|
I made two backdoor roth contributions in 2015, one for 2014 (done before April 15), and one for 2015. My roth provider gave me a 1099-R that has both contributions combined (and it's more than the 5500 maximum). I think what I did is ok, but what do I need to do to report this correctly? Is there a way to do this in turbotax?
|
#
?
Apr 2, 2016 22:45
|
|
|
|
| # ? May 11, 2024 05:23 |
|
|
maxwell.mu posted:I made two backdoor roth contributions in 2015, one for 2014 (done before April 15), and one for 2015. My roth provider gave me a 1099-R that has both contributions combined (and it's more than the 5500 maximum). I think what I did is ok, but what do I need to do to report this correctly? Is there a way to do this in turbotax? http://thefinancebuff.com/how-to-report-backdoor-roth-in-turbotax.html
|
|
#
?
Apr 3, 2016 00:36
|
|
|
Another question. My wife was paid $350 as a speaking fee for speaking at San Jose State University. We did not receive a 1099-MISC. Turbotax told us to fill out a 1099-MISC worksheet. We do not have a EIN for San Jose State University, and I can't find one on Google either. Turbotax is refusing to file our federal form electronically without a valid EIN. It also won't accept 99-9999999. e. My wife kept a 1098-T from the school from the year 1999 that had the EIN on it. Hopefully that will work. Leperflesh fucked around with this message at 01:18 on Apr 3, 2016 |
|
#
?
Apr 3, 2016 01:13
|
|
|
I'm not sure if this is the appropriate place to ask this; sorry and I'll redirect my question elsewhere if it's not! I figured you guys would have a better idea on how weird shady independent contractor stuff works. I work in California and am currently on unemployment. This guy contacted me for some independent contractor work filming an ad at his studio space for a couple days. While he was technically co-producing the project, the director was handling most everything. When I finish my work I turn in a W-9 and invoice the director. When I fill out my unemployment claim for that week, I say I earned $700 working at this studio as an independent contractor. Now when I filled out the invoice I invoiced the director directly; the studio/business we filmed at is owned by the guy who contacted me for the job. EDD sends him some paperwork saying I claimed he was my employer; he calls me and is upset because he wasn't and tells me that I'm not supposed to report W-9 work to the EDD. That because taxes aren't being taken out it's "not part of EDD's system". Also that I invoiced the director, not this guy's studio, so his studio was not my employer. I tell him I'll contact EDD and he's insistent that I not "give away too much" which sounds....weird and shady. So yesterday I emailed EDD and said that I wrote down the wrong employer on my claim form; also that because I've not yet received payment I'm not clear on who legally was my employer for this job. Not reporting 1099/independent contractor work to EDD sounds super illegal to me? He wasn't very clear on what the EDD sent him but was worried it would have some sort of negative repercussion. I'm also assuming that that fact that I worked on site is why he was so worried about me "giving away too much"; 1099 work is supposed to be stuff I can do 'at home', correct? It's pretty common in the film industry for camera/crew to be hired as independent contractors on really small-scale jobs even though we all work on-site. I assume people write in the wrong employer on their claim forms all the time; are there any negative repercussions to this?
|
|
#
?
Apr 3, 2016 04:38
|
|
|
Leperflesh posted:Another question. That should be fine. The university probably did not send you a 1099 because of the amount.
|
|
#
?
Apr 3, 2016 06:32
|
|
|
What do I do if my wife won't tell me if she's filing itemized or not? We're separated (and have been for a year), and filing separately. I can't get ahold of her to figure out which she is doing, but I'm definitely itemizing since I own a house and the difference is like $1200 in my return. If she did standard, will the IRS just send a nastygram saying to amend the return, or are they going to go straight to pounding me in the rear end?
|
|
#
?
Apr 3, 2016 06:39
|
|
|
Leperflesh posted:Turbotax wants me to upgrade from Deluxe to Premiere, for +$20, in order to report my stock sales activity. In 2015, I made exactly two sales of stock, both for losses. One was short-term, a loss of $246.68; the other was long-term, a loss of $693.99. I am married filing jointly, and we itemize (we have a mortgage). There are other online programs that will file that sort of thing for free (TaxAct, I think, did last year at least when I had this exact same problem).
|
|
#
?
Apr 3, 2016 11:09
|
|
|
KillHour posted:What do I do if my wife won't tell me if she's filing itemized or not? We're separated (and have been for a year), and filing separately. I can't get ahold of her to figure out which she is doing, but I'm definitely itemizing since I own a house and the difference is like $1200 in my return. If she did standard, will the IRS just send a nastygram saying to amend the return, or are they going to go straight to pounding me in the rear end? No, if you itemize and she didn't, they'll send her a letter telling her she has to amend to itemize as well. They won't force you to use the standard deduction. The IRS always sends a bunch of letters before they take any action to give the taxpayer a chance to amend the return or provide additional information.
|
|
#
?
Apr 3, 2016 13:29
|
|
|
Okay, thanks. Trickier question. I was laid off last year and couldn't afford health insurance for 5 months. My income by itself was below the threshold for my state's plan being "affordable." So in theory, I shouldn't have a penalty. But my wife had insurance through her employer (which she wouldn't let me be on), and if you included her pay (which I had no access or claim to), the plans would have been considered "affordable". Do I need to pay the penalty in this case?
|
|
#
?
Apr 3, 2016 19:09
|
|
|
KillHour posted:Okay, thanks. Trickier question. I was laid off last year and couldn't afford health insurance for 5 months. My income by itself was below the threshold for my state's plan being "affordable." So in theory, I shouldn't have a penalty. But my wife had insurance through her employer (which she wouldn't let me be on), and if you included her pay (which I had no access or claim to), the plans would have been considered "affordable". Do I need to pay the penalty in this case? quote:For purposes of Form 8965, your household income is your I am assuming the lowest health plan available was more than 8.05% of your household income? Household income wouldn't include the income of an MFS spouse.
|
|
#
?
Apr 3, 2016 22:33
|
|
|
Edit: I actually did the math instead of going off of memory. My AGI for 2015 was $37,960. The cheapest bronze plan for my zip code on the NY marketplace in 2015 was $270.76 per month for a steaming hot pile of poo. $270.76 * 12 is $3,249.12 per year. Divide that by 0.0805, and you get $40,361.74. If I'm reading that right, I have zero health insurance requirement unless I made over $40k, ignoring whatever my wife made because she filed separately. Correct? Double edit: I don't see modified AGI on my tax return. How is that different from AGI? Triple edit: Found it. quote:To calculate your modified adjusted gross income, take your AGI and add back certain deductions. Many of these deductions are rare, so it's possible your AGI and MAGI can be identical. According to the IRS, your MAGI is your AGI with the addition of the following deductions, if applicable: I don't have any of those things, so they should be identical. KillHour fucked around with this message at 23:23 on Apr 3, 2016 |
|
#
?
Apr 3, 2016 22:51
|
|
|
I have received $14,000 this year from JEFF, as a gift. Lets say the following happens: - JEFF gives gives MARY an additional $14,000. - MARY immediately gives ME this $14,000. Does JEFF have to pay any gift tax? If not, will the IRS be angry at Jeff, as I have now gained $28,000 in 2016, all of which belonged to JEFF, just one week ago? Captain Pike fucked around with this message at 07:21 on Apr 4, 2016 |
|
#
?
Apr 3, 2016 23:34
|
|
|
KillHour posted:Edit: I actually did the math instead of going off of memory. Yes, because you are married filling separately (and don't qualify for premium tax credits to help pay for marketplace insurance) you would use the annualized premium for the lowest-cost bronze plan for your zip code for the months that you were not eligible for employer-sponsored coverage. For any months you were eligible for employer-sponsored coverage you have to use the annualized cost of that coverage to figure affordability.
|
|
#
?
Apr 4, 2016 03:34
|
|
|
urnisme posted:Yes, because you are married filling separately (and don't qualify for premium tax credits to help pay for marketplace insurance) you would use the annualized premium for the lowest-cost bronze plan for your zip code for the months that you were not eligible for employer-sponsored coverage. For any months you were eligible for employer-sponsored coverage you have to use the annualized cost of that coverage to figure affordability. I had employer healthcare for every month I was employed. I just want to make sure that my wife having a job that I could legally have been on (but couldn't in actuality because she wouldn't let me) won't screw me.
|
|
#
?
Apr 4, 2016 05:22
|
|
|
I have a question about independent contract work. I've found myself doing a fairly large chunk of 1099 work this year for a few different companies. Would it be tax-advantageous to incorporate or become a sole-proprietor rather than file as a 1099? Are there any drawbacks/advantages between the options that makes one highly preferable to another?
|
|
#
?
Apr 4, 2016 17:07
|
|
|
El Mero Mero posted:I have a question about independent contract work. I've found myself doing a fairly large chunk of 1099 work this year for a few different companies. Would it be tax-advantageous to incorporate or become a sole-proprietor rather than file as a 1099? Are there any drawbacks/advantages between the options that makes one highly preferable to another? Sole proprietor and 1099 contractor work are basically the same thing for tax purposes. You can form a sole proprietorship LLC which has advantages for legal liability but it doesn't affect filing, it's still Schedule C and related forms. Anything over sole proprietorship does get different treatment, but you also need to file an actual tax form for the company in addition to your personal return for those. Leperflesh posted:Another question. That should work, just be sure how it's reported on TurboTax. Unless your wife routinely has paid speaking work, it shouldn't be considered actual self employment income, it has to be "regular, frequent, and/or continuous". If TurboTax shoves it onto a Schedule C and charges SE tax, that's not right based on my understanding here of a single speaking engagement, it should just be reported as Line 21 Other Income (without SE tax). On the other hand that does limit the expenses you can claim on it. Anyway, my guess based on a few line explanation over the Internet  .urnisme posted:No, if you itemize and she didn't, they'll send her a letter telling her she has to amend to itemize as well. They won't force you to use the standard deduction. Note the operative term is "letters", do not get suckered by those drat phone calls like so many panicked clients I've had to reassure. Also, just to double-check, with regard to MFS there are two potential alternatives. First, you said you were separated, is this an official legal separation or just living apart? If it's a legal separation you can file single, doesn't have to be a divorce per se so long as there is a legal decree of separation (though whether your state does that may vary, out where I am there isn't any decree that qualifies really for "legally separated"). Second, if you have a dependent you claim (be careful in split custody situations here) and you pay at least half the costs of maintaining the household you and the dependent live in, and the spouse did not live with you at all the last six months of the year, you can file head of household counting as unmarried for tax purposes. Minus those of course you're stuck with MFS unless the marriage gets legally dissolved. Obviously if you think one of these might apply, double-check to be sure, there are plenty of caveats that can affect things.
|
|
#
?
Apr 4, 2016 18:23
|
|
|
We're not legally separated, no. No kids (thank God).
|
|
#
?
Apr 4, 2016 18:27
|
|
|
edit: nvm, probably wrong thread
Irritated Goat fucked around with this message at 15:22 on Apr 7, 2016 |
|
#
?
Apr 5, 2016 17:56
|
|
|
My K-1 from my S-corp includes a general business credit from the Small Business Healthcare Tax Credit. The value of the credit is larger than my tax liability for 2015, so I would like to carryback the credit to 2014. It looks like I can file a form 1045 to do that, because it is within 1 year of the credit being generated. Am I supposed to use the 2014 or 2015 version of form 1045? Do I file the 1045 separately from my 1040 and associated forms? Do I have to carryback 2 years or can I just do last year if the entire credit will be used up? e: Found the 2nd part in the 1045 instructions "Do not include Form 1045 in the same envelope as your 2015 income tax return." e2: And a new question: On page 3 of the 1045 instructions, in the section for Line 1b, it says "If you claim a tentative refund based on the carryback of an unused general business credit, attach a detailed computation showing how you figured the credit carryback and a recomputation of the credit after you apply the carryback." What do I actually need to attach? taqueso fucked around with this message at 21:54 on Apr 6, 2016 |
|
#
?
Apr 6, 2016 20:58
|
|
|
taqueso posted:My K-1 from my S-corp includes a general business credit from the Small Business Healthcare Tax Credit. The value of the credit is larger than my tax liability for 2015, so I would like to carryback the credit to 2014. It looks like I can file a form 1045 to do that, because it is within 1 year of the credit being generated. I know $600-800 is a lot of money, but pay someone who knows what they're doing to do the form for you. The IRS can and will review your 1045 and will reject it if anything (regardless of how trivial) is missing or incorrect or not attached. 1045 filings are by far the biggest pain in the rear end when it comes to compliance.
|
|
#
?
Apr 7, 2016 02:46
|
|
|
I am a NY resident who owns (with several partners in multi-member LLCs) a rental property in NJ and a rental property in CT (each one in a separate LLC). An accountant did the tax returns and K-1 for these two entities (both of which were incorporated in late 2015). In both cases, I had a net loss (woo!). I have no income whatsoever attributable to NJ or CT; since the NJ- and CT-based LLCs had a net loss, 100% of my income comes from New York State. I'm using TurboTax for my personal tax return, and TurboTax seems to think I have to file state returns for NJ and CT. I'm skeptical, since I earned $0 in those states, and owe those states $0 in taxes. I'd effectively be paying the tax-filing fee just to tell the states I earned no money there. Obviously the NJ K-1 and CT K-1 are already being filed showing the net loss; do I really need to file personal tax returns, too?
|
|
#
?
Apr 7, 2016 03:46
|
|
|
Admiral101 posted:I know $600-800 is a lot of money, but pay someone who knows what they're doing to do the form for you. What about a 1040X? That might be easier, assuming it is like filling out a 1040 I should mostly know what is going on. I started on a 1045 because I read it was simpler. My 1040 isn't very complicated.
|
|
#
?
Apr 7, 2016 04:04
|
|
|
taqueso posted:What about a 1040X? That might be easier, assuming it is like filling out a 1040 I should mostly know what is going on. I started on a 1045 because I read it was simpler. My 1040 isn't very complicated. I never understood why people recommended the 1045. It requires a bunch of attachments that requires you to refigure the prior year tax return... which is essentially the same work as just amending it. And is subject to a bunch more scrutiny. I would go with the 1040X if I were you. And keep in mind that GB credits can only be carried back 1 yr - not 2.
|
|
#
?
Apr 7, 2016 04:07
|
|
|
Actie posted:I am a NY resident who owns (with several partners in multi-member LLCs) a rental property in NJ and a rental property in CT (each one in a separate LLC). An accountant did the tax returns and K-1 for these two entities (both of which were incorporated in late 2015). In both cases, I had a net loss (woo!). I have no income whatsoever attributable to NJ or CT; since the NJ- and CT-based LLCs had a net loss, 100% of my income comes from New York State. You may want to file in those states to generate an NOL that you can carry forward to offset future years where you'll have income. No idea if CT/NJ permit NOL's though.
|
|
#
?
Apr 7, 2016 04:08
|
|
|
MadDogMike posted:That should work, just be sure how it's reported on TurboTax. Unless your wife routinely has paid speaking work, it shouldn't be considered actual self employment income, it has to be "regular, frequent, and/or continuous". If TurboTax shoves it onto a Schedule C and charges SE tax, that's not right based on my understanding here of a single speaking engagement, it should just be reported as Line 21 Other Income (without SE tax). On the other hand that does limit the expenses you can claim on it. Anyway, my guess based on a few line explanation over the Internet She had two speaking engagements last year, but it's not a regular thing for her. Yet, anyway. Certainly it's only a tiny fraction of her income. We did have to pay $9 in state income tax in Rhode Island for her other speaking engagement, which was in Providence. They also did not send a 1099 for the $300 fee they paid her, but in that case we had an EID for them. I felt really stupid paying turbotax $30 to file a $9 state tax, but she still comes out ahead so whatever. We didn't claim any expenses related to the speaking engagements; in the first case at most it would have been some mileage in our car, and in the second, we would have attended that conference regardless. Checking my return, there's no Schedule C. The Other Income line 21 shows a $924 total (750 from the speaking fees plus 174 in "not for profit activity income" which was the hobby income we balanced with 174 in hobby expenses), so looks like it did it right. Thanks for the double-check!
|
|
#
?
Apr 7, 2016 05:23
|
|
|
I had a settlement with the County to acquire part of my land (eminent domain, but we settled before it got to court). Using approximate numbers, I got 50k. Eight thousand of that was for the land. The rest was for "damages" which includes having to have a new well drilled and connected, decommissioning the old one on the property they took, fencing, driveway changes, trenching, labor, and overhead costs. I got a 1099-MISC and 1099-S from showing the compensation from them for 42k, so I assume the land cost was deducted and the "damages" is considered income to me? I'm quite frustrated since it's a State Government settlement for land they required me to give up which had my well on it and affected the privacy/security of my rural home. I'm required to pay taxes on it, when it came from tax money? Running through my taxes and adding this my income is about 130k total. I owe 1k from my normal income and usual deductions. Adding this in puts me at owing 12k. I had the well drilled in November, but only had a 3k downpayment on their service. It wasn't completed until Jan of this year where I paid the rest in full and haven't got to the rest of the work yet. So I'm not sure if I can at least deduct that 3k somehow or apply any of my costs for the "damages" from this settlement so it's not seen by the IRS as income. I'm a bit late getting to it... been a frustrating year so far.
|
|
#
?
Apr 7, 2016 12:57
|
|
|
Admiral101 posted:I never understood why people recommended the 1045. It requires a bunch of attachments that requires you to refigure the prior year tax return... which is essentially the same work as just amending it. And is subject to a bunch more scrutiny. And if you ask the IRS agents themselves, they will tell you the 1040X carrybacks are rubberstamped and approved.....the 1045 forms have a much higher level of scrutiny and audits.
|
|
#
?
Apr 7, 2016 19:46
|
|
|
So the quarterly estimated tax payments. Why are they not, um... quarterly? Am I going crazy, or are April-June-September-January not all 3 months apart.
|
|
#
?
Apr 7, 2016 23:36
|
|
|
If my capital account under a limited partnership is $600,000, and I sell my entire share (held for more than one year) to another partner for $215,000, have I incurred a long-term capital loss of $385,000?
|
|
#
?
Apr 8, 2016 06:55
|
|
|
So, i just filed and I feel incredibly dumb for asking a likely complex question in such simple fashion, but here goes - Last year, I owed Minnesota state 47 dollars in taxes. I earned maybe 50 cents more per hour this year than last., a sub 2k yearly difference working at Mcdonalds, and yet now I owe over $400 despite even paying for health insurance via my paycheck through the company here, and now 37 dollars in federal taxes. Any possible explanation/advice? I was totally not prepared to pay more than $50 at all. TurboTax was useless at explaining anything.
|
|
#
?
Apr 8, 2016 07:23
|
|
|
Lord Psychodin posted:So, i just filed and I feel incredibly dumb for asking a likely complex question in such simple fashion, but here goes - Last year, I owed Minnesota state 47 dollars in taxes. I earned maybe 50 cents more per hour this year than last., a sub 2k yearly difference working at Mcdonalds, and yet now I owe over $400 despite even paying for health insurance via my paycheck through the company here, and now 37 dollars in federal taxes. Any possible explanation/advice? I was totally not prepared to pay more than $50 at all. TurboTax was useless at explaining anything. Do you have more than one job? If so, the withholding amount on your W4 was probably calculated wrong for one of them, so not enough money was withheld. That's my only guess. Otherwise it's hard to say why without looking over all your info from this year and last year.
|
|
#
?
Apr 8, 2016 12:31
|
|
|
pig slut lisa posted:If my capital account under a limited partnership is $600,000, and I sell my entire share (held for more than one year) to another partner for $215,000, have I incurred a long-term capital loss of $385,000? It depends. You need to see a professional ASAP on this. Edit: Selling partnership interests is a different animal than selling stock, in essence you "look through" the sale of the interest itself to see the underlying assets and liabilities due to the theoretical nature of a partnership/LLC. https://www.irs.gov/Businesses/Partnerships/Partnership---Audit-Technique-Guide---Chapter-7---Dispositions-of-Partnership-Interest-(Rev.-3-2008) Translation: It can be a mess, and given the dollars involved, don't go cheap on this one. AbbiTheDog fucked around with this message at 19:50 on Apr 8, 2016 |
|
#
?
Apr 8, 2016 19:13
|
|
|
pig slut lisa posted:If my capital account under a limited partnership is $600,000, and I sell my entire share (held for more than one year) to another partner for $215,000, have I incurred a long-term capital loss of $385,000? Yeah this is an incredibly complicated question and outside the scope of the thread. Would depend on whether the cap account is on tax basis on gaap, whether there's outside basis, among other things. Hope you have a professional.
|
|
#
?
Apr 9, 2016 03:22
|
|
|
Admiral101 posted:Yeah this is an incredibly complicated question and outside the scope of the thread. Would depend on whether the cap account is on tax basis on gaap, whether there's outside basis, among other things. Yeah as a layperson that sounded like "I should really hire a really good accountant and/or lawyer to make sure this is done right".
|
|
#
?
Apr 9, 2016 03:29
|
|
|
AzureSkys posted:I had a settlement with the County to acquire part of my land (eminent domain, but we settled before it got to court). Using approximate numbers, I got 50k. Eight thousand of that was for the land. The rest was for "damages" which includes having to have a new well drilled and connected, decommissioning the old one on the property they took, fencing, driveway changes, trenching, labor, and overhead costs. OK, this one really needs someone more experienced than me to be sure, but to my limited understanding on the subject eminent domain claims are supposed to be handled in one of two ways. Either it counts as a capital sale of part of your property (in which case you should subtract the value of the property taken from the amount awarded, which I assume would be the "damages" amount) or it's a reduction to the basis of your home, which means it would be considered worth less when you sell it (although all your replacement stuff should be adding right back to the value of your home as additions). I shouldn't think from what I'm aware of that the whole $42,000 should be taxable, if any. But take this for what it's worth from a guy who's just finishing up his second year of doing taxes, so call a more experienced professional and have a serious conversation about it. silvergoose posted:Yeah as a layperson that sounded like "I should really hire a really good accountant and/or lawyer to make sure this is done right". Yes, make sure you get somebody experienced in the area of partnerships specifically. alnilam posted:So the quarterly estimated tax payments. Why are they not, um... quarterly? Am I going crazy, or are April-June-September-January not all 3 months apart. I'm guessing the April due date is so the IRS can process those estimated tax payments while handling all the payments on returns due at the same time, and the January date is to avoid issues with mailing things around Christmas (AKA post office hell season). The IRS is just comparing when income was earned vs. when payments were made anyway, so they don't have to be "evenly" spread since the income should theoretically be exactly as uneven as the payments.
|
|
#
?
Apr 9, 2016 04:25
|
|
|
AbbiTheDog posted:It depends. You need to see a professional ASAP on this. Admiral101 posted:Yeah this is an incredibly complicated question and outside the scope of the thread. Would depend on whether the cap account is on tax basis on gaap, whether there's outside basis, among other things. silvergoose posted:Yeah as a layperson that sounded like "I should really hire a really good accountant and/or lawyer to make sure this is done right". OK, thanks. I already...kinda (?) have someone? This is an incredibly messy partnership; the partners are family members who own my grandparents' estate and do not get along particularly well. As in: my aunt was making unpurposed cash withdrawals until we noticed and called her out on it, plus she's already incredibly BWM on her own. There are also horses involved, for those of you who follow the BWM thread. The attorney for the partnership is largely non-responsive, and the accountant can't manage to get us our K-1s before April 10th every year. Anyway, things have gotten so bad that my side of the family finally got fed up and negotiated a buyout of our shares. We should all be getting out well under whatever our original basis is, but what exactly that number is none of us knows. The financial records are in some disarray and the accountant is kind of crap, but we're at a point with my aunt where things are relatively peaceable right now so we need to stick with this guy. Not to mention every time we've asked for an actual accounting/audit of the past few years' finances we've been blown off. So it's this very weird situation where we're dealing with a lot of complexity, we can't get the information we need, we need to balance pushing for that info while not sending my aunt into a crazy illogical rage, and most of all we just want to be loving out. So we're sticking with this accountant for now, even though he kind of sucks, simply because if we try to change things we're going to get bounced back to square one or worse.
|
|
#
?
Apr 9, 2016 05:22
|
|
|
I'm in the process of selling my home that I used a rental property for a number of years (I'm in the military). My wife and I are having a hard time figuring out how much we are going to owe next year for depreciation recapture. I've read a ton of stuff about it on the web and some of it seems rather contradictory or downright confusing. If anyone can explain how we are supposed to calculate this I'd greatly appreciate it. I can provide numbers if it makes it easier for you to explain it.
|
|
#
?
Apr 9, 2016 08:39
|
|
|
pig slut lisa posted:This is an incredibly messy partnership; the partners are family members Ooohhh.....poo poo. You also need to consider code section 267, disallowed related party losses. https://www.law.cornell.edu/uscode/text/26/267
|
|
#
?
Apr 9, 2016 16:44
|
|
|
vulturesrow posted:I'm in the process of selling my home that I used a rental property for a number of years (I'm in the military). My wife and I are having a hard time figuring out how much we are going to owe next year for depreciation recapture. I've read a ton of stuff about it on the web and some of it seems rather contradictory or downright confusing. If anyone can explain how we are supposed to calculate this I'd greatly appreciate it. I can provide numbers if it makes it easier for you to explain it. General rules: 25% tax rate on the depreciation recapture, the rest of the gain taxed at 20%. That said, it depends pretty heavily on your individual tax situation (which bracket you're in etc). More details would be very helpful here.
|
|
#
?
Apr 10, 2016 19:55
|
|
|
|
| # ? May 11, 2024 05:23 |
|
|
In 2013 my wife had her student loans forgiven due to disability. That gave us a tax of ~25000 with the feds and ~10000 with Nebraska. I just learned of the insolvency exception and filed a 1040x and 1040xn. Here's what I filed: 1040x 982 Insolvency Worksheet 1099 with the forgiven debt 2013 Return and with Nebraska I filed 1040xn 1040x 982 Insolvency Worksheet 1099 with the forgiven debt 2013 tax manuscript I figure if they want anything else they'll ask, but if you notice anything glaring let me know. My real question is with the insolvency itself. I definitely qualify given my own student loan burden DEPENDING ON how they value my FERS pension. By my contributions I have an interest in the pension of about 30,000. If they want the Present Value, however, it's worth like 600,000. Which are they likely to use?
|
|
#
?
Apr 10, 2016 20:15
|
|
