New client, hasn't filed in about 10 years and now the state has caught up to him. My question pertains to the K-1 he received for 2006. He mentioned that he has one for the last 10 years by the way, but on to my question. In box D of his K-1 he has an amount for property distribution that affects shareholder basis. How will I go about getting his basis going back 10 years? Or am I making this too complicated? I don't have much experience with this,but my understanding is that only some of this may or may not be taxable?
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You'll have to start with zero
So, are you just doing 2006? If the state caught up with him then you'd think they want to see some past years' returns. But with whatever year you start with - you'll have to start with zero basis and add taxable income etc and see if he had enough basis to take a distribution. If not then he should pay capital gains tax on the distribution.JG -
Another thought
Is request that the client provide you with the initial investment in the partnership (10 years back) It really is his option and in his best interest to provide you with the investment and the year to year K-1 info. If you have nothing to work with, then you will have to start at -0- in your own defense.
Clients are lazy until it comes to tax dollars!
SandyComment
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The state is requesting returns from 1997 to present. Client says he's been getting the K-1's since then, but never did anything with them. Also has a bunch of stock transactions. His broker is sending info on the stock trades. Hopefully there will be some cost info there. If not, that will be fun. Thanks for the replies.Comment
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Lazy filers.........
......... are bad payers. Be sure you give him an estimate for each year and get that money up front. Also tell him the actual returns will be billed for the actual amount which can be higher than the estimate. If he runs, let him go>>>>>>>>>>>This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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Finally
got most of the info from the client. The stock info that he provided was nothing more than the month of December statements for the two or three years in question. Nothing showing cost info, etc. My question is, I'm sure he isn't the first one to not have all the info. What do you do in this case? I am going to call him to tell him I need more detailed info and preferably the 1099's from those years, but I'm guessing he doesn't have them. He probably figured what his broker sent him would have all the info. Again, what do you do if he doesn't have the info?Comment
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Broker
Have him call is broker, they should have the info!
SandyComment
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