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I use form 8606 for ?
I will pay taxes on withdraws at the age of 72 years,
How will I calculate basis.
Thank you for your follow up. What income limit applies to you depends on your filing status. You can CLICK HERE to see which limit applies to you
If you put the funds in your Roth IRA and were not supposed to based on the income limit, you would be hit with the excess contributions tax. The tax is 6% and it is assessed on the funds you have in the Roth IRA every year that they remain in there. You can see more details, HERE.
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Thank you for your follow up. You do not report Roth contributions anywhere on your tax return, but if you go over the income limit you must take the excess contributions out to avoid the tax.
The Roth IRA custodian sends reporting to the IRS of your contributions, which is how they know. It is not self reported.
You can view Publication 590 for more details.
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To take your excess contribution out, you will contact your IRA custodian and get the forms from them. They will walk you through how to handle this.
You can still contribute to a regular IRA, it's just that you cannot contribute to a Roth IRA.
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I can report to regular IRA with AGI 185K or higher if my husband is covered by Pension plan at work. I will deduct non deductible contribution on form 8606? will not get tax benefit from this yes?
But will pay for taxes that year. And therefor when withdraw at age 59 1/2 distribution will be tax free.
Sorry, for my lack of knowledge/
My combine AGI higher over 185K, I can’t contribute to Roth.
Can contribute to non-deductable IRA. need to keep track of contribution on form 8606
In order to withdrawal IRA tax free at age 70 ½ correct.
What if my accountant never keep track and never reported Ira on form 8606
What happens now? How do I proof to IRS my non-deductable contributions?
2nd question, if I contribute to Annuity account. $$ post tax. On the withdrawal I will be taxed at ORDINARY income Level.
Debating between contributing to non-deductible IRA and Annuity.
Thank you in advance.
IT is my responsibility to keep track of form 8606. Running balance. Non deductable IRA. Yearly contribution 5500.00.
AT age 70 ½ will be tax deductible only if reported on form 8606.
2nd question annuity on withdrawal at age 70 ½ I will always. pay taxes.
Brokerage account will send me 1099 or some form when I will withdrawal Roth IRA.
I will have to proof to IRS this was qualified allowed Roth IRA. Meaning one year, I contributed to ROTH IRA and it was over my AGI limit.
Since ROTH IRA deduction at age 70 ½ is tax free event. DO I need to report anything on return? Thank you in advance
On conversion from IRA to ROTH, approximately 10 years ago.
I Had small AGI 40K , was I suppose to file form 8606?
What proof will I have that conversion with proper AGI limits were done correctly?
I forgot what year I converted.
2nd question: FORM 8606 asks to calculate basis of rational IRA. I am confused.
Prior e-mail you instructed to me I don’t need to keep track of basis.
Plus starting 2014 I will start contribution to non-deducible IRA
FORM 8606 asks to calculate basis of traditional IRA. I am confused.
Plus starting 2014 I will start contribution to non-deducible IRA.
Thanks for your patience. Greatly appreciate your help
Please explain Roth IRA and Non-deductable IRA, on withdrawal retirement I don’t pay any TAXES CORRECT? SO what’s the difference? Such a fuss to report it correctly.
Why will I pay 6 % penalty on contribution to Roth iRA over AGI limit. 180K
Before year end I should transfer ROTH IRA amount to non-deductable IRA not to worry.
2nd I am looking at form 8606 . Form request for me to specify IRA Basis. Please explain WHY. HELP.
Will received 1099 from brokerage account even when I reach age 70 1/2 and withdrawal will be from ROTH and Non-Deductable IRA.
1099 Brokerage statement will be issued to me.
WHY I am not paying income tax on the withdrawal. Record keeping.
that makes sense. Thank you.
My brokerage firm will keep track of basis. NOT? Cumulative basis.
Earliest I can withdrawl would be 70 1/2
Megan, would like to work with you.
New question, how do I deduct car expense. Meaning use to deduct milage only. Now will be purchasing a car please list how to deduct actual car expense what form. Step by step
I don’t report income on Schedule C, I report income on schedule E.
Car milage I would list on 2nd page 4562
Previously, I used actual mileage system, now would like to lease an automobile.
Deducted mileage not gas or parking. Just business mileage.
Please guide me how to write off a car lease. FORM PLEASE.
Lease a vehicle you don’t need to put additional support data.
Where do I keep records that lease cost is 60 % used for business. Remainder personal. Don’t I need to show usage?
If I choice to use actual cost I must own the car. I would depreciate a car probably 5 years. Plus actual cost repairs and probably gas?
Please explain if I lease a car for business.
List what I can deduct. Monthly lease fee percentage used for business,
actual repairs and gas, a % used for business. Please be more specific
Report on FORM 4562 2nd page.
Then carry amount to schedule E.
I am confused. What is the difference if I owned the car or not.
I thought I could use actual cost, repairs, gas etc if I own the car
NOT Lease it
one can use milage if they own a vehicle.
If I use mileage, I can add business portion of the lease expense to the overall cost. Meaning add mileage cost plus lease cost. PLUS GAS. and Maintenance.
If I lease the car, I will be able to add insurance cost as well.
Plus lease cost, plus gas, repairs and insurance. Allocated by percentage use of the business.
How do I keep records of business use.
Tedious. I estimate.
How do I open a new question and have you assist me .
Assessed Value on taxes example 452,100
Tax assessors value of building and land $826600
DO I add improvement cost to 375000 and renovation cost 45000
Adding building cost to $420000
I think in the past I made a mistake I would add total cost of purchase plus renovation and closing cost. Add allocate 30 % to land and 70% to building. I have been doing this for 10 years. Would my prior depreciation would be disallowed.
Where can I see this in publication. That 70% ok for building and 30 % ok for land.
my friend insist, I need to use appraised value or tax assess value in the past to calculate break downs.
I am confused.
I simple added purchase price plus renovation cost plus closing cost points.
Example total cost $18500 - $129500 applied to building
$56000 to land.
I depreciated $129500 for 27.5 years.
What if I deprecatied the points not amortized. 25 years.
I depreciated the points not apportized them 25 years. big issue.
IRS agent can disallow deprecation.
WHat would be there basis.
I will be listing a property for sale. Rental property. Need to calculate my basis