TAXMAN

Had the TP cashed it b4 death it would have been all tax free. When the TP died the adm witinin 2 months cashed the Roth so that they could begin dispersing funds and paying bills. Does this mean that the earnings b4 death and after death would be taxable to the estate(form 1041)? I am now confused. Thanks

There was no named beneficiary on the roth IRA that TP had for 10 years. Only estate listed as beneficiary. When preparing form 1041 should this ROTH income be counted as Tax Free? EXEC is doing a first and final 1041. The 1099 has it listed as taxable with a code of T. Thanks for the help.

If a heir inherits a house from the deceased with a reverse mortgage on it, and the heir pays off the reverse mortgage to have a clean house to sale, does the heir deduct the interest they were required to pay or does it go back into the basis for future events? Thanks to all

Can someone answer a question concerning the AFTR and AFSP? If you were approved for the AFSP for filing the tax returns for 2015 and am not a CPA,EA do you need all 18 hours in 2016 to obtain the AFSP? Or do you just need the 6 hrs? I am confused

A lot of these bonds don't even get found until after the owner has passed on and we are cleaning out drawers, closets, etc. What a pain to get cashed in then. I try to remind my clients every year but sometimes they just don't listen. Going back to the original post, I would just report as you became aware. Lets see what others may think.

TP works from home in NV. Is paid by a CA employer. Is this income taxed to CA as a NON Resident. TP never goes to CA. All work is done by internet and phone. My take it is. The CA employer filed the w-2 with NV being in the state box and matches the Wages in Box 1.

TP was awarded legal custody of brothers child(age 12) in June 2015. TP has a small yard mowing business.(sch c) TP paid and deposited into childs bank account $ for helping him in this business. Does the fact that this is not his OWN child preclude the fica rules. Tp has had 100% of the care of this child since being awarded the custody. Childs residence and schools records reflectsTP as legal guardian. TP has not legally adopted child. Only concern now is with the fica rules.

Thanks to all. 1099r shows all taxable and a code 1d in box 7. I looked at the statement that the TP brought in last night. Annunity earned about twice as much as being taxable. My understanding with the help from everyone tp is in no mans land and no place to run and hide. If only he had waited about 4 more months. Oh well can't undo what he already did. Any way thanks to all who helped as differed annunities have their own set of rules.

The ins co did not charge a penalty. The 5329 is kicking in and I was looking for a way out of some of the penalty. Tried looking at all the exceptions but don't believe he will be able to meet any of these. Thought exception 1 might work but cannot read this to apply in this case because it tends to read distribution from a Qualified annunity not a nonqualified annunity. Does this seem to be right?

Hey Catherine, keep looking I would like to see that cartoon. But giving all the info above would we still need auditors?

I agree with Jack. I add the ext to the name and then roll up the prior year for use as a finish return. Sometimes I duplicate the ext return and use this copy to finis out return. This way I can see where I may have missed the ext amount without messing my ext return. I keep the ext return marked completed so that it will not change.

Can some one check me on this. TP age 59(not591/2). tp's wife died 2 years ago left him 400k in life ins. TP took and bought an annunity with this money. TP lost his job June 2015. Continued to pay cobra ins thru rest of year. Not enough medical to exceed haircut #. I know he owes the tax on the wd (1 wd of 8k after losing job) but would he owe the penalty?

Hey all what I have is a H&W s corp. The corp is selling its building and all assets inside building, inventory and the goodwill of business. The H&W are holding onto the cash, and the AR. Wouldn't the sale price be allocated to Inventory, building and assets, and goodwill in that order. What would I do with the cash and ar since H&W are turning in their stock for the cash and the AR? Any thoughts.

I need a possible what do you think answer. H&W own 100% of S corp. A person approached them to possibly buying the business lock stock and barrel only retaining the name for continuance of the type of business. Thought 1: Corp sells every thing to person that want to buy getting all cash, then liquidating stock of H&W. Thought 2: Have person that wants to buy, buy the H&W's stock for same $ that they would be paying in thought 1. It appears that Thought 1 creates sales of all assets with recaptures of dep and capital gains out the ying yang. It appears that thought 2 would be just a sale of the stock. Still will have CG out the ying yang. I am only seeing the sellers side since the buyers side has their own tax people. What would be your advice if you are seeing only the seller side. BTY H&W are in their mid 70's and just want to get out? Not that this has any bearing. They just want to keep things as simple as possible.

Total value of the estate was about 125k including a small life insurance paid to the estate. What was triggering the 1041 was dividends received and sales of some stock to pay out expenses during administration with some income left over.

My brain is already cooked due to summer heat. Life insurance paid to the estate. No estate return required., But a (first and final 1041) is being required. Would the life insurance benefits be included in the 1041 as income to be passed out to the heirs? Beneficary on life ins forms said payable to the estate. Your thoughts please.

Figured it out. HD took a hike into never never land. I had 3 for such items. What do you think about the new ssd drives for backup and such?

Partnership had a technical termination on 12-31-2015. The way I understand I would on form 1065 on line g check the #2 box and the #6 box. Since the new partnership would begin the next day 01-01-2016 I would not have the new return due until next year. This was a calander year partnership with 2 partners, no assets except cash (2100.00) at year end. Daughter-in-law bought father out on 12-31-2015. This is what the attorney instructed them to due to avoid having 2 short years. Partnership still doing the same kind of work as before no change there and no employees. Gross income has been about 40k for past 10 years with son being guaranteed salary(does 95% of the work) which has always left a little in the bank at year end. This arrangement will continue on. Am I ok on the fact that a new partnership filing will be due next year using the same FEIN? Do not want any of those nasty penalties for not filing. What are your thoughts? BTY I saw a copy of the check paid to father. It is dated 12-31-2015 and cleared bank on 01-04-2016.

It was a joint account. Daughter is only heir. Rest of estate was POD to daughter. My concern was being able to efile that return. My thought was that he was alive when signed so should be ok to send on.

Ok what will you do. Sent client 8879 for signature. TP signed and sent back(by mail). TP died the day b4 I got the form back. Can I still efile this return becaused he signed it b4 he died? TP is single. Refund was to b DD into his bank account which had his name and daughters name on it. Account remains still open.

Anyone experiencing problems exporting to an external hard drive? It appears I can export to a USB drive but not to my take home hard drive. All occurred after the update.

An attorney that knows estate tax law in your state is an absolute must. I have seen the things blow up after one spouse dies thinking I get it all.

Thank you. Yes this was an odd return and getting a set of numbers I could live with was painfully irritating.

Can someone check me? Net sch c $7909 btw this is MFJ no kids line 22 total income $26902 Non taxable ss $24299 line 27 se adj 559 IRA contribution 13000. Wife has wages. 1095a 33A 15885 33b 15885 33c 13536 What would be my realistic Self employed he ins# and would there be a pay back. For some reason I am getting SE ded more than they actually paid 195.74 x 12= 2349. Thanks for any insight you may be able to give.

I have about 80 extensions in house. Am I normal. What seems to be your average if you care to share.