mcbreck

It's sad how horrific the IRS is at technology. Is it the "too many chefs in the kitchen" problem or too many people not wanting to actually take responsibility so they all require too many chefs so that no single person can be blamed?

Options and Derivatives are legally binding contracts. Repos, reverse repos, swaps, commodity futures.... There are a lot of really smart people out there.

Tracy Alloway (Bloomberg and the Odd Lots Podcast which is AMAZING) made a really good comparison of crypto with Beanie Baby dolls. Beanie Babies had someone who distributed / sold a price sheet that everyone used to price them as if it was their real value. Prices just kept going up and nobody really questioned it because it was on the list. If someone said that Beanie Baby wasn't worth $30, they could point to the list. Crypto had a price list but turned out it was all manipulated just as much as the Beanie Baby list. FTX was buying on one board and selling on another to themselves at higher and higher prices to justify getting more and more loans on their worthless asset. They bid a coin they owned almost all of up to over $50 each (total value of $9.6b) and now it's priced at $.87 ($300m) and has a value of $0. Warren Buffet said that if you owned all of the Bitcoin in the world and offered them to him for a total price of $25 he'd decline.

Thanks - didn't have a clue that wash rules wouldn't apply. Seems odd since the SEC is looking at regulating some of them as securities.

$4b is what they paid. Current value is $2.19b

Microstrategy holds $4b in Bitcoin and announced they sold some and bought some in the same week. The corporate press release says there might be some tax benefit to such a trade. How? Wouldn't wash rules wipe out any potential capital loss recognized? Am I missing something where C-corps don't have that rule? They have roughly a 50% loss in their Bitcoin holdings so I'm not sure if the $4b is what they paid or what they hold. My guess is a margin clerk sold some coins on a margin call and they got a new loan and bought some back.

Merry Xmas to all. With the weather today I've stayed home and am reading a pdf copy of The Logic of Subchapter K I found online. We'll see how this goes.

Why would an S-corp have a different set of rules to this extent from that of a partnership? I don't have any clients with foreign business so I'm not worried.

Assuming they are still married, call the husband or send him a letter directly. In the securities industry, we are required to get a signed form which is the client's Trusted Contact. You can contact that person in a situation like this but not in any other non-emergency situation. You need to contact the husband and see if he can aid, is aware of the situation and maybe there is a family member you can be given for future problems. Once you have dementia, it rarely gets better for a long period of time. The medication might help for a while but eventually it stops working. If the husband isn't an option, see if the friend knows of a child. I think you have an ethical responsibility to contact family members as much as possible and let them know a problem is developing.

If you buy something and then sell it at a profit, that's a short term capital gain. It's going to be taxed as ordinary income so it doesn't really matter if you put it on "other income" or list as a short term capital gain. I think your record keeping should be the same to prove your profit. If you buy a rehab property, rehab it and sell it the common reporting is a capital gain. That doesn't mean it shows up on a 1099b. Be sure and include the EIN with the capital gain so the IRS can link the 1099-k.

If you have a gain, I'd report it on the Schedule D but I think if it's not a gain you still need to report is on the tax return. That's what I listed above. For example if you are selling junk on Ebay or Facebook to clean out your basement, you'll receive a 1099-k that isn't for a profit.

The 1099-k can be taxable and the IRS has a copy of the form so how do you just ignore outlining it on the fed 1040? Individuals could be getting 2-3 of these easily for personal transactions or business transactions and I'm thinking the IRS instituted this reporting requirement because they want to receive an explanation. H&R Block has this: Personal transactions – You’ll report the amounts form your 1099-K on Schedule 1 (Form 1040), line 8z. You should include the Form 1099-K’s issuer’s name and Employee Identification Number (EIN). On the same form on line 24z, you’ll subtract the same amount. Again, you should include the issuer’s name and EIN. IRS has this: Form 1099-K includes the gross amount of all reportable payment transactions. You will receive a Form 1099-K from each payment settlement entity from which you received payments in settlement of reportable payment transactions. A reportable payment transaction is defined as a payment card transaction or a third-party network transaction. Intuit has this on their site: If you receive a 1099-K with reportable transactions, you will need to claim those amounts on your tax return to avoid receiving a CP2000 notice from the IRS after filing. However, if you are sure the amounts are not taxable income to you, you can create an offsetting "other income" entry as a negative amount, and "Gifts reported on 1099-K" in the description line.

As I understand if it's personal / non taxable you report on Schedule 1 line 8z and then you back it out as personal on 24.

I'd like to be judgemental on people not doing things correctly with funding their trusts but our checking account and savings account are still in our joint names. When Covid hit, it was a pain to get into the bank so we've never made the switch. My wife is off next week, that might be our goal!

IRS website says if you received a 1099-k and it is not taxable, you should report it on Schedule 1 line 8z and then back it out on 24z as non taxable. In Drake it appears you have to enter it manually on the lines? There isn't a 1099-k form? When I go to 99k, it says it is only to be used for State purposes and will not be entered on the federal return. Is this all correct? I'm anticipating a lot of people receiving 1099-k forms this year for non-taxable events but maybe I'm wrong.

Yep. I've had many cases over the years where someone applied for the EIN and the IRS mailed them a letter 2 years later wondering why nothing was received. I spend more time on the letter than I do a 1041 showing $1 of income.

Maybe I'm confused. Are they filing a 2022 tax return showing this capital gain via the 1065?

I wrote our own trust agreement. Found a Stanford Law book online which had sample trust documents and modified it for my own usage. As with all of you I had a bunch of copies of some client's trusts and I compared them, they are all exceptionally similar except for special issues. Some are in easy to understand wording and some use ol English phrases but the crux of it are all the same. If you have a lot of assets, special assets or special situations (disabled child, step children, dependents with special management needs...) you should meet with an attorney.

An estimated tax payment is not required to be made. https://dor.mo.gov/faq/taxation/business/entity-tax.html They need to pay the tax on the 1065 (make the election) and pass thru the credit.

Will commercial real estate ever return to where it was prior to Covid? I read San Fran commercial space is 40% unused. Locally we are probably in the same situation but they are saying a BUNCH of the buildings are off-market so they aren't included in the available space. I had to go to our downtown for a jury duty appearance last March and I thought it would be a great time to eat at one of the restaurants I used to eat at every week when I worked down there. None of them were in business still. The buildings are mostly empty so all the restaurants are closed.

If last year's copy of the guide is good enough, you can download it for free via Paychex. You set up a free log-in, go into the guide and when you try and download it the site will email you with a link to download the entire guide.

100% agree.

Malware has been for sale on the TOR dark web for years. The CIA had a suite of spy software and it was stolen and put on the web for purchase. https://9to5mac.com/2017/03/07/cia-ios-malware-wikileaks/ A long time ago (18-20 years ago?) the US Government / CIA used malware to get into the databases of Petrobras the Brazilian oil company. They then gave it to US oil companies so they had an advantage in negotiations.

Nope. They do offer a digital version (first year for that) but I can order as many copies of the book as I want for $30.38 per copy.

I have 1 Master Tax Guide book from a few years ago. The company I work with offers them for $31 each and I bought 20 and handed them out to attorney's and it became obvious nobody really wanted them.