Possi

Yes, and in the morning I will go back and check that W2. Box 12 code V is about $19k. Also, something I've never seen is Box 14 "RstkTxble" which I see is restricted stock that becomes taxable when fully vested. Since she left her job, it became taxable. I believe I can add this to the basis as well as the Box 12 code V. They are 2 separate events that culminated in the same moment, it seems. Here's what I found:

Well, well, well. Guess who has a healthy 1099B? Yup. Cost basis is reported on $60k of short term gain but not on $23k of short term gain. The non-covered stock sales show the same date for acquired, 03-01-19; dates sold are 05-23-19 and 06-18-19. These are the same sale dates as the long term sales. Box 12 code V is about $19k. I believe I can safely enter the $19k as basis since it has been taxed on the W2. I could probably add fees, but they are not on the statement and honestly, I'm kind of ticked this 1099 wasn't in the original papers. She knew it was out there. I'm heading to bed now, but I'll be back first thing to see if anyone responds. Gee, it's nice to have an open office with people I actually like.

IKR! They disallowed the deduction because VA does not have that line on their Sch A yet! On my copy, the VA Sch A says "reserved," but talking to Richmond, the entire line disappears in the transition because the great state of VA doesn't even have the line. Buckle up, VA preparers.

I called alright. Not only did they mess up that return, but they have messed up the VA worksheet calculations and changed other returns as well. I contacted TaxWise after talking with a rep in Richmond. He is blown away as well. So the software isn't dancing with the state who is not dancing with anyone. Basically, all my VA returns with a VA Sch A and all my return with deductible MIP will be changed, making ME appear bad. Monday was a flat tire day with all this going on, between Richmond and TaxWise.

Wow, that really clears this up for me. I'll save this one, as I do most of my resolutions here! I just emailed her to see if she sold them. She moved from a big position at Anthem and it is a substantial figure.... to me, that is.

OK, I feel complete now! It's a wrap! Thank you!

See? Back to my original problem.... ughhhh. I bet there's a 1099B out there.

It was my understanding that it is all justified in the W2, and the taxpayer is hammered with ordinary income. I believe (and pray I am validated here) that there is nothing else I need to do. If a 1099B is issued for these stocks however, the amount in Box 12, code V, has already been taxed as ordinary income, so that amount is then bumped into the basis of the stocks "sold."

This one is over $25k. I really didn't think it was supposed to be taxed at ordinary income tax rates. So, to cover myself, I should put it in and out on the Sch D, even without a 1099B issued is what I'm reading here. I know a 1099B is not required to make the entry, I'm not saying that. Boy, I need more coffee. If it had CG when sold, wouldn't they issue the 1099B to which I could add the W2 code V figure?

My client had to exercise options when she left the company. I haven't done these in a long time, but when I did, I believe there was a 1099B reporting the sale, and I added to the basis the amount from the W2 box 12, code V. The paperwork accompanying the W2 indicates it is completely justified in the W2 and that I don't have to do anything else. Which means these stocks are being taxed at ordinary income tax rates. If there is to be no 1099B issued, is there any other action I need to be taking?

HBD, BDog!! Have a great, relaxing time! Cheers!

Yup, that's how I read it. I'll call Richmond in the morning and see what's going on. Thanks, y'all!

So, am I reading this right that VA is honoring the IRS extenders?

I think VA has lost it's mind. I went to a CE program where the VA state rep said the the SALT would NOT be limited on the VA state Sch A. Honestly, I haven't even watched it shake out. My client just got a letter from VA state saying the MIP was disallowed. I have been all over that website looking for anything saying this is disallowed. It was not an issue at the seminar, not even brought up at the seminar. Has anyone else had this problem?

That was the big shock.... she listed what she paid for each item. And she paid even dollar amounts. One men's suit, $850. It is laughable, really.THREE. PAGES.

ACTUALLY, I already DID that part! My assistant is the one who flagged it! LOL LOL My next course of action is to do what Abby said. I won't file it like it is.

Very high brow clients here. They dress to the nines. Now, she's cleaning closets. And donating it all. Anne Klein White Blouse.... original value $50..... donated value...$25 Oklahoma City Police Department T-Shirt.... orig $40... donated value.. .you guessed it... $20 Victorian couch- burgundy stripe... orig $600... donated value $300 Name brand suits, name brand clothing... and the names are here, listed in detail. Seven computer printed pages. Grand total cost was $9228 and they expect me to take 50% as donated value $4614 PLUS MILEAGE for the trips to the donor centers. Honestly, I do loathe this 8283. So, should I cut it in half again? Or should I take it as it is and refer to it as "consignment value" instead of "thrift value?" What Would You Do?

Very helpful. Thanks, y'all!

My client started her business using mileage on her car. If she gets a new car, are we allowed to change to actual expenses for the new car?

In short, yes and yes.

When my daddy died 19 years ago, he left each of 5 children $2000. The first $1000 came right away, the second a year later. I took the first $1000 and bought a printer and a laptop, and made a spirit promise to my daddy that I would one day earn enough money to support myself. I started with less than 50 clients. I have over 500 today. I don't know what I would do if I had parents who gave me a house. I'd probably be homeless by now. Thanks, Daddy. I know you're proud of your "Possi." (The nickname he gave me)

Having my client sell a house to his daughter for $10, I'm waiting for this response. I may be corrected, but their basis is the parents' cost, plus improvements. It was not inherited. It already belonged to the kids.

If he made contributions in after-tax dollars, yes, those are an adjustment. I only have one client who does that. Contributions with work and contributions apart from work, for mine.

Good points! Thanks, y'all!

Hey, my client handed over a house to his child. It was a second home to my client. His daughter had been living there for free, and he eventually gave it to her. The closing papers are a "deed of bargain and sale" for $10.00. There is a "consideration" of $330k and an assessed value of $292k. What, if anything, must I do with this? Must a gift tax return be filed? And, what if he never gave me those papers?