The IRS Deductions Blog

Posts Tagged ‘finance’

Question: Need to report rollover from qualified plan other than on line 16a?

I received a 1099-R regarding a rollover from a qualified plan to a Traditional IRA. I have duly reported it on Line 16a of my 1040. My question is, do I adjust my basis in my Trad IRA for this amount, on my Form 8606? I have been filing a Form 8606 for three years now, since my Trad IRA contributions are non-deductible, and it is showing a cumulative basis each year. Is the rollover from the qualified plan irrelevant to the basis/Form 8606 calculation? (It would make sense since the qualified plan was pre-tax and all my Trad IRA have been post-tax and non-deductible….Ultimately, I am wondering how the IRS will sort it all out once I start taking actual distributions from this IRA but for now I need to know if it is just reported on line 16a.)

THANKS!

Answer: I researched this to try to get you a resource, but it really depends on the type of plan rolled over. The first link below is the instructions for form 8606, and the second link is the specific part that talks about how to treat rollovers.
I read it and it appears you need to treat the rollovers as a recharictarization and include it in the basis. Really, it just makes sense. You had a pretax plan, you’re rolling it over to an after tax plan and paying tax on it. That just adds to the basis.

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We have spent an unusually large amount of time recently reviewing and updating IRAs and other retirement accounts for clients.

Question: can i deduct some itmes from prior year(2008) in my 2009 tax return?

my prepare last year made me loose some deductions by not itemizing my items ( general sale tax[2 cars that i bought]. can i idemized them this year?

Answer: Dear Roger: You must claim items in the year paid. So you can not claim items from last year on this years return.

In order to claim the missed items you will need to amend last years return. You have 3 years to get that done.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent

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Computer Modelling Group Announces Year End Results

CALGARY, ALBERTA– – Computer Modelling Group Ltd. is pleased to report our financial results for the fiscal year ended March 31, 2011.

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Question: stomache pain, what could it be?

This morning I woke up with really bad pain on my lower right Stomache area. As the day went on it lightened up a bit, but still hurts but i move certain ways, sit down, get up, etc. I looked online at WebMd.com and it said it could be due to Apendicitis and that I should go to the emergency room. When I told my mom, she said don’t go to the emergency room because it’s a 250 deductible, and that if I had apendicitis i wouldn’t be able to walk. Is it possible it could be related to a muscle strain or something else that could cause similar symptoms? it hurts when you press it, but i can walk lol. My mom isn’t a doctor, just a business woman so i dont know what to do. i’m 21 but still under her insurance. What could it be? should i sit it through and see what happens like she says?

Answer: I wouldn’t sit it through. I had my appendix rupture, and it is not fun. I was in the hospital for three-weeks because the infection from my burst appendix had gotten into my body. Do you have a personal physician, clinic, or school nurse you can go to? That should be less than $250. You might also have an inguinal hernia. I know times are hard; but I can’t believe your mother would put $250 before your health. I spent more than that on my dog’s health this week.

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Consumers hope new law will provide cheaper health insurance

Georgia insurers will soon be able to offer stripped-down health insurance policies to people who don’t get coverage at work, under a new state law authorizing the sale of health plans approved by other states.

Harry Baals Wins Online Poll In IN

Question: excel spreadsheet help!!!?

i am working on an assignment in data management and i need to calculatethe following deductions from yearly taxes. i think i am supose to use a formula but am not sure of which. maybe the “if” function. well here is the info. please help!

Yearly Taxes

Tax is calculated by using the following parameters:

The first $28,275.00 of taxable income has a rate of 25.5%
The Second $28,275.00 of taxable income has a rate of 39%
Anything over that has a rate of 43%

The table below may help:
Tax is calculated by using the following parameters:
The first $28,275.00 of taxable income has a rate of 25.5%
The Second $28,275.00 of taxable income has a rate of 39%
Anything over that has a rate of 43%

He makes a gross pay of 192,000.00.

Answer: if theres a table below , I think this is a VLOOKUP

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Senate weakens anti-union bill amid opposition

TALLAHASSEE — Faced with certain defeat of his anti-union bill, a powerful Senate leader backed off his proposal to ban unions from collecting dues through payroll deduction Friday and offered up an alternative to keep the measure alive.

Mileage Report and Vehicle Reporting Spreadsheet Form

Question: What can I do about this personal income tax situation – 2008 1040 help!?

I just got a letter from the irs. Seems I didn’t claim about $2300 in interest income and so they want an additional $2100.

I looked back over my return today and saw that I also didn’t include a capital loss amount of over $3500 for sale of stock in 2008.

With out knowing enough about income tax (obviously), will this reduction of my adjusted gross income (?) likely help my situation?

My Itemized Deductions far exceeded my income for 2008 as I only had 2 months of rather low wages.

Any help or suggestions welcome.

Thank you in advance.

Answer: Find your records showing the price you paid for the stock.
Then prepare a 2008 schedule D showing that it was a loss.

If you just got the CP2000 letter, submit this schedule D to them (the fax number is in the corner).

The way $2300 of interest morphed into a $2100 bill is because they apparently included the gross proceeds from the stock sale and used $0 as the basis. Using the correct basis will reduce the bill.

Items on Amazon Right Now for Irs Tax Deductions 2008:

Avoid IRS Hit List Of Tax Scams

Most people don’t think of the IRS as a consumer protection agency.  But the IRS warns the public off tax ideas that can only get them into trouble.  This is a good time of year for the IRS to release its annual “Dirty Dozen” of the worst tax scams.  The IRS has even gone Hollywood with a video.

How to Avoid an IRS Tax Audit : How to Organize Receipts for Tax Deductions