jklcpa

QCDs can be made from inherited IRAs, but the owner must still meet the age requirement for QCDs, meaning that this new owner must be 70 1/2 or older.

I was mistaken with something I posted in the rules. Locking the topic stops any more postings, but it does not shut off the access to the emoticons like feature, so this is to record the final tally on the voting posts for those of you that shared - 10 - RitaB 8 - Bulldog Tom 7 - jcarlson 2 - NECPA

Pacun, no, you were correct! A relative isn't necessarily a related party under the tax law that I cited. A cousin would NOT be a related party under the rules of 280A. Along with cousins, these people are also excluded from the related party definition: stepparents, uncles, in-laws, cousins, nephews and ex-spouses.

I agree in a general sense, but in the case Pacun described, he made it sound like the TP didn't lose employer coverage, but rather the TP chose to purchase on the Marketplace and is receiving the APTC. If this is the case and the TP was still eligible for the employer-sponsored plan, then unless the $800 cost to TP of employer's plan is unafforable, then wouldn't this person's repayment of APTC be the full amount without limitation, unless he can show that the $800 employer plan's premium is unafforable? We can't determine afforability because it wasn't stated whether the $800 monthly premium covered only the employee or if it included spouse or family also. Obviously, the extra $40K of 401K distribution to the wife, if I understood that correctly, changes the entire repayment scenario since there is no way that the couple's income wouldn't exceed the 400% FPL.

^ this. Sec 280A defines "family" by referring back to sec 267(c)(4) that reads as follows -

Thanks for the reminder, cbslee. I'd posted that IRS release with the examples you are talking about, and the forum is so active now that it's already dropped in the postings. The pinned post at the top of general chat with resources on the JCTA now also contains a link to the IRS statement, and for those that don't trust links to the outside, I included a link to my earlier topic on this forum that has the entire text of the IRS release including the examples.

IRS released clarification of home equity interest deduction in this IR 2018-32 with examples. <<- that link goes to the IRS site. If you don't like links to outside of this forum, here is the post I made on this forum with the entire text right after the IRS issued its statement.

I'm sorry you and the others had to deal with that. Our work is stressful enough without that kind of drama and worry.

Not unusual at all. Be sure to allocate a portion of the selling expenses to each component included in the sale.

Second week of fun and another chance to be one of our weekly Stars! What to post - Post something about your week, a kooky client, wacky situation, something that happened in your office, or whatever you want to share with us here that brought smiles, laughs, exasperation, or appreciation and gratitude from those around you. It's ok to chat here too, but those won't count as official entries. If there's a lot of chatter, those will be marked as "nonvoting". If you already posted something in another topic that you would like to have considered, please make mention of it here by directing us to that post, link to it, or quote it here. Nominate other members that were particularly helpful or enthusiastic during the week. Make mention of the post, link to it, or post a quote within this topic. Make this clear enough so that other readers will know what you are referring to. I'd suggest that you also tag that member by using the "@" function. As an example, to tag me, you would type @jklcpa somewhere in the post. How it works - Valid posts are those made from now about something that happened from 2/24 through Friday 3/2 at 11:59pm ET . Voting will continue through the next day, 3/3/18 until 11:59pm ET. Vote for your favorite Tax Kook/Aficionado by clicking one of the positive emoticons of "like", "thanks" or "haha" within this topic. If referring to posts in other topics, reactions made there don't count. Thumbs down and angry faces won't be counted. The topic will be locked at the end of the week to disable the voting. The winner will be the member that earns the highest number of positive reactions for any one post within this topic. For members having multiple posts in one week, the posts will be considered as stand-alone entries; votes not tallied across the multiple posts.

Happens to me frequently. Of course that section I quoted probably won't be extended for 2018 because I just spent $$$ on a new gas furnace last month!

I prorate the sale proceeds between building and land based on the same percentages they bear to total cost basis. If any furniture, fixtures, appliances were on the depreciation schedule, you have to deal with those too.

This part of the extenders was also passed that retroactively allows the windows, among the other residential energy credits. Here's a link to that code sec 25C where you'll find that it covers these items: Biomass Stoves: $300 credit for stoves with an efficiency of 75%+. HVAC Air Circulating Fan: $50 for fans that use less than 2% of a furnaces energy. Central Air Conditioning: $300 for Split Systems: with SEER ≥ 16 and EER ≥ 13, or package systems with SEER ≥ 14 and EER ≥ 12. Gas, propane, or oil hot water boiler: $150 with AFUE ≥ 95. Natural gas, propane, or oil furnace: $150 with AFUE ≥ 95. Insulation: 10% of the cost, up to $500 (not including installation costs). Includes air sealing caulk, spray foam, house wrap, and weather stripping. Roofs: 10% of the cost, up to $500 (not including installation costs) on metal roofs with appropriate pigmented coatings and asphalt roofs with appropriate cooling granules that also meet ENERGY STAR requirements. Gas, Oil, or Propane Hot Water Heater: $300, in the case of a storage water heater (20-55 gallons), an energy factor of at least 0.82 or a thermal efficiency of at least 90%. In the case of any other water heater, an energy factor of at least 0.90 or a thermal efficiency of at least 90%. Electric Heat Pump Water Heater: $300 with Energy Factor ≥ 2.0. Windows, Doors & Skylights: 10% of the cost, up to $500, but windows are capped at $200 (not including installation costs). Must be version 6.0 ENERGY STAR qualified.

OK, posting is over for this week. I'll start a new topic for the coming week. Voting will end tonight at 11:59pm eastern time. I gave it an extra day to allow posts late in the week to have a chance to be seen by members that visit the forum less frequently.

Yes, the interest on home equity loans and HELOCs already in place will still be deductible, up to the limitations, IF the proceeds were used to buy, build, or substantially improve the residence or second residence. This is because the "buy, build, or substantially improve" is part of the definition of "acquisition debt" that was already contained in existing tax law, and acquisition debt will continue to be deductible. Keep in mind lenders use the term "home equity" in the title of products they offer (home equity loans and lines of credit) but the tax code's definition of the term "home equity debt" shown below specifically says that if the debt qualifies as home acquisition debt, then it is NOT home equity debt. This is why the interest on home equity loans and HELOCs NOT used to buy, build, or substantially improve will be nondeductible starting this year.

Both have visited this site today.

Here's info from a client's W-2 produced by ADP - control # 000128 BALT/HYE verification code: bcea-4c7f-24e6-372c One more W-2 from Paychex - control # appears as 2 lines: 0027-0027MP30 0000000017- verification code: efb7-f5bd-cdf8-93ad Is this helpful at all?

It really depends on facts and circumstances of how they were hired, how they are directed by the organization, if they can be fired...much like any other employee that we look at to determine employee status v. self-employed person. Your client may actually be properly classified as an employee, but you should ask to be sure the W-2 is prepared correctly. If you google "topic 417" on the IRS page, you'll find more information. Even for a minister that should be reported as you described and expected, the minister and treasurer can agree to withhold as FIT amounts sufficient to cover the minister's FIT and S.E. taxes, making it possible for the minister to avoid paying quarterly estimates altogether. In that case, the W-2 would be reported with boxes 1, 2, and 14 filled in.

Terry, where property is held as joint tenants, the surviving spouse does get a step up or step down of basis for the 1/2 of the property inherited from the deceased, just as JB described. It is different with community property.

JB, if the house was held as joint tenants, not community property, then I basically agree with what you have written that I quoted below. Remember that basis of the gift will be donor's basis plus any additional improvements, but would be FMV at time of the gift + improvements if its disposition results in a loss (obviously not the case here since its current value has continued to increase): I also agree with Lion that there could be additional basis in each of the holding periods: mom & dad may have made improvements after its purchase in 1978 and before dad's death in 2001 where mom would share in 1/2 of those expenditures, mom alone may have made additional improvements between 2001 and the transfer to 3 son's, and there could be additional basis if the son's did anything to the house beyond ordinary repairs and upkeep.

There's been some discussion on various tax forums that I visit where members are debating whether or not this interest paid on home equity loans, HELOCs and second mortgages will continue to be deductible. IRS has issued IR-2018-32 in answer that is shown below:

NONVOTING POST - Look, I took a selfie : Aww, Tom, sorry. I've been waiting to see if anyone else would nominate someone or make more posts. You're all stars in my book.

Vote here for @RitaB as I am nominating her for a star because of her announcement last Friday in the "ATX client letters" topic that she is willing to play host to a bunch of you this coming June 23rd. Rita, you are a treasure, always willing to help and always with good humor.

Don't worry about the guaranteed payment statement. That was mentioned because you originally said this was a partner in a partnership that issued a W-2 and a K-1. Yes, your client still gets the SEHI, assuming he meets the requirements.

Those dividends won't create a taxable event until the policy's cash value exceeds the total of premiums paid over the life of the policy.