April 15th, 2008

Dragon K

The Joys of Procrastination

I'm a fair fraction of my way through my taxes - at least I've finished off the business income and expenses, though I still have to deal with the last bit of rental income from 2007.

In the process, I finally (on the last day!) got a bit of research in on the foreclosure. And I really was supposed to get a 1099. In fact, one of two: A 1099-A or 1099-C. So I finally got around to calling Ameriquest, which is apparently now City Financial (or maybe Citi Financial, for all I know). They'll fax me a "new" copy.

Within 72 hours.

Special feature: The contents and type of the document, of which I'm not really aware, will have an enormous impact on my taxes.

Which means the usual answer (File an extension!) doesn't really work, because you still have to pay with an extension.

Gosh this is fun! And all my fault, too!

Well, back to the rest of the mess...
  • Current Mood
    tired tired

My Head Hurts

Well, I think I've got it all done, more or less correctly. And the situation is, well... bad. Not as bad as it looked for a bit, but still more than what I have left in the IRA.

The problem, as it turned out, was indeed the foreclosure. Without that, everything was a bit pricey, but an order of magnitude lower.

And the problem with the foreclosure was not what appears to have been expected, which is probably why I got one very nasty value, that as far as I can tell is a TurboTax bug.

The big "foreclosure relief" thing that's been in the news is about the cancellation of debt. That occurs when (among other things) the bank forecloses, and the amount of debt forgiven is larger than the fair market value of the property. The difference between the two is the canceled debt, and is... less taxable by the feds, and completely taxable by California.

My fair market value was about $70k more than the forgiven debt. So no problem there.

However, the foreclosure still counts as a sale, only a certain amount of capital gains is forgiven, and I had that house for a long time.

It it had been a normal sale, I would have had the actual, y'know, money with which to pay the taxes. But not in this case.

So, unless I've done something terribly wrong, the feds want me to pay them $13k, while the state wants a mere $8k. This is the sum total of what I've got in my IRA, at least if one ignores the, y'know, 10% withdrawal penalty, not to mention taxes on that.

This is at least an improvement over a few minutes ago, when the TurboTax CA adjustment pulled a number, apparently out of thin air, for the cancellation of debt, and threw a $350k adjustment into the CA taxes.

That had me owing the state a mere $41k...

There are a few things I still need to look into. Perhaps I can (legally) get this down to a manageable size yet...
  • Current Mood
    tired tired

Back at our Life, Already in Progress...


Ze taxes, zey are done und mailed out.

So I can talk about yesterday's events.

dvGoing to dinner at On The Border with timenchanter.

Getting to the bar a half-hour late, but still being set up in time.

Not having much on the order of singers until 9:00pm, anyway. Then 10 rounds of general fun, starting at around 8 people per cycle, but quickly stabilizing at 6. So stable, in fact, that every time someone dropped out, someone else would walk in. It was kinda funny, all the way to lucydogstringer walking in around 1:45am to fill out the last round.

I finished off the snafflekid suicide songs, and now have a shiny new set of supersniffles ones.

The bar didn't exactly do great. OK, it made about half as much as I would have liked for the night - and as a result, the weekend income was about 20% down. A huge improvement over last week.

After shutdown, Timmie, Cindi, and myself were heartily sick of Denny's, so we went to her place and had French toast and bacon, instead. Then home, where I unloaded, then actually started work on the taxes.

Since I'd laid all the groundwork, it was actually a pretty easy process. Just very, very time-consuming. It became even more time-consuming around 5:00pm, when I started over.

That was just after getting back from lunch - Timmie loaned me some money for a tax "down payment," and then we grabbed some Sonoma Chicken Coop.

Anyway - one of the problems with TurboTax is that there's no way to completely back out of one of their actions. Even if you redo the step, and decide to tell it to take an alternative branch, the data saved with the first branch will still be there, somewhere. In this case, showing up with a form listing an extra $355k in income - the one that was transferred to the CA taxes, giving me my heart attack there.

I decided that the best way to handle it would be to consider the previous run as a dry one, and just start a new return from scratch. Including all the myriad new entries for the businesses...

By 9:00pm I had everything re-entered, and printed out. I discovered I didn't know where any paper clips were, so I ran out and bought some (and refilled my gas tank in the process. I figured it would just be icing if I ran out of gas on my way to the post office). By 10:00pm I had every envelope printed, filled, weighed, and sufficiently stamped. By 10:45pm I'd made it through the traffic at the Lundy post office, and gotten all three pieces of mail into the system.

And yes, three. California installment payment requests go to a different address than the normal tax forms.

Anyway, it's done. I managed to massage the federal values down below $10k, and the California to just over $6k, and if I can only start making some money, I'll have them paid off in something like a year and a half.

Now I just have to wait for the RockStar to wear off, so I can sleep. Well, and start trying to figure out why one of my email addresses is broken again.
  • Current Mood
    exhausted exhausted