mcbreck

You never answered why the estate couldn't pay the capital gains tax in the final year and the process of the administrator isn't relevant as we don't know all the details. I don't see a reason to disparage their job since there are very logical reasons not to close out an estate. What if one of the minor children was living in the house until they reached a specified age? What if they were waiting for the settlement of a lawsuit or insurance settlement?

Why would they be prohibited from paying the tax in the final year of an estate? The 1041 shows the required minimum income distribution, it doesn't declare that all other assets have been distributed. Estates have 65 days after the due date to make their income distribution payment anyway. If an estate pays the tax, the required minimum income distribution is $0. Lots of estates and trusts pay the capital gains tax because they don't want disabled beneficiaries showing income on their personal tax return.

I wonder when the last time was that they increased that $300 threshold. That figure should be more like $1,500 per person on dividends and interest reported on a 1099. At least most 1099's are now breaking out foreign dividends paid so I don't have to spend 20 minutes searching for them and adding them up.

Isn't that our job? It's a completely appropriate maneuver if done correctly. If the receiving firm coded it correctly, the IRS already knows what happened.

Personally, I'd use 5329 and exception 12 (other). This is one of the rare instances where I'd upload a pdf proving the contribution is within 60 days. The 1099r has the date of distribution so you can upload a copy of their statement showing the deposit. There is no need to move it from a 401k to a traditional IRA and then a Roth IRA.

I know last year you could spread your taxation of an early IRA withdrawal over 3 years - that's not available for 2021 withdrawal correct? I'm not seeing it anywhere if it was extended.

I've been told in continuing education seminars and by outside auditors that it is reasonable to smooth out income and expenses if they are meant to be received or paid but are delayed slightly. For example you receive the January rent check which was due Dec 31st on January 2nd, it is okay to include it for tax purposes as having been received Dec 31st. That way each year gets 12 rent checks. Same as if a payment was supposed to be made Dec 31st but the bank didn't actually submit payment until Jan 2nd you can include it as having been paid Dec 31st so that you have 12 months of payments. It's reasonable and expected to smooth out the payments for short time period differences. And no I don't think you'll find that in the IRS Code. If you are in a regulated industry it is very likely your regulator will not accept this timeline change.

The web version doesn't come with any business return capability.

The CPA in the office next to mine (a world class jerk so keep that in mind) requires all clients to sign a POA every other year and charges everyone $125 for that "service". Sometime over the summer he has his grand daughter come in and scan each and fax them to the IRS. If it's this year, he does the POA for tax year 2021 and 2022. In 2024 he does it for tax year 2023 and 2024.

When I've submitted an 8821 request (via the secure access site) it still takes a long while to get the transcripts delivered. I don't understand when people claim they are delivered instantly.

JMO but the security of the cloud isn't my major concern, it's Drake going out of business (for the cloud issue). Even there I believe Drake would be sold - they've received a significant outside investment already so just going poof is very unlikely. My question really is if the product is fast / slow and if it's significantly different from the desktop version. I'll process their demo after the tax season. My major cloud issue previously was that occasionally I go work at client's homes / offices and I couldn't count on internet access but that's not so much an issue anymore. The web version of my current software (I don't use it) is horrifically slow. The ability to never have to worry about updates, my computer dying and ease of working from home without taking my laptop with me would be nice. My laptop dying is a major business risk. That's probably 2 days of work gone. Loading all the old software is a pain.

Anyone use Drake ZERO / Web on here instead of the desktop version? Wondering if there is any reason to not move that direction. Per the demo I watched, it's a VERY different interface from the desktop version.

I have 1-2 boxes per year and I just take them to my wife's employer (a major university) when they have their yearly shredding event. My bank also has events for free and Office Depot has a shredding service for pay. About 2 years ago I had a company come out and we cleaned out 12 filing cabinets with old useless files. I have about 30 huge binders / ledgers from the 1940's that are freakishly heavy duty (and 7" thick) and need to be destroyed but my co-worker is against it for now. If i did it, I doubt he'd even notice. He can't even physically lift them.

Thanks for that.

I'd tend to agree with you. I'm reluctant to make large tax payments today to benefit from lower taxes when I'm 80 years old and may have medical expenses to wipe out the tax bill. JMO. I also think if you have something like $200k saved for retirement, you are better off spending all $200k and delaying SS as long as beneficial to lock in the highest payment possible. Most people look at it in the exact opposite way.

Congrats - I used Gleim back in the pencil days. I joined the NAEA and cancelled after 3 years as my state chapter was completely incompetent. Mailings were sent out AFTER events happened which made be think it was probably on purpose it happened so consistently.

50% of Americans retire with about $250k in retirement assets or less. They would be better off with a traditional IRA because most likely their IRA distributions (if timed properly) would achieve $0 in taxes or very little. My in-laws retired with those type of funds and never paid a dollar in income taxes after retiring at 62. He could have easily had more like $350,000 because he ran out of retirement funds at 82 years of age. Did the taxes for a lady about 2008 and she did a Traditional to Roth conversion and paid taxes on her distribution (while she was still working). When I told her this she yelled at me - not her CFP who suggested it. Blanket statements rarely work, you need to look at the situation and run the numbers. I have another client who doesn't have an IRA but his money is invested in dividend paying stocks (all qualified) and some muni bonds. He also pays $0 in federal tax (he does owe at the state level). He has a very comfortable retirement. Investing in a Roth IRA could have benefited him (avoid potential capital gains realizations) but he never sells so it doesn't matter.

Like in your paragraph two - I'd enter the 1099-G, back out whatever needed to go on a different form and put notes in the return. I put the notes as much as possible right in the lines where I enter them manually so it shows up on our "Statements". When I started doing taxes I'd skip some forms and enter directly - almost every time we'd get a tax amount due letter as the IRS would just add the income because we failed to report the form. This happened to me when a company I work with sent me a 1099 in April and I'd already filed my own return. I had included the income so I just did an amended, added the 1099 and reduced my sales by the same amount and the IRS was fine with it. Now, I always wait for their 1099 even though I don't think they are required to send me one.

This is the exact answer.

You could use Linux. Much like with MAC OS, you have to run extra software to run Windows programs in sort of an emulation mode. I've considered learning Linux but I don't have that big of a problem with Windows and there are tons of Linux variations - who has the time? If you are worried about Windows 11 not being compatible enough with your tax software, you probably don't want to run Linux or any of the other open source programs. It's not covered in the media very often but MAC OS has a ton of security problems and it also has virus problems. Hackers generally go to the largest platforms available because it gets you the biggest bang for the buck but MAC is big enough that it has these problems.

If Congress doesn't pass the BBB which would (most likely) extend the Child Tax Credit as it currently exists - would the Child Tax Credit no longer exist at all or does it revert back to the previous system as a credit on your tax return instead of a larger prepayment?

From what I read this morning, I was wrong. MS is doing away with the "default browser" selection and it will always be Edge going forward unless people freak out enough / the government warns them of anti-trust violations.

Just checked a pdf with a link - opened in my default browser. Now I have an insatiable desire to do all my internet searches via my start menu.

I could be wrong but I think the MS search issue is only if you search the internet via your start menu. I don't know that I've ever used that to search the internet.

Sometimes, sites have a problem with Firefox when you have certain ad ons like an ad blocker or pop-up blocker. I think my biggest with any browser is the pop-up blocker. Sites will have a "click on this" acceptance box and the browser will block it and thus the entire website. I log into a University library and oddly, only Internet Explorer works. Literally nothing will open unless you open with IE and EDGE must be using IE Mode. The biggest oddity I've seen with Windows 11 is that you tell Edge to use IE Mode on a website (you have to physically add it to a list) and then every time you visit the site it gives you a warning that you are using ID Mode. Duh? I find that stuff just frustratingly dumb.