Randall

Thanks everyone.

Joan, activity not sold. I was wanting to confirm that PTP box is checked and not the passive box. With passive checked, loss goes to 8582. With PTP checked, loss doesn't go to a form, just a worksheet.

I was just going to post a question on this, a little different. Mine is not a final disposition. I marked PTP. Loss in K1 box 1 is suspended. Not showing up on a form, just in the PTP summary schedule. Is this correct? If passive activity marked, it shows up on 8582. But can't mark both PTP and Passive Activity (one or the other). K1 shows plenty of capital (tax basis). Does being PTP preclude it from being a passive activity. Yet the loss is still suspended so I assume it is in real terms, a passive activity.

If they have multiple accounts with the same broker, they can have the broker deduct the fees for all accounts from the non-retirement account. Therefore, getting the total fees outside the IRA and deductible on Sch A. That also lets their IRA build up more.

I do some work at home on my laptop. I have a ShareFile account. I use ATX export. But there were too many subfiles in ATX export to bother with ShareFile. I just use a Flashdrive. It may not work for you since you're working with another person.

Too many people have a trust created but don't do the necessary things to accomplish what they want done. Too many attorneys prepare a trust document, maybe explain to the client about putting assets in the trust, but nothing gets done. The accountant is usually the last one to know a trust even exists.

I agree with Jack. The last thing I want to do with any app is uninstall and reinstall.

Every now and then, I'll go to the Efile Manager, filter by those marked complete and review the status to make sure they're all accepted. I do that in case I've marked something complete by mistake. I also like to get extensions filed first week of March and first week of April even if I think I can complete by due date. Some things still might fall thru the cracks though.

I've even argued that several years were the 'first' time (because they were all at once, client had no activity, and didn't know a filing was required) and got penalties waive. Originally IRS waived year one, but charged for each of the other years.

Normally, there shouldn't be a local return to file unless self-employed as a business. I'm not sure about each locality so you should check their website. If he was working in that location, the tax is withheld. If employer continued to withhold after he moved, he probably has to get reimbursed by the employer. I know some cities (Cincinnati) have a return to file by residents who don't work in the city and don't have the city tax withheld. From my list of Ky locals (a few years old), the Georgetown/Scott County Revenue Commission number is 502-863-9805 (email: [email protected]).

I turned that over to my client last year to do himself. I think someone else suggested it last year as not wanting to take the responsibility. I still have the 8938 with the return.

Good outcome for you Joan. Advice for all clients, KEEP the policy annual statements FOREVER. The annual statements come out on the policy anniversary date (not Dec 31).

Most are just boilerplate stuff. Clients usually have no clue.

Burke, I agree. But I would have thought once the dividends paid to him exceeded basis, he would have received a 1099R showing taxable income each year. In the original post, it seems this is reported all at the end. Joan, the only thing I think you can do is get the annual statements if available. This would give you a complete history. Otherwise, your client is stuck with reporting the 1099R as is. Insurance companies don't always get this right. So if you have the annual statements and he's shown taxable income thru the years on his returns, you may be able to get a corrected 1099R or report it as corrected on the 1040. Another thing 'funny' in the original post is the ins company stating the taxable amount 'in their opinion'.

Judy, not sure I agree with this last part. Assuming no loans or withdrawals, the death benefit should be higher than cash surrender value. But since the policy was terminated or surrendered before death, something has happened. There must have been payments to him. Joan, don't get confused by the word dividend. It's just build up inside the policy (interest, dividends).

Not sure what's going on here. If dividends received each year, he should have received a 1099R showing zero taxable amount until basis ran out. After that, 1099R showing amount as taxable. But then the insurance company would have tracked that and would not be showing so much as taxable. So I'm not sure what's going on here. Check to see if you have past records to track this. Dividends inside a policy aren't really dividends as in a 1099-DIV. Like credit unions calling interest 'dividends' (they issue a 1099-INT).

Client is co-owner of rental on 1040 Sch E. Client also has LLC with rental activity (2 member LLC). Sch E rental shows loss but not deductible (8582) because of income level. LLC K-1 has rental income. I am preparing both the LLC return and the 1040. On the 1040 K-1 input, can I check both the 'active participating in rental' box and the 'passive activity' box? If I don't check 'passive activity', the LLC rental income won't offset the Sch E rental loss and the LLC income will carry to 1040 page one, while his Sch E loss is suspended. I was of the understanding that rental activity is considered passive (unless re pro).

Yes, much better. Especially after a few years. Only those older accounts that have been transferred before the new rules where the current broker doesn't have basis info are a pain.

I'll lump several with close dates.

Yes, I hate it when they come in over $500. Ugh.

I'm not sure where you're inputting. In ATX on Form 8949, input tab: if you enter an acquisition date, the ST or LT will show up accordingly. If you enter various, ST will show up. You can then override ST with LT. I usually enter 12/31 as disposition date.

How do you really advise on questions like this? I would sell and rent, but people want to have that house.

I thought this was an old thread. A recent post must have revived it. I agree with that kind of volume, you should be well beyond ATX/Drake. I've got both ATX and Drake. What's wrong with me. I'm still struggling with getting acquainted with Drake.

Just had one at $341. Ugh.

Then there are those who take multiple withdrawals and the company issues separate 1099Rs for each withdrawal (at the time of each withdrawal!). But the client only brings you one 1099R. How would you know? I caught one because the client included the account statement which showed total withdrawals for the year and it didn't match the 1099R. After asking the client, I find out there are several 1099Rs.