I Actually Enjoy Doing My Tax Returns…

[Rianne]

Back in the day I had a tax prep guy (enrolled agent, actually) that would use the midpoint of the price range for the year. He kept copies of the WSJ for the last trading day of the year.

Thanks, we decided to look back at the historical prices and pick dates that are the average of the year prices. Our accountant said it's up to us to provide the basis price for the stocks. This stock has not fluctuated much over the years. Pretty stable and has a small LTCG. ie, not making much. I doubt there will be any red flags.

 

[SecondCor521]

Thanks, we decided to look back at the historical prices and pick dates that are the average of the year prices. Our accountant said it's up to us to provide the basis price for the stocks. This stock has not fluctuated much over the years. Pretty stable and has a small LTCG. ie, not making much. I doubt there will be any red flags.

From best to worst:

1. Even if they're non-covered shares, your broker may have basis records. They're not required to, but they might have them anyway. And they are likely accurate. You could see what shows up on your 1099-B, or ask your broker.

2. If you have your own purchase records and can determine your basis from those records, you can use them to report your basis.

3. If you know approximately when you bought the shares, you can use any reasonable estimation approach. If you know you bought shares of IBM in October 1987, then you could take the average of the high and low for that month, or the closing price on the 15th, or anything that a reasonable person would say, "Yeah, that's a decent guess".

4. Worst case, you can use $0 as a cost basis. Depending on how much work the above choices might be, and how much incremental tax is involved, this may be OK with you. It's always OK with the IRS.

 

[RobbieB]

I actually enjoy going to the dentist…..

There, now we’re even.

Hehe, yeah baby!

I actually enjoy scooping up dog feces in the backyard...

 

[2HOTinPHX]

Hehe, yeah baby!



I actually enjoy scooping up dog feces in the backyard...

Ewwwwww........

 

[ownyourfuture]

We sold out of a partnership, so I no longer have a complicated K-1 to enter for 2022.

I was considering starting a new thread related to MLP's & the dreaded K-1
(I'm considering an investment in Icahn Enterprises (MLP)
But it looks like you answered what was going to be my main question.

"Does K-1 still have to be entered into your return manually?
The last time I had to do it was around 2014 (Kinder Morgan)
While my returns always came out correct, I remember it being a major headache to enter the figures.

Looks like it was nothing more than wishful thinking on my part, to hope that by now, it was something that could be downloaded directly from Fidelity into my return

 

[Car-Guy]

I got all my final tax forms that I was waiting for yesterday, so this morning I completed my 2022 tax return. I'll hold off filing for a few more weeks "just in case" I think of something else... (Even though I'm getting back a few hundred).


Seems to be getting easier every year.

And here is why I wait to file after I think I'm done...


So today, I get another 1099-INT for an account I don't have any funds in. I use it to transfer money between accounts. Somehow, I was credited 9 cents. (.09) I had everything ready to send in (I file by mail) and now I need to go add 9 cents interest and print off the return again... If I don't, I risk having my refund kicked out and delayed... No big deal but things like this is why I wait.

 

[Sunset]

I'm going to hold off filing, until the IRS decides on money given by States.

"Special tax refunds were offered by 19 states in 2022. The list includes Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina and Virginia.
WHY SHOULD I WAIT TO FILE MY RETURN?

Following the IRS recommendations is key if taxpayers want to avoid having to amend a previously filed tax return, said Hall.

“I think the IRS is trying to help people save another filing, if they had to do an amended return,” he said.
"

https://www.nbcnewyork.com/news/national-international/did-you-receive-a-special-tax-refund-from-your-state-last-year-the-irs-says-hold-off-on-filing-returns/4093045/

 

[38Chevy454]

I owe, so no pressure to file quickly. I will file late March. Also gives plenty of time to receive all the documents or revised documents.

 

[unclemick]

The last K1 came a few days ago so I took my 'stuff' to the tax guy aka Walter) yesterday. So expect to file/pay up some $ close to the 18th.

Heh heh heh - got a small dose of Covid (Wife also) so my enthusiasm to rough it out first is limited.

 

[W2R]

The last K1 came a few days ago so I took my 'stuff' to the tax guy aka Walter) yesterday. So expect to file/pay up some $ close to the 18th.

Heh heh heh - got a small dose of Covid (Wife also) so my enthusiasm to rough it out first is limited.

Glad it is just a small dose of it! Take care and I hope you two can shake it off quickly.

 

[Dreamer]

I e-filed mine earlier, but expect to hear from the IRS. We had some money go from my DH's 401K to a traditional IRA at Vanguard. There was not a problem with this, but the 401K sent another check for $3200.00 directly to my DH that was after tax money and showed no taxable earnings on the form they sent. FreeTaxUSA did not like it and said we would probably receive a letter. I never sent any forms in to the IRS when we had the after tax money go into his 401K years ago. I guess, if need be, we will have to pay taxes again on this money to the IRS and the State. We also have additional after tax money in his 401K.

unclemick: I hope that you and your DW feel better quickly.

 

[rkser]

We filed our taxes by Turbo Tax & got accepted by IRS yesterday. This is our 4th year by TurboTax.

We had some hiccups doing the Form 1116, the credit from the Foreign Tax paid from VXUS, calling TurboTax was a total waste of time & more a aggravation.

Doing our own taxes rather than just signing the accountant prepared ones, gives us a better idea of our finances. We know now where the money is coming from & where it is going. Although, it is a couple of days work dealing with 1099s etc.

Regards

 

[ownyourfuture]

I posted the following on February 6

I was considering starting a new thread related to MLP's & the dreaded K-1
(I'm considering an investment in Icahn Enterprises (MLP)

In mid to late April, I was getting ready to login to Fidelity & buy 200 shares.
At that moment, I realized I had to have my mother to a medical appointment in 1/2 hour & never purchased shares.

I never included it in any of my watchlists, so until today, I had forgotten about it.
Many are saying it's nothing more than a Ponzi scheme. Sometimes it's better to be lucky than good.

 

[Sunset]

^^^^^^^^^^^^^ I've had IEP for around 10 years...

It's never been impressive, NOW of course I wish I had sold it. It's in an IRA so there is no tax benefit to selling now.

I don't get the ponzi reference, Icahn is just a Warren Buffet wanna-be, that at one point looked promising.

I had to look, and it's a famous short seller who has pushed this idea, and of course profiting from it.

https://seekingalpha.com/article/4599381-icahn-enterprises-how-good-is-this-25-percent-yield

 

[ownyourfuture]

I don't get the ponzi reference, Icahn is just a Warren Buffet wanna-be, that at one point looked promising.

For what it's worth. A comment by someone named Brian on the Yahoo! message board.


Based on the statement that IEP issued the problem from my point of view is that the majority of the distributions are paid with newly printed shares which then earn the yield as do all others.

It is unsustainable to stay within this model and it has been abandoned by all the MLPs that conduct actual operations of running a business as opposed to being a holding company that just collects distributions and dividends.

So the result is each and every Q more and more shares are issued earning further future distributions while no new cash is actually infused into the company. The very definition of dilution.

All the while income from distros and divis remains relatively static as there is no cash coming in to buy more income generating securities.
Not quite a Ponzi scheme but its a printing press.

 

[pb4uski]

^^^ Sounds more like a mini stock split rather than a distribution... you own 100 shares and the next day you own 102 shares but enterprise value is unchanged.