Corduroy Frog

I don't know why that happened. I've seen a few Schwab brokerage statements this year, and only one where the qualified dividends were split out differently from the ordinary dividends. I don't know why that happened, and possibly Schwab will issue a corrected copy. This post is a different situation from the one described above - why I began a separate discussion.

I prefer someone who charges based on a percentage of portfolio value. That way they prosper if you prosper, and suffer if you suffer. The sure-fire way for rewards to follow performance. Generally a percentage over 2% is too much. I have seen so many statements showing $1500 as dividend income, and custodial fees of $1800. Customer is being duped.

A new topic, because the issue is different. Schwab is not doing anything wrong (perhaps). Sat down to two Schwab Brokerage statements: The first is 1099-DIV: starts ABC $96.00 DEF $128.00 GHI $144.00 .....All "qualified". The second 1099-DIV: starts ABC $96.00 DEF $128.00 GHI $144.00 .....All "qualified." Dealing with a duplication, right? So ignore the second document and put it away. Not so fast. We notice another listed company XYZ $118.00 on the first statement, and $128.00 on the second statement. Yikes!! What's happening? Schwab bought out TD Ameritrade. Didn't wait for year-end, bought out during the year. Some companies kept their quarterly dividends the same. The afotementioned ABC paid $24 four times during the year, twice under TD Ameritrade, and twice under Schwab. In like fashion, the others did the same. However, XYZ paid $59 twice under TD Ameritrade, but then increased their dividends to $64, and then paid twice under Schwab. Total $246. So at first glance these two brokerage statements from Schwab appear to be duplicates. They are not. Taxpayer must report the total of BOTH statements as income.

Tom, it might be the biggest one out there -- Schwab.

I thought so Brew. The issuer is a major stockbrokerage company.

Assume FROG Mutual Fund dividends are $100, with $90 being "Qualified".. I am accustomed to seeing Dividends reported in the following manner: Frog Dividends $100, Qualified Dividends $90. But now I am seeing a 1099-DIV as follows: Frog Dividends $10, Qualified Dividends $90. Has something changed this year, or is the issuer of the 1099-DIV improperly reporting?

Tom, you make sense. I'm going to file the girls return for free with explanation, as her parents have paid me handsomely.

Thank you. Item 3 on the link defines the "gain" and not the "selling price."

Parents have a stockbrokerage account for 10-year old daughter. Dividends were minimal ($200), However one of the securities sold for $7000. The gain on the sale was $500. The "taxable income" (before std deduction) from all this is only $700. However, the "Gross Income" well exceeds the filing requirement. Is the daughter required to file? TTB only states "income." Depends on the definition of "income" I would think.

Any way he could take a deduction for "Theft"? Not as a casualty as in the old days, but if he has a business it might work.

When we applied, the user fee was $1200. The cemetery does well to receive $300 per year.

I was (unfortunately) appointed Treasurer of our family cemetery. I do know that the IRS does not challenge the deductible contributions to a church, but outside of that, I believe the only way to assure deduction for anything else is to exercise Form 1024 for a 501(c)3. I tried to do that for our cemetery association, but the IRS sent back the 1024 asking for a huge user fee. More money than donated revenue for five years. We declined. We do have a FEIN but I've told donors that the deductibility of their contributions could not be guaranteed. So few people in Tennessee are able to itemize anyway so it makes little difference to them.

Going back to 2018, the employer would have been required to add to his W-2: the difference between FMV and the purchase price. His basis should therefore be the FMV as of the purchase date in 2018. This assumes there have been no subsequent activity for those shares between 2018 and the selling date of 2023.

Thank you. I did query the Tax Book, but could not find where Guaranteed Payments were addressed with respect to QBI.

For an LLC filing as a partnership Guaranteed payments to partner - $40,000 It is treated as an expense to the partnership, but is income to the partner. Does the $40,000 reduce the QBI income of the partnership? Doesn't seem like it should if W-2 wages paid by the partnership doesn't reduce the QBI.

Has probably been asked before, but the board is very active these days. What about the well-publicized change for more "Additional" Child Tax Credit and 100% Bonus Depreciation? Has this happened yet? I'm holding a couple tax returns waiting, and for Drake to update when it does... Thanks,

From Judy's post: with the husband paying the mortgage from an account solely in his name, he would get the entire interest deduction, and she would have to itemize even though the standard is higher. I have been aware that if he itemizes, his wife must itemize even if not having enough to meet the std deduction. The question centered around his ability to claim all the interest even though the bank has made both of them responsible for the loan. Reading Judy's post, it appears he can do this, so long as he is paying from an account in his own name. Thanks to all for responding.

A married couple wants to see if they can save any taxes by filing separate. Their incomes (all W-2s) are almost equal. Husband $51,500 Wife $52,000. Should help quite a bit. Husband has paid ALL home mortgage interest himself, out of his own checking account. Wife has paid some taxes and charity, but not enough to meet the standard deduction for MFS. Sounds good? Well,,,,maybe. The husband has paid all the interest himself, but the loan is the responsibility of BOTH parties. What say ye?

All of you are correct. Problem solved. Thank you.

Remember all those PoP-Up ads that were a nuisance, so you had to get an ad-blocker? They seem to work. Except for Google. I can't even call home or go to any website that Google does not block my screen trying to sell me their latest service. I've always been a subscriber to the idea that "Big money ruins everything it touches." Everything from Professional Sports to Radio. I apply this mindset to Google also. Obviously they are not my favorite. Why should I have to put up with Google every time I crank the car??

The standard mileage rate includes a portion attributable to depreciation. Does the link include that information? Never mind, I did find it in the depths of the verbiage. 28 cents in 2023 and 30 cents in 2024.

I am confused. Looking back at the seminar materials, apparently what I had reference to was a 481(a) Adjustment, where the recapture of "allowable" depreciation can be minimized by the use of Form 3115 to change methods retroactively. The 481(a) adjustment could also be used to increase recapture and add to taxable income, if circumstances benefit the taxpayer having more income.

This may sound bizarre, but I think at a recent seminar, a new form was introduced, whereby all of the prior depreciable amounts are added to income, but the accumulated amounts plus current year is allowed as a deduction. There were pre-qualifiers. Sorry, I'm having trouble remembering the special form.

So true. I remember meeting Phil in 1982 on his way out the door to go deer hunting in N Carolina. He was working on software at the time, and for most of the rest of us, electronic filing was a far-fetched dream.

Dennis, customers are people you have to meet where they are, not where you would prefer them to be. I have to stick to this axiom with most of my tax clientele. Some of them, if they have ascended to elite status, really wouldn't need me. Those who have difficulty of grasp are those who need me the most.