Author Topic: any accountants out there that i can ask a question?  (Read 337204 times)

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2140 on: December 24, 2021, 02:56:55 PM »
If we, to save time & paperwork, have the student's assets in a UTMA account rolled over into a 529 account, will that have the same tax ramifications as liquidating/selling the UTMA account, receiving & depositing a check in a bank account, and then sending a check from the bank to fund the 529 account?
In other words, does rolling over from UTMA to 529 count as selling an investment, with the possible need (depending on amount & tax bracket of parents') to pay capital gains tax?
Thanks.
My research indicates that it's the same.
Can anyone confirm or deny?

Online free123cc

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Re: any accountants out there that i can ask a question?
« Reply #2141 on: December 27, 2021, 03:39:26 PM »
my wife has a New Jersey Defined Contribution Retirement Plan, with about 1400$ in it. the plan is from about 2015-2016 when she was a teacher. No more money is being added to it, and we wanna pull out the money. What tax and penalty or other implications would i have by doing so?

prudential told me they would withhold 20% for federal tax, and whatever of that is extra they would obviously refund me at tax time...

on another note, i have a 1100$ capital gains loss this year - would that loss be able to offset most of the gains i have by cashing out the retirement plan?

thanks!

Online yelped

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Re: any accountants out there that i can ask a question?
« Reply #2142 on: December 29, 2021, 02:37:18 PM »
AFAF: Does anyone know of an accountant or firm that does cost seg for tangible personal property that is not directly connected to the property (most cost seg companies only do furniture, etc, that is connected to the property)? TPP filings.

Please PM with any leads, please. Can be a significant deal.

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #2143 on: December 29, 2021, 04:55:13 PM »
AFAF: Does anyone know of an accountant or firm that does cost seg for tangible personal property that is not directly connected to the property (most cost seg companies only do furniture, etc, that is connected to the property)? TPP filings.

Please PM with any leads, please. Can be a significant deal.
Madison SPECS cant do?

Online yelped

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Re: any accountants out there that i can ask a question?
« Reply #2144 on: December 29, 2021, 05:56:37 PM »
Madison SPECS cant do?
I don't think they do TPP that is not connected to property currently.

Online YitzyS

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Re: any accountants out there that i can ask a question?
« Reply #2145 on: December 31, 2021, 01:34:36 PM »
I'm sure this is a basic question, but I never had it before.

If I'm paid for work done in 2021, the check is dated 2021, but I deposit it in 2022 - when do I have to file taxes on it?

Online yeshivabucher

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Re: any accountants out there that i can ask a question?
« Reply #2146 on: December 31, 2021, 03:09:01 PM »
I'm sure this is a basic question, but I never had it before.

If I'm paid for work done in 2021, the check is dated 2021, but I deposit it in 2022 - when do I have to file taxes on it?
im not an accountant but 
fairly sure it considered paid on date of the check not when the check is deposited

Offline Jack out of the box

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Re: any accountants out there that i can ask a question?
« Reply #2147 on: January 01, 2022, 01:50:40 PM »
im not an accountant but 
fairly sure it considered paid on date of the check not when the check is deposited
Correct. According to both cash and accrual methods of accounting, that is 2021 income as long as you actually received the check in 2021.

If you receive it in 2022 then the date on the check (which is anyway irrelevant for this discussion) doesn't matter. Under cash method that would be 2022 income and under accrual method it would be 2021.
« Last Edit: January 01, 2022, 01:55:01 PM by Jack out of the box »

Offline ae123

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Re: any accountants out there that i can ask a question?
« Reply #2148 on: January 02, 2022, 12:11:42 AM »
Is there any way to redeem EE bonds without paying taxes, like using for education etc.?
(I'm referring to bonds issued before 1989 and before the person was 24.)

Offline Yo ssi

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Re: any accountants out there that i can ask a question?
« Reply #2149 on: January 05, 2022, 07:01:32 PM »
Anybody familiar with the details of the new reporting requirement for Zelle and cashapp transactions over $600 (per year)?

It seems to be only for goods and services, does that mean anything that isn't would have to be proven?


What's going around:
Quote
Public Service Announcement‼️‼️‼️
**********
If you use Zelle, CashApp, Venmo, or another peer-to-peer cash transferring platform, KEEP READING:

The Biden Administration passed a new tax rule in the American Rescue Plan Act and it is being dubbed "The $600 Tax Rule."

Starting January 1, 2022 if you receive $600 or more in a year on a peer-to-peer cash transfer platform you will receive a 1099-K form (for income reporting purposes).  You are federally required to report that money as taxable income.

So if you SELL items online and use these cash transferring platforms, you must provide the IRS with receipts that prove you paid more than what you sold them for so the money you collect is not considered taxable income.

The purpose of this is to "close the tax gap."  My friends, please keep track of your big ticket purchase receipts in case you ever decide to sell, and ask to be paid in CASH if it is not for business purposes.
**********

Why is this good???
So the government can crack down on people not claiming taxable income on goods or services sold via peer-to-peer cash transfer platforms.

Why is this bad???
Because if you sell your old couch or loan money to a friend who pays you back via Zelle, Venmo, etc. you will have to pay taxes on the sale of your couch if you cannot provide a receipt, and you have to explain to the IRS why you gifted your bestie money and then you might have to pay taxes on the money you loaned them when they pay you back. The list goes on...

https://www.congress.gov/bill/117th-congress/house-bill/1319
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Offline lubaby

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Re: any accountants out there that i can ask a question?
« Reply #2150 on: January 05, 2022, 08:31:03 PM »
Anybody familiar with the details of the new reporting requirement for Zelle and cashapp transactions over $600 (per year)?

It seems to be only for goods and services, does that mean anything that isn't would have to be proven?


What's going around:
Some people love to spread fake news and create mass hysteria for no reason.

(Not an accountant)
It would just go by business accounts or personal accounts where the transaction is classified as goods / services.

But apps may start cracking down more / flagging personal accounts that do large amount of large payments not categorized as they thing it should be.

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #2151 on: January 05, 2022, 10:18:28 PM »
Anybody familiar with the details of the new reporting requirement for Zelle and cashapp transactions over $600 (per year)?

It seems to be only for goods and services, does that mean anything that isn't would have to be proven?


What's going around:
sheker

Offline Yo ssi

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Re: any accountants out there that i can ask a question?
« Reply #2152 on: January 05, 2022, 10:18:45 PM »
Some people love to spread fake news and create mass hysteria for no reason.

(Not an accountant)
It would just go by business accounts or personal accounts where the transaction is classified as goods / services.

But apps may start cracking down more / flagging personal accounts that do large amount of large payments not categorized as they thing it should be.
I did some more research and it seems you are correct. My worry is the likes of Zelle and CashApp which don't give you a way to mark a transaction as goods and services, if they decide anytime this year to start cracking down and we'll need to prove all the transactions..
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Offline mendelk

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Offline skyguy918

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Re: any accountants out there that i can ask a question?
« Reply #2154 on: January 06, 2022, 12:24:07 PM »
I did some more research and it seems you are correct. My worry is the likes of Zelle and CashApp which don't give you a way to mark a transaction as goods and services, if they decide anytime this year to start cracking down and we'll need to prove all the transactions..
I do think they'll have to clarify how they will report. But if you really just use it for friends and family, and these companies send you a 1099-K for the full total you've received, you're under no obligation to pay taxes on that. Whether or not omitting it will actually be an audit risk is a separate question, and I imagine that remains to be seen.

Offline sddd

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Re: any accountants out there that i can ask a question?
« Reply #2155 on: January 06, 2022, 01:10:30 PM »
I do think they'll have to clarify how they will report. But if you really just use it for friends and family, and these companies send you a 1099-K for the full total you've received, you're under no obligation to pay taxes on that. Whether or not omitting it will actually be an audit risk is a separate question, and I imagine that remains to be seen.

doesnt every mismatch between IRS required documents and taxpayers 1040 get auto audited and corrected? i think it would be better to match cogs to revenue to offset.

Offline 4yourinfo

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Re: any accountants out there that i can ask a question?
« Reply #2156 on: January 06, 2022, 01:22:36 PM »
I do think they'll have to clarify how they will report. But if you really just use it for friends and family, and these companies send you a 1099-K for the full total you've received, you're under no obligation to pay taxes on that. Whether or not omitting it will actually be an audit risk is a separate question, and I imagine that remains to be seen.
seems to show there is an option to choose for services on venmo.. maybe only a business account? only when there is a fee does it go under goods and services. doesent seem venmo will issue a 1099k for all transactions..
https://newsroom.paypal-corp.com/2021-11-04-New-US-Tax-Reporting-Requirements-Your-Questions-Answered

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #2157 on: January 06, 2022, 02:30:42 PM »
Whether or not omitting it will actually be an audit risk is a separate question, and I imagine that remains to be seen.
doesnt every mismatch between IRS required documents and taxpayers 1040 get auto audited and corrected? i think it would be better to match cogs to revenue to offset.

this is where this new rule is gonna get messy. will require some blanket updates

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #2158 on: January 09, 2022, 02:21:10 AM »
Let me know if I'm understanding correctly:
This new law obligates 'payment processor' apps, but the reporting law on the banks themselves didn't pass?

In that case, if I have 'non income' money getting transferred to me (mid size loan repayment etc), if I get it by check /ACH, I'm in better shape (less tax questions) than if I get it transferred by pp/zelle/cashapp. Would that be correct?

Offline Rivky Fischer

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Re: any accountants out there that i can ask a question?
« Reply #2159 on: January 11, 2022, 11:37:25 AM »
Regarding the saver's tax credit (by contributing to a retirement account...) I know it's a non refundible credit but what if I would of have a tax bill but they just witheld the whole thing in advance so I don't actually have a tax liability by the end of the year does that make me not eligible for the non refundible tax credit or is it based on before witholdings thanks so much.