Kea

On closer look, it turned out everything sold after DOD was purchased after DOD. So no step-up anyway. Not sure how that happened. I even mentioned it to the broker when asking other questions and he responded "we don't do that; that shouldn't have happened." Well it did - unless someone entered something on the 1099B wrong. (But that never happens!)

This happened to one of my clients a few years ago. We scheduled for it to be withdrawn on 4/15. Since we didn't know if it would go through until it was too late & it was a fairly small balance due, she went ahead and paid it herself. Turned out IRS got both payments & refunded the difference. Just took time.

I'm not using ATX anymore. Sigh - that could have made my life easier.

Thanks - that is starting to sound easier that forcing the software to do what I want-- especially when I'm wrong & trying to use old info! I think I'll prepare them in the .pdf forms and give to client. Let him go to IRS for Red forms -- that's faster than my ordering forms! It involved 1099 INT, 1099 Div & 1099 OID. For the stock sales, I just want to move the net gain / loss -- can these be added to the 1099 DIV? Or, will it need a 1099 B - I was hoping to not have to list the individual trades Oh, and this is my "Dear Client" guy. I did get a nice apology from him on Monday. He's forgiven mainly because he's still having a hard time losing his mother.

Fabulous news. May he continue to improve and gain strength.

When I did a couple of decedent returns previously, I showed the nominee interest / dividend info on the Schedule B lines (using overrides). Looking at the instructions now, I see that listed only for going to a 1041 and surviving spouse. So, if I'm reading this correctly, I do have to show on 1099s? Did this change or did I just do it wrong last time? There was not IRS correspondence for it. And those retruns were e-filed. Is it because the e-file doesn't "see" these nominee entries? Perhaps paper filing so that the info is "seen" by someone. Not that they would know what it was but if that's how it was handled previously, then .... maybe?? Thanks

Perhaps marking the return complete will keep the updates from applying?? Don't know but that would be nice. I use the lock feature to make sure I don't accidentally make changes to a completed return. I would really love an undo feature or to have the "esc" key work. Too many times I've started typing only to find I'm in the wrong box. Then I have to figure out what was supposed to be there before. Grr.

Final 1099B shows sales after date of death. These receive step up basis to beneficiaries - so do I show "Inherited" as acquired date on the decedent's 1040? She didn't inherit them, but it would give them the long term treatment to pass to the benes. Or, it doesn't matter since it becomes $0 (for that specific asset) when it gets the nominees (code N) adjustment? The ones purchased after DOD would keep the stated purchase date would be reported with the actual purchase date (even though after DOD)? Again it becomes $0 after applying nominee code.

I'm working on one of 4 decedent returns this year. I haven't tackled one of these for 2 years. I found the Nominee adjustment box in TRX for the interest & dividends. But I'm trying figure out how to show where the nominee distributions get distributed to. Last time I was using ATX and could type on the Sch B (using overrides) and put in the name & SSN of recipient. (I could even use blank lines to make it easier to read.) But you can't do overrides in TRX. So I put the comments (over several lines) in the input boxes. If there's not income, it doesn't print the text. So I put $1 on one line and -$1 on the next (no change to income & makes line print). But it does print this with the payors above the line that subtracts out the nominee distribution. Use the same concept on the Schedule D? Does anyone have any ideas how else to do this? Thanks!

Yay! I wasn't expecting that answer!

OK, I'm back to confused. I really thought this one was going to be fairly straightforward. I spoke to the person at the bank who has helped my client with all these account issues (yes, with signed written permission). Their "expert" said that since husband and wife were co-trustees they could keep using husband's SSN. I guess they didn't get the memo. Just to clarify - I need an EIN for the "trust" not for the "estate of John (or Jane) Doe" -- right? OR -- since everything is wrong now anyway -- could I show the nominee info on the wife's 1040 with the same phrasing OldJack used for bringing into the 1041? This would make my life easier -- which means I probably shouldn't do it this way! Thanks so much. Is it 4/17 yet?

Isn't there also a stipulation about it being "subsidized" by an employer? If they are getting any kind of discount on the premium because it's his former employer then no deduction. If there is no subsidy -- see others' answers.

All my best to both of you for getting through this.

Don't you just love the English language?? I would sure hate to have to learn it as a 2nd language -- I have a hard enough time with it as my 1st.

Catherine - I think our clients need to work togther & open their own tax prep businesses. After all they know so much more about what's required than we do!

Great suggestions! Thanks for letting me vent!

J Ron - just curious -- how early did you take the test? I took mine near the end of December. I was wondering if all the people who took the guinea pig version (before they developed the scoring) got their results at the same time. Or, if we were just the early birds and others will be finding out over the coming weeks. I'll be later with my CE. I'll use the update class at year-end to meet my requirements. I'll take other classes here and there if I see something interesting and CONVENIENT!!

Catherine - I did offer him his papers & he asked me to send him an e-mail explaining what I need. We'll see. For some reason this is still eating at me today (happened yesterday). He was one of my first clients that followed me after I helped him at HRB. And he's sent me some good referrals. But I am just having a hard time letting go of his telling me the rules. He already knows my hourly rate. So I guess I just have to add more hours. After all, how does he know how many hours it takes me? And to quote you from several prior posts "Grrrr."

Dear Client, Thank you so much for explaining to me which rules I must follow and which I do not. I'm sorry I asked you for signed written permission to discuss your late mother's REMICs with her broker. Now that you made me "listen to [you]" while you explained that I was just making things complicated & I don't need to have the signed permission because you already told the broker I might call with questions." Your response of "who's going to know?" when I explained it was an IRS rule really opened my eyes. I've been doing this all wrong. Now I know I don't have to follow rules if no one will know the difference. Thanks for understanding that it is my policy to make sure I prepare all returns in the most complicated way possible. I love making my clients jump through lots of unnecessary hoops - especially in late March. And I am truly sorry that I haven't finished your return in the week since our appointment. I know you didn't get the last of the broker statements (the one with the OIDs) until Saturday. I'm sorry I didn't already know all the proper procedures for handling these types of investments for a decedent return. I know you were hoping that the return would already be complete because you "have other things to do." So, if you don't like the way I follow complicated rules - when no one would know otherwise, you are more than welcome to pick up your papers and go elsewhere. I'm sure it won't be hard to find someone more knowledgeable than me. But I do wish you good luck finding someone who has more time than me - someone who can complete the returns in a day - in LATE MARCH! OK, now off to the store to steal a candy bar while no one is looking. No problem if no one knows. Oh, the possibilites! Sincerely,.... PS I really appreciate your making me listen to you while you tell me how to do my job. I'm so glad you know more about the IRS rules than I do!

Congrats J. Ron!

That is frequently the best way to get them to find basis info. Good luck!

I just got my certificate in the mail today. It's official. I can now officially say I AM a Registered Tax Return Preparer!!! Now to make new business cards. Just printed out more 2 days ago after figuring it would take a few more weeks to hear from IRS. Can I credit Murphy (or Mercer)?

I suppose it's too much to ask if he has his year-end check stubs with the YTD info. This won't have the price per share, but would indicate the total price he paid for shares. And it won't take into account reinvested shares. His former company might be able to help. No guarantees but it wouldn't hurt to ask.

Client asked me to file final return for his mother who passed away in Nov. 2011. Mom had several REMICs. Associated with them are 1099 Int, OID & B. 1099B shows monthly sales. Each has a quantity of 40,000. ( I don't think she would have sold 40,000 shares every month.) It shows proceeds, but no basis info. Proceeds for January - October are a few hundred $ each month. But the November sale shows several thousand $. I believe the basis (Jan - Oct) should be the same as the proceeds based on what I have seen reported before (son also owns REMICs & that's what's shown on his 1099B from a different broker). If the basis isn't the same as the proceeds, how would it be calculated? For November, I should use a stepped-up basis. But these just don't seem like regular sales, because even though they all have the same # of shares, the last month's proceeds are significantly higher than the other months. Perhaps November is a "real sale" where the brokerage is moving the assets to the benes. Client did say that in some cases the broker found it easier to sell shares from Mom's account and then buy them in the son's accounts. Mom's brokerage account was set to POD to her 2 sons 50-50. But, of course, the assets did not transfer on DOD. I am familiar with how to move the interest and dividends as IRD (income in receipt of decedent) to beneficiaries. I have not had to move capital gains and / or REMICs. I did do some research on REMICs and saw discussions about how to treat the OIDs (yuck!), but saw nothing about monthly (or any periodic) sales. (Also didn't see if there's anything special for OIDs in terms of IRD.) Any assistance on how to treat REMICs would be appreciated. I know they are mortgage securities but not sure exactly their differences or similarities to stocks and bonds. (I have lots of experience with stock, bond and mutual fund transactions, but not REMICs). (This is my 2nd decedent return this year and I know there is one more still to come in. I've done 3 or 4 in the last 13 years and now 3 in one year.) Thanks!

Sounds good. This went from a simple return to a big problem & now back to something managable again - only slightly more complicated than I originally thought! Thanks!