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lovin' the new OP, that's pretty great work guys.
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Mar 6, 2011 06:07
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Jethro Tull posted:Well, I received a one-time deposit for $50,000 last year from the trust, around July. I receive these deposits every three years after my eighteenth birthday. The actual trust itself is in the $200,000 range, I think - does that lump sum amount (the $50,000) count as income with either a simple or a complex trust? Or would it only be a fraction of that amount? Distributions from trusts can be income for you, or they can be non-taxed distributions of "principal" or "corpus." The answer revolves around something called "distributable net income" (DNI), and you really don't want to try and figure out the rules for that. That's your trustee's job (or, really, the job of the accountant handling the trust accounting.) On your K-1, your trustee should clearly delineate how much of the distribution is taxable income to you, and how much is a non-taxable distribution of principal/corpus.
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Mar 8, 2011 04:54
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Analytic Engine posted:Is there a good resource for tax questions regarding graduate student stipends and graduate/undergraduate scholarships? My old university was incredibly unhelpful on this front, and I don't expect great things from my new program. Or should I just ask the IRS directly and save myself some fretting over the uncertainty? Maybe read through the scholarship portion of http://www.irs.gov/publications/p970/ch01.html
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Mar 10, 2011 16:05
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Mister Fister posted:Strange situation here: Me and my SO bought a house last year (we bought in time for the $8,000 tax credit). quote:When and Where To File from: http://www.irs.gov/instructions/i8606/ch01.html
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Apr 4, 2011 15:44
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Zeta Taskforce posted:Do we want to have poo poo post icon? No. It demeans you, Abbi, and furu; ya'll are doing God's work in here.
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Apr 11, 2011 03:13
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quote:I am a newbie small business owner. 2009 was a loss, 2010 we had a profit and I had not been filing any estimated tax because everything looked like it was going to be near break-even. I am going to be paying estimated tax for 2011. Do owners of LLCs, or partners in a partnership, have the option of withholding? Something in my brain is tingling about owners of small businesses who try to treat themselves as employees, and give themselves a W-2 instead of a K-1, and who try to do withholding rather than making estimated payments. Abbi/furu/zeta can you clear that up for me?
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Apr 15, 2011 16:39
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AbbiTheDog posted:
Ok yeah that's what I was thinking about, glad to see I was on the right track. Doesn't that mean we need to know what entity taqueso is using for his small business?
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Apr 16, 2011 02:15
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Alfalfa posted:I run a small LLC/S-Corp business in which my wife and I are equal "partners" in it. What type of business is it? Do you have employees that you manage? Do you produce goods or services? Does your business make use of any capital assets? I'm assuming you are an S - Corp and not an LLC- they aren't the same.
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Apr 19, 2011 20:43
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So, my study buddy and I were reviewing "advanced" partnership tax topics for our exam in two weeks. We both noted that all of our instructional materials use examples that are basically pulled from the regs, and we both thought it would be cool if there were other problems, with answers, that we could study from. As tax CPA people, what do your instructional materials look like? Do you get lots of practice problems illustrating various tax principles, or what?
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Apr 22, 2011 16:58
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TraderStav posted:I am sorry, I should have phrased that better. While I am taking the wise legal decision to protect my personal assets through the corporate shield, I want to take advantage of the various deductions and such through it. I think what people are trying to tell you is that your LLC does not magically give you access to more deductions than you could have already claimed as a sole proprietor. In other words, you can take advantage of the same "various deductions" with or without your LLC. The deductions were inside you all along!
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Jun 8, 2011 17:14
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Admiral101 posted:
Not really sure why you're getting worked up about this, small businesses do this all the time to their employees and generally they get away with it because employees won't report them for fear of getting fired. Sure, it's illegal, but it's also incredibly common.
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Jun 10, 2011 15:00
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Trying to make sense of the new rules for electing in/out of carry-over basis, including when and how to make GST elections, is seriously annoying. Since the due date for the election is 11/15/11, it'd be really great if we could get a reg or some more guidance other than one Rev. Proc. and one notice. It doesn't help that I have to present on this topic tomorrow to a whole bunch of people in my department. :\
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Aug 16, 2011 20:34
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I think he was referring to:furushotakeru posted:If you can find an office open at this time of year they should e able to help you file.
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Aug 30, 2011 18:33
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AbbiTheDog posted:I don't know about you, but when I hear new clients in particular refer to themselves as "low-end" I tend to back away slowly. This a thousand times. Every client is cost-sensitive, but any client who leads with that is going to be trouble. (Unless it's a really simple issue that you can resolve easily.)
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Oct 20, 2011 21:12
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And the interest on the loan needs to be at the 7520 rate or higher, or you've got a part-loan/part-gift problem. (Which isn't really a problem for most taxpayers since the gift tax isn't really an issue for most people.)
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Oct 21, 2011 20:25
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Could use any tips you guys may have. I'm not much of an income tax guy, here's my facts: Client has owned buckets of foreign currency in physical form, which she may or may not have just cashed in at a bank. The question is whether she owes US income tax upon converting the currency into the US dollar. At least, I think that's the question at the moment. I am assuming for the moment that the currency was not akin to a coin collection - the currency was not worth anything above its face value. Any thoughts on where to look for a discussion of this? I just read sections 985-989 but they don't seem applicable. edit: ok I think I found some resources, but I'll leave this up in case someone has any thoughts entris fucked around with this message at 20:02 on Dec 1, 2011 |
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Dec 1, 2011 19:59
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AbbiTheDog posted:http://www.taxbarron.com/articles/currency_conversions.php Quite helpful, thanks - easier to read those articles and then dive into the technical treatises. I don't think we have to file that TDF form: as far as I know, she doesn't have any foreign accounts, she physically possessed the foreign currency in (essentially) a suitcase. I have no idea how long she's held it for, or where she got it; hopefully those facts will come out tomorrow when we meet with her.
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Dec 1, 2011 20:17
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No no you guys, I think she's crazy not criminal.
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Dec 2, 2011 05:44
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kaishek posted:Were they Iraqi Dinars? Hahahaha turns out that yes my client purchased several million dollars of Iraqi dinars ("million dollars" in Iraqi dinars, not US dollars). Now I have to figure out the tax treatment if the dinars rise in value and she exchanges them for US dollars. Also I have to address how this investment will affect her estimated payments and whatnot. Who the gently caress invests in Iraqi dinars? LOL
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Dec 2, 2011 18:06
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scribe jones posted:people who don't google "<x> scam" before investing all their money in <x>, apparently So I just googled that and got this website which seemed like a legit article until I got to quote:As I have stated in previous articles, the world is moving towards hyperinflation and the elimination of all paper currencies. The PTB don't like cash because it is too difficult to monitor personal transactions and creates the opportunity for political dissidents to function outside of the grid. Hahahaha what the gently caress
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Dec 2, 2011 19:56
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Wagonburner posted:My gramdma died Dec 2010, They did not do the estate stuff until sometime early this year. What state are you in?
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Dec 2, 2011 21:37
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ok CPA goons. If my client's Iraqi dinars magically increase in value and my client converts them back into U.S. dollars or otherwise uses them, where on the 1040 would my client report the Section 988 gain? Line 14 for other gains/losses or line 21 for other income? entris fucked around with this message at 20:38 on Dec 16, 2011 |
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Dec 16, 2011 20:30
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Missing Donut posted:You may have forgotten the possibility that I wouldn't be 100% serious in my response to a non-serious hypothetical gain on a complete scam. Heh yeah I hear you. My client is so convinced that "any day now" the dinar is going to be revalued, she wants me to draft a letter explaining how to report the increase in value on her tax return - what sort of supporting documentation she wants, etc.
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Dec 18, 2011 15:51
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e: damnit, Abbi!Sundae posted:Are there any tax implications associated with a relative (aunt) offering to pay your student loans off? Assume, for the purposes of this, that the balance they're offering to pay is greater than $75,000. What you are talking about is an indirect gift to you - the creditor isn't cancelling any portion of your indebtedness, your aunt is just paying off some or all of it on your behalf, which economically is a gift to you. What is really happening, from a tax perspective, is that your aunt is giving you the money and then you are paying off the debt. She will have to report the transaction as a taxable gift (which means she will use up some of her available unified gift and estate tax credit). It isn't going to trigger income tax consequences for you, assuming that your aunt pays off the loans in full and doesn't get any discounted price which would be considered a partial cancellation of indebtedness.
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Dec 21, 2011 19:26
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Ok tax nerds here is a question that I am working on: Person A is blackmailed by Person B, who threatens to publicly disclose damaging personal information about Person A's sexual activities unless Person A pays X dollars. Person A pays Person B X dollars. Did Person A just make a taxable gift for gift tax purposes? My thinking is no, because payments pursuant to extortion/blackmail are clearly theft losses for income tax purposes, and I don't see how a transaction giving rise to a loss deduction could also be a taxable gift. What do you guys think?
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Jan 13, 2012 20:51
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Man, you guys are so boring. My supervising partner has taken the initial position that it's a taxable gift because it is a transfer made without adequate consideration. Does it change your opinion if Person A and Person B used to be in a (non-marital) relationship and now aren't?
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Jan 13, 2012 22:24
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scribe jones posted:pretty sure it still counts as theft duder. try rev rul 72-112. Ha! I already had that on my desk! I know it's probably a theft loss and whatnot but that answer is so easy and I was hoping for something more juicy re: the gift tax. Oh well! Now to write a memo.
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Jan 13, 2012 23:21
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Ronald McReagan posted:I had a Uniform Gift to Minors thing set up when I was a kid that I've withdrawn from periodically since I got to college. In the summer of 2010, I withdrew $4000 from it to help finance a trip to Europe. I just got a letter in the mail from the IRS about a week ago saying that I owe $625 in taxes and interest from 2010 on what they're calling income from "securities" (the $4000 I withdrew) and "dividends" ($31, I have no idea where this part came from). I've withdrawn money several times from this account and never had to pay taxes on it as far as I recall, so I'm just wondering what was different in 2010? I turned 24 in 2010 if that means anything, and have been a full time student since I was 18. Did I withdraw too much in one year or something? How was the account funded? What assets are in the account? How did you report the account on your income tax return? Did you make enough money in 2010 to have an income tax liability? The income from securities is probably capital gain, since you probably sold securities and pulled out the sale proceeds. The dividends were probably generated by one or more of the securities in the account. It doesn't have anything to do with you withdrawing too much or turning 24.
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Jan 20, 2012 16:17
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furushotakeru posted:It's not withdrawing $4,000 that is the taxable event, it is selling the shares of the mutual fund in order to generate the necessary liquidity to withdraw $4,000. You will only pay tax on the difference between $4,000 and what the cost basis is on the shares, which you might be able to get from the brokerage that holds the custodial account. Do you think they are treating the $4000 as all gain due to his failure to file basis information? Isn't there some rule where they assign you a zero basis if you don't report it yourself?
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Jan 20, 2012 19:28
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Dick Trauma posted:I was thinking about selling short stories on Amazon but here in L.A. the city tax process is kind of a mess. I see that I would have to register as a business even though this is just a side gig that at best might make me $50 in a year. In addition you have to pay a minimum tax that one of their clerks said would be $150 a year, but she couldn't tell me what category a writer would be in so I could fill out the tax certificate request form. Their website also doesn't list a category for any creative profession but does mention an exemption for creative people is possible after you get your form. Where do you see that you would be required to pay a city tax as a business? Where did you get that info?
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Jan 24, 2012 21:05
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Dick Trauma posted:http://finance.lacity.org/content/BusinessTaxInformationFAQ.htm See http://finance.lacity.org/content/SmallBusinessExemptionFAQ.htm and http://finance.lacity.org/content/EntertainmentCreativeTalentFAQ.htm You don't have to pay any business tax, but you will have to register with the city. Hahahaha California has rules for everything, even its cities have municipal codes bigger than some states'. Ridiculous. I will never ever live in California. as for federal taxes: any income you make will be reported on Schedule C of your 1040. It's pretty simple.
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Jan 24, 2012 21:18
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Dick Trauma posted:I sent them an email asking about category codes, but there's no info on how to request the creative exemption, or even the new business exemption. Guess I'll just muddle my way through it. I just don't want to be stuck with an instant $150 tax for something that's a tiny side-job. Well I think it's pretty clear that you are exempt from paying the tax, you just have to get a business registration certificate. Here is the list of NAICS codes: http://finance.lacity.org/form/NAICSCODES.pdf My bet is you want 711510 - Independent artists, writers, and performers. Attach a cover letter saying "Dear Office of Finance, enclosed is my business application. I am requesting exemption under LAMC Section 21.29(b) because my business is writing short fanfic stories about furry Harry Potter and his pal, gay Darth Vader." or something to that effect. entris fucked around with this message at 23:47 on Jan 24, 2012 |
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Jan 24, 2012 23:45
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Isn't he already beyond the three-year statute of limitations on audits for 2004 and 2005? Those returns should be closed.
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Feb 15, 2012 16:34
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Oh right, duh.
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Feb 15, 2012 17:44
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Leopold Stotch posted:Here is a hypothetical. A trust holds real estate. The trust expires and no one notices. The trust assets, the real estate, passed automatically to the beneficiary upon expiration. Is this a taxable event - sale/exchange/other disposition? It depends. For federal income tax purposes, in most cases the answer is no, the transfer is not a taxable event. Depending on the nature of the trust and the identity of the beneficiary, there could be a generation-skipping transfer tax issue, but it's unlikely given that the vast majority of people never have to worry about GST tax.
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Feb 29, 2012 18:46
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Leopold Stotch posted:
Sort of. The beneficiary is going to take a carried over basis from the trust, which got its basis in the property from the settlor (the person who created the trust). Typically this means the beneficiary will have a lower basis in the property, which will result in higher gain when the beneficiary sells the property. In contrast, if the beneficiary received the property from the settlor at the settlor's death, the beneficiary will get a basis equal to the fair market value of the property at the settlor's death, which is usually higher than the settlor's basis. This means the beneficiary in this situation will pay less income tax when s/he later sells the property.
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Feb 29, 2012 20:38
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furushotakeru posted:Why would the trust not receive a stepped up basis? My understanding is that only gifts made before death don't get a stepped up basis. Sorry, I was imprecise with my language. A trust receiving property from a decedent will get a setupped up basis. I was only talking about inter vivos trusts. edit: hahaha you edited your post to include the 2010 carry-over basis rule. God that rule is a mess.
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Feb 29, 2012 20:48
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Spoilers Below posted:I've got an hypothetical question: gay marriage is now legal in many states, so it's no problem to file as married for your state taxes. As I understand it (and I could be totally wrong on this), the federal government doesn't recognize gay marriages under DOMA. So, if one is married to someone of the same sex, would you list yourself as married on your state taxes, and unmarried (possibly with a dependent) on your federal? Or is your marriage recognized as far as the IRS is concerned? File married on your state tax return and unmarried on federal. The IRS cannot recognize same-sex marriage - although there are certain cases where the IRS is forced to recognize property rights of same-sex couples in community property states, but that's a newly developing area of the tax law so it's unclear what to do in that situation.
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Mar 2, 2012 14:29
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I know you guys are busy - I may have lost my W-2 for my current job, do I have to attach that to my return, so long as the numbers on the return are correct? I can pull my wage info and withheld taxes from my company's internal website.
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Apr 13, 2012 02:03
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AbbiTheDog posted:If you had the same job last year the efile info (company EIN, state number) should be the same and you should be fine. If you're paper filing you need to fill out the substitute W-2 forms (federal and state). Well, I've had this job from Aug. 2011 until now, so this is the first time that I will be including it on a tax return.
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Apr 13, 2012 02:50
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