1 nttc training 2008 new in-scope - 2008 rental & royalty income on 1099-misc form 8606 non-cash...
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1NTTC Training 2008
NEW IN-SCOPE - 2008
RENTAL & ROYALTY INCOME ON 1099-MISCFORM 8606
NON-CASH CONTRIBUTIONS
2NTTC Training 2008
RENTAL & ROYALTY INCOMEPUB 17, CHAPTER 12
Rental and Royalty Income from: Oil leases Other similar “income only” sources
Income reported to taxpayer on Form 1099-MISC
Use Sched E to report income Cannot accept if expenses must be
reported against income
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DATA ENTRY INTO TAXWISE
From Line 17, Form 1040, Link to Sched E Complete Line A of Sched E Go to line 3 or 4, Col A, and link to 1099-
MISC. Complete 1099-MISC
Back out to form 1040. Income should now show on line 17
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SCHED E, PAGE 1
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FORM 8606PUB 17, CHAPTER 17
IRA NON-DEDUCTIBLE CONTRIBUTIONSIRA DISTRIBUTIONS AFTER NON-
DEDUCTIBLE CONTRIBUTIONSROTH IRA NONQUALIFIED
DISTRIBUTIONS
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IRA NON-DEDUCTIBLE CONTRIBUTIONS
Non-Deductible Contributions Alternative when Deductible are limited
by Income and/or Retirement Plan
Can be made up to maximum for year Total of Deductible and Non-Deductible
cannot exceed maximum for year. $5,000($6,000 over 50 yrs of age) max
for 2008
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REPORT DEDUCTIONS ON FORM 8606
Non-Deductible contributions MUST be reported on Form 8606 Creates Basis in IRA If not reported, no benefit on distribution
Form 8606 provides cumulative record Non-Deductible Contributions Distributions
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FORM 8606
Part I – For reporting non-deductible contributions and distributions Distributions reported here only if there
were non-deductible contributions
Part II – Conversions Out-Of-Scope
Part III – Distributions from Roth IRAs
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NON-DEDUCTIBLE CONTRIBUTIONS
Enter amount in Line 1, Part I.
Taxpayer must provide amount for entry into Line 2 (Basis for earlier year). Found on Form 5498
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FORM 8606
Taxpayer info.
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NON-DEDUCTIBLE CONTRIBUTIONS
Distribution? No – Done Yes – Complete Lines 4 – 14 of Form 8606 Taxwise does calculation automatically
Purpose of this is to pro-rate non-taxable amount (basis) over life of IRA.
Taxpayer must provide value of IRAs
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IRA DISTRIBUTIONS
If there have been non-deductible contributions:
KEY: Taxwise - must check box on 1099-R screen, exclusion worksheet
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FORM 1099-R
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NON-CASH CONTRIBUTIONSPUB 17, CHAPTER 24; INSTRUCTIONS, FORM 8283
REPORTING NON-CASH CONTRIBUTIONS
$500 - $5,000
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NON-CASH CONTRIBUTIONS
Claim non-cash charitable contributions Part of Itemized deductions (sched A)
>$500, must complete Form 8283 In-Scope, $500 - $5,000
Form 8283, Section A, Part 1, page 1
Out-of-Scope, >$5,000
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NON-CASH DEDUCTIONS
Report items (groups of similar items) of <$5,000
Securities listed on daily exchange Taxpayer must provide his/her cost Taxpayer must provide Fair Mkt Value Preparer completes form
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FORM 8283, SECTION A
In Taxwise: Select Form 8283 from Forms List
Complete Section A Information carries back to Sched A
detail worksheet and to Sched A, Gifts to Charity
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FORM 8283, PAGE 1
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FORM 8283, PAGE 1