Efficiency + Effectivity
2019 PTR:
Other income of -500.
What would you do?
Check previous PTR.
If account is a NOLCO - exclude
If normal other income - spread (500)
PFS alimony/child support question box indicates:
2,000/ month
PTR has no alimony paid indicated
How would you proceed?
Assume as child support. Multiply 2000 by 12 to get the balance and spread under Installment debt.
Notate.
Scenario: P1 and P2 are not spouses
Property A is reported in P1's PFS with 50% ownership. Corresponding mortgage balance per PFS matched the CBR mortgage debt.
Property A is also reported in P2's PFS with the same condition.
How do you proceed?
Recognize the asset in its entirety either for P1 or P2 but do not double count.
Recognize only the debt with the principal whom you assigned the asset to.
Notate that asset and liability was not recognized for the other principal even if reported in the CBR since it will constitute double counting.
Address 305 Avenue, not a business address, partially owned by the principal, with no matching CBR debt and rental income.
Where would you spread?
Residence Real Estate
Non Chuck PFS.
Alimony paid of 120,000 per PTR 2019.
How do you proceed? State process sequence
Check Non Chuck PFS Addendum for alimony/child support.
If with amount, annualize and compare with PTR, get whichever is higher.
If there is none, proceed with PTR alimony amount.
Notate.
Tax exempt interest: 1500
PTR has no schedule B.
Process?
Multiply 1500 by 1.25 regardless if there is a Schedule B or not.
PFS 3/2020:
Trust guarantor: XYZ Trust
Property A: MV = 250,000; Ownership 100%; Owner = XX Trust; Mortgage per PFS = 130,000/956 monthly
CBR Debt 9/2020:
MD2: 78,000/560
MD1: 110,000/950
What amount should you spread?
Asset: 250,000
Debt: Assumed as match with CBR
PFS shows Non-marketable securities on page 1. Schedule B is blank. What should be the treatment for non-marketable securities?
Credit as intangible asset and notate absence of schedule.
Marketable securities:
MS 1: 100,000; held
MS 2: 50,000
MS 3: 60,000; pledge 20,000
What is the Marketable Securities spread amount?
MS 2: 50,000
MS 3: 60000-20000 = 40,000
Total: 90,000
What if the primary residence address (owned) is also earning rental income, where would the related debt be spread?
Retain as personal mortgage debt.
P1, 63 years old, and P2, 58 years old, are both principals. 2019 PTR shows an amount on its IRA section. Per 2018 PTR, there is also an amount on its IRA section. What should be the treatment for IRA?
Credit amount from 2019 PTR since amount is recurring and both are principals of the business
Property A reported as fully owned by Principal Z.
MV: Blank
Cost: 150,000
Mortgage balance per PFS: 500,000
Monthly: 0
No CBR debt.
How to proceed?
Asset:
Search for the market value in Zillow/Chase.com
if none: proceed to Cost
Notate
Liability:
Recognize the mortgage balance
Leave monthly payment blank
Notate.
Non-Marketable asset from a Financial Institution per PFS. Retirement question answered as No.
How would you spread?
Still spread as retirement regardless if retirement question is answered as no.
PFS asset:
Retirement of 50,000; 401K of 100,000; Marketable Securities of 25,000, Securities held by broker of 10,000.
Liabilities per first page:
Loan against retirement: 12,000
Mortgage: 40,000
Per Sched F:
Stock Market Loan: 15,000
What amount should you spread for retirement and Marketable securities?
Retirement: 50,000+100,000-12,000 = 138,000
Marketable Securities: 25,000+10,000-15,000 = 20,000
Principal is in single-filing PTR that shows an IRA and a rollover SS income. How will you treat IRA and SS income if principal’s age qualifies?
Credit IRA as other income but do not credit SS income
Principals (P1 and P2) are married and filed a joint PTR. 2019 PTR shows IRA and SS income. P1 is 55 years old while P2 is 62 years old. 2018 PTR is not available. Both are principals. How will you credit IRA and SS income?
Check 2019 PTR schedule and credit income attributed to P2
Business is C-corp. Sched M2 shows distribution amounting to $125,000. Principal owns 100% of the business. Principal’s PTR Sched B shows a dividend income of $122,000 from the borrowing business. What amount will be credited to personal distribution?
$122,000
PFS fully owned properties:
568 Avenue; 32 Queens Dr; 88 Maharlika; 96 Highway
BTR address: 568 Avenue
Personal Address: 4 Privet
Form 8825: 96 Highway.
Considering only the conditions available, what are the properties to be considered in personal spread?
32 Queens and 88 Maharlika
Personal Address: 4 Privet Dr
Business address: 121 Street
PFS Asset (fully owned):
121 Street; 105 Kings Ave; 4 Privet Drive
PTR Sched E rental income: 121 Street; 4 Privet Drive; 21 Jump St
Identify RE asset and rental income spreading and classification.
Real estate Asset:
Residence: 4 Privet Drive ; 105 Kings Ave
Rental Income: 4 Privet Drive
S-corp business provided 2019 and 2018 BTR. Principal provided 2018 PTR. Both BTRs have distribution in Sched K1. Assuming principal owns 100% of the business, what should be the treatment for distribution on the personal statement spreads?
Credit distribution from 2019 BTR’s Sched K1 since it is the latest
ABC Corp (borrower): BTR = C-Corporation
Distribution per M2: 88000; Principal Ownership: 89%
Principal PTR Schedule B:
Interest: ABC Corp of 5000; Wells of 6000; Swiss Bank of 19000
Dividend: ABC Corp of 85000; AMEX of 7000
What is the Distribution and Investment income spread?
need notation?
Distribution: 85000
Investment Income: 13000
Notation: Distribution was taken from PTR Schedule B dividend from borrower.
Spouses X and Y are both guarantors.
W2 A: 150,000; W2 B: 20,000
PTR 2019 salary: 210,000
BTR 2019 1125E:
Principal X: 130,000
Principal Y: 100,000
What is the Salary amount?
210,000 per PTR 2019.
Principal Z, married filing jointly with spouse not a guarantor. ABC Corp borrower, EGC LLC entity guarantor
PTR 2018 salary 1st page: 35,000
Schedule: ABC Corp: 15,000; EGC LLC: 12,000; TS Holdings: 5,000
W2 2019 ABC Corp: 16,000; W2 2019 HP Corp: 3,000; W2 2018 EGC LLC: 12,0000
BTR 2019 1125E ABC Corp: 17,000
BTR 2019 EGC LLC: 10,000
Compute for the salary.
W2 2019 ABC: 16,000
BTR 2019 1125E EGC: 10,000
W2 2019 HP Corp: 3,000
TS Holdings 2018: 5,000
Total: 34,000
Borrower S-Corp K1 Distribution: 20,000
PTR Sched B:
Dividend from Borrower of 15,000
What is the Distribution and Investment income spread?
Distribution of 20,000
Investment Income: 0
Property A: Co-owned by principal with spouse not a guarantor.
Ownership: 50/50
Market Value: 2 million ; Mortgage balance per 12/2019 PFS : 800,000; Monthly: 4,775
Mortgage per CBR 9/2020:
AMEX: 690,000; 4,300
Wells: 125,000; 2000
Asset and liability spreading?
Asset: 2 million
Liability: assumed as match with CBR debt.