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baquerd posted:Suppose that under the new tax laws, a person can't effectively deduct their mortgage interest on their own property, but landlords still can. Assuming you had other passive income to offset, could you rent your place to yourself/your spouse for a token amount and capture mortgage interest and depreciation? Self-rental specifically gets inferior tax treatment so that you can't do it: https://www.thetaxadviser.com/issues/2008/aug/avoidingtheself-rentaltrap.html If the tax changes make the incentive big enough, we may see people push the boundary on this. Heady times!
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Dec 4, 2017 18:52
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RSU dividend equivalents are just income and should appear on your W2, so need for a fancier Turbotax to handle that.
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Jan 19, 2018 04:30
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Cacafuego posted:My wife’s sister was in desperate need for another car. She is somewhat special needs and while she can support herself, she doesn’t have much money. We gifted her our used 2010 Honda CRV in December. Can we deduct this at all? We were planning on gifting it to her regardless, but if we can deduct it, we may as well try. Before we gifted it to her, we were looking at new cars and carmax offered us $10,000 and KBB values it around $10k as well. Your sister in law isn't a 501c3, so it's not deductible.
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Jan 30, 2018 16:05
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gvibes posted:How bad of an idea would it be to use turbotax with substantial K-1 income/estimated quarterly taxes/etc.? It's been my experience that TurboTax is pretty good even for people beyond simple all-W2 returns. It can definitely handle K1, estimated taxes, schedule C, etc. With TurboTax online, you don't pay until you file, so you can try it out and see. Missing Donut posted:Out of curiosity, does anyone know how well TurboTax handles basis calculations? I've used it for real estate and securities (including ESPP under the IRS new, hosed-up reporting requirements). It handles those just fine. SlapActionJackson fucked around with this message at 16:03 on Jan 31, 2018 |
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Jan 31, 2018 16:01
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1. You owe capital gains on the change in value while it was in your possession. 2. The FMV at the time it came in to your possession is ordinary income unless the transfer was a bona fide gift (there's no quid pro quo involved), in which case it's tax free.
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Mar 1, 2018 21:06
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Just FYI, Etrade isn`t incompetent, the IRS changed the regulations on basis reporting for RSU and ESPP shares a few years ago to require brokerages to report the wrong basis. Probably because anybody who didn`t catch it and adjust the basis would pay extra tax...
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Mar 21, 2018 22:36
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Sole proprietorship just means you and the business are one and the same. There's nothing to set up. You can deduct the business expenses against the business income on Schedule C. Standard/itemized deductions don't come into play. Perhaps you meant LLC or S-Corp? No, there's not much sense in doing that for your situation. E: vvvvv If you're going to make up a name, you should get a DBA, but in this case why bother? Just use your real name. SlapActionJackson fucked around with this message at 18:23 on Apr 3, 2018 |
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Apr 3, 2018 18:15
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Tell turbo tax you need to adjust the basis on this stock, and adjust it to the FMV on your purchase date.
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Apr 14, 2018 01:36
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Looking for some advice on a Groudhog Day loop I seem to be stuck in. In 2016 (so tax year 2015) someone filed a fraudulent return with my SSN. Sucks, but poo poo happens, at least it was caught almost right away so I could notify the IRS. I file on paper that year; they send me the 4301C; I call in and do the identity verification and confirm which return is correct. By fall '16 it appears all is well and my refund will be delayed several more months, but it should be on its way eventually. [Ron Howard Voice] It wasn't [/RHV] A few times a year, I call in to see what's going on, and it's always some variant of "Your account is still messed up / the previous person didn't fix it right; Let's redo verification / I'll fix it; OK you should get your refund + interest in 9 weeks" [Ron Howard Voice] I didn't [/RHV] Repeat as desired. I just spent another hour on the phone this very morning. The CSRs are genuinely apologetic, and the explanations of what is wrong seem to make sense facially, but no one ever knows why the previous attempt didn't work and I'm still waiting for that refund 2 years later. Is there anything else I should be doing?
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Jul 20, 2018 17:05
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Initio posted:I received some stock bought through my employer’s ESPP. I turned around and sold it immediately for about a $30 loss due to brokerage commission fees. No, that's a $30 short term capital loss. A wash sale would be if you repurchased the same stock within 30 days.
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Jan 12, 2019 16:50
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I'm assuming that Initio has already recognized the discount amount is ordinary income, and factored it out of his question.
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Jan 12, 2019 17:20
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I'm a schedule E filer and I had initially elected to treat that income as 199a eligible because TurboTax's guidance leans on the section 162 text : "regularity, continuity, and a profit motive". But I don't meet the safe harbor provisions so I'm gonna change that before I file. I hope TT updates their guidance before people start actually filing these!
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Feb 7, 2019 23:24
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Duncan Doenitz posted:Quick question about stock options, I exercised some in 2018 that were listed on my W-2 in section 12 with code "V", which appears to show their value pre-tax. Do I also have to enter info from the 1099-B I received from Fidelity? The main reason I'm unsure is that the 1099-B also shows the pre-tax value, but I distinctly remember taxes being taken out at the time of the sale. I'm using Express 1040, for reference. Yes, you need to fill out a schedule D with the 1099-B. You should be aware in this case the 1099-B reports incorrect basis amounts (because the IRS requires it be done wrong) that you must adjust.
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Feb 25, 2019 19:39
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Duncan Doenitz posted:By "adjust", do you mean I need to enter the amount I actually received from the sale, rather than the amount listed on the 1099-B? Sorry, I've done my own taxes for years, but this is the first time I've had any income other than wages. The amount you actually received from the sale ("Proceeds" box 1d) will be correct. The amount shown for what you paid ("Cost or Other Basis" box 1e) will be wrong. The 1099B will have basis = shares x strike_price, but your actual basis = shares x exercise_day_fmv shares x (exercise_day_fmv - strike_price) is ordinary income and already included in your W2 as you can see from the box 12 data. Proceeds - ( shares x exercise_day_fmv) is your actual capital gain/loss and if you did a same day sale should result in a short term capital loss exactly equal to the commissions paid on the transaction. SlapActionJackson fucked around with this message at 15:31 on Mar 1, 2019 |
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Mar 1, 2019 15:28
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alnilam posted:If we do that, can we still get in a backdoor Roth for this year too? i.e. Yes, you can do your conversion and back door contribution at the same time. It works just like your example.
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Dec 25, 2019 21:30
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It'll be a short term capital gain.
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Jan 11, 2020 20:34
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gvibes posted:Does anyone have a link to a good tutorial on what to do about “household employee” ie my nanny? I know I have to issue a W2 by the end of January. Is the IRS document on this useable without outside help? Circular E. https://www.irs.gov/publications/p15 It's not too hard, but you will probably need to spend some time going over it.
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Jan 25, 2020 18:07
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EPICAC posted:I got and sold my first round of RSUs in 2019, and I had a question about the cost basis. My paystub for the grant was $4400 (14 shares), and after $1600 in taxes it has a “Stock Offset” line of $2800 (9 shares). I sold the shares for $2850. My 1099-B for the RSU sale says that the cost basis was not reported to the IRS, and lists it as $0 with a gain of $2850. Yes, you'll need to adjust the basis to $2800. From a tax perspective: $4400 Gross pay, included on W2 $1600 Tax W/H, included on W2 = $2800 net income Buy 9 shares for $2800 - this is your corrected basis Sell 9 shares for $2850 - this is your gross sale proceeds = $50 short term capital gains Make sure you include any transaction fees you paid on the stock transactions, they can offset that capital gain
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Jan 31, 2020 19:24
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I think Etrade messed up my 1099 - Last year I bought a T-Note on the secondary market at a discount to par, and held the note to maturity in 12/2019. My read of the IRS guide says the amount of the discount should have showed up in box 10 on the 1099-INT to be taxed as interest income. Etrade, OTOH put the redemption on the 1099-B with unknown basis and holding duration (despite the fact that I bought it though them) with instructions for me to add the details and report on 8949, meaning they think it's a capital gain. Can anybody confirm whether I'm right or they are?
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Feb 17, 2020 05:29
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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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Your tax software will handle it. One 8606 per person will aggregate the entire year's worth of transactions. KillHour posted:Also, the contributions I'm still going to make for 2020 are going to be used on the 2021 taxes to offset the distributions that happen in FY 2021 for the conversion, right? Yes.
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Jan 12, 2021 06:25
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I'll bet box 2b "Taxable amount not determined" is checked, which basically means ignore box 2a "Taxable amount" and let your tax software figure it out.
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Jan 12, 2021 06:37
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KillHour posted:It is but now this is confusing. Maybe Credit Karma tax is just bad at this but there's nowhere to enter an 8606 and there's just questions about basis, which I guess is about your 8606 from last year? I didn't file an 8606 last year. Was I supposed to? What is my basis in this case? That looks right. You should've filed an 8606 last year because you made non-deductible contributions.
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Jan 12, 2021 15:55
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KillHour posted:Yes, but I'm stupid (and didn't realize I'd be making contributions until after I filled my taxes). Do I need to do anything about it or just I'm sure the official answer is "file amended 2019". But I know I'd probably try just filing correct 2020 and see if the IRS complains about the mismatch in previously reported basis.
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Jan 13, 2021 00:53
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UnfurledSails posted:I'm an H1B holder. Last September I got a letter from the IRS saying that there was an error in my 2018 filing and I owed them about 2.5k. I will be quitting my job and leaving the US by the end of this year. If there is a similar error in my 2019/2020/2021 filing how is IRS going to let me know? I did not get any emails just a physical letter... There's a form for that: https://www.irs.gov/forms-pubs/about-form-8822
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Feb 11, 2021 00:44
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If she reports her schedule E on a cash basis (most small time landlords do) then yes, it's all taxable in the year received.
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Oct 29, 2021 21:31
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Logged in to TurboTax today to get started on '21 and discovered Intuit has updated the site to allow SMS as 1FA.  It doesn't seem like there is anything you can do about this besides turn on 2FA (and they do at least have Google Authenticator as an option there)Yes, I know Intuit is rent seeking on tax prep. My taxes are complicated enough and I have long enough history with TurboTax that it's just easier to continue to give them my annual ounce of flesh
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Jan 25, 2022 17:38
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You need form 8606 to document the nondeductible contribution. That will cancel out the tax liability from the 1099R
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Apr 9, 2022 23:46
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No need to do anything. It's a loan not a gift. For tax purposes, the value of the gift is market rate interest on the loan you forgo, which in this case will be well under the annual exclusion.
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Nov 1, 2022 03:01
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Methanar posted:https://www.fidelity.com/tax-information/tax-topics/roth-conversion Yes and Yes. Note that for optimal benefit, you can't have any existing assets in a trad IRA. If you do, you will need to convert them too when you backdoor (and pay the tax on that conversion) or deal with the pro-rata rule.
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Dec 1, 2022 19:35
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H110Hawk posted:For the thread: Does dad get to use mom's $250k exemption because she died while they were married? Only if the property is sold within two years of the death.
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Dec 14, 2022 05:46
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1-6 are completely kosher under the tax code. 7 is just garden variety nonprofit status abuse/fraud.
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Dec 15, 2023 21:53
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PhantomOfTheCopier posted:So if magi is 202,000 (filing singly) and 1000 is interest from a savings account, you get to file the NIIT form and schedule 2 and pay an additional 3.8% on that 1000? (And there's the bit about minimum of gains versus amount over 200k) That's the idea, yes. If you're over 200K in wage income (RSUs are wage income), you will also need form 8959 - Additional Medicare Tax.
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Apr 16, 2024 15:44
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