jasdlm

I have this situation, and I absolutely think it is the worst public policy ever. Unconscionable. The student loan payments should be able to be reduced to the same level regardless of filing status. Give up money on one side to gain on the other. Many hugs to go around. When my first client to experience this came to me and said he had to file MFS several years ago, I thought he for sure had to have misunderstood and actually sat with him through a call to the loan peeps. Then did further research. Unreal.

Bump.

I have only one time gotten a taxpayer advocate involved, and it did absolutely nothing to expedite the process. It was a useless experience. Has anyone else had better luck with a taxpayer advocate?

Thank you, Ma'am!

What's the TN Inc-250 Account Number? Clients moved to TN. Have Dividend and Interest income, so filing TN INC-250. Return wants an account number. Thanks!

Estate has about $30,000 income (1/3rd rental, 1/3rd cap gain, 1/3rd Div/Int). Charitable Contribution were $100,000 per trust (elected to file estate and trust return together), and no specification as to from what type of income. Estate deductible expenses are $14,000. I THINK: Deductions of $14,000 go first against $30,000 income, so no final year deduction pass-through to beneficiaries; charitable contributions, after covering the remaining $16,000 of income, are wasted, and beneficiaries receive k1s that have nothing on them except the distributions they received from the estate (non-taxable) OR beneficiaries receive no k1s as there is no DNI and no pass through for expenses since they come before charitable deductions against income. Am I thinking about this totally wrong?

Also, what is in box 12 of the W2?

Judy, you are so smart. I hate it when I know something is wrong and am not able to fix it. The bottom of the worksheet was not flowing through because I did not put a 0 in Line 10. Aaargh. Thank you, thank you. And your Calculation is, of course, accurate to the dollar.

Client made $15,000 W2 income. Nothing else on return. Did not have health insurance. Filing as Single. Did affordability worksheet. Monthly SLC bronze is 172 and monthly 2LC Silver is $200. Required annual contribution ends up being zero, yet penalty is still $695. What do I not understand? I feel like a dunderbrain. Thanks.

I read page 9 of Pub 561, 1/2 way down the left-hand side of the page, exactly as you state, Judy. I would copy and paste the paragraph here, but my computer is disgusted with me right now and will not allow the same.

Wow! And two of the fixed assets somehow got linked to the Schedule A instead of the Schedule E . . . That's part of the reason I was having so much trouble matching the entry mess to the returns. Tight hugs.

Yesterday a client dropped by Pecan Pie Muffins. I felt guilty, because I've had her information for 2 weeks and still haven't finished her return. Her situation is complicated with a 1041 needed and a 1040 for a deceased parent, but still . . .

New client has been self-preparing returns. Can't figure out how to print out a depreciation schedule from the DIY software, and all I've got are the 4562 forms and a pile of screen shot entry summary disasters. (He brought his laptop, and I tried looking, too. No dice.) I really can't sort it out in any way that makes sense. An asset on the 2013 4562 changed in value by 2015. No idea why. The best thing that I see is that in 2014, there was a $60,000 remodel on one of the properties, and client took a 179 deduction for the entire thing. Client makes too much money to utilize the passive loss, so piling up suspended losses that will probably never be used, including 179 deduction. Needs a hug, for sure. I've been working on this for 3 hours, and I've got nuttin', except obviously a 2014 amendment, if I decide I can stand it.

I agree. Just finished one. I always complete the 8853.

I'm so far behind that one of my staff members commented this morning 'I don't ever remember the waiting queue being this long'. 9 boxes. She didn't mean it unkindly, but . . .

I keep it in my conference room for quick reference with clients.

Agree with Lion. Don't forget kiddie tax.

Client bought new toy from a dealer in December at $1. Retail price of the Toy was $9. Client wants to deduct $9 X number of toys purchased (donated to toys for tots for Christmas). Dealer told him deduction on tax return would be worth more than what he paid for the toys. Client wants to claim $4,000 charitable deduction. I think deduction is what he actually paid. Both purchase and donation occurred in December. I have checked the IRS publication, and I think I'm right, but Client feels certain that he is entitled to deduct FMS. Eager to hear your thoughts. I'm okay with being wrong on this deal.

I agree with Gail. If the check was out of the taxpayer's hand by the 31st of December, he is fine on the deduction, and you should report the income in the year it was received.

Thanks! Will do.

I disagree (respectfully). If you check Pub 541, Guaranteed Payments are a business expense. Often people working in a partnership (vs simply investors) receive guaranteed payments instead of W2 income because as partners, they should receive W2s. Also, because guaranteed payments are payments for services performed, they are subject to self-employment tax. (Just like if you hired an outside property management.) I'm not sure whether there is away around the latter for a partner in a rental real estate business. I'm eager to hear other thoughts (and I hope I haven't been doing this incorrectly for years). Always learning on this board! Guaranteed Payments Guaranteed payments are those made by a partnership to a partner that are determined without regard to the partnership's income. A partnership treats guaranteed payments for services, or for the use of capital, as if they were made to a person who is not a partner. This treatment is for purposes of determining gross income and deductible business expenses only. For other tax purposes, guaranteed payments are treated as a partner's distributive share of ordinary income. Guaranteed payments are not subject to income tax withholding. The partnership generally deducts guaranteed payments on line 10 of Form 1065 as a business expense. They are also listed on Schedules K and K-1 of the partnership return. The individual partner reports guaranteed payments on Schedule E (Form 1040) as ordinary income, along with his or her distributive share of the partnership's other ordinary income. Question: Are partners considered employees of a partnership or are they considered self-employed? Answer: Partners in a partnership (including certain members of a limited liability company (LLC)) are considered to be self-employed, not employees, when performing services for the partnership. If you're a general partner of a partnership (or treated as a general partner in an LLC) that carries on a trade or business, your net earnings from self-employment include your distributive share of the income or loss from that trade or business. General partners must also include guaranteed payments as net earnings from self-employment. If you're a limited partner of a partnership (or treated as a limited partner in an LLC) that carries on a trade or business, only guaranteed payments for services you rendered to, or on behalf of, the partnership are net earnings from self-employment. Limited partners don't pay self-employment tax on their distributive share of partnership income, but do pay self-employment tax on guaranteed payments.

You are brilliant! That makes so much more sense, and I did just find the back up. I really appreciate it. It just wasn't passing the smell test.

Taxpayer is an LLC (2 partners - not spouses). House sold on installment was repossessed and 4 days later sold at a loss. I have calculated the basis following the repossession and then show the sale on 4797. House had been a rental prior the the installment sale 5 years ago. Seems to me that there is a short-term, ordinary income loss based on the sale of the repossessed property. Am I thinking about this correctly? Thanks much. I've tried google, also, but I must not be putting the question in correctly. I have carefully reviewed the IRS Publication about recalculating the basis on the repossession, and I feel okay about that. It is the short-term ordinary income loss that I am worrying about.

Taxpayer is an LLC (2 partners - not spouses). House sold on installment was repossessed and 4 days later sold at a loss. I have calculated the basis following the repossession and then show the sale on 4797. House had been a rental prior the the installment sale 5 years ago. Seems to me that there is a short-term, ordinary income loss based on the sale of the repossessed property. Am I thinking about this correctly? Thanks much. I've tried google, also, but I must not be putting the question in correctly. I have carefully reviewed the IRS Publication about recalculating the basis on the repossession, and I feel okay about that. It is the short-term ordinary income loss that I am worrying about.

Sole proprietor and not smLLC?