Can you provide guidance on reporting gambling winnings. I know you can’t rely solely on a W-2G or a 1099, but in the case of Draft Kings for example, is it proper to get their annual statement which shows winnings and losses? I have clients which show $1M in winnings and over $1M in losses. Of course in CT that’s a killer. I’m just…Read more

I reached out to someone who has done multiple NY PTET. Here is his response:

The credit that you take on the shareholders personal tax returns shoukd agree with the final credit amount on the annual filed PTET return (net of refunds due or including payment due)

And I believe that all NYS and NYC taxes are added back to…Read more

Thank you both so much for your responses. Your perspectives were very helpful. I sincerely appreciate it.

Best regards,

Abe

My NY client has received an Information Request for Individual Income for his 2020 return filed in October 2021. He has a very high income, but only a very small amount attributable to CT – hence CT is looking for more money.

While CT is still in the three year window, they are requesting the Special Consent to Extend the Statute of…Read more

Thank you so much for your response. They have not filed and I’m trying to determine if it’s worth it. The big issue for me is the PPP forgiveness which when applied for only asked for wages and not expenses which led to my questions. Assuming you can’t substitute expenses for wages, I totally agree with your comments. I have not…Read more

Has anyone applied for the ERC? In the PPP loan forgiveness application, it really just focused on payroll costs. I know that payroll used for PPP forgiveness cannot be used for the ERC. Some questions:

1. Can actual costs be substituted for the payroll costs used in the PPP forgiveness application; or those wages cannot be used…Read more

Has anyone applied for the ERC? In the PPP loan forgiveness application, it really just focused on payroll costs. I know that payroll used for PPP forgiveness cannot be used for the ERC. Some questions:

1. Can actual costs be substituted for the payroll costs used in the PPP forgiveness application; or those wages cannot be used…Read more

I use both Proseries and Lacerte. This return is being done in Proseries. As I mentioned at the outset, “When I put in the sale of the home and indicate no beneficiaries make it their personal residence at the time of sale, it allows me to take the loss, up the $3,000 after offsetting other capital…Read more

First off, thank you so much for your responses – they are so appreciated. As I mentioned, conflicting info as you can tell. Tom, I came across the same exact info, but I also came across this article:

https://lawprofessors.typepad.com/agriculturallaw/2019/03/sale-of-the-personal-residence-after-death.html

“However, the IRS…Read more

I have a single taxpayer who bought her condo in March of 2021 and passed away three days later. The condo was sold in January 2022 at a loss of @$50K, mainly due to closing costs. The 1041 year end is February.

No one has lived in the condo since her passing; and no attempts have been made to convert it to income producing…Read more

Your responses have been terrific. Tom, thank you for the link. The issue I’m having is that it’s the attorney that is asking me!

It seems he should structure it as an IDGT. What I see from the IDGT is that the grantor is responsible for the income taxes for the income earned through the trust. I would imagine that’s through a…Read more

“The Grantor (acting in a non-fiduciary capacity) may reacquire all or any part of the principal of the Family Trust by substituting other property of equivalent value.”

The…Read more

Thank you so much for the followup. When I read the Forbes article the first time, the bottom half of the article was cut off so I never saw the Binder paragraphs. When I read your response, I didn’t know what you were talking about and clicked on the link again and saw the full article. Great info. I will followup with the CA FTB.…Read more

Thank you for the response. I know CA is tough, but in the examples given, the taxpayer entered CA for one reason or another and derived income at a later date. In my case, the taxpayer never entered the state. He was approached by someone he knew who wanted life insurance; and he wrote the policy. CA required withholding and I’m…Read more

I hope everyone is doing well. If my CT client is a licensed insurance broker and sells a life insurance policy to someone he knows who lives in CA, is that subject to CA income tax for that commission? He never went to CA to sell the policy, etc., and all the work was done in CT. CA required withholding on his commission and I wanted…Read more

Yes, there is no doubt the trust has to file in CT. I sincerely appreciate your input.

Thank you,

Abe

I did not get an email stating your replied, my apologies for not responding earlier.

I was not detailed enough in my original facts. This trust is not the taxpayer’s grantor trust. It was a Grantor trust set up many years ago by the taxpayer’s mother, who has since passed. My taxpayer is a beneficiary (along with others) of that…Read more

Abe

I have a new client who is a US citizen, but has been living in Thailand for over 20 years. His only source of income is the following:
1. Interest, dividends, and capital gains from his US Fidelity account.
2. Interest, dividends, and capital gains from a K-1 from a trust, which has it’s money in a US Fidelity account.

Neither he nor t…Read more

I have several clients who have yet to receive their refunds, some filed as early as mid March. I understand the IRS is manually reviewing 29 million returns, but this seems awfully long. The IRS website simply states your return is still being processed.

Anyone else experiencing this? Is there a number to find out (the 800-829-1040…Read more

Does anyone use an esignature program they like and is highly secure, don’t sell the names, SS#’s etc. I know Proseries using DocuSign, but looking for a cheaper alternative.

Thank you,

Abe

Tom, so you believe I should be able to file:
CT – MFS for TP
NY – MFJ
FL – MFS for spouse

Yes, full year residents or their respective states. The only potential issue I see is that CT requires a copy of the NY return, and I’m wondering if that would cause an issue with CT. Any input would be greatly…Read more

I have a married couple where the TP resides in CT and had earned income in NY. His spouse resides in FL and only has SS and unearned income. By filing MFS for CT, they could save several thousand; but filing MFS in NY costs @$20K more.

Can I file MFS in CT, and MFJ in NY?

Thank you,

Abe

Are medical expenses for the disabled beneficiary deductible on the Qualified Disability Trust level if paid by the trust?

If not, does that expense flow to the beneficiary somehow on the K-1?

Thank you,

Abe

I’m not quite sure, we are researching as to whether it’s 1 or 2, but I can see perhaps it got used for some years and then forgotten. Regardless, I believe I have the concept down so once I get the answer I will proceed accordingly. I really appreciate your help. Stay Safe! It’s happy hour time!

Here are some comments and or questions corresponding to your numbers:
1- Wouldn’t that be the amount in box 9B of $32K
2- In the history I’ve seen, I don’t see any of it used. The amount of box 1 has been the taxable amount.
3- I don’t believe any as box 5 is $0
4- It is a death benefit, code 4, and the recipient is single.

It will be ongoing. I’ve just taken over this account and I can see this for at least three years.

Thank you.

I’m not quite sure how to process this as there seems to be employee contributions in box 9b; but nothing in box 5.

I’m assuming this is all taxable, but there may be some basis I can allocate.
Does basis…Read more

Thanks for the quick response. The university is eligible for the student aid program which makes them qualified.

thank you.

ProSeries requires the EIN number and the state code for the address. Anyone know how to get around that?

You are absolutely correct, and I sincerely thank you for your responses. I did further research and found exactly as you stated. Have a great day.

Thank you so much for your response. My understanding is if CT is the resident state of the estate, all income would run through CT, less amounts which may have been paid to other states which is not the case here. This would be much like a personal return in that regard.

If the only difference here is that the assets were…Read more

1. None of the income in the estate is taxable to another…Read more