Max W

Normally that can only be done by filing the two MFS returns before April 15. Is this extended now to July 15? Most likely, but does anyone know for sure? Amend the Primary on the 1040 MFJ to MFS and create a MFS for the Secondary.

This was put out this AM "In the coming weeks, the Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail,”

Tom, what would you say to a family that is living paycheck to paycheck and is suddenly out of work? Suck it up?! I have never found the 10% penalty to stop anyone when they needed the money.

This just came from Drake. Beware of Stimulus Payment Scams Tax Professionals — here’s what taxpayers need to know about stimulus payment processing in order to protect themselves from scammers: Be alert for phone scams. The Internal Revenue Service (IRS), Treasury Department, or any other government agency will not contact you by phone to collect information for stimulus payment processing. Period. Be alert for phishing scams. Government agencies will not email or text you to collect information for stimulus payment processing. Watch for suspicious emails or texts with links or attachments requesting information for processing stimulus deposits or checks. If you receive one, do not click the link or open the attachment. It’s a scam. Delete it. Be alert for state-related scams. State agencies will also not call, email or text you to collect information or a fee to process a stimulus payment. To date, no state has introduced their own version of a stimulus payment. As of now, we are only aware of one communication a taxpayer will receive from the IRS. No later than 15 days after distributing a stimulus payment, the IRS is required to mail a notice to the taxpayer indicating the payment amount, whether the payment was mailed or deposited, and a phone number to call if the taxpayer did not receive the payment. Victims or targets of stimulus payment scams should report it immediately to the Federal Trade Commission, www.ftc.gov/complaint.

What is the purpose of putting the building into an LLC? If they are doing flips, I don't see any reason. If they are going to keep the buildings as rentals, then each building should have its own separate LLC. Furthermore, if there are loans on the building, any re-titling would have to approved by the lender.

Yes. There is a 2 part article in Tax Advisor from 2013 which goes over the complexities of dealing with foreign benes and it is something that the trustee and I decided it was better for someone experienced in this to handle. There are other complexities apart from the taxes that have to be dealt with.

I thought that that was being implied More precise grammar would be "the tax would only have been deferred". I wasn't trying to say it was deferred.

Plus, you have a third party involved, the trustee. Third parties can make things more difficult. I would just send him Section B of the 1041 with the appropriate lines highlighted.

Well, it's not all bad. The tax is only deferred and tax rates may be much higher when the new property is eventually sold.

US residents are taxed on worldwide income. For earned income there is a $107,600 exclusion if the taxpayer remains outside the US for 330 day in a 12 month period. The exclusion does not apply to the SE tax. There may also be a housing exclusion/deduction, if qualified. For employees, SS/Med is determined by the tax treaty with each country Under a Totalization Agreement (the US does not have this with Venezuela), where these taxes are only paid to one of the countries involved. Pub 54 is a good reference. As for the 4 states you ask about, they also tax worldwide income and some are very aggressive. They will nail you if there is any kind of nexus to the state. It can be something as innocuous as visiting your doctor, dentist, etc. However, each one may have different rules as to what is considered nexus. The business question I will leave to others. It probably should be posted as a separate question.

Two beneficiaries are residents and citizens of Belgium. From what I understand, form W-8BEN is required. Most of the taxable income is from Cap Gains and taxable gains are reported on 1042-s, a form required for each type of income. However, I understand that Cap Gains are not taxable to foreign benes. What happens to the CG's? Are they taxable to the trust? I would be most grateful for any other suggestion re foreign benes of a US trust.

So, my example is correct.

"Practitioner Priority Service (PPS) – Practitioners are reminded that, depending on staffing levels going forward, there may be more significant wait times for the PPS. The IRS will continue to monitor this as situations develop." The IRS has no phone service. I use enQ, a service that connects to PPS, Collections, AUR and a few more, withing less than 3 minutes. All I get now is a message that that these service are not available.

For a particular year the the non-dividend distribution is $2500 which decreases basis. The Box 1 income is $1000, which increases basis. So, would not the net change to basis be -$1500 ($1000-2500) ? The basis is $50K, so there is no need to to consider deductions to basis as exceeding the basis.

All the K-1's are available and the initial basis is known. After adding each years gains and losses there is about a $4000 increase in basis. However, distribution (Box 16d) is greater than the gains. What else other than return of capital would account for this? (Sec 179 is accounted for).

It is income income in respect of a decedent (IRD). It would not be reported on the 1040. It would be income reported on form 1041 as a trust, or as an estate if the 645 election has been, or will be made. A bank account should have been opened under the trust/estate where the funds should have been deposited. The broker should have been advised of the date of death.They can provide a new 1099-B with the FMV of the stocks at that time, so the basis can be established. Was there a will? A Living trust? Is there an executor, or trustee you can talk to. There are more questions, but this will get you started.

It might be easier to reach the PPS line. They inform you of wait times, so you can call back later and try again. They can give you the exact amount of the liens and you can order transcripts that can be faxed to you, which usually happens within minutes. Once you have the 2848, call the PPS and tell them you have to fax it to them. They will give you the number. Always ask them to forward the 2848 to the CAF unit. Then after a week it will be on file. If the liens can't be paid off, they will have to be subordinated to the mortgage by obtaining a Certificate of Subordination by filing form 14134 which is included in Pub 784. (see link). The broker should be able to assist you with this. https://www.irs.gov/pub/irs-pdf/p784.pdf

How about some good news. My 79 year old brother-in-law, who lives in Spain, came down with double pneumonia and the corona virus about 10 days ago. My wife spoke just spoke to him. Although, his voice is very weak, he is up and walking a little.

If it is one time, or sporadic times this is done, I would use Line 8 Sch 1, other income (the Old Line 21). However, your client is doing it on a regular basis and actively looking for students, so Sch C, which you are doing. The IRS says you expense books, tuition, food, clothing, transportation, medical/dental and recreation. Things that can't be expensed include FMV of room rent, Depreciation, taxes, mort. pmts. The student has to be grade 12, or lower and be sponsored by a NGO. Also, it can not be an exchange student where the host family also has a student in a mutual exchange. Some on-line opinions are that it is Other Income, but with the elimination of 2% misc, it might be better to go with Sch C anyway, if there a lot of expenses.

Will everyone that is going to owe more than $1 Million please raise your hand. You are out of luck. No payment extension for you.

Paved parking areas are 1250 property with a 15 yr depreciation.

Taxifornia has a 3.5% state tax withholding, which has been in effect for about 8 years. The broker fills out a form, 593, that is needed for the tax prep.

Yes. You are quire right. A client asked me to fill out a similar return for a rental sold in OR.

Thanks, everyone.

There is a real estate transfer tax of 7.5%. https://www.revenue.nh.gov/forms/2017/documents/cd-57-s-2016-print.pdf