Q:

Subject: Exchange Question

 

If an exchange was declined at closing of escrow and the property has been sold, can the seller still decide to purchase a home, invest the money into a new property and still get tax even though an exchange was not established?

A:

The answer is no.

The exchange has to be set up before the sale leg closes.  It is also critical that you never touch the money. 

Kerry Kerstetter

 

Q:

Subject: 1099 forms

Kerry – The web site where I have been getting the 1099 & 1096 forms say you can no longer use these off their site because they are in red and there is a penalty if you use them.  Can you tell me where I can get these forms?  I’ve call the Post Office and the Library…they don’t have any.  Thanks,

A:

Actually, nothing has changed in regard to the 1099 forms. 

The copies you need to give to your payees by January 31 can be of the regular black and white variety as produced through QuickBooks or that you can download or photo-copy.  Those are super easy to prepare.

The hassle is with the copies that are to be sent to IRS by February 28.  They do have to be printed on a special scan-able red-ink form that is a pain in the butt to line up properly in laser printers.  You can buy these forms at most office supply stores.  You should buy a few more than you will actually need because the first test ones will probably be messed up.

Good luck.

Kerry 

It’s also time for my annual reminder that it’s best to not rush the 1099 and W-2 forms in to IRS and SSA.  They are not due to the government until February.  It will make everyone’s life much less complicated if you give your payees time to review their copies and notify you of any errors before you send in the government’s copies.  

Woman leaves entire $1.1 million estate to pay down national debt – The big difference between this woman’s estate plan and what happens to most others is that hers was voluntary.  For others, the government and probate attorneys confiscate part of their estates instead of allowing them to pass their accumulated wealth to whomever they want to. 

Fact Sheet Covers Credits for Installation of Energy Efficient Home Improvements; Purchase of Alternative Vehicles

Report Alleges IRS Misconduct in Investigation of Cisneros – We’re still waiting for the release of the rest of the Barrett report that is said to include other examples of how the Clintons used the IRS to persecute their political enemies; something that I am personally very well acquainted with.

While I don’t use TurboTax, I was somehow subscribed to their email newsletter.  The most recent issue had some good articles.

Summary of Tax-Law Changes

10 Tax-Savvy Steps for After the New Year

FAQs on the Alternative Minimum Tax

 

Accountant ‘stunned’ by Hatch’s IRS filing – Testimony from the tax preparer Richard Hatch scammed into producing a bogus 1040 without his Survivor winnings. This should be a warning to all of us practitioners not to ever do that, especially for someone who has been on national TV, where he won a prize for being the most devious and conniving.

“It was just for analysis,” said Wallis, a key witness for the prosecution in Hatch’s federal tax evasion trial. She said she took her name off the sample return and had Hatch sign a letter from her stating, “This return is not intended to be filed and is simply for your information.”

 

 

Certain Tax Returns Go to Different Centers than Last Year – IRS’s annual reshuffling of the workload for the service centers we have to send returns to.

Charities Not Thrilled With Latest IRS Guidance on Vehicle Donations – Nobody likes to have to deal with additional paperwork; but this did deal with some very real abuses by donors.

 IRS Progressing Toward Development of Data Clearinghouse – Nothing could go wrong here, right?  IRS has such a stellar track record when it comes to upgrading computer capabilities that we have nothing to worry about.   

 Adding Roth options to your 401(k) saving plan

New Incentives Make ‘Going Green’ Easier – Including some new tax credits.

How to Get Rid Of Private Mortgage Insurance

Retiree Helps Others Manage Their Nest Eggs

Is It Time To Unload Your Investment Properties?

Why Some Supermansions Are Priced Not to Sell