schedule d in the real world all audio is streamed through your computer speakers. there will be...

Schedule D in the Real World

•All audio is streamed through your computer speakers.

• There will be several attendance verification questions during the LIVE webinar that must be answered via the online quiz at the conclusion to qualify for CPE.

• For the archived/recorded version of this webinar, the link to the attendance verification quiz is a final exam on the topics covered during the presentation.

Schedule D in the Real World

2

Presented by:Kathy Hettick, EA, ABA, ATP, RTRP Gene Bell, EA, ATA, CFP®, RTRP  

National Society of Accountants1010 N. Fairfax StreetAlexandria, VA 22314

800-966-6679www.nsacct.org

Learning Objectives

To understand the basics of capital asset sales and the 2011 reporting requirement changes as they relate to Schedule D and the new Form 8949.

Schedule D Hot Issues!

Form 8949Covered vs. Non CoveredBasis, Basis & more BasisAdjustment Codes

4

Schedule D

Just a summary form now–Other forms flow to Schedule D

Unlike the Schedule E–The devil is in the details!

More on that in our Schedule E webinar October 22, 2013

5

Why do we have a Schedule D?

Tax Code Complexities Capital Gains Tax Rates Netting RulesTax Computation Worksheet

6

What is a Capital Asset?

IRC§1221–List of assets that will never be capital assets–Congress never defined the term

U.S. Supreme Court Workable Distinction– Malat v. Riddell, 383 U.S. 569 (1966)

7

Practice Management Tip

Have a ProcessHave ProceduresDo your Due DiligenceAsk the Right Questions

8

New Form 8949Why do we need it?

The 2011 Changes Required Basis ReportingSeparate Pages to Report Short Term & Long TermIRS Matching ProgramCovered vs. Non Covered

9

Basis IssuesForm 1099 B

How Do I Read It

Got It

Didn’t Get It

Correcting It

11

12

Basis Issues Getting it Right when the form is WRONG!

Adjustment Codes–How do I use them–When do I use them–Where do I put them–Will they cause IRS correspondence

Asking the right questions to get the right answers

13

15

Basis IssuesBurden of Proof! WHO?? – Preparers

Asking the right questions – Clients

Documents for supporting basis– Brokers

Communicating changes

Carry What? Where?

Reportable or Non Reportable LossesCarryover of LossesCarryback of LossesPrior Year Due Diligence Corporation vs. 1040 vs. 1041

16

Forms Summarized on Schedule D

Form 4797 Business Assets

Form 6252 Installment Sales

Form 8824 Like-Kind Exchanges

17

Forms Summarized on Schedule D

Form K-1 Partnerships, S Corps, Estates, Trusts

Form 1099-DIV Capital Gain Distributions

Who’s Doing the Return?

Preparers BewareSoftware Input \ Tax Return OutputCheck the Result of Your InputDid It Show Up Where ExpectedBe Diligent

19

Practice Management Tip

Ask yourself, have you;

Been ReasonableBeen PrudentBeen EthicalAsked the Right Questions

20