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#3
02-10-2005, 07:46 AM
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 Re: Confused about which tax year to apply to a taxable transaction Ah, the perennial problem of cross-year checks. The general rule is that, as a cash-method taxpayer, you don't recognize income until you receive it, actually or constructively. In this case, to simplify things, the general rule is that you don't "receive" the check until the next year, so it should be a taxable item for 2005, not 2004. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
02-10-2005, 06:49 AM
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| Re: Confused about which tax year to apply to a taxable "Mak Wilson" <mydeadpresidents[at]yahoo.com> wrote: - quote - > On December 31st, 2004 my share of a REIT investment was
Depends on whether the transaction actually happened in> liquidated at my request. The trust handling the matter > issued me a check in January of 2005 which I have since > recieved and deposited. Upon receiving the 1099 for this > investment for 2004, I noticed it does not reflect the > liquidation. I called the trust and they said that because > the check was issued in 2005 that the tax event would apply > to 2005 instead of 2004. Shouldn't this be a 2004 event > because the liquidation occured in 2004? 2004. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
02-10-2005, 06:29 AM
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| Re: Confused about which tax year to apply to a taxable "Mak Wilson" <mydeadpresidents[at]yahoo.com> wrote: - quote - > On December 31st, 2004 my share of a REIT investment was
It's a 2004 transaction. The normal settlement on securities> liquidated at my request. The trust handling the matter > issued me a check in January of 2005 which I have since > recieved and deposited. Upon receiving the 1099 for this > investment for 2004, I noticed it does not reflect the > liquidation. I called the trust and they said that because > the check was issued in 2005 that the tax event would apply > to 2005 instead of 2004. Shouldn't this be a 2004 event > because the liquidation occured in 2004? trades is 3 business days, which is why the check was issued in January. The trust is wrong. -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-10-2005, 04:35 AM
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| Re: Confused about which tax year to apply to a taxable transaction I'm still not entirely sure how I may have broken the rules of the FAQ and I am having trouble revisiting asktax.org, so until I determine my error, please know I don't intend to offend. As a follow up to my question, I'd like to clarify that I'm not entirely sure how the above mentioned investment would be classified. It's some kind of trust in which I owned shares, but I don't think it is what you would call a public company and for the last six months it has been closed to new investment. CNL Hotels & Resorts http://www.cnlhotels.com/ << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-09-2005, 02:00 AM
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| Confused about which tax year to apply to a taxable transaction On December 31st, 2004 my share of a REIT investment was liquidated at my request. The trust handling the matter issued me a check in January of 2005 which I have since recieved and deposited. Upon receiving the 1099 for this investment for 2004, I noticed it does not reflect the liquidation. I called the trust and they said that because the check was issued in 2005 that the tax event would apply to 2005 instead of 2004. Shouldn't this be a 2004 event because the liquidation occured in 2004? Thank you for your help. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| apply, confused, tax, taxable, transaction, year |
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