I just threw it out or something stupid like that.
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Jul 3, 2014 22:45
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Quaquecyoe posted:Thank you for the help. I was able to find a copy of it on the IRS website. Looks like my bank really did send them the information about the interest on those bonds. So now I'm not really sure what, if anything, I could do to fight this. It seems like either my bank just didn't send me a 1099-INT regarding all that interest, or they did and I just threw it out or something stupid like that. What is there to fight? You received $1,500 of interest. Regardless of whether you received a 1099 or not, it's still taxable. I doubt the IRS would even abate the accrued interest in your case.
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Jul 3, 2014 23:14
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Admiral101 posted:What is there to fight? You received $1,500 of interest. Regardless of whether you received a 1099 or not, it's still taxable. I doubt the IRS would even abate the accrued interest in your case. Well, interest cannot (by statute) be waived except in limited screwup circumstances (by the IRS), so that wasn't going to happen; Quaquecyoe can call the IRS and ask the revenue agent for a first-time penalty abatement (presuming this is the first time in the last 3+ years that you've have a noncompliance issue with the IRS) to avoid getting hit with penalties, though. Edit: Don't forget that the IRS will notify the state about it as well, so it's probably best to amend and try to get a penalty abatement (if available) and pay whatever's due (plus interest and penalties if unabatable) on your state return, assuming it's a state with an income tax. Horseshoe theory fucked around with this message at 02:56 on Jul 4, 2014 |
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Jul 4, 2014 02:33
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From what I understand, long-term capital gains are taxed at 15% federally. Is there state capital gains tax rates, or is it just classified as additional income?
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Jul 7, 2014 20:23
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Henrik Zetterberg posted:From what I understand, long-term capital gains are taxed at 15% federally. Is there state capital gains tax rates, or is it just classified as additional income? There are about 50 different answers to this question. What state?
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Jul 7, 2014 21:38
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Bloody Queef posted:There are about 50 different answers to this question. What state? Sorry, forgot to specify California.
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Jul 8, 2014 00:27
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Top capital gains rate is actually 20% now (depending on your income, could be less), plus the 3.8% net investment income tax if you are over the applicable threshold.
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Jul 8, 2014 00:53
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I currently live in a home and I am going to be renting out another spot closer to downtown which will be used as my office. It is a friend house and will be renting out a room in his house. Can I write this off for taxes if I use it as an office? Could I pay the rent via my s-corp? I still plan to use my current address as well as adding this one on.
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Jul 8, 2014 16:23
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Enigma89 posted:I currently live in a home and I am going to be renting out another spot closer to downtown which will be used as my office. It is a friend house and will be renting out a room in his house. Can I write this off for taxes if I use it as an office? Could I pay the rent via my s-corp? So long as the room(s) is/are being used solely for business purposes then you can expense it.
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Jul 9, 2014 04:05
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ThirdPartyView posted:So long as the room(s) is/are being used solely for business purposes then you can expense it. How do you go by proving that it is being solely used as business and not? I mean what if I throw in the bed in the room and use it to sleep there on occasion when tired from work?
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Jul 9, 2014 05:54
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Enigma89 posted:How do you go by proving that it is being solely used as business and not? I mean what if I throw in the bed in the room and use it to sleep there on occasion when tired from work? It's best to use common sense; the room/office should look and be used as one would an office at a place of business. It thus is highly doubtful that having a bed in your office would be a normal business practice.
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Jul 9, 2014 09:14
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seymore posted:It's best to use common sense; the room/office should look and be used as one would an office at a place of business. It thus is highly doubtful that having a bed in your office would be a normal business practice. On the other hand, my understanding is that the IRS doesn't care if you're a prostitute. You could say it's a side hustle.
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Jul 9, 2014 14:12
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baquerd posted:On the other hand, my understanding is that the IRS doesn't care if you're a prostitute. You could say it's a side hustle. As long as you claim the income. I prepared taxes for a gal that was working in Nevada....listed her occupation as "entertainment." It was interesting to go through her receipts for deductions. Ewwww.
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Jul 9, 2014 18:33
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I just started a new job making $44,000 per year. With only two pay stubs and 3 weeks of income down, I've got the following withholdings: Salary *Current: 1523.07 *YTD: 2369.22 Federal Income Tax *Current: 177.84 *YTD: 228.75 Social Security *Current: 104.92 *YTD: 157.38 Medicare *Current: 24.54 *YTD: 36.81 State Income Tax *Current: 61.00 *YTD: 82.00 Something seems very wrong about that. First of all, my witholdings for this paycheck are way more than they were for last paycheck on a percentage basis. Second of all, if current witholdings continue, I'll have just short of $10,000 withheld. That seems ridiculous. I want to only ask my boss as a last resort because he hates dealing with anything vaguely related to HR. Any thoughts? Does t
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Jul 14, 2014 19:28
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Happiness Commando posted:I just started a new job making $44,000 per year. With only two pay stubs and 3 weeks of income down, I've got the following withholdings: Have you had another job this year, if yes, post the total taxable income earned and withholdings as applicable.
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Jul 14, 2014 19:39
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Oh. That makes sense. Before this I made just shy of $12,000 as a contractor with $2500 withheld
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Jul 14, 2014 19:53
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Happiness Commando posted:Oh. That makes sense. Baller, dude. Go read the BFC bad with money thread so you don't gently caress up that 367% raise :V
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Jul 15, 2014 04:23
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NancyPants posted:Baller, dude. Go read the BFC bad with money thread so you don't gently caress up that 367% raise :V
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Jul 15, 2014 06:43
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Well, I negotiated so hard for the last $4000 that my boss retracted the job offer the day after I signed my paperwork because his wife gave him hell for giving me so much. It all worked out in the end, and the sour taste is mostly gone. $36K as a contractor to $44K as a permanent employee is a 22% increase not including the tax benefits
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Jul 15, 2014 15:11
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Happiness Commando posted:my boss retracted the job offer the day after I signed my paperwork Explain this? What a dick move. E: wow, you should post your boss in the bad with money thread BonerGhost fucked around with this message at 18:11 on Jul 15, 2014 |
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Jul 15, 2014 15:49
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Yeah. I was placed through a recruiting firm, who, unbeknownst to me gave my boss salary expectations for conversion. He pulled out an offer letter with $40,000 on it and was confused when I wanted to negotiate. We went back and forth for a little, and he is really uncomfortable around HR stuff, to the point where he will agree with things just to get past it. He also told me we get off for all federal holidays when in fact we only get off for half of them. He just wanted the conversation to be over. So I pushed hard for $44,000 as extra compensation for on call duties and signed the offer letter after we made modifications to it. Off stage, his wife - the silent business partner, apparently - gave him a bunch of poo poo that night for giving me so much. The next day, he called me up and said that he didnt have a budget for extra compensation for on call duties and retracted the job offer for a month until he could figure his stuff out. I spent several hours on the phone with my recruiter, who then went back and forth with him. Three weeks later, we had another meeting, he pulled out an offer letter with $44,000 on it and I signed it. Happiness Commando fucked around with this message at 17:03 on Jul 15, 2014 |
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Jul 15, 2014 16:59
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Happiness Commando posted:Something seems very wrong about that. First of all, my witholdings for this paycheck are way more than they were for last paycheck on a percentage basis. Second of all, if current witholdings continue, I'll have just short of $10,000 withheld. That seems ridiculous. I want to only ask my boss as a last resort because he hates dealing with anything vaguely related to HR. Any thoughts? Does t Yeah, this case will pretty much always have the wrong withholding. The withholding is based just on what you made this pay period, and assumes you made the same amount in every other pay period this year. If you don't adjust it, you'll get a big refund this year, but next year you won't.
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Jul 15, 2014 19:23
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So I am seeing if I can qualify for the Saver's credit in 2014 -Married Filing Jointly -Pretax income will be around $63000 The Eligibility requirements for 2013 say Income between $38500->59000 is eligible for a 10% credit of up to $2000+$2000 ($4000), or $400 (I understand 2014 will be slightly different.) Do IRA contributions themselves lower the income used to determine eligibility? So if we contribute $3000 each), would that lower the income to $57000 and thus be eligible for the $400 credit?
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Jul 17, 2014 18:14
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Meta Ridley posted:Do IRA contributions themselves lower the income used to determine eligibility? Yes, the Saver's Credit uses AGI to determine the % of contributions that you multiply to determine the applicable credit. Here's an example from here: quote:Example: Jill, who works at a retail store, is married and earned $30,000 in 2013. Jill’s husband was unemployed in 2013 and didn’t have any earnings. Jill contributed $1,000 to her IRA in 2013. After deducting her IRA contribution, the adjusted gross income shown on her joint return is $29,000. Jill may claim a 50% credit, $500, for her $1,000 IRA contribution.
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Jul 18, 2014 01:12
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Any pros here using Ultratax? I know I've asked about it before, but it looks like we're dumping lacerte and moving over. Any horror/success stories?
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Jul 23, 2014 19:30
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AbbiTheDog posted:Any pros here using Ultratax? I know I've asked about it before, but it looks like we're dumping lacerte and moving over. Any horror/success stories? We use ProSystem fx but I would be interested as to why you choose to move from one system to another.
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Jul 26, 2014 04:30
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seymore posted:We use ProSystem fx but I would be interested as to why you choose to move from one system to another. Seconded, I've used GoSystems my entire career and while many complain nonstop, no one has ever stated any if the others were better, except for prosystem for 1040s, but gently caress individual returns
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Jul 28, 2014 12:25
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seymore posted:We use ProSystem fx but I would be interested as to why you choose to move from one system to another. Been using it for about ten years. Since Intuit purchased the program, it has become more and more buggy. Crashes continually. Really odd programming errors (grabbing names and SSNs from one family and dropping it into another return's input for child care credits, for example). They've also just dumped their paperless program and told us to "just use our cloud support services." Fees go up around 10-15% annually for a worse and worse product. Intuit has, what, three tax programs? You can tell they aren't putting resources into this one. I talked to my IT guy who works with a lot of CPA firms and he's having four other clients of his do the same switch.
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Jul 28, 2014 16:38
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AbbiTheDog posted:Been using it for about ten years. Since Intuit purchased the program, it has become more and more buggy. Crashes continually. Really odd programming errors (grabbing names and SSNs from one family and dropping it into another return's input for child care credits, for example). They've also just dumped their paperless program and told us to "just use our cloud support services." A forum of tax professionals I am a member of has had several people also dump Lacerte and they usually go to UltraTax as well. For the same reasons. I've worked with a person who used UltraTax and she couldn't say enough good things about it. Then again, the firm I'm at uses Drake, which sometimes feels like one step above a typewriter.
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Jul 28, 2014 18:39
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Missing Donut posted:A forum of tax professionals I am a member of has had several people also dump Lacerte and they usually go to UltraTax as well. For the same reasons. If I'm paying $15-$20k a year I want the drat program to at least be coded correctly. They get the technical tax stuff mostly right, it's the actual operations of the program they keep screwing up.
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Jul 28, 2014 19:39
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And there the heck did Furu go? I thought he did a switch a couple years ago that went poorly.
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Jul 28, 2014 19:41
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Help me avoid quarterly payments please: In FY2013, all my income was from W2 wages. In FY2014, I earned $12,000 gross as a 1099 contractor with $2500 withheld. I am also earning ~$20,000 gross as W2 wages and will have ~$4000 withheld. Since my 2013 wages were all W2, I dont need to file quarterly payments for 2014. I would also like to avoid making quarterly payments in 2015. I am ok with having more withheld or paying up front if necessary. Is it just as simple as running through my estimated tax liability ahead of time and making any adjustments to withholdings so that it is paid in full by January 1st? Happiness Commando fucked around with this message at 18:31 on Aug 1, 2014 |
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Aug 1, 2014 18:27
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Happiness Commando posted:In FY2014, I earned $12,000 gross as a 1099 contractor with $2500 withheld. This usually doesn't happen.
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Aug 1, 2014 18:54
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