Investment and Finance
The most frequently asked tax questions related to Investment and Finance
What happens to my HSA when I die?
Asked Friday, June 22, 2012 by an anonymous userCPA Answer:
Your HSA will be treated as your surviving spouse’s HSA, but only if your spouse is the named beneficiary. If there is no surviving spouse or your spouse is not the beneficiary, then the savings account will cease to be an HSA and will be included in the federal gross income of your estate or named beneficiary.
Who can have a HSA?
Asked Friday, June 22, 2012 by an anonymous userCPA Answer:
You must be:1) Covered by qualified high deductible health insurance plan;2) Not covered under other health insurance;3) Not enrolled in Medicare; and 4) Not another person's dependent.
Other health insurance does not include coverage for the following: accidents, dental care, disability, long-term care, and vision care. Workers’ compensation, specified disease, and fixed indemnity coverage is permitted.
Other health insurance does not include coverage for the following: accidents, dental care, disability, long-term care, and vision care. Workers’ compensation, specified disease, and fixed indemnity coverage is permitted.
Exceptions to Penalty for Non-Medical withdrawals
Asked Friday, June 22, 2012 by an anonymous userCPA Answer:
This tax penalty does not apply if the withdrawal is made after the date and you attain age 65 or become totally and permanently disabled or die.
HSA Catch-up Contributions - 55 or older
Asked Friday, June 22, 2012 by an anonymous userCPA Answer:
Individuals aged 55 and over may contribute an additional $1,000 above the maximum for each tax year.
Can HSA money be rolled into a IRA?
Asked Friday, June 22, 2012 by an anonymous userCPA Answer:
No, it can only be rolled over into another qualified HSA without incurring tax consequences.
Form 1099-B: Cost Basis Categories
Asked Tuesday, March 27, 2012 by an anonymous userCPA Answer:
Category A = Covered = Cost basis is reported to the IRS
Category B = Non-Covered = Cost basis is Not reported to the IRS
Category C = Supplemental = Proceeds Not reported to the IRS
Stock Options fall into Category C which is supplemental information that is supplied to customers when available, but is not reported to the IRS.
Category B = Non-Covered = Cost basis is Not reported to the IRS
Category C = Supplemental = Proceeds Not reported to the IRS
Stock Options fall into Category C which is supplemental information that is supplied to customers when available, but is not reported to the IRS.
Wash Sale
Asked Tuesday, March 27, 2012 by an anonymous userCPA Answer:
Losses from Wash Sales are disallowed by the IRS and the amount of the loss is added to the cost basis of the repurchased shares on a per share basis.
The holding period is also adjusted to include the days the security was held before the original sale.
When an investor sells shares at a loss and then repurchases substantially identical shares within 61-day window (30 days before and/or after the date of sale, it is called a wash sale.
The holding period is also adjusted to include the days the security was held before the original sale.
When an investor sells shares at a loss and then repurchases substantially identical shares within 61-day window (30 days before and/or after the date of sale, it is called a wash sale.
Cost Basis
Asked Tuesday, March 27, 2012 by an anonymous userCPA Answer:
Cost basis is the value of an asset used to calculate capital gain or loss for tax purposes.
For most positions, cost basis is purchase price plus commissions plus disallowed wash sales plus reinvested capital during the time before the sale.
For most positions, cost basis is purchase price plus commissions plus disallowed wash sales plus reinvested capital during the time before the sale.
SEP IRA Catch Up ( those over 50) Provisions?
Asked Friday, March 09, 2012 by an anonymous userCPA Answer:
No - there are no catch provisions. The limitations are the same. 25% of compensation but no more than $51,000.