Speaker 1: It's night with Dan Ray. I'm tell you easy Boston
Speaker 1: News Radio.
Speaker 2: All right, We're delighted to be joined tonight by Mark Missilbeck.
Speaker 2: He is a CPA with a firm Cherry Beckert Advisory
Speaker 2: LLC located in Waltham. He's spent a lot of time
Speaker 2: with us tonight and he's going to spend some more time,
Speaker 2: as often happens with Mark, Mark, what is the best
Speaker 2: way someone who wanted to contact you privately? Do you
Speaker 2: have an email that you could share with us or
Speaker 2: a phone number that if you know, again, you're not
Speaker 2: here looking for business. You you're more than busy. But
Speaker 2: if anybody wanted to contact you privately, what's the best way?
Speaker 3: My email is Mark M A r K dot missile
Speaker 3: Beck M I doubles e l beckism Beck spear b
Speaker 3: E c K at CBH dot com.
Speaker 2: It's pretty easy, Mark dot Missilebeck at CBH dot com.
Speaker 2: We will give that a little bit later on during
Speaker 2: the hour in case anyone missed it as well. Let's continue.
Speaker 2: We have a lot of calls waiting and we'll get
Speaker 2: to everybody as quickly as we can. Let's go to
Speaker 2: Janis in Melrose. Janis you are next on Nightside with
Speaker 2: Mark Misselbecker.
Speaker 4: Right ahead, Jennis, Hi, I have a question. I always
Speaker 4: go over my return server carefully before I signed my name,
Speaker 4: and last year I found something that didn't make sense
Speaker 4: on Form eleven sixteen, and so I went back to
Speaker 4: the preparer and they said the software made a mistake.
Speaker 4: And there's a line on there that asks for your
Speaker 4: income all sourced income, and the software grabbed my adjusted
Speaker 4: gross income which includes subtraction for capital gain losses, and
Speaker 4: if I understand correctly, what they're looking for in that
Speaker 4: line is all sorts of income and they don't count
Speaker 4: any losses. It's just what was your income? Is that correct?
Speaker 3: I believe that they do met the capital gains against
Speaker 3: the capital losses on scheduled d to get to the
Speaker 3: income to be reported on the return. So I'm not
Speaker 3: so sure that the mistake was making that was made
Speaker 3: in the calculations.
Speaker 4: My question is about the software and the preparer's use.
Speaker 4: Is there a standard software they used, because I had
Speaker 4: another preparer and they always did it the way that
Speaker 4: I just mentioned to you, and then this new preparer
Speaker 4: they admitted that it was a mistake, but they said
Speaker 4: the software just grabbed the long amount and it made
Speaker 4: a difference between not having to pay estimated taxes and
Speaker 4: having to pay a sizeable estimated tax.
Speaker 2: Because you've got the mistake.
Speaker 4: Well, I knew something was wrong because the bottom line,
Speaker 4: it was telling me that I could take a credit
Speaker 4: for most of my foreign taxes. And every other year
Speaker 4: I've only been allowed to take a small, a small
Speaker 4: percentage of my foreign taxes as a credit and then
Speaker 4: everything else was carried over. So I'm I noticed that
Speaker 4: something was different because I've never been allowed to take
Speaker 4: that large amount. I'm sorry.
Speaker 3: How large is the amount of your foreign taxes?
Speaker 5: Last year?
Speaker 4: It was six hundred? It was higher six hundred, and
Speaker 4: they were telling me I could take most of it,
Speaker 4: and usually it's around three hundred. Actually it may have
Speaker 4: been three it was three year six. I'm not sure.
Speaker 2: It's been a while, but okay, So what is the
Speaker 2: question that you have from Mark?
Speaker 4: My question is about software, and I go over everything
Speaker 4: so thoroughly. Now do I have to check everything and
Speaker 4: which is right that I which amount is supposed to
Speaker 4: be engined on farm?
Speaker 3: Once?
Speaker 2: Well, not knowing the I want to take a talk
Speaker 2: off the hook here, Mark, let's at me jump in
Speaker 2: for a second, not knowing who you prepare or was
Speaker 2: not knowing really what software they were using. If there
Speaker 2: was a mistake that you caught, great, I still don't
Speaker 2: quite understand what you're asking Mark, But if Mark, if
Speaker 2: you if you feel you can answer the question, go ahead.
Speaker 3: There are a number of software packages out there and
Speaker 3: different firms use different professional software packages to handle the
Speaker 3: complexities of all the returns that we deal with that
Speaker 3: can be incorporated in those returns, and usually they do
Speaker 3: a very good job of the interpreting the law. Once
Speaker 3: in a while we have to do it an override
Speaker 3: and put in a number because the software, to our interpretation,
Speaker 3: is not handling it correctly. But this category usually is
Speaker 3: taking care of well and we've come to rely on
Speaker 3: their expertise in interpretations. Myself, I gotta admit I would
Speaker 3: have to go back double check on the calculations to
Speaker 3: be certain myself, and I can't answer it off hand tonight,
Speaker 3: WI me an email, I will take a look at
Speaker 3: it and answer you.
Speaker 4: Okay, So what you're saying is you can't answer what
Speaker 4: they're actually looking for on that line? Is that what
Speaker 4: you do?
Speaker 3: But I can tell you that there is an optional
Speaker 3: election to take up to four hundred dollars. I think
Speaker 3: it is without going through these computations. You don't get
Speaker 3: to carry forward of whatever is in excess of that amount.
Speaker 3: But if you were getting less than that, you may
Speaker 3: want to consider making that election.
Speaker 4: Is that Form three or no?
Speaker 3: No? That is ok. In place of filing the eleven
Speaker 3: sixteen and going through all the calculations, you can just
Speaker 3: take the flat amount.
Speaker 4: But even when you go through all the calculations, it
Speaker 4: tells you you can only take one hundred out of
Speaker 4: six hundred, and then.
Speaker 2: You can do again.
Speaker 3: I say again, as I recall, you can make this
Speaker 3: election and take the flat amount without doing the calculations.
Speaker 4: Okay. I just wanted to make one other point. The
Speaker 4: previous caller was talking about something that he got over
Speaker 4: sixty five, and I thought he was talking about Massachusetts,
Speaker 4: and I wondered if he was referring to the Seniors
Speaker 4: Circuit breaker whatever I.
Speaker 3: Wanted to see. The Senior Circuit breaker is a tax credit.
Speaker 3: So my understanding, the door denies everyone that's been submitted
Speaker 3: and forces you to submit all kinds of paperwork to
Speaker 3: document your entitlement to that credit. There is an additional
Speaker 3: exemption that MASS allows if you're over sixty five, right,
Speaker 3: I'd give you an additional standard deduction over and above
Speaker 3: what you know normally would get if you're filing single.
Speaker 3: The standard deduction for twenty twenty four would be fourteen thousand,
Speaker 3: six hundred. Last year was thirteen eight fifty, and if
Speaker 3: you're over sixty five, you would get an additional one thousand,
Speaker 3: eight hundred and fifty. Last year one thousand, nine hundred
Speaker 3: and fifty. This year.
Speaker 4: Okay, all right, I just thought.
Speaker 2: He Rachel, I hate to do this year. Rachel, I
Speaker 2: got other callers and we're just we're I got to
Speaker 2: get you out of the weeds here. Okay, thank you
Speaker 2: so much, thanks for calling. Good night. You know, there's
Speaker 2: a point mark where I think people are she's getting
Speaker 2: really deep into her own tax return, and yeah, she's
Speaker 2: asking questions which I think are on a little unfair.
Speaker 2: But anyway, we'll continue along six one, seven, two, five,
Speaker 2: four ten thirty six one seven, nine, three, one ten thirty.
Speaker 2: Feel free give us a call, be right back on
Speaker 2: night Side.
Speaker 1: Now back to Dan ray I from the Window World
Speaker 1: in Night six Studios on WBZ.
Speaker 2: The news radio Okay, we got full lines. Let's keep
Speaker 2: rolling here, Mike. I want to try to give as
Speaker 2: many people as possible a chance to chat with you.
Speaker 2: Let's go to Marry and Boston. Marry you next on Nightsager,
Speaker 2: Right ahead.
Speaker 6: Yes, I have a checking account I just opened, so
Speaker 6: I don't get no interest on that account. So do
Speaker 6: I have to claim that on my income tax?
Speaker 3: If you have no interest paid, you have no interest
Speaker 3: to declare?
Speaker 6: Oh okay, and it's the minimum you have to have
Speaker 6: in that account.
Speaker 3: No, that's a banking question. It's a ten dollars for
Speaker 3: reporting purposes. If the bank didn't pay you more than
Speaker 3: ten dollars of interest, it doesn't have to tell you
Speaker 3: and the irs how much it paid you an interest.
Speaker 3: The obligation to report all of the interest income, all
Speaker 3: income from whatever source derived, even though the bank doesn't
Speaker 3: turn you into the I R S, is still your
Speaker 3: obligation to put it on your return.
Speaker 6: Okay. But if I don't have no interest, I don't
Speaker 6: have to claim.
Speaker 3: It, right Yepkay, No, you don't have to unless you
Speaker 3: want to be charitable to the United States Treasury. You
Speaker 3: don't have to put fanom income on your return.
Speaker 6: Okay. Okay, thank you.
Speaker 2: Okay, thanks Mary, good luck, Okay, thanks, thank you, good night.
Speaker 2: Sounds like a sweet lady wants to do the right thing.
Speaker 2: The irs must have taxpayers like that. Fred is in Wooburn. Fred,
Speaker 2: you were on with Mark Misselbecker.
Speaker 7: Right ahead, Yeah, Dan and Mack. Thanks for having me
Speaker 7: taking my call. Mine's really quick. My wife has not
Speaker 7: received her Selfial Security W two form yet. She's gotten
Speaker 7: everything else except for that one.
Speaker 8: What can I do?
Speaker 7: I'll call them and I'm on hold for days.
Speaker 3: If you've set up an account with the SSA, you
Speaker 3: should be able to go in there and obtain the
Speaker 3: ten ninety nine SSA and print it off. It's either
Speaker 3: ten nine SSA or SSA ten ninety nine. I forget
Speaker 3: offhand which designation it is. It's in the ten ninety
Speaker 3: nine series, but they post it to their website, and
Speaker 3: if you have an account with a secure log in,
Speaker 3: you should be able to find it there.
Speaker 7: I'll check that out tomorrow.
Speaker 6: I really appreciate it.
Speaker 3: You guys. Have a great night.
Speaker 2: Yeah. By the way, let me give you the account.
Speaker 2: It is SSA dot gov. We'll get you where you
Speaker 2: got to get to. Okay, and you can either create
Speaker 2: an account. It's just SSA lowercase dot gov.
Speaker 7: Thanks Daniel the man, all right, you're very.
Speaker 2: Welcome, Fred boy. That's that's frustrating that the Social Security
Speaker 2: would not send her. I'm looking at my account and
Speaker 2: I check it every once in a while, but.
Speaker 3: They send out all kinds of communications. They do it
Speaker 3: electronically if you have an account. But is the blame
Speaker 3: with the Social Security Administration for not sending it out
Speaker 3: of the US prostal service for not delivering it?
Speaker 2: Wait, that's a coin flip market that therever was. Let's
Speaker 2: keep rolling. Head going to one of my favorite callers,
Speaker 2: Betty on the Boat. Betty on the Boat, welcome back.
Speaker 2: You're on with Mark Misselbecker. Right ahead, Betty.
Speaker 6: Good evening, gentlemen. I have a complicated scenario. My husband
Speaker 6: died and when his real estate was sold, twenty seven
Speaker 6: thousand dollars of the proceeds of the estate received and
Speaker 6: turned back to my insurance carrier under the Medicare advantage
Speaker 6: lean and now do I report that as a cost
Speaker 6: of the estate or as my personal income? Because they
Speaker 6: paid a bill for me, not for him.
Speaker 3: Is there anybody running the estate appointed to settle his affairs.
Speaker 6: I am, I'm the personal representative.
Speaker 3: Okay. Now, was the property titled in joint names yours
Speaker 3: and his or his alone?
Speaker 6: It was his property, but it gets money here. It
Speaker 6: was never to be put in my name for purposes.
Speaker 3: So you but the estate name the estate would be
Speaker 3: responsible for reporting the sale. If the property was sold
Speaker 3: while the estate was open, if it was transferred over
Speaker 3: to you, you would be responsible. However, there should be
Speaker 3: a valuevaluation obtained as to the value of the property
Speaker 3: at his date of death, and that would become the
Speaker 3: tax cost. So if we were thirty thousand, you had
Speaker 3: a broker's fee and legal fees to execute the sale,
Speaker 3: those would be charged against the thirty thousand to get
Speaker 3: to the twenty seven thousand. But you still have a
Speaker 3: thirty thousand costs for the property. You actually be able
Speaker 3: to report a capital loss on the sale.
Speaker 6: Okay. But what I'm asking is about the Medicare lean.
Speaker 6: The statutory medicare leans that if you have any outstanding
Speaker 6: bills due to.
Speaker 3: Personally they were if they were if they were unpaid
Speaker 3: medical bills, then there may be a medical deduction in
Speaker 3: favor of the estate, but not for you as an individual.
Speaker 6: Because it was more medical bills that they took ah
Speaker 6: out of his estate, and he was never a member
Speaker 6: of that insurance company. So is that my income are
Speaker 6: his debt service?
Speaker 3: It's your satisfaction of your medical bills out of the
Speaker 3: proceeds of inheritance the real estate. You may have a
Speaker 3: capital loss from the sale of the real estate long term,
Speaker 3: because at death it's automatically considered to be a long
Speaker 3: term asset for you, and you have the potential of
Speaker 3: itemizing your deductions and claiming a medical deduction for the
Speaker 3: medical expenses that have finally been paid with those funds
Speaker 3: on my behalf. Yeah, you really need to talk to
Speaker 3: somebody about having a return prepared taking into account those
Speaker 3: elements this year.
Speaker 8: Yeah.
Speaker 6: The reason I add SI stands there was a lady
Speaker 6: about a half hour ago who'd been in the hospital
Speaker 6: for two days post accident and had an insurance settlement,
Speaker 6: and that just brought this question right into mind about
Speaker 6: the Medicare lean.
Speaker 2: When did your husband pass.
Speaker 6: In two thousand and three, but it was an ongoing battle,
Speaker 6: it's a long time ago.
Speaker 3: Then you may not you may not have a basis
Speaker 3: in the time the property sufficient to cover the proceeds.
Speaker 3: You may have a profit to report, but then you
Speaker 3: get the medical deduction on payoff of those, so it
Speaker 3: may help you to offset the gain in your return. Again,
Speaker 3: you need to talk to somebody have have them prepare
Speaker 3: your return this year.
Speaker 6: Yeah, not too many people are aware of the statutory
Speaker 6: medical lean and litigation.
Speaker 3: Mm hmm.
Speaker 2: Well I think I think that you know, Mark has
Speaker 2: been pretty clear.
Speaker 6: Here again and what he's saying completely, but you know,
Speaker 6: I just like to pass the word that there is
Speaker 6: such a thing.
Speaker 2: Okay, well, sorry about the loss of your husband. And
Speaker 2: do you normally have someone prepare your taxes you know,
Speaker 2: every year?
Speaker 1: No?
Speaker 2: Okay, well this this might be the year that you
Speaker 2: might want to get this this buttoned up, I think,
Speaker 2: is what Mark is saying.
Speaker 6: Yeah. I agree, but I you know, it's the whole
Speaker 6: thing is just infuriating to me that what what happened
Speaker 6: is it's it's it's the sale of that property and
Speaker 6: that I was shafted six ways to Sunday. Yeah, that's
Speaker 6: not the.
Speaker 2: That's not the I R. S is problem at this point.
Speaker 6: That's my problem.
Speaker 2: Yeah, and the IRS is. I just always feel it's
Speaker 2: smart to get yourself squared away with the irs so
Speaker 2: that nothing doesn't come back and invite you, you know,
Speaker 2: sometime down the road.
Speaker 6: Yeah, well, I hope all as well with you Mustard
Speaker 6: in the family, all right.
Speaker 2: Okay, Muster of the dog. Thanks Patty, be well.
Speaker 6: Okay, thank Ker, and thank you for taking my call.
Speaker 2: You're very welcome again. Mark. It's interesting, just a number
Speaker 2: of issues that you deal with here. We'll continue. I
Speaker 2: got Bruce and Howell Rebecca in Milford, and all of
Speaker 2: a sudden, I got a couple of open lines. If
Speaker 2: you were trying to get through before the latest, that
Speaker 2: market is going to be gone by eleven, So now
Speaker 2: is the time to call six one, seven, two, five,
Speaker 2: four ten thirty six one seven, nine, three, one ten thirty.
Speaker 2: Feel free. You can get in on either of those
Speaker 2: lines at this point. My name's Dan Ray. Will take
Speaker 2: a quick break here for news at the bottom of
Speaker 2: the hour, and we'll be back back with certified public accountant,
Speaker 2: long time tax expert, who has been a guest in
Speaker 2: this program for fifteen tax seasons, going back at least
Speaker 2: to twenty eleven, and before that, maybe even longer than
Speaker 2: we both realized. We're both we're both we've been doing
Speaker 2: this longer than you could imagine. Mark, You've been doing
Speaker 2: this how many? How many years professionally, putting aside your
Speaker 2: appearances here on Nightside.
Speaker 3: Working my way through my fifty third year.
Speaker 2: Fifty three years. Okay, So you know, I think you're
Speaker 2: probably getting pretty good at it, that's for sure. It's
Speaker 2: amazing to me the breadth and depth of knowledge that
Speaker 2: you have on all of these questions. Back on Nightside
Speaker 2: with Mark Missilbeck. Mark, this is about a three minute break.
Speaker 2: We'll be back at it about three three and a
Speaker 2: half minutes. Back on night Side. Right after this, you're.
Speaker 1: On Night Side with Dan Ray on WBZ, Boston's news radio.
Speaker 2: We're talking with Mark Misselback. He is a CPA, been
Speaker 2: doing this for a while. He's been doing it for
Speaker 2: a while for us here at Nightside. He gives them
Speaker 2: volunteers his time and he's an amazing CPA. With Cherry
Speaker 2: Beckhart Advisory LLC out of Waltham, Massachusetts. Let's get right
Speaker 2: back to the calls. Don't want people to wait too long.
Speaker 2: Let me go to Bruce in Hull. Hey, Bruce, welcome,
Speaker 2: You're next on Nice Side with CPA Mark Misselbecker. Right ahead, Bruce.
Speaker 8: Dan Thanks for taking my call. Mark, Welcome to the
Speaker 8: Night Side Show. My question is two parts. One, I've
Speaker 8: been led to believe through news. I believe that Ronald
Speaker 8: Reagan passed the law preventing federal employees from getting Social
Speaker 8: Security but they could get up to forty percent of
Speaker 8: what they're entitled. And President Joe Biden reversed that or
Speaker 8: passed the new law entitling federal retirees to one hundred
Speaker 8: percent of their benefits if they're entitled.
Speaker 3: Am I correct? There? During the Reagan administration, working with
Speaker 3: the Congress, there was a limitation imposed on the benefits
Speaker 3: under Social Security that could be realized. It was deemed
Speaker 3: a double dipping to have both the government funded tension
Speaker 3: and the government funded Social Security benefits. And Biden didn't
Speaker 3: get it pasted himself. The Congress, in concert with the
Speaker 3: Biden administration, struck a deal, passed the law and expanded
Speaker 3: the participation two hundred percent. Yes in social scarity, if
Speaker 3: there are sufficient credits outside of the government for contributions
Speaker 3: into the Social Security system to warrant getting the benefits.
Speaker 2: Is that the ten years to forty quarters that we've
Speaker 2: heard so much about.
Speaker 3: Mark exactly. Yes, Okay.
Speaker 8: What I'm trying to do, I'll be quite blunt and
Speaker 8: pulling and plain about it is. I now understand that
Speaker 8: I'm in I had litt one hundred percent of my
Speaker 8: benefits and I only need twelve quarters, which is three
Speaker 8: years of working. Well, I'm lazy, I retired. I don't
Speaker 8: want to work for anybody, and so I came up
Speaker 8: with this IDM sheuer, sir, somebody else has already done it.
Speaker 8: I want to be self employed for three years, pay
Speaker 8: my twelve quarters into social Security, and then the end
Speaker 8: of the third year apply to receive social Security because
Speaker 8: I think in the end it will benefit me as
Speaker 8: long as I live a while. It's going to benefit
Speaker 8: me financially.
Speaker 2: Me, that's for sure. Right, Okay, go.
Speaker 3: Ahead, let me say that four quarter. I'm sorry, Go ahead,
Speaker 3: I am not. I'm sorry, Mark. So, I am not
Speaker 3: a social Security benefits expert, and my knowledge is glancing
Speaker 3: in that area, and I can only speak to the
Speaker 3: social Security taxes you might have to pay. You need
Speaker 3: to insult with someone who is a social Security benefits
Speaker 3: advisor about whether this strategy is viable or not. Very
Speaker 3: very you have to have profits. You would have to
Speaker 3: have profits from your self employment business to get credits
Speaker 3: for Social Security benefits.
Speaker 8: Yes, and I'm willing to pay that out of my
Speaker 8: pocket because I think I don't want to go to
Speaker 8: work for somebody to get my forty credits. But I figured, okay,
Speaker 8: but I'll start a business.
Speaker 3: Whether or not the strategy is viable, whether or not
Speaker 3: it's twelve quarters for you, is something that somebody who
Speaker 3: deals in Social Security benefits would have to advise you.
Speaker 8: And not mes very good advice, excellent advice, Mark, thank you.
Speaker 2: Okay, Yeah, Bruce, I understand your theory. I hope it
Speaker 2: works for you. That's that is for sure. And obviously
Speaker 2: at some point, not only do you have to figure
Speaker 2: out whether or not your plan is up the blet,
Speaker 2: but then also what the minimum you know, the the
Speaker 2: earnings would have to be, and how you would how
Speaker 2: you would fund that, et cetera. And obviously you want
Speaker 2: to make sure that if you do it, you do
Speaker 2: it correctly, because the worst thing that would be to
Speaker 2: do it and then be denied the benefits because it
Speaker 2: wasn't done correctly. So I don't know how you would
Speaker 2: find a Social Security benefit benefits advisor. There are people
Speaker 2: out there that you can that you can talk to
Speaker 2: if you have trouble uh finding someone in that category.
Speaker 2: If you want to give me a call, I'd ask
Speaker 2: you to try to do it on your own. If
Speaker 2: you want to give me a call, I can try
Speaker 2: to help you find someone who would be qualified to
Speaker 2: give you the information that you need.
Speaker 8: Okay, I thank you very much. And just to close
Speaker 8: out my call, the as a veteran, I have a
Speaker 8: veterans agent who's very helpful in the town or Paul,
Speaker 8: and I can ask him a question and he goes
Speaker 8: and finds out the answer perfect.
Speaker 2: And you are all said, Bruce, we have launched you here,
Speaker 2: and I'm delighted that you called. This is a this
Speaker 2: was a very successful phone call.
Speaker 3: Thank you, thank you, good night, You're welcome.
Speaker 2: Good night. Uh again. Mark, You're just so spot on
Speaker 2: in terms of the advice that you give people. I
Speaker 2: hope that they really understand that I appreciate the thoroughness
Speaker 2: with which you answer their questions. Let's go next to
Speaker 2: Rebecca in Milford. Rebecca in Milford, You're on with Mark Misselbeck.
Speaker 2: Go ahead, Rebecca.
Speaker 9: First of all, Dan, I love your show. Listen every night.
Speaker 9: I learned so much. Hear and Mark, we have talk
Speaker 9: to you good. I can't believe people don't have an
Speaker 9: accountants and they're asking you these questions because I own
Speaker 9: a small business, my husband and I. It's anes corp
Speaker 9: and it's going to be kind of a fun little thing.
Speaker 9: It's not fun for me, but we've been to a
Speaker 9: lot of accountants and I know a lot has change
Speaker 9: all the time, but the small business percent they have
Speaker 9: to pay is quite a bit, is it? It is correct?
Speaker 9: With that Mark, I'm not.
Speaker 3: Sure exactly what if it's an escorp for federal purposes,
Speaker 3: unless you were a C corp or acquired a C
Speaker 3: corp somehow. No, you shouldn't have a tax at the
Speaker 3: corporate level, right, it goes a little bit of mass
Speaker 3: is a little bit of an odd dog in that hunt,
Speaker 3: if you will. If your grocer receipts are over six
Speaker 3: million dollars, they want to cut of the difference between
Speaker 3: what you would pay as a regular corporation and what
Speaker 3: you pay as an individual.
Speaker 9: That's not my question, but I'm just saying, as high.
Speaker 2: Rachel, hold on explanation, We're not going to catch you.
Speaker 2: Don't go ahead, go ahead.
Speaker 3: I'm sorry, go ahead, and if your grocery seats exceed
Speaker 3: nine million dollars, they want the full differential to compensate
Speaker 3: them for your not reporting as a corporation and paying
Speaker 3: the eight percent, So they get three from the corporation
Speaker 3: aside from you. Now, if you are profitable, what you
Speaker 3: may consider under the current regime where you're what Dan
Speaker 3: referred to earlier assault this state and local tax deductions
Speaker 3: are limited at the individual level. Consider electing the pass
Speaker 3: through entity tax at the corporate level. For Massachusetts, you
Speaker 3: only get ninety five ninety percent of it as a credit.
Speaker 3: Excuse me for what you pay there, but you get
Speaker 3: a full deduction federally, which at the federal rates puts
Speaker 3: you ahead of the game.
Speaker 9: Yeah, I head spitting. I mean, if I sit with
Speaker 9: my accountants, and I'm very organized, but I couldn't. I
Speaker 9: just don't understand taxes. All I know is we always
Speaker 9: end up paying a lot. But I just wanted to
Speaker 9: tell you a quick story. We've had an accountant from
Speaker 9: twenty nineteen to twenty twenty three and we have to
Speaker 9: redo all our taxes because she did them on We
Speaker 9: got SBA loads and she didn't put it in one
Speaker 9: of them should even file for us. You know, we
Speaker 9: pay like twenty five hundred dollars each tax season today,
Speaker 9: so I have a new accountant. He has to redo
Speaker 9: all my taxes. I get letters every day in the
Speaker 9: mail from the IRS. They're very dice by the way.
Speaker 9: What I call today, I get an email with two
Speaker 9: bills from her, thirty six hundred dollars for taxes. I go,
Speaker 9: are you kidding me? And I've already paid her? So
Speaker 9: I thought I'd throw a wrench in the call today
Speaker 9: and be a little bit you know, more humorous, not
Speaker 9: that it's humorous to me, but certainly not paying it.
Speaker 9: But I couldn't believe it, because we have to redo
Speaker 9: all of our taxes.
Speaker 3: You build you after you had to redo.
Speaker 6: She knew her redo them.
Speaker 9: No, I get a new accountant because she screwed them
Speaker 9: up so bad, actually one of them twenty nineteen. Because
Speaker 9: I went through every year with the IRS, they were
Speaker 9: very helpful. She didn't even file my tax and I'm married.
Speaker 6: You know, we filed the physiness to the personal like
Speaker 6: we were talking about.
Speaker 9: But I just couldn't believe it. The and I like
Speaker 9: I said, hats off to you, Mark, because just keep
Speaker 9: it up with all the changes and laws and everything
Speaker 9: is crazy enough. But that's you know, I'm just so
Speaker 9: I'm waiting for the new accounty already did twenty twenty three,
Speaker 9: is it's going to do twenty nineteen through twenty twenty two.
Speaker 2: Over so, and she's still trying to send you a bill.
Speaker 9: I couldn't believe it. I couldn't believe it. They're all
Speaker 9: there's so often it's not your fighting. So you know,
Speaker 9: one thing we're getting back thory two thousand, the next
Speaker 9: bill we owe forty seven thousand. Oh, the back that
Speaker 9: you didn't file for twenty nineteen. I mean, and I
Speaker 9: don't understand it at all. So, like I said, I
Speaker 9: really appreciate this topic.
Speaker 3: Let me say it. Let me say this. I can't
Speaker 3: say what recourse you may have, right, but it would
Speaker 3: be worth a console pation with an attorney. Let's see
Speaker 3: what your what your outcome can be.
Speaker 9: I at least want to get paid back for what
Speaker 9: I paid her to do my taxes. I mean, I
Speaker 9: don't want to store or anything. You know, she's a
Speaker 9: nice person, but it's just like we've been going through
Speaker 9: health and the I R I said, once we get
Speaker 9: everything in and find they'll take away all the penalties
Speaker 9: and interest rates.
Speaker 2: Just crazy.
Speaker 9: But yeah, that's what I just wanted to know. What
Speaker 9: can I do? So, you know, I'd like to get
Speaker 9: back what I paid for her to do my taxes.
Speaker 9: But today when she sent me a bill for one year,
Speaker 9: I'm like, oh god, well, well.
Speaker 2: I think Marks. I think Mark's advice is is excellent.
Speaker 2: Do you have an attorney on it that represents your
Speaker 2: your business represents Do you have a family attorney?
Speaker 6: Of course, go to him.
Speaker 2: And present the issue, and if he's not comfortable with
Speaker 2: that area, I'm sure he can refer you on to
Speaker 2: uh an area. You know, there was some specialty here.
Speaker 2: I mean, this is from what you tell us. It
Speaker 2: sounds to me like, if anything, the accountant should owe
Speaker 2: you money for the aggravation the.
Speaker 9: And I don't want to do anyone.
Speaker 2: Saying well, no, I understand.
Speaker 3: All I'm saying is all I'm saying is an attorney
Speaker 3: should look at the circumstances and appraise whether or not
Speaker 3: you have any recourse or claim that you can pursue
Speaker 3: what has happened.
Speaker 9: Well, thank you very much. And like I said, I
Speaker 9: just can't believe people can do. I just don't get it.
Speaker 9: Call those lives.
Speaker 2: If someone came and built, you know, an extension on
Speaker 2: your home and three three weeks later the thing collapsed
Speaker 2: and then they were sending you a bill. I don't
Speaker 2: think you want to pay that one again? Paid, I know,
Speaker 2: I know, do what Mark said, and uh, and I
Speaker 2: will tell you if it's worth if it's worth the effort.
Speaker 2: It's as simple as that. And if he can't got it,
Speaker 2: find you somebody.
Speaker 9: Okay, great, all right, good luck with the upcoming taxis
Speaker 9: and Mark and Dan, like I said, love you, I'll
Speaker 9: listen to you again tomorrow.
Speaker 5: Right.
Speaker 9: This is a great topic.
Speaker 2: Thank you, Thanks, thanks Rebecca, Thank you Mark. Mark makes
Speaker 2: it a great topic. Thanks, talk to you later. All right,
Speaker 2: all right, we'll take a quick break. I can get
Speaker 2: a couple more calls in. Louise and Peabty waits on
Speaker 2: the other side. Uh. If there's anyone who wants to
Speaker 2: try to sneak in real quickly under the wire here
Speaker 2: we can accommodate you. Six one, seven, two, five, four
Speaker 2: ten thirty six one seven, nine three one ten thirty.
Speaker 2: Mark again, as always, a wide range of a wide
Speaker 2: range of callers and issues and you handle them with
Speaker 2: such a plum. You're you're masterful. So I just want
Speaker 2: to say thanks, we will we will give one more
Speaker 2: time your email. If folks want to try to reach you,
Speaker 2: if they reach you off here, I hope you're going
Speaker 2: to bill them. Uh, this is this is pro bono
Speaker 2: folks tonight. But if you know, if you if you
Speaker 2: want to contact markets Mark M A r K dot
Speaker 2: missile Beck M I S S E L B E
Speaker 2: c K at c BH dot com that stands for
Speaker 2: Cherry Beckhart Advisory Limited llc CBH dot com. Back on
Speaker 2: Nightside with Mark Missilbeck and a final call or two.
Speaker 2: Right after this short brief break, Now.
Speaker 1: Back to Dan Ray live from the Window World night
Speaker 1: Side Studios on WBZ NewsRadio.
Speaker 2: We want to call a drop off Teresa. Teresa, I
Speaker 2: believe from West Roxbury. We'll get you in if you
Speaker 2: call back. Let me go next to Louise in Paboty Louise,
Speaker 2: Welcome you are with Mark Misselbeck.
Speaker 5: Go right ahead, Okay, I'm gonna get right to the point.
Speaker 5: I won't get behind the story. I currently have an
Speaker 5: irrevocable trust and the money in that trust is sitting
Speaker 5: in a bank in a non interest bearing checking account.
Speaker 5: And M my lawyer that I went to to get
Speaker 5: all the you know, the estate documents worked out, said
Speaker 5: what the hell is that doing that money doing in
Speaker 5: an era of vocable trust? But what I'd like is
Speaker 5: to know the The lawyer that I went to was
Speaker 5: uh uh s S gave me a farm with the
Speaker 5: UH to fill out for the irs and I did it.
Speaker 5: But I haven't done anything with that money in the ear.
Speaker 6: Of vocable trust. It's a a trust for.
Speaker 5: Me and I had put it in there so that
Speaker 5: if I go to a nursing home, I my m my,
Speaker 5: the person in charge of the trust, will be able
Speaker 5: to take the money and buy me things that I
Speaker 5: need in the nursing home. Now, if I decide not
Speaker 5: to do any it's not earning any income. And if
Speaker 5: I leave it that way? Is that Okay?
Speaker 3: Likely it is? But who's the who's the trustee? The
Speaker 3: bank sounds like she is.
Speaker 2: Who's the great who established the trust? Uh?
Speaker 5: Louise I did my sister in LAWA. My sister in
Speaker 5: LAWA is in charge of all my estate if once
Speaker 5: I pass?
Speaker 2: Okay, is your sister in law named the the yes?
Speaker 5: Yes, she's in the legal document.
Speaker 4: Yes, is she?
Speaker 2: Is she the only trustee?
Speaker 5: Yes?
Speaker 2: Okay? Uh? And I think the lawyer's reaction, Mark correct
Speaker 2: me if I'm wrong, was why is it not earning
Speaker 2: any interest? Because obviously, as inflation goes on, the value
Speaker 2: of that money drops. But that was a lawyer's question.
Speaker 2: If it's not earning interest, obviously there's no interest to
Speaker 2: report to the to the federal government. Mark.
Speaker 9: But yeah, maybe I haven't.
Speaker 5: I haven't earned anything with it.
Speaker 2: Okay, hold on, I don't. Let's let Mark give you
Speaker 2: his analysis, and don't worry. We're not going to rush you.
Speaker 2: You get a follow up question or two if you
Speaker 2: need them. Go ahead, Mark.
Speaker 3: Now, I'm not knowledgeable in Medicare and Medicaid trusts. That
Speaker 3: caveat out there to begin with. Normally you can't do
Speaker 3: a trust for yourself for your own benefit. How the
Speaker 3: Medicare and Medicaid trusts work, if they work in that fashion,
Speaker 3: I can't tell you. But the trustee usually has a
Speaker 3: fiduciary obligation to invest the money to make a safe
Speaker 3: at least a safe rate of return, and sitting in
Speaker 3: a checking account, typically as a non interest baring checking account.
Speaker 3: Even an interest bearing checking account. The rates are so
Speaker 3: low these days there would be peanuts generated. So now,
Speaker 3: depending on if the trust is a what is called
Speaker 3: a simple or complex trust, there would be an annual
Speaker 3: exemption of three hundred dollars on a simple trust or
Speaker 3: one hundred dollars on a complex trust, offsetting the income
Speaker 3: at least on the federal level nothing for Massachusetts. A
Speaker 3: simple trust says all income generated during the year must
Speaker 3: be paid out at least annually to the name beneficiary.
Speaker 3: A complex trust leads it to the discretion of the
Speaker 3: trustee under standards set in the document as to whether
Speaker 3: or not money should be distributed to the beneficiary. So
Speaker 3: in the discretionary payout trust one hundred dollars exemption, you
Speaker 3: have zero income. In a simple trust, if there were income,
Speaker 3: it would have to be paid out to begin with.
Speaker 3: If this is crafted in such a fashion that it
Speaker 3: is treated for tax purposes what is known as a
Speaker 3: grant to our trust, then the terms of the trust
Speaker 3: are such that any income generated would be reportable by
Speaker 3: you anyway. In such circumstances, it's usually recommended that the
Speaker 3: money be invested in US treasuries, which will be taxable
Speaker 3: for federal purposes, but exempt for state purposes, or if
Speaker 3: you want to go whole hog, you invest in municipal
Speaker 3: bonds or municipal bond funds that generate municipal bond interests,
Speaker 3: particularly from your home state, so there is neither state
Speaker 3: or federal taxes on the money. But at least summer.
Speaker 5: What if I I'm eighty, I'm going to be eighty
Speaker 5: six years old in June and that money isn't earning
Speaker 5: any money and I don't want it to because I
Speaker 5: inherited a lot of money when my daughter died, and
Speaker 5: it's caused me a lot. I had to go down
Speaker 5: to Florida and sell the house down there.
Speaker 2: Okay, here's we're running out of time a little bit, Louise,
Speaker 2: So hold on.
Speaker 6: Okay, second, here, hold on.
Speaker 2: For one second. How long ago did you establish the trust?
Speaker 5: Oh in I think, uh in twenty sixteen?
Speaker 2: Yeah, okay, I think Mark. I think there's a five
Speaker 2: year rule that money that is put in to a
Speaker 2: trust that's irrevocable after five years.
Speaker 5: Nobody can touch it.
Speaker 2: Yeah, right, But whether or not you can do it
Speaker 2: for yourself, as I think, you got to talk with
Speaker 2: a lawyer. Does your family. Do you have a lawyer?
Speaker 2: Does your family have a lawyer who's worked with you?
Speaker 5: Yeah, I have a law I have an accountant and
Speaker 5: a lawyer.
Speaker 2: You spend some time with the lawyer. It's sounds to
Speaker 2: me like you've done a good thing. It seems to me.
Speaker 2: It doesn't seem to me based upon what Mark says,
Speaker 2: that you have avoided filing taxes. But I think you
Speaker 2: should get this settled so I can tell that it's
Speaker 2: bothering you in the back of your mind. You want
Speaker 2: to get it settled and make sure that you understand
Speaker 2: that and if you've done everything properly, and I think
Speaker 2: that that that this is a good step you took
Speaker 2: tonight and get to the lawyer and say, hey, look,
Speaker 2: just want to make sure that that I've complied with
Speaker 2: everything and if and then it is up to your
Speaker 2: judgment if you want, as Mark said, invested in a
Speaker 2: different sort of vehicle to earn a little bit more money.
Speaker 2: There's nothing wrong with that. But on that Louise, we
Speaker 2: got to got to let you go because I'm flat
Speaker 2: out of time. Thank you, Thank you, Mark Misselbeck, thank
Speaker 2: you just fabulous. As always, I got to give your
Speaker 2: email one more time with your permission. Markets M A
Speaker 2: R K dot missile Beck, M I S S E
Speaker 2: l V E C K at C b H c
Speaker 2: as in California, be as in Boston, Hsinhuston dot com,
Speaker 2: CBH dot com, Mark dot Missilbeck at CBCH dot com. Mark,
Speaker 2: thank you so much. I'll give you a call tomorrow
Speaker 2: and sometimes maybe we could fit you in one more time,
Speaker 2: or if you have the time between now and maybe
Speaker 2: the end of the month, if that's conceivable. A lot
Speaker 2: of interest tonight.
Speaker 3: That's possible. It's entirely possible if we do it this month.
Speaker 2: Yeah, Okay, thank you, my friend. Thank you so much.
Speaker 2: As always, you're generous with your time and this is
Speaker 2: just very beneficial to a lot of people tonight, both
Speaker 2: who called and who are listening. Thanks Mark. We will
Speaker 2: talk so okay, thank you, my friend.
Speaker 3: Okay, good night, good night.
Speaker 2: Mark will be back at it early in the morning.
Speaker 2: When we get back. We're going to talk about bike lanes.
Speaker 2: Bike lanes in Boston, and there's been some movement here
Speaker 2: which I celebrate, in that one of the bus lanes
Speaker 2: that goes down Boylson the Street apparently is going to
Speaker 2: be removed that is a single little step in the
Speaker 2: right direction. We'll talk about it right after the eleven