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Wouldn’t person A have had a loss for the taxable year of the theft? Presumably they would have carried that loss forward and could now apply it against any tax from their settlement. Not an accountant.
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May 9, 2020 02:56
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Ur Getting Fatter posted:Wouldn’t person A have had a loss for the taxable year of the theft? Presumably they would have carried that loss forward and could now apply it against any tax from their settlement. They were scammed out of the money by a con man basically, they never wrote it off as a loss in this example, no.
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May 9, 2020 03:39
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Zero VGS posted:They were scammed out of the money by a con man basically, they never wrote it off as a loss in this example, no. Usual rule for legal settlements is no taxes on damages unless you claimed the damages as a loss on taxes previously, only "punitive" awards are taxable. If there was no loss reported on Schedule A that year, then it seems the amount is damages and there's no need to pay tax on it. Check with the lawyer to make sure though, they're supposed to inform you generally how the settlement was characterized.
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May 9, 2020 23:00
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MadDogMike posted:Usual rule for legal settlements is no taxes on damages unless you claimed the damages as a loss on taxes previously, only "punitive" awards are taxable. If there was no loss reported on Schedule A that year, then it seems the amount is damages and there's no need to pay tax on it. Check with the lawyer to make sure though, they're supposed to inform you generally how the settlement was characterized. Thanks very much, that's what I was looking for.
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May 9, 2020 23:49
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Framboise posted:My Fixed this for me. We actually got it Thursday, the full amount. Now to file my 2019 taxes...
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May 10, 2020 04:59
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I've exercised and sold a bunch of ISOs. Is there any way for me to pay the capital gains tax now (I've already filed my 2019 return) instead of holding onto the expected tax until next March? I've held them for long enough that they're long-term and am basically guaranteed to fall into the 15% bracket, so I don't expect that there'd be any ambiguity about my liability.
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May 16, 2020 10:01
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You could make an estimated tax payments if you really want to. You do it online, make sure to save the receipt. Since this is a one-time thing, you're probably not going to have any underpayment penalties, so sticking it in a savings account will get you some interest and save you the hassle of figuring out how to make the estimated payments to the IRS and your state.
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May 16, 2020 13:58
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You could also increase withholding on any W2 income to cover what you think you'll owe.
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May 16, 2020 15:35
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CMYK BLYAT! posted:I've exercised and sold a bunch of ISOs. Is there any way for me to pay the capital gains tax now (I've already filed my 2019 return) instead of holding onto the expected tax until next March? I've held them for long enough that they're long-term and am basically guaranteed to fall into the 15% bracket, so I don't expect that there'd be any ambiguity about my liability. Multiply the upside by 15% and punch it into pay.gov if you insist on prepaying your tax liability. Your 2019 return has no bearing on this if you did it in 2020. Remember that ISO's have special treatment. Did you exercise them a year before you sold them? Holding the option doesn't start the ltcg timer. Holding shares does. I forget the exact iso rules, but if you exercised in 2019 and sold in 2020 then those shares are in your amt calculation in you 2019 taxes. Make a new account at your bank (ally/capital one 360 makes this easy), call it taxes, dump the estimated amount in there, ignore it until 2021.
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May 16, 2020 16:30
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Yeah, the period should be fine, they were exercised in 2017. The amount isn't going to accrue any meaningful interest in a savings account, but if it's annoying to deal with pre-paying it I'll quell my irrational anxiety about it somehow disappearing before 2021.
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May 16, 2020 21:03
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CMYK BLYAT! posted:Yeah, the period should be fine, they were exercised in 2017. The amount isn't going to accrue any meaningful interest in a savings account, but if it's annoying to deal with pre-paying it I'll quell my irrational anxiety about it somehow disappearing before 2021. Yeah if you don't like it hanging over you pay.gov will happily take your money. Print out the confirmation page and put it with your 2020 tax documents (pdf, dead tree, whatever.) I would make it a round number, it's easier to input it later. If you owe $1,035 for example I would just pay $1000. But whatever makes you happy. Your state hopefully has an equivalent site. Make sure you pick the correct tax year for the payment, sale in 2020 is for 2020 taxes.
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May 16, 2020 22:48
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If my wife and I are filing jointly, is only one of us supposed to take allowances on the W4? Or both? We both have our own jobs and own W4s.
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May 16, 2020 23:19
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FogHelmut posted:If my wife and I are filing jointly, is only one of us supposed to take allowances on the W4? Or both? We both have our own jobs and own W4s.
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May 16, 2020 23:25
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FogHelmut posted:If my wife and I are filing jointly, is only one of us supposed to take allowances on the W4? Or both? We both have our own jobs and own W4s. If you make roughly the same amount of money, and combined fall in the 22/24% bracket ($80-360k combined income) you can set them identically and balance it out on your taxes one way or the other. You may owe money at the end of the year. If you make wildly differing amounts you can do things like withhold at the single rate on the lower earner. https://www.nerdwallet.com/blog/taxes/federal-income-tax-brackets/ Look at the 2020 rates. Figure out where you're going to fall and ballpark it. I'm 100% OK with surprise tax bills / tax refunds at the end of the year if it means I don't have to do math. Otherwise it's math time: Hoodwinker posted:You need to do whatever combination of withholding will result in roughly the correct amount being withheld for your tax liability. If both of you are salary with roughly fixed bonuses, you should be able to calculate this completely ahead of time and choose your allowances/additional withholding accordingly. The W4s are dogshit at conveying this, however. What I'm trying to say is that it's completely dependent on your actual numbers, and it's up to you to figure out what that is.
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May 17, 2020 00:29
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So apparently 1099-MISC won't be used going forward for independent contractor services, there will be a separate form. Curious what prompted that.
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May 17, 2020 04:51
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Small White Dragon posted:So apparently 1099-MISC won't be used going forward for independent contractor services, there will be a separate form. Curious what prompted that. Since we're in hell timeline it's something to benefit the Ubers and Lyfts of the world.
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May 17, 2020 05:31
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I work on a W2 basis and have some stock that I received from a previous job. The stock has done well, but it has concentrated my savings more than I would like. I want to sell some of it, preferably without having to file estimated tax forms. Might it be an option to have the government keep my refund toward the next year's tax, and then sell an amount of the stock that would be subject to that amount of tax? My understanding of the IRS guidance is that it requires estimated tax forms only to explain payments that the taxpayer sends during the year, not payments received some other way.
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May 17, 2020 06:33
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Gazpacho posted:I work on a W2 basis and have some stock that I received from a previous job. The stock has done well, but it has concentrated my savings more than I would like. I want to sell some of it, preferably without having to file estimated tax forms. Sell it in one big lump sum. Send the correct % to the IRS. Done. You don't need to estimate it for this year if you're under the safe harbor. I think. Same as the prior poster if you're not scared of earning interest and are in the safe harbor put it in a dedicated savings account for your inevitable tax bill. If you don't have anything special for 2021 you still don't have to do estimated taxes.
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May 17, 2020 06:49
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Small White Dragon posted:So apparently 1099-MISC won't be used going forward for independent contractor services, there will be a separate form. Curious what prompted that.
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May 17, 2020 11:58
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Gazpacho posted:I work on a W2 basis and have some stock that I received from a previous job. The stock has done well, but it has concentrated my savings more than I would like. I want to sell some of it, preferably without having to file estimated tax forms.
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May 17, 2020 14:30
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I have a scenario related to employee stock (ISOs) that I was hoping to get some help with (my tax guy is being too slow to respond because of COVID but I want to make a sale soon)...anyone have any idea on this? Thanks! Does the exercise price actually matter for a sale in the following scenario: say my ISO strike price was $50, the market price @ sale is $75, and I exercised at $100. if i’ve held for 1+ year and paid AMT on the exercised shares previously, does the exercise price > market price factor into anything, other than the AMT adjustment on next years return?
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May 18, 2020 16:38
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UncleGuito posted:I have a scenario related to employee stock (ISOs) that I was hoping to get some help with (my tax guy is being too slow to respond because of COVID but I want to make a sale soon)...anyone have any idea on this? Thanks! I don't know specifically the answer to your tax questions. What I will say is, if you want to sell - sell. They will send you tax forms and you can figure it out from there. My guess is there is a $25 "loss" coming your way.
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May 18, 2020 18:54
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I plan to take money out of an old IRA to put towards a down payment on a home, and afaik I can take up to $10,000 penalty free. Can I take >$10,000 and only pay a penalty on the portion above 10k?
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May 18, 2020 19:20
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Deviant posted:I plan to take money out of an old IRA to put towards a down payment on a home, and afaik I can take up to $10,000 penalty free.
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May 18, 2020 19:28
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Hoodwinker posted:That seems to track with what I'm seeing in Publication 590-B. Are you sure you can actually afford to own a house though if you're drawing from retirement savings to afford a down payment? Yeah, i was just running numbers on if an extra 10k down would be lower the payment in a significant way. It's not to afford the down payment, merely to potentially beef it up a little more. I probably won't do it, but I wanted to know my option on it.
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May 18, 2020 19:30
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Deviant posted:Yeah, i was just running numbers on if an extra 10k down would be lower the payment in a significant way. It's not to afford the down payment, merely to potentially beef it up a little more. I probably won't do it, but I wanted to know my option on it. Remember that it's still subject to income tax even if it's not subject to the 10% penalty.
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May 18, 2020 20:03
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Epi Lepi posted:Remember that it's still subject to income tax even if it's not subject to the 10% penalty. This is the reason I probably wouldn't do it. I'd lose a fair bit of it to taxes.
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May 18, 2020 20:24
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I've heard some married people have received $1,200 checks for each person while others have received one $2,400 check for the couple. And now I've seen some cases where one person gets the $1,200 check, then later they and their partner get the $2,400 check! What's happening there and how's it gonna be resolved?
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May 19, 2020 23:15
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dungeon cousin posted:I've heard some married people have received $1,200 checks for each person while others have received one $2,400 check for the couple. And now I've seen some cases where one person gets the $1,200 check, then later they and their partner get the $2,400 check! What's happening there and how's it gonna be resolved? If you get a check in error, there's a procedure for sending it back-see the IRS site. Mnuchin has communicated that amounts issued in error will be subject to reclamation. I gotta emphasize that the basic IRS systems being reworked to do this are well, not exactly flexible. It's remarkable much worse hasn't happened. Discendo Vox fucked around with this message at 00:16 on May 20, 2020 |
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May 19, 2020 23:44
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Hello thread, I have a question about my parents finances not so much own. Does any one have any recommendations for a fiduciary in the NYC area? Do certain ones only deal with certain amounts of money etc. Both my parents are in the 70s and highly suspect of any financial instrument other than CD's, and dont believe in financial developments after the 80's. My father still has tens of thousands in college loan debt form the 60's that he is refusing to pay off beyond interest, or discuss. My mother has a TDA and 8 bank accounts because she doesnt believe FDIC works (My mother has no problem with the idea that I will have to go to random banks with a death certificate to see if she has any money squirreled away). They are both adamant that I will inherit "everything" with little to no taxes, but I know this is just their worm-brained boomer thinking. My goal is somewhat selfish, yes. Im looking consolidate their finances and make sure that when they pass I dont get screwed in taxes due to poor planning (fathers college debt, a poorly arranged real estate trust for a house). Thanks to their ailing health I am slowing getting joint-account status or just straight control, but I am totally out of my depth with what to do with most of this garbage.
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May 20, 2020 21:09
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Gaj posted:Hello thread, I have a question about my parents finances not so much own. Does any one have any recommendations for a fiduciary in the NYC area? Do certain ones only deal with certain amounts of money etc. I don't think I would touch the poop here. You're going to pay for it when they pass in the form of an estate attorney having to figure it all out. Unless they have 10's of millions of dollars in assets there is no estate tax. Period. (Under current law. Trump recently doubled the exemption amount.)
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May 20, 2020 21:23
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H110Hawk posted:I don't think I would touch the poop here. You're going to pay for it when they pass in the form of an estate attorney having to figure it all out. Unless they have 10's of millions of dollars in assets there is no estate tax. Period. (Under current law. Trump recently doubled the exemption amount.) It is a total poo poo-train wreck yes, but I think fixing some things now would better than after they die. Currently my father runs a failing business which he refuses to close down, and is totally financially dependent on my mother. They also dont have any shared accounts, nor do they file taxes jointly. If she were to die tomorrow, say from the plague and her MS, my father would be immediately dependent on me for food and rent. In addition, my mother is heavily medicated (painkillers and pot) that she is rapidly loosing the ability to manager her own finances. She doesnt know if she has 300k or 800k free, the amount changes because she cant recall what banks she has money in. I need some professional local help in putting this together because well gently caress. Edit: This was what my father gave me when he asked for help with filing his taxes. This pile contains income, expenditures, and some payroll. 1 of 4 piles. 
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May 20, 2020 21:38
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 Maybe you can find new parents?
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May 21, 2020 00:14
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Gaj posted:It is a total poo poo-train wreck yes, but I think fixing some things now would better than after they die. Currently my father runs a failing business which he refuses to close down, and is totally financially dependent on my mother. They also dont have any shared accounts, nor do they file taxes jointly. If she were to die tomorrow, say from the plague and her MS, my father would be immediately dependent on me for food and rent. In addition, my mother is heavily medicated (painkillers and pot) that she is rapidly loosing the ability to manager her own finances. She doesnt know if she has 300k or 800k free, the amount changes because she cant recall what banks she has money in. I need some professional local help in putting this together because well gently caress. No matter your end goal and how good it is, what is your plan to get them on board? To directly answer your question, yes there are "fee for service fiduciary financial planners" which is what you're looking for in this case. Your parents also need an estate plan, and then to do the necessary steps to get things in place - such as actually placing accounts in the trust. You could always see if your mom will give you a power of attorney on her finances, but that's a big risk. I would immediately hire someone to do it for me rather than take on a fiduciary risk. It seems like what they need is a single premium annuity, so no matter how bankrupt they get they get a check next month. Also how dare you steal my tax folder. It's organized by approximate time I last added it to the pile.
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May 21, 2020 00:35
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H110Hawk posted:Also how dare you steal my tax folder. It's organized by approximate time I last added it to the pile. There is a new one for every goddamn year. That's some organization.
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May 21, 2020 01:47
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H110Hawk posted:No matter your end goal and how good it is, what is your plan to get them on board? To directly answer your question, yes there are "fee for service fiduciary financial planners" which is what you're looking for in this case. Your parents also need an estate plan, and then to do the necessary steps to get things in place - such as actually placing accounts in the trust. You could always see if your mom will give you a power of attorney on her finances, but that's a big risk. I would immediately hire someone to do it for me rather than take on a fiduciary risk. Thankfully my mother has a matured TDA, and that pulls in a MIN of 55k a year (yay teachers union). Its just that she keeps telling me different things about how it would be inherited, because she doesnt acknowledge any changes in the tax code past the 80s. I am also personally ignorant of how that would be affected by estate taxes, or if I could keep the TDA alive so it would continue to accrue interest (currently 1.4m at 7% with min 50k annual payout). This is why I was looking for recommendations for a fiduciary, there are plenty of assets that are just completely unorganized. Further edit: last year my mother was against the idea of consolidating her bank accounts to one singular ethnic credit union because "she didnt want them knowing how much money she has". She also hasnt left the house in a decade. Gaj fucked around with this message at 02:55 on May 21, 2020 |
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May 21, 2020 02:46
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You're well beyond tax advice, even beyond estate planning at this point. You're into having a difficult conversation about all of these red flags and whether either of them are capable of managing their own finances anymore. Depends on how that goes maybe you're back to the fiduciary and/or estate attorney, or maybe you're off to court to force guardianship before they nuke their available cash and end up living in your basement.
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May 21, 2020 14:48
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Gaj posted:She also hasnt left the house in a decade. As in, absolutely 0 times? Not gone to the doctor, the grocery store, the mailbox? If she steadfastly refuses to leave the house you should call adult protective services and start working with a social worker. Agoraphobia (or whatever) is a mental health disease that can be treated. Does she bathe, feed, and toilet herself? If so guardianship is almost certainly off the table, at least through any easy path. If the person is competent enough to fight you on it they're likely competent enough to win. Financial poa is your most likely course here, but that will require them to visit with their own attorney, you to have your own attorney, etc. Either way you are 100% in a "you can lead a horse to water" state. You need to have some hard conversations with them about your concern for their long term health and well being. I would leave out any talk about what you want to do about it until you have had those conversations. A social worker can help you here.
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May 21, 2020 15:20
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H110Hawk posted:As in, absolutely 0 times? Not gone to the doctor, the grocery store, the mailbox? If she steadfastly refuses to leave the house you should call adult protective services and start working with a social worker. Agoraphobia (or whatever) is a mental health disease that can be treated. Does she bathe, feed, and toilet herself? If so guardianship is almost certainly off the table, at least through any easy path. If the person is competent enough to fight you on it they're likely competent enough to win. Financial poa is your most likely course here, but that will require them to visit with their own attorney, you to have your own attorney, etc. No its very bad MS, she has left to go to the doctor but doing so requires a wheelchair and adult incontinence underwear. Going to the bathroom at home requires a wheelchair and some assistance, but dont worry my father finally stopped going to work this May (only poor people and the dead stop working)! The same business my mother sometimes throws in to cover rent and payroll when cash flow is low (rent is 3.6k, 2 weeks pay for one employee is around 2k)! Just this week the household credit card got froze for reaching its limit, of course I was the one who sorted credit bills before hand but the plague has limited my visits. My father wasnt able to check the bills/mail for 3 months because he doesnt have the time, because hes so busy at work (at a non essential business Coumo/DiBlasio shut down). I already started to get access to that credit account through online banking, however even this is seen as such a huge loss of control as to be nearly unbearable. Edit: If my father dies with 0 assets beyond a realestate trust, will his college loan debt be extracted from the value of said trust? And if I am a minority shareholder of said trust, will I be responsible for part of said debt? Gaj fucked around with this message at 18:11 on May 21, 2020 |
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May 21, 2020 17:45
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Gaj posted:No its very bad MS, she has left to go to the doctor but doing so requires a wheelchair and adult incontinence underwear. Going to the bathroom at home requires a wheelchair and some assistance, but dont worry my father finally stopped going to work this May (only poor people and the dead stop working)! The same business my mother sometimes throws in to cover rent and payroll when cash flow is low (rent is 3.6k, 2 weeks pay for one employee is around 2k)! Ok, she doesn't leave due to a physical/medical disability not a mental one. You need to talk to a local attorney and your parents in a real way about what to do here. There are ways to get this handled, but they will all require their buy in or a huge amount of effort (attorney fees) if you are trying to do this against their will. It is extremely fact specific and until they are literally destitute or your mom is abused/neglected it might not be possible. You're way (way) way beyond the scope of offensive comedy forums. (Things like a special needs trust, powers of attorney of various types, medical directives, etc.) It's a lovely situation because you KNOW what they need, but they won't listen. Seek help from a therapist yourself, seriously, on how to not go crazy with this. You can only help people as much as they want to be helped.
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May 21, 2020 18:40
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