Kaye Thomas

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  • in reply to: Another wash sale question! #7343
    Kaye Thomas
    Moderator

    Assuming no other transactions, you would be able to claim the entire loss on sale of the second lot of shares. The loss from the first lot is disallowed, but the disallowed loss is added to the basis of the second lot, doubling the loss on that sale from $1,000 to $2,000.

    Inverse ETFs would not be considered substantially identical.

    in reply to: Refund applied to estimated taxes #7261
    Kaye Thomas
    Moderator

    It applies to your first quarter estimate. If it’s large enough to cover that estimate, you don’t have to make a payment for that quarter.

    in reply to: Deceased parent 2019 how to report #7249
    Kaye Thomas
    Moderator

    Form 1041 is used to report information relevant to estate tax. Because your father was not wealthy, you don’t have to file it except in the unlikely case your father had a beneficiary who is a nonresident alien.

    in reply to: Using AMT Credit Against Schedule E Income #7236
    Kaye Thomas
    Moderator

    There is no restriction on the types of income that may be used for this purpose. However, once you have enough income to use up the AMT credit, long-term capital gain is no longer useful because it is taxed at the same rate under AMT as under the regular tax.

    in reply to: Inappropriate Posts #5556
    Kaye Thomas
    Moderator

    Thanks for the message. We remove those posts as soon as possible after they appear. Also, the credentials used to create them have been revoked.

    in reply to: Fairmark Forum Last Posting Date Often Wrong #5467
    Kaye Thomas
    Moderator

    Thanks for the message. These updates are done automatically through our message board software. It seems likely that if you are not seeing an immediate update, it is because an older version of the page is being stored by your browser in its cache or on the server used by your ISP to supply the page. This issue is beyond our control.

    in reply to: Whether to file 6251 #5308
    Kaye Thomas
    Moderator

    The “Who Must File” section of the instructions serves two purposes: getting people to file the forms the IRS wants, and discouraging people from filing forms they don’t want to receive. There’s nothing to be gained by adding this form to your return.

    in reply to: time share sales #5130
    Kaye Thomas
    Moderator

    You may receive Form 1099-S related to this sale. If so, you need to report the sale, showing the loss as nondeductible with code L on Form 8949.

    in reply to: time share sales #5121
    Kaye Thomas
    Moderator

    Did you personally use this timeshare? No deduction is allowed for a loss on property bought for personal use. Unless this timeshare was bought exclusively as a rental, the loss is nondeductible.

    in reply to: Part Year Resident – Taxation in 2 states? #5118
    Kaye Thomas
    Moderator

    Part-year state returns are complicated. One of my partners said he told clients they could move only on January 1.

    The general rule is that earned income is taxed only in the state where it was earned. However, the a state may take into account your overall income, including income sourced in another state, in determining the tax rates that apply to the income being taxed by that state. NY will not tax your earned income from before the move, but that income may cause you to pay more tax on the retirement income you receive after the move.

    in reply to: Medicare IRMAA lowest bracket threshold amount for 2021? #5020
    Kaye Thomas
    Moderator

    Looking at the Act, there is no clear indication that it can’t go down. The inflation adjustment is based on the amount by which the index exceeds the index for the year ending August 2018. If we were to have a year of negative inflation, the 2021 index figure could exceed the 2018 figure by a smaller amount than the 2020 figure. To the best of my knowledge, there is little if any expectation of negative inflation (or deflation), and the Federal Reserve would act vigorously to counter that possibility if it appeared likely, but as far as I can tell there is at least a remote chance the IRMAA figure could decline.

    in reply to: Timing of filing a form 8606 #5019
    Kaye Thomas
    Moderator

    More simply, the reason not to do this is that you are acting contrary to IRS instructions. They tell you to file it with the return unless you aren’t required to file a return for that year, and if you aren’t required to file a return, they tell you to file at the same time and place you would file Form 1040, which means after the end of the year. It’s unwise to act contrary to IRS instructions without a strong reason for doing so.

    in reply to: Chapter 27 – ESPP Tax example question #5011
    Kaye Thomas
    Moderator

    This is a continuation of an example in which the stock value at the time of the grant is $10, and the plan allows a 15% discount on the purchase price. The law provides a peculiar rule here. It says that if you satisfy the holding period, your compensation income is determined based on the amount of discount you would have received as of the grant date, which in this case is $1.50. You’re required to report that much compensation income even though the actual discount received is only $1.20 because we look back to the discount you would have received as of the grant date.

    in reply to: Forum Swallows Replies? #4959
    Kaye Thomas
    Moderator

    Thanks for the post. Sorry for the inconvenience. AFAIK, there would be no problem if you reply more than once to a post as a way to provide more than one link, in a case where that would be helpful.

    in reply to: Last Post Date Not Synched….Forum & Sub-Forums? #4930
    Kaye Thomas
    Moderator

    I’ve discovered there is some kind of glitch in our forum software, which may be why we’re seeing some unusual behavior. I’ve requested help from the forum for this software. Unfortunately, although this software has a good reputation and is used on many websites, it’s maintained by volunteers who do this in time they can spare from their main jobs.

Viewing 15 posts - 1 through 15 (of 98 total)