Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Kind of interesting. I got the turbo tax for stock accounts and did not have any Tax problems so far, over the last few years.

Then I tried to get a mortgage. Boy was that an eye opener, because Turbo tax did not enter or even ask about section "L". return of capital. Due to the missing figures the bank will not consider the income from a partnership such as williams partners.

so you have to go to forms and manually enter it. Not only that but when the section called ending capital account goes to zero, you will have to start paying tax on distributions. That is according to my local CPA.

Aside from being pissed at turbo tax. it has been a rough week.
Print the post Back To Top
No. of Recommendations: 2
Then I tried to get a mortgage. Boy was that an eye opener, because Turbo tax did not enter or even ask about section "L". return of capital. Due to the missing figures the bank will not consider the income from a partnership such as williams partners.

Either something got lost in the translation or the bank is BSing you. A return of capital doesn't show up on your return (until, as you noted, all your investment has been returned), but the distributions from the investment show up in your investment account.

If the bank is equating gross income stated on your tax return with total cash in, you probably shouldn't be dealing with them anyway. OTOH, if you've been understating your taxable income because of a taxable return of capital, don't blame TT, look in the mirror.

Phil
Rule Your Retirement Home Fool
Print the post Back To Top
No. of Recommendations: 0
If the bank is equating gross income stated on your tax return with total cash in, you probably shouldn't be dealing with them anyway. OTOH, if you've been understating your taxable income because of a taxable return of capital, don't blame TT, look in the mirror.

+++++++++++++++++++++++++++++++++

1) Banks & mortgage companies under the new rules will only look at your tax return Schedule E in this case is the k1 if you do not show the section 19A as going anywhere else on the k1 then it looks like it went off into air. This showing you got the money but failed to show where is went or came from.
2) yes the final blame rests with the person reviewing the tax return.
3) what is OTOH? and yes I can be dense sometimes.
Print the post Back To Top
No. of Recommendations: 0


what is OTOHjj


"on the other hand"


SO rarely can I answer a question on
this board ...
Print the post Back To Top
No. of Recommendations: 0
what is OTOHjj
"on the other hand"

Acronym Finder, http://www.acronymfinder.com has a lot more....

Eric Hines
Print the post Back To Top