Kea

Thank you!

Thanks so much.

There was a discussion on this forum -- My link

Yes, I know about the election. I'm just verifying that it applies to the income as well as the tax. That would be the logical thing. (But IRS = logic?)

I know Roth conversions done this year are taxed on the 2011 and 2012 returns. I just want to clarify that that is when the income is included, too. Client is in the 15% tax bracket and is taking capital gains this year to take advantage of the 0% rate. Here broker is telling her that a Roth conversion would make her income too high to take advantage of the 0% LTCG rate. I don't think so, but just wanted to make sure the IRS wasn't including the income in 2010 even though the tax was 2011 & 2012. (IRS can be good at making things more complicated than they need to be, sometimes!) Thanks

I've only received a few e-mails from TRX in the last few months. Mostly letting me know about RALs, etc that I don't use. I look at them and delete them. Nothing so extreme as to want to block them. I wonder why there is a difference?

I would say "Yes."

Sounds good. I should be nice and safe in my locked mailbox until I get home!! And no packages on the porch announcing that no one is home.

Did it come by USPS or other shipper (UPS, FedEX)? And do the folks who bought ATX through TRX get it? I'm asking because I am out of town right now and need to know if I need to send someone to pick it up off my porch! Thanks!

It shows back up every time someone votes in the poll. So, as long as people are voting and not commenting, it will be in a loop.

The author also didn't mention that the law did not apply to credit card purchases. But, I agree with Catherine the best option is to repeal that provision before it starts.

>>If she were to pass away prior to surrendering home, his basis would be basis on her DOD. << Not starting in 2010 and beyond -- unless Congress changes the rules back.

Is the son planning on living in this house (say for 2 out of 5 years) before selling it? I agree Mom needs to file a gift tax return.

I've never taken a webinar class, but thought it might fill in some gaps. I plan to practice on my own first & then decide if I need it. I'm glad to know I have a month to decide. Thanks for the info.

Thanks. I hadn't even started thinking about the conversions yet. I still need to practice and get used to the new software. That's high on my to-do list for the next month or 2. Do you know if they are still offering their webinar training? I haven't logged on to that site in a while. Thanks

Since the account was TOD, the amounts after DOD go to the beneficiaries' 1040s and not to the 1041. In a perfect world, Smith Barney would have reported amounts after DOD on the TODs' 1099s. But in reality the name / SSN doesn't get changed on the account until after the brokerage is notified which is typically a few weeks after DOD. Also, remember the gains / losses on the sale of stocks was probably very minimal, because the basis will be from DOD (or alternative valuation). I'm sure the basis they reported was the decedent's basis, not the heirs'. Hope that helps.

If their 2010 withholding covers 90% of their 2009 total tax, they don't have to worry about the penalty. (Unless income is over a certain amount, then 100%) So, if your income "jumps" in one year, you don't get penalized for not paying in enough tax during the year.

I'm (hopefully) wrapping up my 1st 1041s soon (yes, late). All interest & other IRD income was distributed during 1st (& only) year. There were no specified amounts in the will (i.e. $1000 to this person or that charity). Just a straightforward I leave everything to my heir. Am I correct that I use the total DNI calculated on Sch B, line 7 and just enter that in the "Tier 2 Distribution" box on the Sch K-1 Input tab? Is there some box or something to check so that it automatically distributes the total? I tried setting up a link but it wouldn't let me. Thanks so much.

Was the brother also the heir per decedent's will? The deduction would not go to the decedent. He did not donate it & it occurred after his death. His final 1040 stops at DOD. If the estate made the donations prior to distributing assets to the heirs, then the deduction belongs to the estate. (And he may have to explain to the heirs why they aren't getting their full portion of the estate.) If the brother was the only heir then he was the one donating his own property. His basis would be value on DOD & would take the deduction on his own 1040. Hope that helps.

On the insurance side of the question -- Perhaps California law & Texas law are different, but I was able to get a group policy by adding my husband as co-owner of my Sch C business. We did not have to set up an LLC or other entity. I now file 2 Schedule Cs, but no corporate fees or forms. Hope that may help them.

I use gmail for personal e-mail and my own domain name (through GoDaddy) for business e-mail. I read both of them in Mozilla Thunderbird. (Mozilla is the one who makes Firefox.) No problems.

Congrats!

He became a partner in 2007 or 2008. I believe the other partners were already in business prior to that (but not 100% sure of that). In the spring of 2009, he took the info to another accountant to prepare the 1065. He asked me to do it, but I've never prepared a 1065. I can check to see if he was the one who signed it. (I apologize for not remembering the exact dates or time-frames, but I'm not on my "work" computer right now.) Later in 2009, the other partners seemed to prefer to go back to their more casual ways & at some point stopped returning his calls. In 2010 he tried to contact them so that he could get the 1065 prepared and they informed him that they would take care of it. They've pretty well cut him out, but I'm not sure that any formal dissolution has occurred. I agree that the IRS might not understand his no longer being the tax matters partner. I know he has everything documented. Maybe it will will just require a long letter of explanation. Is there a form he can use to notify the IRS that he is no longer the tax matters partner? Thanks.

Thanks so much. I will let him know. He was only a partner for about 2 or 3 years. New business. He was the one who handled getting the K-1 completed in previous years. Other partners were less interested in getting everything done timely or accurately. They were more "casual" about the business and he was more "picky." I'm guessing he will have a lot (but probably not all) the info for an estimate. Thanks again.

I'll suggest that, but I don't think the remaining partners have done anything about the taxes yet. That was part of the problems -- the other partners never seemed too concerned about getting taxes done.