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Hi there,
Question related to Tax..
Can I distribute Principal amount of home loan under 80C between two People..
For example.. I Have principal amount of 2Lac.. and want to distribute it in 1.5 Lac & 50k between me and my Dad.. (my dad is co-owner in loan)
Can't find answer online so asking here.. if you find it... Link will be helpful.
Thanks
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It’s best to amend 2019. Even if you include the income on your 2020 return, IRS records will show that you have a 2019 K-1 that wasn’t reported on your 2019 return, and they could easily send you a notice for that.
If you report it on 2020, file 2020, then get a notice for 2019, you not only have to resolve the 2019 notice, but then you would want to amend 2020 so you’re not double-paying tax.
A few possibilities:
-Are the gains short-term? Those are taxed at ordinary rates.
-Depending on your tax bracket, your long-term capital gains could be being taxed at 15%.
-If you have any unrecaptured section 1250 gain from a 1099 or a K-1, that amount is taxed at up to 25%. Gain from collectibles is taxed at up to 28%.
-Either you have an input error or your 19% calculation is incorrect. You may want to review the Schedule D Tax Worksheet which walks through your total tax liability when capital gains are involved. It’s a lot to read at first so I would suggest taking it one step at a time.
Yes you should amend to report it in your 2019 return
You will always receive 2019 income during 2020 since this income can't be calculated until 2019 is over. So the IRS will not care that you were not provided until 2020. You need to amend and wait to file from now on.
2020 return.
Lmao MD1 see below my answer blows your answer out of the water!
Many pass throughs don’t file until the fall. Their deadline is 9/15. Which is why the extended Individual and corporate deadline is 10/15 (gives ample time to file). Amend 2019 and going forward don’t file your return until you get the K-1.
D1 What pship are you referring to? Also, your statement is inaccurate especially after CPAR. IRS is doing everything they can to make the audit of pships more successful this begun in 2018.
Receiving a K-1 is not he same as receiving the income, just like receiving a W-2 is not the same as earning the money on the W-2. It’s a record of earning the money, entirely different then actually earning the money.
Get a tax transcript that way you know what the irs has on file. Match what the irs shows and you won’t have any issues.
Mentor
Related question - how do fiscal year K-1s work for Callender year tax payers? If the k-1 has a 3/31/2020 year end, do I file it in my 2020 return or 2019 return since most of the activity was in 2019?