2017 tax year. Tax time with HDO

[HDO45331]

...........and go.

(I talked to SL)

[sancarlos]

Thanks for doing this, bud.

I'm effectively retired, but I have a lot of unrealized gains on investments. If I sell some stock and realize a large gain early in the calendar year, do I have an obligation to make an estimated tax payment?

Thanks. Happy trails to you.

[Steve of phpBB]

This is for 2018, not 2017, but should my seven-partner law firm convert from a C-corp to an S-corp to get the new pass-through deduction?

[HDO45331]

Thanks for doing this, bud.

I'm effectively retired, but I have a lot of unrealized gains on investments. If I sell some stock and realize a large gain early in the calendar year, do I have an obligation to make an estimated tax payment?

Thanks. Happy trails to you.

Generally, you need to have as much tax paid/withheld as the previous year, for the safe haven, and this needs to be done ratably over the year(quarterly.) If you have investments with losses, it usually is a good idea to sell them, to net your gains. If you think the investments with losses are going to rebound, wait at least 30 days to repurchase them.

Not knowing all the ins & outs of the new GOP tax law, I do not know the full tax treatment of capital gains for 2018.

[HDO45331]

This is for 2018, not 2017, but should my seven-partner law firm convert from a C-corp to an S-corp to get the new pass-through deduction?

For the most part, I have no idea how the 500 page new tax law will work, and I have not had the time to fully research it.

There are special laws concerning professional corporations.

Also, I believe the deduction is also for corporations, as a deduction before income tax liability.

[govmentchedda]

This is for 2018, not 2017, but should my seven-partner law firm convert from a C-corp to an S-corp to get the new pass-through deduction?

Curious why you guys would be C in the first place. We're 3 partner, 4 associate, and have been S forever (10 years). Seven partner, twenty associate may be a different animal.

[The Sybian]

This is for 2018, not 2017, but should my seven-partner law firm convert from a C-corp to an S-corp to get the new pass-through deduction?

Curious why you guys would be C in the first place. We're 3 partner, 4 associate, and have been S forever (10 years). Seven partner, twenty associate may be a different animal.

I've successfully blocked out the years I worked in the business law firm, but I think some states have a greater benefit to take S-Corp than other states. I know in NJ, an LLC was always the best choice, yet a lot of people refuse to listen to reason.

[Johnnie]

My deployment ends in July. I'm told I automatically get a 180 day extension from the day I get back because I'm in a combat zone (not the one in Boston in the 70s, unfortunately).

Is that true? Also, how do I prove the dates when I was gone when I get back? My orders or travel voucher? That means my date for my 2017 taxes to be due is roughly January 2019. I meant to ask my finance office, but I don't really trust them.

Thanks!

[HDO45331]

My deployment ends in July. I'm told I automatically get a 180 day extension from the day I get back because I'm in a combat zone (not the one in Boston in the 70s, unfortunately).

Is that true? Also, how do I prove the dates when I was gone when I get back? My orders or travel voucher? That means my date for my 2017 taxes to be due is roughly January 2019. I meant to ask my finance office, but I don't really trust them.

Thanks!

I would think that either orders or travel voucher would do. Just looking for a date.

With the thousands of dollars you probably get back, you should file asap. (orange font here)

[Steve of phpBB]

This is for 2018, not 2017, but should my seven-partner law firm convert from a C-corp to an S-corp to get the new pass-through deduction?

Curious why you guys would be C in the first place. We're 3 partner, 4 associate, and have been S forever (10 years). Seven partner, twenty associate may be a different animal.

I don't know why that form was chosen - it was like that when I got there. We have 6-8 partners but only a few associates. We just pay out all the money we make each year, so we never have a profit and never have to pay corporate income tax.

I think we may do it that way because our compensation system relies on a formula based on receipts, instead of being distributed based on a percentage of stock ownership.

[govmentchedda]

This is for 2018, not 2017, but should my seven-partner law firm convert from a C-corp to an S-corp to get the new pass-through deduction?

Curious why you guys would be C in the first place. We're 3 partner, 4 associate, and have been S forever (10 years). Seven partner, twenty associate may be a different animal.

I don't know why that form was chosen - it was like that when I got there. We have 6-8 partners but only a few associates. We just pay out all the money we make each year, so we never have a profit and never have to pay corporate income tax.

I think we may do it that way because our compensation system relies on a formula based on receipts, instead of being distributed based on a percentage of stock ownership.

Compensation makes sense as why. S corps may have an equal share requirement too.

[Brontoburglar]

I have a freelance payment that I counted on my 2016 taxes that I was paid for in 2017.

My 1099 for 2017 reflects that, even though the invoice says it was for work done in 2016 (because obviously it was paid in 2017).

Am I kind of screwed on double-reporting, or would I have to file an adjustment with the IRS on that to get that taken care of?

[rass]

My wife had a similar situation 3 or 4 years ago and that was the year we gave up on TurboTax and went to a real tax accountant. I don't remember what the resolution was, but I'm not the one expected to provide answers here, so...

[Steve of phpBB]

My son got his first job last summer and is due a refund. Because he doesn't owe anything, does the April 17 deadline mean anything for him? Would there be any point in filing for an extension if he can't get around to filing by then, or can he just file whenever he wants?

(I've been pushing him to file, since the money is just sitting there waiting for him. Then I realized that the money is safer sitting with the IRS than it would be in his hands.)

[duff]

(I've been pushing him to file, since the money is just sitting there waiting for him. Then I realized that the money is safer sitting with the IRS than it would be in his hands.)

Money is never safer with the IRS then in the hands of someone else. It is his money, get him to file and blow it as he sees fit.

[A_B]

(I've been pushing him to file, since the money is just sitting there waiting for him. Then I realized that the money is safer sitting with the IRS than it would be in his hands.)

Money is never safer with the IRS then in the hands of someone else. It is his money, get him to file and blow it as he sees fit.

Yeah, just file. I wouldn't fuck around with missing the deadline in case there is some flat fee associated with missing it even if you are owed.

[TT2.0]

i filed my return off two w2 forms and got my refund check already. was going through some old mail and found a third w2 from a one day gig where i served on a fake jury for like 50 bucks total. the tax portion was literally three dollars. am i going to get into shit for this? is it a big deal and is it fixable?

[A_B]

Just turn yourself in, scofflaw.

[Brontoburglar]

My wife had a similar situation 3 or 4 years ago and that was the year we gave up on TurboTax and went to a real tax accountant. I don't remember what the resolution was, but I'm not the one expected to provide answers here, so...

I'm also not inclined to do anything about it because it's not substantial in the grand scheme of things.

My taxes are simpler this year and will be even simpler for 2018 (allah willing) so I'm probably just going to let it roll.

eta: save for the fact that my employer stopped withholding state tax in August of 2017. woooooooooooooooooo. missouri gonna love me this spring.

[Steve of phpBB]

i filed my return off two w2 forms and got my refund check already. was going through some old mail and found a third w2 from a one day gig where i served on a fake jury for like 50 bucks total. the tax portion was literally three dollars. am i going to get into shit for this? is it a big deal and is it fixable?

I wouldn't worry about it. Luckily there's no public record of you being aware of the third W-2.

[HDO45331]

My son got his first job last summer and is due a refund. Because he doesn't owe anything, does the April 17 deadline mean anything for him? Would there be any point in filing for an extension if he can't get around to filing by then, or can he just file whenever he wants?

(I've been pushing him to file, since the money is just sitting there waiting for him. Then I realized that the money is safer sitting with the IRS than it would be in his hands.)

As long as there is no money due, a person never has to file. People get into trouble when they have a 1099-MISC, with a large amount of deductions. If you do not file, after a certain amount of time, the IRS will file for you, and it will not be pretty.

[HDO45331]

i filed my return off two w2 forms and got my refund check already. was going through some old mail and found a third w2 from a one day gig where i served on a fake jury for like 50 bucks total. the tax portion was literally three dollars. am i going to get into shit for this? is it a big deal and is it fixable?

You can either (a) file an amended return by April 15th, or (b) let the IRS catch it. They will make any adjustments, and bill you accordingly.

[HDO45331]

I have a freelance payment that I counted on my 2016 taxes that I was paid for in 2017.

My 1099 for 2017 reflects that, even though the invoice says it was for work done in 2016 (because obviously it was paid in 2017).

Am I kind of screwed on double-reporting, or would I have to file an adjustment with the IRS on that to get that taken care of?

I have no idea what the amounts are in this dogfight, but if the amount was not too substantial, I would file the Schedule C, using the total amount, and taking a deduction in the "returns and allowances" section to deduct the amount included in your 2016 return. Never file a Sch C showing less income than the total of your 1099-MISC forms. Giant red flag there.

[sancarlos]

Hey, HDO, just out of curiosity, do you use tax software, such as Turbotax, or do you do it all old school?

[A_B]

Isn’t the point of being accountant that you don’t use the automated stuff? I’m sure there are industry tools that help streamline but not the consumer products marketed to Joe Schmoe.

[govmentchedda]

I bet he wrote his own proprietary shizz

[Sabo]

Our tax preparer uses Drake Software when working on our returns.

[BSF21]

I use BrightCar

[Brontoburglar]

I have a freelance payment that I counted on my 2016 taxes that I was paid for in 2017.

My 1099 for 2017 reflects that, even though the invoice says it was for work done in 2016 (because obviously it was paid in 2017).

Am I kind of screwed on double-reporting, or would I have to file an adjustment with the IRS on that to get that taken care of?

I have no idea what the amounts are in this dogfight, but if the amount was not too substantial, I would file the Schedule C, using the total amount, and taking a deduction in the "returns and allowances" section to deduct the amount included in your 2016 return. Never file a Sch C showing less income than the total of your 1099-MISC forms. Giant red flag there.

Gracias! The amount is not too significant, so I think I may just let it go

[Steve of phpBB]

My son got his first job last summer and is due a refund. Because he doesn't owe anything, does the April 17 deadline mean anything for him? Would there be any point in filing for an extension if he can't get around to filing by then, or can he just file whenever he wants?

(I've been pushing him to file, since the money is just sitting there waiting for him. Then I realized that the money is safer sitting with the IRS than it would be in his hands.)

As long as there is no money due, a person never has to file. People get into trouble when they have a 1099-MISC, with a large amount of deductions. If you do not file, after a certain amount of time, the IRS will file for you, and it will not be pretty.

If he wants to claim the refund, how long does he have to file?

[HDO45331]

My son got his first job last summer and is due a refund. Because he doesn't owe anything, does the April 17 deadline mean anything for him? Would there be any point in filing for an extension if he can't get around to filing by then, or can he just file whenever he wants?

(I've been pushing him to file, since the money is just sitting there waiting for him. Then I realized that the money is safer sitting with the IRS than it would be in his hands.)

As long as there is no money due, a person never has to file. People get into trouble when they have a 1099-MISC, with a large amount of deductions. If you do not file, after a certain amount of time, the IRS will file for you, and it will not be pretty.

If he wants to claim the refund, how long does he have to file?

April 15th of the third year. Returns from 2014 have until 4-17-18.

[HDO45331]

Hey, HDO, just out of curiosity, do you use tax software, such as Turbotax, or do you do it all old school?

Old school? Like paper forms, pencils, and calculators? Ah, no. I use Pro Series, made by Intuit, the same people that make TurboTax.

Tax software is a fantastic tool for me. You still have to know the tax laws, to use the product correctly and prepare the best return. It is so handy when someone brings in a last-minute form. Everything is updated immediately.

[sancarlos]

Hey, HDO, just out of curiosity, do you use tax software, such as Turbotax, or do you do it all old school?

Old school? Like paper forms, pencils, and calculators? Ah, no. I use Pro Series, made by Intuit, the same people that make TurboTax.

Tax software is a fantastic tool for me. You still have to know the tax laws, to use the product correctly and prepare the best return. It is so handy when someone brings in a last-minute form. Everything is updated immediately.

Yeah, I assumed as much. Just was wondering how the pros do it, nowadays.

[brian]

I'm about to try and figure out where Intuit's headquarters are and take a flamethrower to the place. Just spent 6 hours entering in return data and now I can't access it.

[Johnnie]

I'm about to try and figure out where Intuit's headquarters are and take a flamethrower to the place. Just spent 6 hours entering in return data and now I can't access it.

Mountain View, CA according to Google.

If you do that on behalf of your company, are components of the flame thrower tax deductible?

[Brontoburglar]

I just got a corrected mortgage interest statement in the mail today. of course, my accountant had my taxes done two weeks ago.

anyway, the correction was to No. 5 "mortgage insurance premiums." it was blank on the original form and now has $421.56 on the second form.

is this something I need to worry about or is it a small enough amount to disregard?

[The Sybian]

I'm about to try and figure out where Intuit's headquarters are and take a flamethrower to the place. Just spent 6 hours entering in return data and now I can't access it.

Oof, just read this. totally changes the sentiment after the Youtube shooting.

Similarly, I was ready smash my computer using TurboTax. It's a great program, but entering the sale of stocks from my Employee Stock program was a fucking nightmare. They don't have a partnership with the brokerage my company used, so I had to enter everything individually, including the stock price on 12 different dates, which the brokerage didn't provide. It kept taxing me for the full sale value, and ignored the amount I paid for the stocks, which were already taxed. Took me fucking forever to get that to work properly.

[HDO45331]

I'm about to try and figure out where Intuit's headquarters are and take a flamethrower to the place. Just spent 6 hours entering in return data and now I can't access it.

Oof, just read this. totally changes the sentiment after the Youtube shooting.

Similarly, I was ready smash my computer using TurboTax. It's a great program, but entering the sale of stocks from my Employee Stock program was a fucking nightmare. They don't have a partnership with the brokerage my company used, so I had to enter everything individually, including the stock price on 12 different dates, which the brokerage didn't provide. It kept taxing me for the full sale value, and ignored the amount I paid for the stocks, which were already taxed. Took me fucking forever to get that to work properly.

You can just give the total gross sales, with total cost, per category (ST, LT Covered, LT Non-covered,) and send a copy of the brokerage statement to the IRS, using form 8453. This is a transmittal form. That saves a bunch of time.