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Here's a fantasy scenario: 1) Grandpa gets scammed for $100k 2) Over the course of some years, grandpa wins against the scammers in court and gets awarded treble damages, $300k back 3) Grandpa's credit is still ruined as a result of the cascading effects of the whole fiasco, we're talking like 450 credit score, and even the court win hasn't repaired much of it 4) Grandpa offers to just gift all the money to grandson, who is financially responsible, more scam-resistant, and supported grandpa while he was dirt poor with free housing etc (grandson currently filing as head of household for taking care of grandpa). Is there a way the grandson can take the gifted money, buy a rental property, make grandpa the "property manager", and pay grandpa most/all the rental proceeds for the rest of their life? The ideas at play are that the grandson is more qualified to buy property at better terms (and already an experienced landlord), but also subject to a way higher tax bracket. Grandpa should get paid for occasionally checking on the renters, and because it was his down-payment money in the first place. This all seems legit and fair to me in my brain but maybe there's a reason that won't fly when filing the tax returns?
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Apr 12, 2020 01:52
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Right now when I try to request a tax transcript online at https://www.irs.gov/individuals/get-transcript it says "Service unavailable due to system maintenance." Anyone know if this is actual system maintenance and the service will be available tomorrow? Or are they using "system maintenance" as shorthand for "Coronavirus hosed everything up" and this will be unavailable for the foreseeable future? Somehow I hosed up and don't have last year's return in my records, and it won't let me e-file this year's returns without having last year's AGI.
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Apr 13, 2020 00:56
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OldSenileGuy posted:Right now when I try to request a tax transcript online at https://www.irs.gov/individuals/get-transcript it says "Service unavailable due to system maintenance." 4506-T system is hosed right now as I recall. There was some SBA guidance about it here that says its down indefinitely. That got issued 04/08/20.
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Apr 13, 2020 01:10
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Zero VGS posted:Here's a fantasy scenario: I can think of a few reasons not to gift the money: mainly gift taxes (maybe) and/or loss of the 300,000 gifted to the grandson (through any number of reasons). A better plan would be to get some kind of Trust/Conservatorship/Adult Guardianship started.
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Apr 13, 2020 01:51
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Zero VGS posted:Here's a fantasy scenario: It's not a gift if it was given with the expectation of anything in return. There are better ways to structure this. The person in this fantasy scenario should talk to a professional.
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Apr 13, 2020 05:41
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incogneato posted:It's not a gift if it was given with the expectation of anything in return. There are better ways to structure this. The person in this fantasy scenario should talk to a professional. Yeah, the gift tax per se wouldn’t be the issue (you get several million in gifts/inheritance before there’s any tax due) but this would look way too much like trying to get cute with income sourcing or outright trying to hide it for the higher tax bracket person to be safe in my mind. The trust idea is probably a better one if the grandfather is worried about managing the money (certainly the grandson can be a fiduciary). Also, if the grandfather is earning over $4k in taxable income from this he wouldn’t really qualify as a dependent anymore, so that’s a factor too.
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Apr 13, 2020 17:53
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tumblr hype man posted:4506-T system is hosed right now as I recall. There was some SBA guidance about it here that says its down indefinitely. That got issued 04/08/20. For what it's worth, the system worked fine* today. I didn't have to fill out any 4506-T, just needed to create an account on irs.gov and I was able to get a pdf of my transcript. I think the 4506-T is just if you need a paper transcript mailed to you, and the website says that they are not doing that at the moment due to the Corona. *"fine" is relative. It was a poo poo-show of constantly logging me out in the middle of the process, and then saying I was already in the system. This was all using Chrome. Eventually I waited a few hours for everything to reset, then I was able to finish the process using Safari pretty painlessly.
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Apr 13, 2020 21:14
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Uhh I just got an IRS deposit for $1200... I never got around to filing 2019 taxes yet though, and I made like $200k in 2017, so that doesn't seem right? I assumed I wouldn't get any of that because I make too much. Is this bank error in my favor, go directly to jail? I'm just not gonna touch it for now lol edit: Washington Post calculator says I ain't supposed to get poo poo Zero VGS fucked around with this message at 21:54 on Apr 13, 2020 |
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Apr 13, 2020 21:52
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Zero VGS posted:Uhh I just got an IRS deposit for $1200... I never got around to filing 2019 taxes yet though, and I made like $200k in 2017, so that doesn't seem right? I assumed I wouldn't get any of that because I make too much. How much did you make in 2018? Or do you mean you didn't file for 2018 (in 2019) yet
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Apr 13, 2020 21:59
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Spokes posted:How much did you make in 2018? Or do you mean you didn't file for 2018 (in 2019) yet The taxes that would normally be filed right now are the ones I didn't do yet. I filed 365 days ago and that was like $200k gross, though half of that was rental income to subsidize my mortgage so net was more like $100k
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Apr 13, 2020 22:15
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Zero VGS posted:Uhh I just got an IRS deposit for $1200... I never got around to filing 2019 taxes yet though, and I made like $200k in 2017, so that doesn't seem right? I assumed I wouldn't get any of that because I make too much. It's an economic stimulus payment, do you feel stimulated? If you end up not being eligible for it based on your 2020 return, you can pay it back then. Or not! There hasn't been any guidance on that yet.
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Apr 13, 2020 22:19
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Zero VGS posted:The taxes that would normally be filed right now are the ones I didn't do yet. I filed 365 days ago and that was like $200k gross, though half of that was rental income to subsidize my mortgage so net was more like $100k ah, in that case i would direct you to the previous thread subtitle, "it depends". unfortunately right now we have no idea what it depends on
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Apr 13, 2020 22:37
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IIRC, the stimulus payment is actually an advance on a 2020 tax credit, so in theory it's possible that if you receive a check larger than your actual credit come tax time you may be on the hook for the difference. But it's also possible that the IRS won't require repayment of any stimulus money that you shouldn't have qualified for (and have seen this mentioned in a few places). AFAIK there is no official answer yet.
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Apr 13, 2020 22:52
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All the guidance I'm seeing is that they will not claw back any payments people got that they weren't technically entitled too. I was just in a webinar today and the speaker said Grassley had said so at some point. Things can change and you should always expect the IRS to gently caress you but right now I'm not worried about it overly much.
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Apr 13, 2020 23:29
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sullat posted:It's an economic stimulus payment, do you feel stimulated? If you end up not being eligible for it based on your 2020 return, you can pay it back then. Or not! There hasn't been any guidance on that yet. The only reason I can see that I might have received the $1200 it is because I filed as Head of Household, as I cover a parent's living expenses. Maybe the IRS gave me my parent's entitlement? Because it also says on the IRS site that you're not eligible if you're being claimed as a dependent by someone else, so maybe that's why my parent didn't get it and I did when I probably shouldn't. Epi Lepi posted:All the guidance I'm seeing is that they will not claw back any payments people got that they weren't technically entitled too. I was just in a webinar today and the speaker said Grassley had said so at some point. In that case, maybe I should have the parent file for it anyway just for shits. They don't file taxes, but the IRS is trying to give them to non-filers. edit: In the spirit of the current thread title, both parent and I won't spend any of it until the dust settles way down the road Zero VGS fucked around with this message at 23:42 on Apr 13, 2020 |
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Apr 13, 2020 23:34
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Zero VGS posted:The taxes that would normally be filed right now are the ones I didn't do yet. I filed 365 days ago and that was like $200k gross, though half of that was rental income to subsidize my mortgage so net was more like $100k OK, what's your actual AGI, this isn't a very clear statement unfortunately. They aren't going to look at "gross" rental income to decide, it's your AGI which is going to include rental income minus expenses. Head of household DOES get a higher break point, full stimulus if less than/equal to $112,500 and reduction afterwards.
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Apr 14, 2020 03:31
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MadDogMike posted:OK, what's your actual AGI, this isn't a very clear statement unfortunately. They aren't going to look at "gross" rental income to decide, it's your AGI which is going to include rental income minus expenses. Head of household DOES get a higher break point, full stimulus if less than/equal to $112,500 and reduction afterwards. Oh alright, I checked and my 2018 Federal AGI was like 80k, I guess with head of household I legitimately should get the full $1200. I was unable to rent half of my duplex because I was renovating it for a while so I guess those writeoffs helped. My 2019 will look drastically different but I have until mid July to do that without filing for the Oct extension. Sounds like if they are basing it off my 2018 I'm good, and if they "guessed" my 2019 I won't be on the hook if I made way more because they never actually asked me.
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Apr 14, 2020 03:46
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Zero VGS posted:Here's a fantasy scenario: See this thread for more: https://forums.somethingawful.com/showthread.php?threadid=2892928
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Apr 14, 2020 15:55
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dexter6 posted:In this fantasy scenario, unless I was a real estate genius and wanted to sign up for the bullshit related to managing property, I would instead invest the $300k in a diversified portfolio of index funds, for which I could make 5-7% on annually on and pay myself 4% in perpetuity. 7% on 300k is 21k/yr before compounding 300k downpayment gets a mortgage for a rental that easily nets over 80k/yr after PITI and upkeep Dunno about you but I think 4x money is worth the headache to a lot of people.
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Apr 15, 2020 02:46
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Zero VGS posted:7% on 300k is 21k/yr before compounding Have you read the news lately? It's an example on how highly leveraged low scale rental property investing can go very wrong.
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Apr 15, 2020 03:09
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Motronic posted:Have you read the news lately? I mean, me personally, I'm from near Boston, my tenants are all on time, no vacancies, but my index funds crashed this year (as did everyone's). I think if people are young and can handle the risk and extra work, rentals are they way to go in this area. Everyone needs a roof over their heads. My rents are the lowest around which makes tenants happy and has them staying current and renewing their lease every year. But even with generous rents, the returns are gonna beat index funds by multiples. People always need a roof over their head and the worst that can happen is you need to just... lower the rent more? By all means link me to any of these articles, I'm not doubting you, I just try to keep on the pulse for real estate news and haven't seen anything dire happening around here. edit: Any the early scenario I was talking about was using 300k for a down payment on an investment property... investments these days require 25%-30% down with no exceptions. That's not what I'd call "highly leveraged" but I don't really know the BFC lingo. Zero VGS fucked around with this message at 03:54 on Apr 15, 2020 |
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Apr 15, 2020 03:52
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Bad news everyone, your relief checks are going to be delayed because the President decided he wants his name on all of them, and we have to rework the software that handles payments so it can do that.
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Apr 15, 2020 04:09
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Things you couldn't make up because how could someone that loving narcissistic be elected.
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Apr 15, 2020 04:18
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SlapActionJackson posted:Looking for some advice on a Groudhog Day loop I seem to be stuck in. A blast from my own past. I resolved to call the Taxpayer Advocates about this if that refund didn't show up by the end of 2018. It didn't; and I didn't.... Guess what showed up last week in my mailbox? My 2015 refund and a hell of a lot more interest than any bank would have paid me over the last 4 years  Sometimes you just gotta give the IRS a couple of years to let the gears turn.
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Apr 15, 2020 04:33
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uuuuuuuuuuuuggggggggghhhhhhhhhhhhhhhhhh
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Apr 15, 2020 12:17
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Discendo Vox posted:Bad news everyone, your relief checks are going to be delayed because the President decided he wants his name on all of them, and we have to rework the software that handles payments so it can do that.
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Apr 15, 2020 14:16
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Hoodwinker posted:Does this just apply to the physical checks or is the whole system being delayed (including the direct deposited ones) until Chester Cheeto can get his John Hancock on them? Just the physical checks.
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Apr 15, 2020 14:47
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Discendo Vox posted:Just the physical checks.
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Apr 15, 2020 14:54
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Discendo Vox posted:Bad news everyone, your relief checks are going to be delayed because the President decided he wants his name on all of them, and we have to rework the software that handles payments so it can do that. So the "Where's My Payment" thing is online, but apparently if you've changed banks since your last refund, you can't update your direct deposit? They just tell they're going to send it to a closed account? Hooray. EDIT: And of course the FAQ they link to does not address this. Small White Dragon fucked around with this message at 16:33 on Apr 15, 2020 |
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Apr 15, 2020 15:44
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I filed my taxes this year using the same accountant we've used for the last 3 years. I always plug my own information into TaxSlayer as well, to get a gut read before he has time to do it. This year, as usual, the amount of our federal return which he calculated was quite close to what I'd gotten from TaxSlayer. We filed, signed, no problems. Today my federal refund posted, but the amount is only about 45% what was expected and what was indicated on the return. Our tax accountant has advised us that he does not know why this would be, and to wait 1-2 weeks to see if we get a letter from the IRS to pass back to him. I did note that the refund which posted, had a note of "IRS TREAS 310 TAX REF ACH". Google tells me this is the normal code, and that if the deposit had been garnished for any reason, there would be a different code. So, it feels from that like the feds think we got our full return, but it's 55% less than what we filed. I realize calling the IRS on 4/15 is likely to be a nightmare, and point of fact, this is just an annoyance about getting more money back into savings, than an urgent need right now as in for food/etc. However, do I have any other recourse? edit: even more confusingly, the IRS "where's my refund" site still shows me in "return received" status, not "approved" or "processed", making me unclear how I've gotten any money. What the gently caress, IRS Cabbages and VHS fucked around with this message at 18:34 on Apr 15, 2020 |
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Apr 15, 2020 17:56
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Cabbages and Kings posted:I filed my taxes this year using the same accountant we've used for the last 3 years. I always plug my own information into TaxSlayer as well, to get a gut read before he has time to do it. Is the amount that posted consistent with the amount you would get under the stimulus payment?
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Apr 15, 2020 19:40
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Bleh, I had to reenter my tax and bank info because I owed. Heads up to those wondering where their stimulus payments are. The IRS site (when it works) can tell you whats up: https://www.irs.gov/coronavirus/get-my-payment
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Apr 15, 2020 19:48
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Discendo Vox posted:Bad news everyone, your relief checks are going to be delayed because the President decided he wants his name on all of them, and we have to rework the software that handles payments so it can do that. Hey maybe you can give me some guidance. I'm trying to fax some stuff to the IRS and keep getting a busy signal. Any hope of that clearing up before the coronapocalypse ends or are my clients who need me to send stuff in hosed? I know the IRS said they're not processing paper returns right now but what about letter responses and other forms like 2553's?
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Apr 15, 2020 20:27
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Ancillary Character posted:Is the amount that posted consistent with the amount you would get under the stimulus payment? My $1200 stimulus payment direct deposit also says "Deposit - ACH IRS TREAS 310 - / TAX REF" so yeah he might be confusing a partial stimulus with a return.
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Apr 15, 2020 20:52
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Epi Lepi posted:Hey maybe you can give me some guidance. I'm trying to fax some stuff to the IRS and keep getting a busy signal. Any hope of that clearing up before the coronapocalypse ends or are my clients who need me to send stuff in hosed? I know the IRS said they're not processing paper returns right now but what about letter responses and other forms like 2553's? Maybe take a picture of all of it then send it Certified? If they give you poo poo after the fact you'll have total proof that way.
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Apr 15, 2020 20:54
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Edit: nvm, relief payment just posted so question is moot, thanks!
dpkg chopra fucked around with this message at 21:31 on Apr 15, 2020 |
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Apr 15, 2020 21:28
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I was directed to ask my question here from a different thread. My mom and grandma (and some of my clients) have already received their relief/stimulus/whatever checks in direct deposit, and knew about it days ago that it was pending. However, despite this I have no pending income even though it posted today for a lot of people. I already tried the Get My Payment form on the IRS site, and it told me: quote:Payment Status Not Available And under the FAQ, I meet every eligibility requirement. I shouldn't have any sort of reduction as my income is well beneath $75k a year, and as of right now I'm single so there's nothing to throw that off (if that matters). I filed my 2018 taxes last year and owed federal, but received a refund from state. I have not submitted my taxes yet for this year as I owe again and I'm riding it out for now since I have until July to pay it-- but I have filled out the forms and owe federal but get a refund from state. I file electronically and received that refund through direct deposit, so they have my direct deposit information. Any idea what's going on? Am I ineligible or did I just miss the first wave of these things and there are more coming?
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Apr 15, 2020 21:53
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Epi Lepi posted:Hey maybe you can give me some guidance. I'm trying to fax some stuff to the IRS and keep getting a busy signal. Any hope of that clearing up before the coronapocalypse ends or are my clients who need me to send stuff in hosed? I know the IRS said they're not processing paper returns right now but what about letter responses and other forms like 2553's? I don't know, sorry. I know that some processing offices aren't taking faxes from other internal systems, and that those machines were turned off. No idea if that fits your case though.
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Apr 15, 2020 21:59
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Ancillary Character posted:Is the amount that posted consistent with the amount you would get under the stimulus payment? I didn't think it was, but I just looked. Because of how recently we filed, I think our stimulus check was based on our 2018 return, and not our 2019 return. Our 2019 and 2020 returns are both lower enough than 2018, that this is a significant difference in the check. Am I just boned on that extra money? My understanding was that this is actually a credit against next years return or something. If my 2020 return looks like my 2019 return, would I get that additional credit then? Yes, I put the same question out to my tax person, but I bet he is swamped right now. It would seem kind of insane to me if we lose a significant amount of money because we filed our taxes on time but not early enough, but, this is hellworld and I'm mostly glad I don't actually need the money to eat. Yet, anyway.
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Apr 15, 2020 22:52
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If it helps, our direct deposit tax refund had 310 blah blah <long number> <longer number> Lastname, FirstNames on the transaction, while the $2400 deposit was a similar format but without the names.
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Apr 15, 2020 23:25
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