Schedule D in the Real World
•All audio is streamed through your computer speakers.
•There were several attendance verification questions
presented during the LIVE webinar to qualify for CPE of the LIVE
event only.
•For the archived/recorded version of this webinar, the link at
the end of this presentation will be to final exam on the topics
and learning objectives covered during this webinar plus there
are also 3 online review questions to answer per hour.
Schedule D in the Real World
Presented by:
Kathy Hettick, EA, ABA, ATP, RTRP
Gene Bell, EA, ATA, CFP®, RTRP
National Society of Accountants
1010 N. Fairfax Street
Alexandria, VA 22314
800-966-6679
www.nsacct.org
2
Learning Objectives
Upon completion of this webinar you will be able to:
• Identify the basics of capital asset sales and the 2011 reporting
requirement changes as they relate to Schedule D and the new
Form 8949.
• Describe schedule D hot issues including form 8949, covered vs.
not covered, basis and adjustment codes.
• Identify basis issues to get it right when the form is wrong.
• Determine who has the burden of proof.
• Correct the Form 1099-B when it is wrong.
• Read Form 1099-B.
• Ask the right questions.
• Be confident when you file Schedule D and Form 8949 in the real
world of your practice.
Schedule D
Hot Issues!
Form 8949
Covered vs. Non Covered
Basis, Basis & more Basis
Adjustment 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
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Why do we have a
Schedule D?
Tax Code Complexities
Capital Gains Tax Rates
Netting Rules
Tax 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)
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Practice Management Tip
Have a Process
Have Procedures
Do your Due Diligence
Ask the Right Questions
8
New Form 8949
Why do we need it?
The 2011 Changes Required
Basis Reporting
Separate Pages to Report Short
Term & Long Term
IRS Matching Program
Covered vs. Non Covered
9
Basis Issues
Form 1099 B
How Do I Read It
Got It
Didn’t Get It
Correcting It
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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
Basis Issues
Burden of Proof!
WHO??
– Preparers
Asking the right questions
– Clients
Documents for supporting basis
– Brokers
Communicating changes
15
Carry What? Where?
Reportable or Non Reportable Losses
Carryover of Losses
Carryback of Losses
Prior Year Due Diligence
Corporation vs. 1040 vs. 1041
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Forms Summarized on
Schedule D
Form 4797
Business Assets
Form 6252
Installment Sales
Form 8824
Like-Kind Exchanges
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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 Beware
Software Input \ Tax Return Output
Check the Result of Your Input
Did It Show Up Where Expected
Be Diligent
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Review Questions for Self Study CPE:
Now’s the time to answer the review questions 1-3.
Click here:
http://www.proprofs.com/quiz-school/story.php?title=NTc1ODY2
*Once all questions are complete submit and close quiz
window.
Practice Management Tip
Ask yourself, have you;
Been Reasonable
Been Prudent
Been Ethical
Asked the Right Questions
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Upcoming Webinars
presented by Kathy Hettick
& Gene Bell
October 22nd:
Schedule E in the Real World
November 14th:
Self-Rental Tax Traps-Are you in Danger?
Are Your Clients?
http://webinars.nsacct.org
Thank you for participating in this webinar.
Below is the link to the online survey and CPE quiz:
http://webinars.nsacct.org/postevent.php?id=11040
Use your password for this webinar that is in your email
confirmation.
You must complete this survey and the quiz or final exam (for
the recorded version) to qualify to receive CPE credit.
National Society of Accountants
1010 North Fairfax Street
Alexandria, VA 22314-1574
Phone: (800) 966-6679
members@nsacct.org