February 13, 2025 • 41 mins
Now that it’s officially tax season, are you ready to get your tax filing information in order? Do you have a specific question about a tax deduction or the necessary paperwork you need to complete your tax filing? CPA Mark Misselbeck with Cherry Bekaert Advisory LLC joined us to answer all your tax related questions!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
It's night with Dan Ray. I'm tell you easy Boston
News Radio.
Speaker 2 (00:07):
All right, We're delighted to be joined tonight by Mark Missilbeck.
He is a CPA with a firm Cherry Beckert Advisory
LLC located in Waltham. He's spent a lot of time
with us tonight and he's going to spend some more time,
as often happens with Mark, Mark, what is the best
(00:29):
way someone who wanted to contact you privately? Do you
have an email that you could share with us or
a phone number that if you know, again, you're not
here looking for business. You you're more than busy. But
if anybody wanted to contact you privately, what's the best way?
Speaker 3 (00:48):
My email is Mark M A r K dot missile
Beck M I doubles e l beckism Beck spear b
E c K at CBH dot com.
Speaker 2 (01:01):
It's pretty easy, Mark dot Missilebeck at CBH dot com.
We will give that a little bit later on during
the hour in case anyone missed it as well. Let's continue.
We have a lot of calls waiting and we'll get
to everybody as quickly as we can. Let's go to
Janis in Melrose. Janis you are next on Nightside with
(01:22):
Mark Misselbecker.
Speaker 4 (01:22):
Right ahead, Jennis, Hi, I have a question. I always
go over my return server carefully before I signed my name,
and last year I found something that didn't make sense
on Form eleven sixteen, and so I went back to
the preparer and they said the software made a mistake.
And there's a line on there that asks for your
(01:44):
income all sourced income, and the software grabbed my adjusted
gross income which includes subtraction for capital gain losses, and
if I understand correctly, what they're looking for in that
line is all sorts of income and they don't count
(02:04):
any losses. It's just what was your income? Is that correct?
Speaker 3 (02:10):
I believe that they do met the capital gains against
the capital losses on scheduled d to get to the
income to be reported on the return. So I'm not
so sure that the mistake was making that was made
in the calculations.
Speaker 4 (02:26):
My question is about the software and the preparer's use.
Is there a standard software they used, because I had
another preparer and they always did it the way that
I just mentioned to you, and then this new preparer
they admitted that it was a mistake, but they said
the software just grabbed the long amount and it made
a difference between not having to pay estimated taxes and
(02:49):
having to pay a sizeable estimated tax.
Speaker 2 (02:52):
Because you've got the mistake.
Speaker 4 (02:56):
Well, I knew something was wrong because the bottom line,
it was telling me that I could take a credit
for most of my foreign taxes. And every other year
I've only been allowed to take a small, a small
percentage of my foreign taxes as a credit and then
everything else was carried over. So I'm I noticed that
(03:18):
something was different because I've never been allowed to take
that large amount. I'm sorry.
Speaker 3 (03:24):
How large is the amount of your foreign taxes?
Speaker 5 (03:28):
Last year?
Speaker 4 (03:28):
It was six hundred? It was higher six hundred, and
they were telling me I could take most of it,
and usually it's around three hundred. Actually it may have
been three it was three year six. I'm not sure.
Speaker 2 (03:40):
It's been a while, but okay, So what is the
question that you have from Mark?
Speaker 4 (03:44):
My question is about software, and I go over everything
so thoroughly. Now do I have to check everything and
which is right that I which amount is supposed to
be engined on farm?
Speaker 3 (03:57):
Once?
Speaker 2 (03:58):
Well, not knowing the I want to take a talk
off the hook here, Mark, let's at me jump in
for a second, not knowing who you prepare or was
not knowing really what software they were using. If there
was a mistake that you caught, great, I still don't
quite understand what you're asking Mark, But if Mark, if
you if you feel you can answer the question, go ahead.
Speaker 3 (04:20):
There are a number of software packages out there and
different firms use different professional software packages to handle the
complexities of all the returns that we deal with that
can be incorporated in those returns, and usually they do
a very good job of the interpreting the law. Once
(04:41):
in a while we have to do it an override
and put in a number because the software, to our interpretation,
is not handling it correctly. But this category usually is
taking care of well and we've come to rely on
their expertise in interpretations. Myself, I gotta admit I would
(05:06):
have to go back double check on the calculations to
be certain myself, and I can't answer it off hand tonight,
WI me an email, I will take a look at
it and answer you.
Speaker 4 (05:19):
Okay, So what you're saying is you can't answer what
they're actually looking for on that line? Is that what
you do?
Speaker 3 (05:25):
But I can tell you that there is an optional
election to take up to four hundred dollars. I think
it is without going through these computations. You don't get
to carry forward of whatever is in excess of that amount.
But if you were getting less than that, you may
want to consider making that election.
Speaker 4 (05:45):
Is that Form three or no?
Speaker 3 (05:48):
No? That is ok. In place of filing the eleven
sixteen and going through all the calculations, you can just
take the flat amount.
Speaker 4 (06:00):
But even when you go through all the calculations, it
tells you you can only take one hundred out of
six hundred, and then.
Speaker 2 (06:07):
You can do again.
Speaker 3 (06:09):
I say again, as I recall, you can make this
election and take the flat amount without doing the calculations.
Speaker 4 (06:16):
Okay. I just wanted to make one other point. The
previous caller was talking about something that he got over
sixty five, and I thought he was talking about Massachusetts,
and I wondered if he was referring to the Seniors
Circuit breaker whatever I.
Speaker 3 (06:31):
Wanted to see. The Senior Circuit breaker is a tax credit.
So my understanding, the door denies everyone that's been submitted
and forces you to submit all kinds of paperwork to
document your entitlement to that credit. There is an additional
exemption that MASS allows if you're over sixty five, right,
(06:55):
I'd give you an additional standard deduction over and above
what you know normally would get if you're filing single.
The standard deduction for twenty twenty four would be fourteen thousand,
six hundred. Last year was thirteen eight fifty, and if
you're over sixty five, you would get an additional one thousand,
(07:16):
eight hundred and fifty. Last year one thousand, nine hundred
and fifty. This year.
Speaker 4 (07:20):
Okay, all right, I just thought.
Speaker 2 (07:22):
He Rachel, I hate to do this year. Rachel, I
got other callers and we're just we're I got to
get you out of the weeds here. Okay, thank you
so much, thanks for calling. Good night. You know, there's
a point mark where I think people are she's getting
really deep into her own tax return, and yeah, she's
(07:44):
asking questions which I think are on a little unfair.
But anyway, we'll continue along six one, seven, two, five,
four ten thirty six one seven, nine, three, one ten thirty.
Feel free give us a call, be right back on
night Side.
Speaker 1 (07:58):
Now back to Dan ray I from the Window World
in Night six Studios on WBZ.
Speaker 2 (08:03):
The news radio Okay, we got full lines. Let's keep
rolling here, Mike. I want to try to give as
many people as possible a chance to chat with you.
Let's go to Marry and Boston. Marry you next on Nightsager,
Right ahead.
Speaker 6 (08:17):
Yes, I have a checking account I just opened, so
I don't get no interest on that account. So do
I have to claim that on my income tax?
Speaker 3 (08:26):
If you have no interest paid, you have no interest
to declare?
Speaker 6 (08:31):
Oh okay, and it's the minimum you have to have
in that account.
Speaker 3 (08:36):
No, that's a banking question. It's a ten dollars for
reporting purposes. If the bank didn't pay you more than
ten dollars of interest, it doesn't have to tell you
and the irs how much it paid you an interest.
The obligation to report all of the interest income, all
(08:57):
income from whatever source derived, even though the bank doesn't
turn you into the I R S, is still your
obligation to put it on your return.
Speaker 6 (09:09):
Okay. But if I don't have no interest, I don't
have to claim.
Speaker 3 (09:12):
It, right Yepkay, No, you don't have to unless you
want to be charitable to the United States Treasury. You
don't have to put fanom income on your return.
Speaker 6 (09:24):
Okay. Okay, thank you.
Speaker 2 (09:26):
Okay, thanks Mary, good luck, Okay, thanks, thank you, good night.
Sounds like a sweet lady wants to do the right thing.
The irs must have taxpayers like that. Fred is in Wooburn. Fred,
you were on with Mark Misselbecker.
Speaker 7 (09:39):
Right ahead, Yeah, Dan and Mack. Thanks for having me
taking my call. Mine's really quick. My wife has not
received her Selfial Security W two form yet. She's gotten
everything else except for that one.
Speaker 8 (09:56):
What can I do?
Speaker 7 (09:57):
I'll call them and I'm on hold for days.
Speaker 3 (10:01):
If you've set up an account with the SSA, you
should be able to go in there and obtain the
ten ninety nine SSA and print it off. It's either
ten nine SSA or SSA ten ninety nine. I forget
offhand which designation it is. It's in the ten ninety
nine series, but they post it to their website, and
(10:21):
if you have an account with a secure log in,
you should be able to find it there.
Speaker 7 (10:27):
I'll check that out tomorrow.
Speaker 6 (10:28):
I really appreciate it.
Speaker 3 (10:29):
You guys. Have a great night.
Speaker 2 (10:31):
Yeah. By the way, let me give you the account.
It is SSA dot gov. We'll get you where you
got to get to. Okay, and you can either create
an account. It's just SSA lowercase dot gov.
Speaker 7 (10:45):
Thanks Daniel the man, all right, you're very.
Speaker 2 (10:48):
Welcome, Fred boy. That's that's frustrating that the Social Security
would not send her. I'm looking at my account and
I check it every once in a while, but.
Speaker 3 (11:01):
They send out all kinds of communications. They do it
electronically if you have an account. But is the blame
with the Social Security Administration for not sending it out
of the US prostal service for not delivering it?
Speaker 2 (11:14):
Wait, that's a coin flip market that therever was. Let's
keep rolling. Head going to one of my favorite callers,
Betty on the Boat. Betty on the Boat, welcome back.
You're on with Mark Misselbecker. Right ahead, Betty.
Speaker 6 (11:29):
Good evening, gentlemen. I have a complicated scenario. My husband
died and when his real estate was sold, twenty seven
thousand dollars of the proceeds of the estate received and
turned back to my insurance carrier under the Medicare advantage
(11:52):
lean and now do I report that as a cost
of the estate or as my personal income? Because they
paid a bill for me, not for him.
Speaker 3 (12:10):
Is there anybody running the estate appointed to settle his affairs.
Speaker 6 (12:16):
I am, I'm the personal representative.
Speaker 3 (12:19):
Okay. Now, was the property titled in joint names yours
and his or his alone?
Speaker 6 (12:28):
It was his property, but it gets money here. It
was never to be put in my name for purposes.
Speaker 3 (12:42):
So you but the estate name the estate would be
responsible for reporting the sale. If the property was sold
while the estate was open, if it was transferred over
to you, you would be responsible. However, there should be
a valuevaluation obtained as to the value of the property
(13:04):
at his date of death, and that would become the
tax cost. So if we were thirty thousand, you had
a broker's fee and legal fees to execute the sale,
those would be charged against the thirty thousand to get
to the twenty seven thousand. But you still have a
thirty thousand costs for the property. You actually be able
(13:24):
to report a capital loss on the sale.
Speaker 6 (13:27):
Okay. But what I'm asking is about the Medicare lean.
The statutory medicare leans that if you have any outstanding
bills due to.
Speaker 3 (13:44):
Personally they were if they were if they were unpaid
medical bills, then there may be a medical deduction in
favor of the estate, but not for you as an individual.
Speaker 6 (13:55):
Because it was more medical bills that they took ah
out of his estate, and he was never a member
of that insurance company. So is that my income are
his debt service?
Speaker 3 (14:16):
It's your satisfaction of your medical bills out of the
proceeds of inheritance the real estate. You may have a
capital loss from the sale of the real estate long term,
because at death it's automatically considered to be a long
term asset for you, and you have the potential of
(14:39):
itemizing your deductions and claiming a medical deduction for the
medical expenses that have finally been paid with those funds
on my behalf. Yeah, you really need to talk to
somebody about having a return prepared taking into account those
elements this year.
Speaker 8 (14:58):
Yeah.
Speaker 6 (14:59):
The reason I add SI stands there was a lady
about a half hour ago who'd been in the hospital
for two days post accident and had an insurance settlement,
and that just brought this question right into mind about
the Medicare lean.
Speaker 2 (15:18):
When did your husband pass.
Speaker 6 (15:22):
In two thousand and three, but it was an ongoing battle,
it's a long time ago.
Speaker 3 (15:29):
Then you may not you may not have a basis
in the time the property sufficient to cover the proceeds.
You may have a profit to report, but then you
get the medical deduction on payoff of those, so it
may help you to offset the gain in your return. Again,
you need to talk to somebody have have them prepare
(15:52):
your return this year.
Speaker 6 (15:54):
Yeah, not too many people are aware of the statutory
medical lean and litigation.
Speaker 3 (16:00):
Mm hmm.
Speaker 2 (16:01):
Well I think I think that you know, Mark has
been pretty clear.
Speaker 6 (16:08):
Here again and what he's saying completely, but you know,
I just like to pass the word that there is
such a thing.
Speaker 2 (16:17):
Okay, well, sorry about the loss of your husband. And
do you normally have someone prepare your taxes you know,
every year?
Speaker 1 (16:25):
No?
Speaker 2 (16:27):
Okay, well this this might be the year that you
might want to get this this buttoned up, I think,
is what Mark is saying.
Speaker 6 (16:36):
Yeah. I agree, but I you know, it's the whole
thing is just infuriating to me that what what happened
is it's it's it's the sale of that property and
that I was shafted six ways to Sunday. Yeah, that's
(16:56):
not the.
Speaker 2 (16:57):
That's not the I R. S is problem at this point.
Speaker 6 (17:00):
That's my problem.
Speaker 2 (17:02):
Yeah, and the IRS is. I just always feel it's
smart to get yourself squared away with the irs so
that nothing doesn't come back and invite you, you know,
sometime down the road.
Speaker 6 (17:16):
Yeah, well, I hope all as well with you Mustard
in the family, all right.
Speaker 2 (17:21):
Okay, Muster of the dog. Thanks Patty, be well.
Speaker 6 (17:25):
Okay, thank Ker, and thank you for taking my call.
Speaker 2 (17:27):
You're very welcome again. Mark. It's interesting, just a number
of issues that you deal with here. We'll continue. I
got Bruce and Howell Rebecca in Milford, and all of
a sudden, I got a couple of open lines. If
you were trying to get through before the latest, that
market is going to be gone by eleven, So now
is the time to call six one, seven, two, five,
(17:48):
four ten thirty six one seven, nine, three, one ten thirty.
Feel free. You can get in on either of those
lines at this point. My name's Dan Ray. Will take
a quick break here for news at the bottom of
the hour, and we'll be back back with certified public accountant,
long time tax expert, who has been a guest in
this program for fifteen tax seasons, going back at least
(18:09):
to twenty eleven, and before that, maybe even longer than
we both realized. We're both we're both we've been doing
this longer than you could imagine. Mark, You've been doing
this how many? How many years professionally, putting aside your
appearances here on Nightside.
Speaker 3 (18:26):
Working my way through my fifty third year.
Speaker 2 (18:29):
Fifty three years. Okay, So you know, I think you're
probably getting pretty good at it, that's for sure. It's
amazing to me the breadth and depth of knowledge that
you have on all of these questions. Back on Nightside
with Mark Missilbeck. Mark, this is about a three minute break.
We'll be back at it about three three and a
half minutes. Back on night Side. Right after this, you're.
Speaker 1 (18:51):
On Night Side with Dan Ray on WBZ, Boston's news radio.
Speaker 2 (18:58):
We're talking with Mark Misselback. He is a CPA, been
doing this for a while. He's been doing it for
a while for us here at Nightside. He gives them
volunteers his time and he's an amazing CPA. With Cherry
Beckhart Advisory LLC out of Waltham, Massachusetts. Let's get right
back to the calls. Don't want people to wait too long.
(19:20):
Let me go to Bruce in Hull. Hey, Bruce, welcome,
You're next on Nice Side with CPA Mark Misselbecker. Right ahead, Bruce.
Speaker 8 (19:27):
Dan Thanks for taking my call. Mark, Welcome to the
Night Side Show. My question is two parts. One, I've
been led to believe through news. I believe that Ronald
Reagan passed the law preventing federal employees from getting Social
Security but they could get up to forty percent of
what they're entitled. And President Joe Biden reversed that or
(19:51):
passed the new law entitling federal retirees to one hundred
percent of their benefits if they're entitled.
Speaker 3 (19:57):
Am I correct? There? During the Reagan administration, working with
the Congress, there was a limitation imposed on the benefits
under Social Security that could be realized. It was deemed
a double dipping to have both the government funded tension
and the government funded Social Security benefits. And Biden didn't
(20:20):
get it pasted himself. The Congress, in concert with the
Biden administration, struck a deal, passed the law and expanded
the participation two hundred percent. Yes in social scarity, if
there are sufficient credits outside of the government for contributions
into the Social Security system to warrant getting the benefits.
Speaker 2 (20:42):
Is that the ten years to forty quarters that we've
heard so much about.
Speaker 3 (20:47):
Mark exactly. Yes, Okay.
Speaker 8 (20:52):
What I'm trying to do, I'll be quite blunt and
pulling and plain about it is. I now understand that
I'm in I had litt one hundred percent of my
benefits and I only need twelve quarters, which is three
years of working. Well, I'm lazy, I retired. I don't
want to work for anybody, and so I came up
with this IDM sheuer, sir, somebody else has already done it.
(21:14):
I want to be self employed for three years, pay
my twelve quarters into social Security, and then the end
of the third year apply to receive social Security because
I think in the end it will benefit me as
long as I live a while. It's going to benefit
me financially.
Speaker 2 (21:35):
Me, that's for sure. Right, Okay, go.
Speaker 3 (21:37):
Ahead, let me say that four quarter. I'm sorry, Go ahead,
I am not. I'm sorry, Mark. So, I am not
a social Security benefits expert, and my knowledge is glancing
in that area, and I can only speak to the
social Security taxes you might have to pay. You need
(21:59):
to insult with someone who is a social Security benefits
advisor about whether this strategy is viable or not. Very
very you have to have profits. You would have to
have profits from your self employment business to get credits
for Social Security benefits.
Speaker 8 (22:19):
Yes, and I'm willing to pay that out of my
pocket because I think I don't want to go to
work for somebody to get my forty credits. But I figured, okay,
but I'll start a business.
Speaker 3 (22:33):
Whether or not the strategy is viable, whether or not
it's twelve quarters for you, is something that somebody who
deals in Social Security benefits would have to advise you.
Speaker 8 (22:43):
And not mes very good advice, excellent advice, Mark, thank you.
Speaker 2 (22:47):
Okay, Yeah, Bruce, I understand your theory. I hope it
works for you. That's that is for sure. And obviously
at some point, not only do you have to figure
out whether or not your plan is up the blet,
but then also what the minimum you know, the the
earnings would have to be, and how you would how
you would fund that, et cetera. And obviously you want
(23:09):
to make sure that if you do it, you do
it correctly, because the worst thing that would be to
do it and then be denied the benefits because it
wasn't done correctly. So I don't know how you would
find a Social Security benefit benefits advisor. There are people
out there that you can that you can talk to
(23:30):
if you have trouble uh finding someone in that category.
If you want to give me a call, I'd ask
you to try to do it on your own. If
you want to give me a call, I can try
to help you find someone who would be qualified to
give you the information that you need.
Speaker 8 (23:45):
Okay, I thank you very much. And just to close
out my call, the as a veteran, I have a
veterans agent who's very helpful in the town or Paul,
and I can ask him a question and he goes
and finds out the answer perfect.
Speaker 2 (24:01):
And you are all said, Bruce, we have launched you here,
and I'm delighted that you called. This is a this
was a very successful phone call.
Speaker 3 (24:09):
Thank you, thank you, good night, You're welcome.
Speaker 2 (24:12):
Good night. Uh again. Mark, You're just so spot on
in terms of the advice that you give people. I
hope that they really understand that I appreciate the thoroughness
with which you answer their questions. Let's go next to
Rebecca in Milford. Rebecca in Milford, You're on with Mark Misselbeck.
Go ahead, Rebecca.
Speaker 9 (24:32):
First of all, Dan, I love your show. Listen every night.
I learned so much. Hear and Mark, we have talk
to you good. I can't believe people don't have an
accountants and they're asking you these questions because I own
a small business, my husband and I. It's anes corp
and it's going to be kind of a fun little thing.
(24:53):
It's not fun for me, but we've been to a
lot of accountants and I know a lot has change
all the time, but the small business percent they have
to pay is quite a bit, is it? It is correct?
With that Mark, I'm not.
Speaker 3 (25:08):
Sure exactly what if it's an escorp for federal purposes,
unless you were a C corp or acquired a C
corp somehow. No, you shouldn't have a tax at the
corporate level, right, it goes a little bit of mass
(25:28):
is a little bit of an odd dog in that hunt,
if you will. If your grocer receipts are over six
million dollars, they want to cut of the difference between
what you would pay as a regular corporation and what
you pay as an individual.
Speaker 9 (25:42):
That's not my question, but I'm just saying, as high.
Speaker 2 (25:47):
Rachel, hold on explanation, We're not going to catch you.
Don't go ahead, go ahead.
Speaker 3 (25:53):
I'm sorry, go ahead, and if your grocery seats exceed
nine million dollars, they want the full differential to compensate
them for your not reporting as a corporation and paying
the eight percent, So they get three from the corporation
aside from you. Now, if you are profitable, what you
(26:13):
may consider under the current regime where you're what Dan
referred to earlier assault this state and local tax deductions
are limited at the individual level. Consider electing the pass
through entity tax at the corporate level. For Massachusetts, you
only get ninety five ninety percent of it as a credit.
(26:36):
Excuse me for what you pay there, but you get
a full deduction federally, which at the federal rates puts
you ahead of the game.
Speaker 9 (26:44):
Yeah, I head spitting. I mean, if I sit with
my accountants, and I'm very organized, but I couldn't. I
just don't understand taxes. All I know is we always
end up paying a lot. But I just wanted to
tell you a quick story. We've had an accountant from
twenty nineteen to twenty twenty three and we have to
redo all our taxes because she did them on We
(27:04):
got SBA loads and she didn't put it in one
of them should even file for us. You know, we
pay like twenty five hundred dollars each tax season today,
so I have a new accountant. He has to redo
all my taxes. I get letters every day in the
mail from the IRS. They're very dice by the way.
What I call today, I get an email with two
bills from her, thirty six hundred dollars for taxes. I go,
(27:27):
are you kidding me? And I've already paid her? So
I thought I'd throw a wrench in the call today
and be a little bit you know, more humorous, not
that it's humorous to me, but certainly not paying it.
But I couldn't believe it, because we have to redo
all of our taxes.
Speaker 3 (27:43):
You build you after you had to redo.
Speaker 6 (27:46):
She knew her redo them.
Speaker 9 (27:49):
No, I get a new accountant because she screwed them
up so bad, actually one of them twenty nineteen. Because
I went through every year with the IRS, they were
very helpful. She didn't even file my tax and I'm married.
Speaker 6 (28:01):
You know, we filed the physiness to the personal like
we were talking about.
Speaker 9 (28:04):
But I just couldn't believe it. The and I like
I said, hats off to you, Mark, because just keep
it up with all the changes and laws and everything
is crazy enough. But that's you know, I'm just so
I'm waiting for the new accounty already did twenty twenty three,
is it's going to do twenty nineteen through twenty twenty two.
Speaker 2 (28:22):
Over so, and she's still trying to send you a bill.
Speaker 9 (28:28):
I couldn't believe it. I couldn't believe it. They're all
there's so often it's not your fighting. So you know,
one thing we're getting back thory two thousand, the next
bill we owe forty seven thousand. Oh, the back that
you didn't file for twenty nineteen. I mean, and I
don't understand it at all. So, like I said, I
really appreciate this topic.
Speaker 3 (28:46):
Let me say it. Let me say this. I can't
say what recourse you may have, right, but it would
be worth a console pation with an attorney. Let's see
what your what your outcome can be.
Speaker 9 (29:07):
I at least want to get paid back for what
I paid her to do my taxes. I mean, I
don't want to store or anything. You know, she's a
nice person, but it's just like we've been going through
health and the I R I said, once we get
everything in and find they'll take away all the penalties
and interest rates.
Speaker 2 (29:23):
Just crazy.
Speaker 9 (29:26):
But yeah, that's what I just wanted to know. What
can I do? So, you know, I'd like to get
back what I paid for her to do my taxes.
But today when she sent me a bill for one year,
I'm like, oh god, well, well.
Speaker 2 (29:36):
I think Marks. I think Mark's advice is is excellent.
Do you have an attorney on it that represents your
your business represents Do you have a family attorney?
Speaker 6 (29:45):
Of course, go to him.
Speaker 2 (29:46):
And present the issue, and if he's not comfortable with
that area, I'm sure he can refer you on to
uh an area. You know, there was some specialty here.
I mean, this is from what you tell us. It
sounds to me like, if anything, the accountant should owe
you money for the aggravation the.
Speaker 9 (30:07):
And I don't want to do anyone.
Speaker 2 (30:09):
Saying well, no, I understand.
Speaker 3 (30:13):
All I'm saying is all I'm saying is an attorney
should look at the circumstances and appraise whether or not
you have any recourse or claim that you can pursue
what has happened.
Speaker 9 (30:30):
Well, thank you very much. And like I said, I
just can't believe people can do. I just don't get it.
Call those lives.
Speaker 2 (30:39):
If someone came and built, you know, an extension on
your home and three three weeks later the thing collapsed
and then they were sending you a bill. I don't
think you want to pay that one again? Paid, I know,
I know, do what Mark said, and uh, and I
will tell you if it's worth if it's worth the effort.
It's as simple as that. And if he can't got it,
(31:00):
find you somebody.
Speaker 9 (31:01):
Okay, great, all right, good luck with the upcoming taxis
and Mark and Dan, like I said, love you, I'll
listen to you again tomorrow.
Speaker 5 (31:09):
Right.
Speaker 9 (31:09):
This is a great topic.
Speaker 2 (31:10):
Thank you, Thanks, thanks Rebecca, Thank you Mark. Mark makes
it a great topic. Thanks, talk to you later. All right,
all right, we'll take a quick break. I can get
a couple more calls in. Louise and Peabty waits on
the other side. Uh. If there's anyone who wants to
try to sneak in real quickly under the wire here
we can accommodate you. Six one, seven, two, five, four
ten thirty six one seven, nine three one ten thirty.
(31:31):
Mark again, as always, a wide range of a wide
range of callers and issues and you handle them with
such a plum. You're you're masterful. So I just want
to say thanks, we will we will give one more
time your email. If folks want to try to reach you,
if they reach you off here, I hope you're going
(31:52):
to bill them. Uh, this is this is pro bono
folks tonight. But if you know, if you if you
want to contact markets Mark M A r K dot
missile Beck M I S S E L B E
c K at c BH dot com that stands for
(32:12):
Cherry Beckhart Advisory Limited llc CBH dot com. Back on
Nightside with Mark Missilbeck and a final call or two.
Right after this short brief break, Now.
Speaker 1 (32:27):
Back to Dan Ray live from the Window World night
Side Studios on WBZ NewsRadio.
Speaker 2 (32:34):
We want to call a drop off Teresa. Teresa, I
believe from West Roxbury. We'll get you in if you
call back. Let me go next to Louise in Paboty Louise,
Welcome you are with Mark Misselbeck.
Speaker 5 (32:46):
Go right ahead, Okay, I'm gonna get right to the point.
I won't get behind the story. I currently have an
irrevocable trust and the money in that trust is sitting
in a bank in a non interest bearing checking account.
And M my lawyer that I went to to get
(33:12):
all the you know, the estate documents worked out, said
what the hell is that doing that money doing in
an era of vocable trust? But what I'd like is
to know the The lawyer that I went to was
uh uh s S gave me a farm with the
UH to fill out for the irs and I did it.
(33:36):
But I haven't done anything with that money in the ear.
Speaker 6 (33:41):
Of vocable trust. It's a a trust for.
Speaker 5 (33:44):
Me and I had put it in there so that
if I go to a nursing home, I my m my,
the person in charge of the trust, will be able
to take the money and buy me things that I
need in the nursing home. Now, if I decide not
to do any it's not earning any income. And if
(34:06):
I leave it that way? Is that Okay?
Speaker 3 (34:12):
Likely it is? But who's the who's the trustee? The
bank sounds like she is.
Speaker 2 (34:19):
Who's the great who established the trust? Uh?
Speaker 5 (34:22):
Louise I did my sister in LAWA. My sister in
LAWA is in charge of all my estate if once
I pass?
Speaker 2 (34:30):
Okay, is your sister in law named the the yes?
Speaker 5 (34:34):
Yes, she's in the legal document.
Speaker 4 (34:36):
Yes, is she?
Speaker 2 (34:37):
Is she the only trustee?
Speaker 5 (34:40):
Yes?
Speaker 2 (34:41):
Okay? Uh? And I think the lawyer's reaction, Mark correct
me if I'm wrong, was why is it not earning
any interest? Because obviously, as inflation goes on, the value
of that money drops. But that was a lawyer's question.
If it's not earning interest, obviously there's no interest to
(35:03):
report to the to the federal government. Mark.
Speaker 9 (35:05):
But yeah, maybe I haven't.
Speaker 5 (35:07):
I haven't earned anything with it.
Speaker 2 (35:10):
Okay, hold on, I don't. Let's let Mark give you
his analysis, and don't worry. We're not going to rush you.
You get a follow up question or two if you
need them. Go ahead, Mark.
Speaker 3 (35:21):
Now, I'm not knowledgeable in Medicare and Medicaid trusts. That
caveat out there to begin with. Normally you can't do
a trust for yourself for your own benefit. How the
Medicare and Medicaid trusts work, if they work in that fashion,
(35:42):
I can't tell you. But the trustee usually has a
fiduciary obligation to invest the money to make a safe
at least a safe rate of return, and sitting in
a checking account, typically as a non interest baring checking account.
Even an interest bearing checking account. The rates are so
(36:03):
low these days there would be peanuts generated. So now,
depending on if the trust is a what is called
a simple or complex trust, there would be an annual
exemption of three hundred dollars on a simple trust or
one hundred dollars on a complex trust, offsetting the income
(36:23):
at least on the federal level nothing for Massachusetts. A
simple trust says all income generated during the year must
be paid out at least annually to the name beneficiary.
A complex trust leads it to the discretion of the
trustee under standards set in the document as to whether
(36:44):
or not money should be distributed to the beneficiary. So
in the discretionary payout trust one hundred dollars exemption, you
have zero income. In a simple trust, if there were income,
it would have to be paid out to begin with.
If this is crafted in such a fashion that it
(37:08):
is treated for tax purposes what is known as a
grant to our trust, then the terms of the trust
are such that any income generated would be reportable by
you anyway. In such circumstances, it's usually recommended that the
money be invested in US treasuries, which will be taxable
(37:28):
for federal purposes, but exempt for state purposes, or if
you want to go whole hog, you invest in municipal
bonds or municipal bond funds that generate municipal bond interests,
particularly from your home state, so there is neither state
or federal taxes on the money. But at least summer.
Speaker 5 (37:50):
What if I I'm eighty, I'm going to be eighty
six years old in June and that money isn't earning
any money and I don't want it to because I
inherited a lot of money when my daughter died, and
it's caused me a lot. I had to go down
to Florida and sell the house down there.
Speaker 2 (38:11):
Okay, here's we're running out of time a little bit, Louise,
So hold on.
Speaker 6 (38:14):
Okay, second, here, hold on.
Speaker 2 (38:16):
For one second. How long ago did you establish the trust?
Speaker 5 (38:20):
Oh in I think, uh in twenty sixteen?
Speaker 2 (38:25):
Yeah, okay, I think Mark. I think there's a five
year rule that money that is put in to a
trust that's irrevocable after five years.
Speaker 5 (38:39):
Nobody can touch it.
Speaker 2 (38:41):
Yeah, right, But whether or not you can do it
for yourself, as I think, you got to talk with
a lawyer. Does your family. Do you have a lawyer?
Does your family have a lawyer who's worked with you?
Speaker 5 (38:52):
Yeah, I have a law I have an accountant and
a lawyer.
Speaker 2 (38:56):
You spend some time with the lawyer. It's sounds to
me like you've done a good thing. It seems to me.
It doesn't seem to me based upon what Mark says,
that you have avoided filing taxes. But I think you
should get this settled so I can tell that it's
bothering you in the back of your mind. You want
to get it settled and make sure that you understand
that and if you've done everything properly, and I think
(39:20):
that that that this is a good step you took
tonight and get to the lawyer and say, hey, look,
just want to make sure that that I've complied with
everything and if and then it is up to your
judgment if you want, as Mark said, invested in a
different sort of vehicle to earn a little bit more money.
There's nothing wrong with that. But on that Louise, we
got to got to let you go because I'm flat
out of time. Thank you, Thank you, Mark Misselbeck, thank
(39:44):
you just fabulous. As always, I got to give your
email one more time with your permission. Markets M A
R K dot missile Beck, M I S S E
l V E C K at C b H c
as in California, be as in Boston, Hsinhuston dot com,
(40:05):
CBH dot com, Mark dot Missilbeck at CBCH dot com. Mark,
thank you so much. I'll give you a call tomorrow
and sometimes maybe we could fit you in one more time,
or if you have the time between now and maybe
the end of the month, if that's conceivable. A lot
of interest tonight.
Speaker 3 (40:23):
That's possible. It's entirely possible if we do it this month.
Speaker 2 (40:27):
Yeah, Okay, thank you, my friend. Thank you so much.
As always, you're generous with your time and this is
just very beneficial to a lot of people tonight, both
who called and who are listening. Thanks Mark. We will
talk so okay, thank you, my friend.
Speaker 3 (40:40):
Okay, good night, good night.
Speaker 2 (40:43):
Mark will be back at it early in the morning.
When we get back. We're going to talk about bike lanes.
Bike lanes in Boston, and there's been some movement here
which I celebrate, in that one of the bus lanes
that goes down Boylson the Street apparently is going to
be removed that is a single little step in the
right direction. We'll talk about it right after the eleven
It's night with Dan Ray. I'm tell you easy Boston
News Radio.
Speaker 2 (00:07):
All right, We're delighted to be joined tonight by Mark Missilbeck.
He is a CPA with a firm Cherry Beckert Advisory
LLC located in Waltham. He's spent a lot of time
with us tonight and he's going to spend some more time,
as often happens with Mark, Mark, what is the best
(00:29):
way someone who wanted to contact you privately? Do you
have an email that you could share with us or
a phone number that if you know, again, you're not
here looking for business. You you're more than busy. But
if anybody wanted to contact you privately, what's the best way?
Speaker 3 (00:48):
My email is Mark M A r K dot missile
Beck M I doubles e l beckism Beck spear b
E c K at CBH dot com.
Speaker 2 (01:01):
It's pretty easy, Mark dot Missilebeck at CBH dot com.
We will give that a little bit later on during
the hour in case anyone missed it as well. Let's continue.
We have a lot of calls waiting and we'll get
to everybody as quickly as we can. Let's go to
Janis in Melrose. Janis you are next on Nightside with
(01:22):
Mark Misselbecker.
Speaker 4 (01:22):
Right ahead, Jennis, Hi, I have a question. I always
go over my return server carefully before I signed my name,
and last year I found something that didn't make sense
on Form eleven sixteen, and so I went back to
the preparer and they said the software made a mistake.
And there's a line on there that asks for your
(01:44):
income all sourced income, and the software grabbed my adjusted
gross income which includes subtraction for capital gain losses, and
if I understand correctly, what they're looking for in that
line is all sorts of income and they don't count
(02:04):
any losses. It's just what was your income? Is that correct?
Speaker 3 (02:10):
I believe that they do met the capital gains against
the capital losses on scheduled d to get to the
income to be reported on the return. So I'm not
so sure that the mistake was making that was made
in the calculations.
Speaker 4 (02:26):
My question is about the software and the preparer's use.
Is there a standard software they used, because I had
another preparer and they always did it the way that
I just mentioned to you, and then this new preparer
they admitted that it was a mistake, but they said
the software just grabbed the long amount and it made
a difference between not having to pay estimated taxes and
(02:49):
having to pay a sizeable estimated tax.
Speaker 2 (02:52):
Because you've got the mistake.
Speaker 4 (02:56):
Well, I knew something was wrong because the bottom line,
it was telling me that I could take a credit
for most of my foreign taxes. And every other year
I've only been allowed to take a small, a small
percentage of my foreign taxes as a credit and then
everything else was carried over. So I'm I noticed that
(03:18):
something was different because I've never been allowed to take
that large amount. I'm sorry.
Speaker 3 (03:24):
How large is the amount of your foreign taxes?
Speaker 5 (03:28):
Last year?
Speaker 4 (03:28):
It was six hundred? It was higher six hundred, and
they were telling me I could take most of it,
and usually it's around three hundred. Actually it may have
been three it was three year six. I'm not sure.
Speaker 2 (03:40):
It's been a while, but okay, So what is the
question that you have from Mark?
Speaker 4 (03:44):
My question is about software, and I go over everything
so thoroughly. Now do I have to check everything and
which is right that I which amount is supposed to
be engined on farm?
Speaker 3 (03:57):
Once?
Speaker 2 (03:58):
Well, not knowing the I want to take a talk
off the hook here, Mark, let's at me jump in
for a second, not knowing who you prepare or was
not knowing really what software they were using. If there
was a mistake that you caught, great, I still don't
quite understand what you're asking Mark, But if Mark, if
you if you feel you can answer the question, go ahead.
Speaker 3 (04:20):
There are a number of software packages out there and
different firms use different professional software packages to handle the
complexities of all the returns that we deal with that
can be incorporated in those returns, and usually they do
a very good job of the interpreting the law. Once
(04:41):
in a while we have to do it an override
and put in a number because the software, to our interpretation,
is not handling it correctly. But this category usually is
taking care of well and we've come to rely on
their expertise in interpretations. Myself, I gotta admit I would
(05:06):
have to go back double check on the calculations to
be certain myself, and I can't answer it off hand tonight,
WI me an email, I will take a look at
it and answer you.
Speaker 4 (05:19):
Okay, So what you're saying is you can't answer what
they're actually looking for on that line? Is that what
you do?
Speaker 3 (05:25):
But I can tell you that there is an optional
election to take up to four hundred dollars. I think
it is without going through these computations. You don't get
to carry forward of whatever is in excess of that amount.
But if you were getting less than that, you may
want to consider making that election.
Speaker 4 (05:45):
Is that Form three or no?
Speaker 3 (05:48):
No? That is ok. In place of filing the eleven
sixteen and going through all the calculations, you can just
take the flat amount.
Speaker 4 (06:00):
But even when you go through all the calculations, it
tells you you can only take one hundred out of
six hundred, and then.
Speaker 2 (06:07):
You can do again.
Speaker 3 (06:09):
I say again, as I recall, you can make this
election and take the flat amount without doing the calculations.
Speaker 4 (06:16):
Okay. I just wanted to make one other point. The
previous caller was talking about something that he got over
sixty five, and I thought he was talking about Massachusetts,
and I wondered if he was referring to the Seniors
Circuit breaker whatever I.
Speaker 3 (06:31):
Wanted to see. The Senior Circuit breaker is a tax credit.
So my understanding, the door denies everyone that's been submitted
and forces you to submit all kinds of paperwork to
document your entitlement to that credit. There is an additional
exemption that MASS allows if you're over sixty five, right,
(06:55):
I'd give you an additional standard deduction over and above
what you know normally would get if you're filing single.
The standard deduction for twenty twenty four would be fourteen thousand,
six hundred. Last year was thirteen eight fifty, and if
you're over sixty five, you would get an additional one thousand,
(07:16):
eight hundred and fifty. Last year one thousand, nine hundred
and fifty. This year.
Speaker 4 (07:20):
Okay, all right, I just thought.
Speaker 2 (07:22):
He Rachel, I hate to do this year. Rachel, I
got other callers and we're just we're I got to
get you out of the weeds here. Okay, thank you
so much, thanks for calling. Good night. You know, there's
a point mark where I think people are she's getting
really deep into her own tax return, and yeah, she's
(07:44):
asking questions which I think are on a little unfair.
But anyway, we'll continue along six one, seven, two, five,
four ten thirty six one seven, nine, three, one ten thirty.
Feel free give us a call, be right back on
night Side.
Speaker 1 (07:58):
Now back to Dan ray I from the Window World
in Night six Studios on WBZ.
Speaker 2 (08:03):
The news radio Okay, we got full lines. Let's keep
rolling here, Mike. I want to try to give as
many people as possible a chance to chat with you.
Let's go to Marry and Boston. Marry you next on Nightsager,
Right ahead.
Speaker 6 (08:17):
Yes, I have a checking account I just opened, so
I don't get no interest on that account. So do
I have to claim that on my income tax?
Speaker 3 (08:26):
If you have no interest paid, you have no interest
to declare?
Speaker 6 (08:31):
Oh okay, and it's the minimum you have to have
in that account.
Speaker 3 (08:36):
No, that's a banking question. It's a ten dollars for
reporting purposes. If the bank didn't pay you more than
ten dollars of interest, it doesn't have to tell you
and the irs how much it paid you an interest.
The obligation to report all of the interest income, all
(08:57):
income from whatever source derived, even though the bank doesn't
turn you into the I R S, is still your
obligation to put it on your return.
Speaker 6 (09:09):
Okay. But if I don't have no interest, I don't
have to claim.
Speaker 3 (09:12):
It, right Yepkay, No, you don't have to unless you
want to be charitable to the United States Treasury. You
don't have to put fanom income on your return.
Speaker 6 (09:24):
Okay. Okay, thank you.
Speaker 2 (09:26):
Okay, thanks Mary, good luck, Okay, thanks, thank you, good night.
Sounds like a sweet lady wants to do the right thing.
The irs must have taxpayers like that. Fred is in Wooburn. Fred,
you were on with Mark Misselbecker.
Speaker 7 (09:39):
Right ahead, Yeah, Dan and Mack. Thanks for having me
taking my call. Mine's really quick. My wife has not
received her Selfial Security W two form yet. She's gotten
everything else except for that one.
Speaker 8 (09:56):
What can I do?
Speaker 7 (09:57):
I'll call them and I'm on hold for days.
Speaker 3 (10:01):
If you've set up an account with the SSA, you
should be able to go in there and obtain the
ten ninety nine SSA and print it off. It's either
ten nine SSA or SSA ten ninety nine. I forget
offhand which designation it is. It's in the ten ninety
nine series, but they post it to their website, and
(10:21):
if you have an account with a secure log in,
you should be able to find it there.
Speaker 7 (10:27):
I'll check that out tomorrow.
Speaker 6 (10:28):
I really appreciate it.
Speaker 3 (10:29):
You guys. Have a great night.
Speaker 2 (10:31):
Yeah. By the way, let me give you the account.
It is SSA dot gov. We'll get you where you
got to get to. Okay, and you can either create
an account. It's just SSA lowercase dot gov.
Speaker 7 (10:45):
Thanks Daniel the man, all right, you're very.
Speaker 2 (10:48):
Welcome, Fred boy. That's that's frustrating that the Social Security
would not send her. I'm looking at my account and
I check it every once in a while, but.
Speaker 3 (11:01):
They send out all kinds of communications. They do it
electronically if you have an account. But is the blame
with the Social Security Administration for not sending it out
of the US prostal service for not delivering it?
Speaker 2 (11:14):
Wait, that's a coin flip market that therever was. Let's
keep rolling. Head going to one of my favorite callers,
Betty on the Boat. Betty on the Boat, welcome back.
You're on with Mark Misselbecker. Right ahead, Betty.
Speaker 6 (11:29):
Good evening, gentlemen. I have a complicated scenario. My husband
died and when his real estate was sold, twenty seven
thousand dollars of the proceeds of the estate received and
turned back to my insurance carrier under the Medicare advantage
(11:52):
lean and now do I report that as a cost
of the estate or as my personal income? Because they
paid a bill for me, not for him.
Speaker 3 (12:10):
Is there anybody running the estate appointed to settle his affairs.
Speaker 6 (12:16):
I am, I'm the personal representative.
Speaker 3 (12:19):
Okay. Now, was the property titled in joint names yours
and his or his alone?
Speaker 6 (12:28):
It was his property, but it gets money here. It
was never to be put in my name for purposes.
Speaker 3 (12:42):
So you but the estate name the estate would be
responsible for reporting the sale. If the property was sold
while the estate was open, if it was transferred over
to you, you would be responsible. However, there should be
a valuevaluation obtained as to the value of the property
(13:04):
at his date of death, and that would become the
tax cost. So if we were thirty thousand, you had
a broker's fee and legal fees to execute the sale,
those would be charged against the thirty thousand to get
to the twenty seven thousand. But you still have a
thirty thousand costs for the property. You actually be able
(13:24):
to report a capital loss on the sale.
Speaker 6 (13:27):
Okay. But what I'm asking is about the Medicare lean.
The statutory medicare leans that if you have any outstanding
bills due to.
Speaker 3 (13:44):
Personally they were if they were if they were unpaid
medical bills, then there may be a medical deduction in
favor of the estate, but not for you as an individual.
Speaker 6 (13:55):
Because it was more medical bills that they took ah
out of his estate, and he was never a member
of that insurance company. So is that my income are
his debt service?
Speaker 3 (14:16):
It's your satisfaction of your medical bills out of the
proceeds of inheritance the real estate. You may have a
capital loss from the sale of the real estate long term,
because at death it's automatically considered to be a long
term asset for you, and you have the potential of
(14:39):
itemizing your deductions and claiming a medical deduction for the
medical expenses that have finally been paid with those funds
on my behalf. Yeah, you really need to talk to
somebody about having a return prepared taking into account those
elements this year.
Speaker 8 (14:58):
Yeah.
Speaker 6 (14:59):
The reason I add SI stands there was a lady
about a half hour ago who'd been in the hospital
for two days post accident and had an insurance settlement,
and that just brought this question right into mind about
the Medicare lean.
Speaker 2 (15:18):
When did your husband pass.
Speaker 6 (15:22):
In two thousand and three, but it was an ongoing battle,
it's a long time ago.
Speaker 3 (15:29):
Then you may not you may not have a basis
in the time the property sufficient to cover the proceeds.
You may have a profit to report, but then you
get the medical deduction on payoff of those, so it
may help you to offset the gain in your return. Again,
you need to talk to somebody have have them prepare
(15:52):
your return this year.
Speaker 6 (15:54):
Yeah, not too many people are aware of the statutory
medical lean and litigation.
Speaker 3 (16:00):
Mm hmm.
Speaker 2 (16:01):
Well I think I think that you know, Mark has
been pretty clear.
Speaker 6 (16:08):
Here again and what he's saying completely, but you know,
I just like to pass the word that there is
such a thing.
Speaker 2 (16:17):
Okay, well, sorry about the loss of your husband. And
do you normally have someone prepare your taxes you know,
every year?
Speaker 1 (16:25):
No?
Speaker 2 (16:27):
Okay, well this this might be the year that you
might want to get this this buttoned up, I think,
is what Mark is saying.
Speaker 6 (16:36):
Yeah. I agree, but I you know, it's the whole
thing is just infuriating to me that what what happened
is it's it's it's the sale of that property and
that I was shafted six ways to Sunday. Yeah, that's
(16:56):
not the.
Speaker 2 (16:57):
That's not the I R. S is problem at this point.
Speaker 6 (17:00):
That's my problem.
Speaker 2 (17:02):
Yeah, and the IRS is. I just always feel it's
smart to get yourself squared away with the irs so
that nothing doesn't come back and invite you, you know,
sometime down the road.
Speaker 6 (17:16):
Yeah, well, I hope all as well with you Mustard
in the family, all right.
Speaker 2 (17:21):
Okay, Muster of the dog. Thanks Patty, be well.
Speaker 6 (17:25):
Okay, thank Ker, and thank you for taking my call.
Speaker 2 (17:27):
You're very welcome again. Mark. It's interesting, just a number
of issues that you deal with here. We'll continue. I
got Bruce and Howell Rebecca in Milford, and all of
a sudden, I got a couple of open lines. If
you were trying to get through before the latest, that
market is going to be gone by eleven, So now
is the time to call six one, seven, two, five,
(17:48):
four ten thirty six one seven, nine, three, one ten thirty.
Feel free. You can get in on either of those
lines at this point. My name's Dan Ray. Will take
a quick break here for news at the bottom of
the hour, and we'll be back back with certified public accountant,
long time tax expert, who has been a guest in
this program for fifteen tax seasons, going back at least
(18:09):
to twenty eleven, and before that, maybe even longer than
we both realized. We're both we're both we've been doing
this longer than you could imagine. Mark, You've been doing
this how many? How many years professionally, putting aside your
appearances here on Nightside.
Speaker 3 (18:26):
Working my way through my fifty third year.
Speaker 2 (18:29):
Fifty three years. Okay, So you know, I think you're
probably getting pretty good at it, that's for sure. It's
amazing to me the breadth and depth of knowledge that
you have on all of these questions. Back on Nightside
with Mark Missilbeck. Mark, this is about a three minute break.
We'll be back at it about three three and a
half minutes. Back on night Side. Right after this, you're.
Speaker 1 (18:51):
On Night Side with Dan Ray on WBZ, Boston's news radio.
Speaker 2 (18:58):
We're talking with Mark Misselback. He is a CPA, been
doing this for a while. He's been doing it for
a while for us here at Nightside. He gives them
volunteers his time and he's an amazing CPA. With Cherry
Beckhart Advisory LLC out of Waltham, Massachusetts. Let's get right
back to the calls. Don't want people to wait too long.
(19:20):
Let me go to Bruce in Hull. Hey, Bruce, welcome,
You're next on Nice Side with CPA Mark Misselbecker. Right ahead, Bruce.
Speaker 8 (19:27):
Dan Thanks for taking my call. Mark, Welcome to the
Night Side Show. My question is two parts. One, I've
been led to believe through news. I believe that Ronald
Reagan passed the law preventing federal employees from getting Social
Security but they could get up to forty percent of
what they're entitled. And President Joe Biden reversed that or
(19:51):
passed the new law entitling federal retirees to one hundred
percent of their benefits if they're entitled.
Speaker 3 (19:57):
Am I correct? There? During the Reagan administration, working with
the Congress, there was a limitation imposed on the benefits
under Social Security that could be realized. It was deemed
a double dipping to have both the government funded tension
and the government funded Social Security benefits. And Biden didn't
(20:20):
get it pasted himself. The Congress, in concert with the
Biden administration, struck a deal, passed the law and expanded
the participation two hundred percent. Yes in social scarity, if
there are sufficient credits outside of the government for contributions
into the Social Security system to warrant getting the benefits.
Speaker 2 (20:42):
Is that the ten years to forty quarters that we've
heard so much about.
Speaker 3 (20:47):
Mark exactly. Yes, Okay.
Speaker 8 (20:52):
What I'm trying to do, I'll be quite blunt and
pulling and plain about it is. I now understand that
I'm in I had litt one hundred percent of my
benefits and I only need twelve quarters, which is three
years of working. Well, I'm lazy, I retired. I don't
want to work for anybody, and so I came up
with this IDM sheuer, sir, somebody else has already done it.
(21:14):
I want to be self employed for three years, pay
my twelve quarters into social Security, and then the end
of the third year apply to receive social Security because
I think in the end it will benefit me as
long as I live a while. It's going to benefit
me financially.
Speaker 2 (21:35):
Me, that's for sure. Right, Okay, go.
Speaker 3 (21:37):
Ahead, let me say that four quarter. I'm sorry, Go ahead,
I am not. I'm sorry, Mark. So, I am not
a social Security benefits expert, and my knowledge is glancing
in that area, and I can only speak to the
social Security taxes you might have to pay. You need
(21:59):
to insult with someone who is a social Security benefits
advisor about whether this strategy is viable or not. Very
very you have to have profits. You would have to
have profits from your self employment business to get credits
for Social Security benefits.
Speaker 8 (22:19):
Yes, and I'm willing to pay that out of my
pocket because I think I don't want to go to
work for somebody to get my forty credits. But I figured, okay,
but I'll start a business.
Speaker 3 (22:33):
Whether or not the strategy is viable, whether or not
it's twelve quarters for you, is something that somebody who
deals in Social Security benefits would have to advise you.
Speaker 8 (22:43):
And not mes very good advice, excellent advice, Mark, thank you.
Speaker 2 (22:47):
Okay, Yeah, Bruce, I understand your theory. I hope it
works for you. That's that is for sure. And obviously
at some point, not only do you have to figure
out whether or not your plan is up the blet,
but then also what the minimum you know, the the
earnings would have to be, and how you would how
you would fund that, et cetera. And obviously you want
(23:09):
to make sure that if you do it, you do
it correctly, because the worst thing that would be to
do it and then be denied the benefits because it
wasn't done correctly. So I don't know how you would
find a Social Security benefit benefits advisor. There are people
out there that you can that you can talk to
(23:30):
if you have trouble uh finding someone in that category.
If you want to give me a call, I'd ask
you to try to do it on your own. If
you want to give me a call, I can try
to help you find someone who would be qualified to
give you the information that you need.
Speaker 8 (23:45):
Okay, I thank you very much. And just to close
out my call, the as a veteran, I have a
veterans agent who's very helpful in the town or Paul,
and I can ask him a question and he goes
and finds out the answer perfect.
Speaker 2 (24:01):
And you are all said, Bruce, we have launched you here,
and I'm delighted that you called. This is a this
was a very successful phone call.
Speaker 3 (24:09):
Thank you, thank you, good night, You're welcome.
Speaker 2 (24:12):
Good night. Uh again. Mark, You're just so spot on
in terms of the advice that you give people. I
hope that they really understand that I appreciate the thoroughness
with which you answer their questions. Let's go next to
Rebecca in Milford. Rebecca in Milford, You're on with Mark Misselbeck.
Go ahead, Rebecca.
Speaker 9 (24:32):
First of all, Dan, I love your show. Listen every night.
I learned so much. Hear and Mark, we have talk
to you good. I can't believe people don't have an
accountants and they're asking you these questions because I own
a small business, my husband and I. It's anes corp
and it's going to be kind of a fun little thing.
(24:53):
It's not fun for me, but we've been to a
lot of accountants and I know a lot has change
all the time, but the small business percent they have
to pay is quite a bit, is it? It is correct?
With that Mark, I'm not.
Speaker 3 (25:08):
Sure exactly what if it's an escorp for federal purposes,
unless you were a C corp or acquired a C
corp somehow. No, you shouldn't have a tax at the
corporate level, right, it goes a little bit of mass
(25:28):
is a little bit of an odd dog in that hunt,
if you will. If your grocer receipts are over six
million dollars, they want to cut of the difference between
what you would pay as a regular corporation and what
you pay as an individual.
Speaker 9 (25:42):
That's not my question, but I'm just saying, as high.
Speaker 2 (25:47):
Rachel, hold on explanation, We're not going to catch you.
Don't go ahead, go ahead.
Speaker 3 (25:53):
I'm sorry, go ahead, and if your grocery seats exceed
nine million dollars, they want the full differential to compensate
them for your not reporting as a corporation and paying
the eight percent, So they get three from the corporation
aside from you. Now, if you are profitable, what you
(26:13):
may consider under the current regime where you're what Dan
referred to earlier assault this state and local tax deductions
are limited at the individual level. Consider electing the pass
through entity tax at the corporate level. For Massachusetts, you
only get ninety five ninety percent of it as a credit.
(26:36):
Excuse me for what you pay there, but you get
a full deduction federally, which at the federal rates puts
you ahead of the game.
Speaker 9 (26:44):
Yeah, I head spitting. I mean, if I sit with
my accountants, and I'm very organized, but I couldn't. I
just don't understand taxes. All I know is we always
end up paying a lot. But I just wanted to
tell you a quick story. We've had an accountant from
twenty nineteen to twenty twenty three and we have to
redo all our taxes because she did them on We
(27:04):
got SBA loads and she didn't put it in one
of them should even file for us. You know, we
pay like twenty five hundred dollars each tax season today,
so I have a new accountant. He has to redo
all my taxes. I get letters every day in the
mail from the IRS. They're very dice by the way.
What I call today, I get an email with two
bills from her, thirty six hundred dollars for taxes. I go,
(27:27):
are you kidding me? And I've already paid her? So
I thought I'd throw a wrench in the call today
and be a little bit you know, more humorous, not
that it's humorous to me, but certainly not paying it.
But I couldn't believe it, because we have to redo
all of our taxes.
Speaker 3 (27:43):
You build you after you had to redo.
Speaker 6 (27:46):
She knew her redo them.
Speaker 9 (27:49):
No, I get a new accountant because she screwed them
up so bad, actually one of them twenty nineteen. Because
I went through every year with the IRS, they were
very helpful. She didn't even file my tax and I'm married.
Speaker 6 (28:01):
You know, we filed the physiness to the personal like
we were talking about.
Speaker 9 (28:04):
But I just couldn't believe it. The and I like
I said, hats off to you, Mark, because just keep
it up with all the changes and laws and everything
is crazy enough. But that's you know, I'm just so
I'm waiting for the new accounty already did twenty twenty three,
is it's going to do twenty nineteen through twenty twenty two.
Speaker 2 (28:22):
Over so, and she's still trying to send you a bill.
Speaker 9 (28:28):
I couldn't believe it. I couldn't believe it. They're all
there's so often it's not your fighting. So you know,
one thing we're getting back thory two thousand, the next
bill we owe forty seven thousand. Oh, the back that
you didn't file for twenty nineteen. I mean, and I
don't understand it at all. So, like I said, I
really appreciate this topic.
Speaker 3 (28:46):
Let me say it. Let me say this. I can't
say what recourse you may have, right, but it would
be worth a console pation with an attorney. Let's see
what your what your outcome can be.
Speaker 9 (29:07):
I at least want to get paid back for what
I paid her to do my taxes. I mean, I
don't want to store or anything. You know, she's a
nice person, but it's just like we've been going through
health and the I R I said, once we get
everything in and find they'll take away all the penalties
and interest rates.
Speaker 2 (29:23):
Just crazy.
Speaker 9 (29:26):
But yeah, that's what I just wanted to know. What
can I do? So, you know, I'd like to get
back what I paid for her to do my taxes.
But today when she sent me a bill for one year,
I'm like, oh god, well, well.
Speaker 2 (29:36):
I think Marks. I think Mark's advice is is excellent.
Do you have an attorney on it that represents your
your business represents Do you have a family attorney?
Speaker 6 (29:45):
Of course, go to him.
Speaker 2 (29:46):
And present the issue, and if he's not comfortable with
that area, I'm sure he can refer you on to
uh an area. You know, there was some specialty here.
I mean, this is from what you tell us. It
sounds to me like, if anything, the accountant should owe
you money for the aggravation the.
Speaker 9 (30:07):
And I don't want to do anyone.
Speaker 2 (30:09):
Saying well, no, I understand.
Speaker 3 (30:13):
All I'm saying is all I'm saying is an attorney
should look at the circumstances and appraise whether or not
you have any recourse or claim that you can pursue
what has happened.
Speaker 9 (30:30):
Well, thank you very much. And like I said, I
just can't believe people can do. I just don't get it.
Call those lives.
Speaker 2 (30:39):
If someone came and built, you know, an extension on
your home and three three weeks later the thing collapsed
and then they were sending you a bill. I don't
think you want to pay that one again? Paid, I know,
I know, do what Mark said, and uh, and I
will tell you if it's worth if it's worth the effort.
It's as simple as that. And if he can't got it,
(31:00):
find you somebody.
Speaker 9 (31:01):
Okay, great, all right, good luck with the upcoming taxis
and Mark and Dan, like I said, love you, I'll
listen to you again tomorrow.
Speaker 5 (31:09):
Right.
Speaker 9 (31:09):
This is a great topic.
Speaker 2 (31:10):
Thank you, Thanks, thanks Rebecca, Thank you Mark. Mark makes
it a great topic. Thanks, talk to you later. All right,
all right, we'll take a quick break. I can get
a couple more calls in. Louise and Peabty waits on
the other side. Uh. If there's anyone who wants to
try to sneak in real quickly under the wire here
we can accommodate you. Six one, seven, two, five, four
ten thirty six one seven, nine three one ten thirty.
(31:31):
Mark again, as always, a wide range of a wide
range of callers and issues and you handle them with
such a plum. You're you're masterful. So I just want
to say thanks, we will we will give one more
time your email. If folks want to try to reach you,
if they reach you off here, I hope you're going
(31:52):
to bill them. Uh, this is this is pro bono
folks tonight. But if you know, if you if you
want to contact markets Mark M A r K dot
missile Beck M I S S E L B E
c K at c BH dot com that stands for
(32:12):
Cherry Beckhart Advisory Limited llc CBH dot com. Back on
Nightside with Mark Missilbeck and a final call or two.
Right after this short brief break, Now.
Speaker 1 (32:27):
Back to Dan Ray live from the Window World night
Side Studios on WBZ NewsRadio.
Speaker 2 (32:34):
We want to call a drop off Teresa. Teresa, I
believe from West Roxbury. We'll get you in if you
call back. Let me go next to Louise in Paboty Louise,
Welcome you are with Mark Misselbeck.
Speaker 5 (32:46):
Go right ahead, Okay, I'm gonna get right to the point.
I won't get behind the story. I currently have an
irrevocable trust and the money in that trust is sitting
in a bank in a non interest bearing checking account.
And M my lawyer that I went to to get
(33:12):
all the you know, the estate documents worked out, said
what the hell is that doing that money doing in
an era of vocable trust? But what I'd like is
to know the The lawyer that I went to was
uh uh s S gave me a farm with the
UH to fill out for the irs and I did it.
(33:36):
But I haven't done anything with that money in the ear.
Speaker 6 (33:41):
Of vocable trust. It's a a trust for.
Speaker 5 (33:44):
Me and I had put it in there so that
if I go to a nursing home, I my m my,
the person in charge of the trust, will be able
to take the money and buy me things that I
need in the nursing home. Now, if I decide not
to do any it's not earning any income. And if
(34:06):
I leave it that way? Is that Okay?
Speaker 3 (34:12):
Likely it is? But who's the who's the trustee? The
bank sounds like she is.
Speaker 2 (34:19):
Who's the great who established the trust? Uh?
Speaker 5 (34:22):
Louise I did my sister in LAWA. My sister in
LAWA is in charge of all my estate if once
I pass?
Speaker 2 (34:30):
Okay, is your sister in law named the the yes?
Speaker 5 (34:34):
Yes, she's in the legal document.
Speaker 4 (34:36):
Yes, is she?
Speaker 2 (34:37):
Is she the only trustee?
Speaker 5 (34:40):
Yes?
Speaker 2 (34:41):
Okay? Uh? And I think the lawyer's reaction, Mark correct
me if I'm wrong, was why is it not earning
any interest? Because obviously, as inflation goes on, the value
of that money drops. But that was a lawyer's question.
If it's not earning interest, obviously there's no interest to
(35:03):
report to the to the federal government. Mark.
Speaker 9 (35:05):
But yeah, maybe I haven't.
Speaker 5 (35:07):
I haven't earned anything with it.
Speaker 2 (35:10):
Okay, hold on, I don't. Let's let Mark give you
his analysis, and don't worry. We're not going to rush you.
You get a follow up question or two if you
need them. Go ahead, Mark.
Speaker 3 (35:21):
Now, I'm not knowledgeable in Medicare and Medicaid trusts. That
caveat out there to begin with. Normally you can't do
a trust for yourself for your own benefit. How the
Medicare and Medicaid trusts work, if they work in that fashion,
(35:42):
I can't tell you. But the trustee usually has a
fiduciary obligation to invest the money to make a safe
at least a safe rate of return, and sitting in
a checking account, typically as a non interest baring checking account.
Even an interest bearing checking account. The rates are so
(36:03):
low these days there would be peanuts generated. So now,
depending on if the trust is a what is called
a simple or complex trust, there would be an annual
exemption of three hundred dollars on a simple trust or
one hundred dollars on a complex trust, offsetting the income
(36:23):
at least on the federal level nothing for Massachusetts. A
simple trust says all income generated during the year must
be paid out at least annually to the name beneficiary.
A complex trust leads it to the discretion of the
trustee under standards set in the document as to whether
(36:44):
or not money should be distributed to the beneficiary. So
in the discretionary payout trust one hundred dollars exemption, you
have zero income. In a simple trust, if there were income,
it would have to be paid out to begin with.
If this is crafted in such a fashion that it
(37:08):
is treated for tax purposes what is known as a
grant to our trust, then the terms of the trust
are such that any income generated would be reportable by
you anyway. In such circumstances, it's usually recommended that the
money be invested in US treasuries, which will be taxable
(37:28):
for federal purposes, but exempt for state purposes, or if
you want to go whole hog, you invest in municipal
bonds or municipal bond funds that generate municipal bond interests,
particularly from your home state, so there is neither state
or federal taxes on the money. But at least summer.
Speaker 5 (37:50):
What if I I'm eighty, I'm going to be eighty
six years old in June and that money isn't earning
any money and I don't want it to because I
inherited a lot of money when my daughter died, and
it's caused me a lot. I had to go down
to Florida and sell the house down there.
Speaker 2 (38:11):
Okay, here's we're running out of time a little bit, Louise,
So hold on.
Speaker 6 (38:14):
Okay, second, here, hold on.
Speaker 2 (38:16):
For one second. How long ago did you establish the trust?
Speaker 5 (38:20):
Oh in I think, uh in twenty sixteen?
Speaker 2 (38:25):
Yeah, okay, I think Mark. I think there's a five
year rule that money that is put in to a
trust that's irrevocable after five years.
Speaker 5 (38:39):
Nobody can touch it.
Speaker 2 (38:41):
Yeah, right, But whether or not you can do it
for yourself, as I think, you got to talk with
a lawyer. Does your family. Do you have a lawyer?
Does your family have a lawyer who's worked with you?
Speaker 5 (38:52):
Yeah, I have a law I have an accountant and
a lawyer.
Speaker 2 (38:56):
You spend some time with the lawyer. It's sounds to
me like you've done a good thing. It seems to me.
It doesn't seem to me based upon what Mark says,
that you have avoided filing taxes. But I think you
should get this settled so I can tell that it's
bothering you in the back of your mind. You want
to get it settled and make sure that you understand
that and if you've done everything properly, and I think
(39:20):
that that that this is a good step you took
tonight and get to the lawyer and say, hey, look,
just want to make sure that that I've complied with
everything and if and then it is up to your
judgment if you want, as Mark said, invested in a
different sort of vehicle to earn a little bit more money.
There's nothing wrong with that. But on that Louise, we
got to got to let you go because I'm flat
out of time. Thank you, Thank you, Mark Misselbeck, thank
(39:44):
you just fabulous. As always, I got to give your
email one more time with your permission. Markets M A
R K dot missile Beck, M I S S E
l V E C K at C b H c
as in California, be as in Boston, Hsinhuston dot com,
(40:05):
CBH dot com, Mark dot Missilbeck at CBCH dot com. Mark,
thank you so much. I'll give you a call tomorrow
and sometimes maybe we could fit you in one more time,
or if you have the time between now and maybe
the end of the month, if that's conceivable. A lot
of interest tonight.
Speaker 3 (40:23):
That's possible. It's entirely possible if we do it this month.
Speaker 2 (40:27):
Yeah, Okay, thank you, my friend. Thank you so much.
As always, you're generous with your time and this is
just very beneficial to a lot of people tonight, both
who called and who are listening. Thanks Mark. We will
talk so okay, thank you, my friend.
Speaker 3 (40:40):
Okay, good night, good night.
Speaker 2 (40:43):
Mark will be back at it early in the morning.
When we get back. We're going to talk about bike lanes.
Bike lanes in Boston, and there's been some movement here
which I celebrate, in that one of the bus lanes
that goes down Boylson the Street apparently is going to
be removed that is a single little step in the
right direction. We'll talk about it right after the eleven
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