Yardley CPA

While it may result in more accurate withholdings, do they truly expect tax payers to understand what is required by the new form??

Assuming the income stays in the estate, and the rental income for 2018 amounted to just over $500, does the estate pay the tax on that with the 2018 1041?

A Small estate has rental income through a Schedule E. Can the estate pay the tax on that income on the 1041 or must it be reported to the three beneficiaries via their K1? I have little experience with estates, I was under the impression it needed to be reported to the beneficiaries on their K1? No? If it can be paid by the estate, is it a selection made on the 1041 itself?

Where do I report 1099 OID for bonds purchased after 1984? In ATX is simply input on the 1099 INtT form Box 1?

Can Form 3115 be used on a 1041 return?

An update to my previous post. The rental has been in existence since 2014. Has not been depreciated since it's inception.

1041 return. Small Rental property included in the Estate which started in 2017. The previous preparer did not take depreciation on the rental. Home value is $240,000 with approximately $40,000 of that amount being land. Even without the depreciation expense, the rental had a small loss in 2017. The only activity in the estate is the rental. What's the best way to rectify this? Amend 2017?

I've also used zero as the basis. With that said, here is an article that offers the basis as the IPO value: http://www.costbasis.com/stocks/demutualizationshares.html

Great suggestions. Thank you.

If this post needs to be moved to the off topic section, so be it. I wasn't sure. It's been a season of odd circumstances, today is no different. If you have a MFJ couple who have been long time clients. All information they have given you in the past looks to be 100% legitimate, W2's, 1099's, mortgage interest, real estate taxes...etc. The wife passed away two years ago. The "husband" remarried. All the previous information given to me in the past was given to me again this year in the way of W2's, 1099's etc. In addition, I'm told that the new spouse received payment in the form of cash amounting to $1,578 and he would like to claim all of it on the return. There was no 1099 Misc issued and I recognize these payments should be made through payroll. He indicated it was casual labor and she performed various duties at a restaurant. I'm not comfortable with this situation and I will not be preparing the return. However, it has me wondering...what happens if the return is prepared and the "cash" is included. How does the IRS treat treat this? Assuming it's placed on a Schedule C and does have self-employment tax calculated. Is the IRS looking to match a 1099 against this income? How is it scrutinized? What ramifications does the preparer face?

So would the transaction be a Schedule D item showing the basis as $120,000 and the proceeds as $120,000?

Sorry...It's Children. The Mom willed the home to her two children. They are the siblings. Just wanted to clarify that.

Siblings inherited deceased Mom's home through her will. Basis is the fair market value at date of death, correct? In any event, the pair of brothers determined, through use of nighborhood sales records and consultation with a realtor, that the FMV was $240,000. One brother paid the other brother $120,000 as he wanted to take ownership of the home. There is no 1099-S. There is no "gain". I believe the property was deeded to the one brother after this transaction took place. My client, MFJ, is the one who received the $120,000. Based on these facts, I'm wondering if this impacts his return? I don't think it does and don't feel it needs to be included but wanted to see what others feel? Thanks!

Basically the same thing, but is texting a picture of the signed form acceptable? I've had a few clients do that.

Thanks for your reply, each of the parents gave each of the kids. No foreign person involved.

The parents who gifted are my clients as well. Lion...would something need to be done for them given it's within the limit?

MFJ Couple received $50,000 in 2018 from one set of parents. Dad gifted $12,500 to each "child" and Mom gifted $12,500 to each. The gift tax limit in 2018 is $15,000. Based on these facts, I do not believe gift tax comes into play here. Do you agree?

Thank you both for your comments. Much appreciated. HOH causes me headaches at time with divorced parents.

Hoping someone can verify this for me. Divorced Parents. Divorce decree claims parent's alternate taking child as a dependant. Child lives with Mom fulltime. Can Mom claim HOH during the years Dad claims the child, assuming Dad is not claiming HOH? What if Dad is remarried and claiming MFJ? Can Mom still claim HOH?

I do have a call into the client to get some clarification. Assuming it is just that, an appearance fee, I assume it should flow to Other Income? No opportunity to take any fees against it?

Single client appeared on The Peoples Court. She one her litigation and received a 1099-Misc, Other Income, for the amount, $1,429. She also incurred expenses including travel and other administrative fees to appear. I assume none of that is deductible? Maybe if I created a Schedule C but this doesn't seem like a Schedule C to me. Thoughts please.

Using ATX...where do you include the deduction of Social Security Part C - Medicare Advantage Premiums. Any idea? First time I've seen this deduction.

Newer client rented a room in his home starting in 2014. That year, HRB prepared his return and set-up a Schedule E. Purchase price of the home was $220,000. HRB shows rental basis of the room as 34,000, about $15% of the purchase price. Client has now sold the home for $400,000. What amount would be attributed to the "Rented Room?" 60,000 (400,000 x 15%)?

I've needed chat a couple times this year...worked very well both times. Minimal wait and very knowledgeable reps. Good luck.

You tried rebooting? I read in the official forum that backing up to a D drive may be an issue.