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

3NTTC Training 2008

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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5NTTC Training 2008

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

7NTTC Training 2008

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

8NTTC Training 2008

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

9NTTC Training 2008

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

10NTTC Training 2008

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

11NTTC Training 2008

FORM 8606

Taxpayer info.

12NTTC Training 2008

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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14NTTC Training 2008

IRA DISTRIBUTIONS

If there have been non-deductible contributions:

KEY: Taxwise - must check box on 1099-R screen, exclusion worksheet

15NTTC Training 2008

FORM 1099-R

16NTTC Training 2008

NON-CASH CONTRIBUTIONSPUB 17, CHAPTER 24; INSTRUCTIONS, FORM 8283

REPORTING NON-CASH CONTRIBUTIONS

$500 - $5,000

17NTTC Training 2008

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

18NTTC Training 2008

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

19NTTC Training 2008

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

20NTTC Training 2008

FORM 8283, PAGE 1

21NTTC Training 2008

FORM 8283, PAGE 1