jklcpa

Part 2, line 16 is for reporting the monthly liability, not the deposits. That is your problem. The total show in part 2 must agree with line 12 on page one. In your client's case, it will not agree with line 13. Line 13 is where the deposits are reported. IRS knows when the deposits were made and will match those up with the liability reported in part 2.

It's not a bother and you are welcome to stay. I don't use ATX any more, but the system should allow e-filing even if the return shows an overpayment. Are you sure that the error doesn't relate to something else that doesn't tie together? I'd start by looking at the 3 month's liability amounts on page 2 of the 941 and make sure that the total of those in part 2, line 16 is in agreement with line 12 on page 1.

Adding to Abby Normal's solution above, in addition to removing the vehicle and related expenses from the corporation, you will also have to account for the corporate assets (funds) that were disbursed in 2011 to purchase the personal vehicle. Hopefully there wasn't a former corp vehicle used as a trade-in that would complicate this further. At this point, I'd say that any corp assets used to fund the purchase of that now-wrecked Jeep would be a 2011 dividend distribution to the shareholder-dad that opens that can of worms for the parent's personal return too. I don't think you'd be able to justify calling it anything else, such as a stockholder loan, because that wasn't the intent, and then you'd also have the interest charges to factor into it.

The substantial understatement penalty, as it relates to the 20% passthrough deduction, has a lower threshold also. That section of the JCTA specifically states that 5% is to be substituted in irc sec 6662 instead of the prescribed 10% for other understatement-related causes.

Be ready for these new questions because the level of BS that we go through to interact with IRS keeps getting deeper. Maybe we should submit blood tests and DNA samples. jk Below is the text of an article today in AICPAs Journal of Accountancy:

The increase in cap gains may or may not trigger the AMT. The AMT calcs still carve out the cap gains that are taxed at the cap gain rates. As some background of how it worked: Before the new law was enacted, cap gains had the potential to affect the AMT because, although those gains were still taxed at the cap gain rates, those gains were included in the calculation of AMTI, and the AMTI is used for the calculation of phasing out the AMT exemption. So, even those gains were taxed at the cap gain rate, the effect was that they had the potential to make more of the other income subject to the AMT rate because of the interplay with the AMT exemption phase-out. The JCTA has increased the AMT exemptions and with a very large increase in the amount at which the phase-out begins that I put in a quote box below. Because the phase-out of AMT exemption starts at a much higher level, this may mitigate or even eliminate the tax effect of including cap gains in AMTI that I described above. As far as how the AMT credit works, it's a nonrefundable credit that is carried forward and is only able to be used in a year when that taxpayer isn't subject to the AMT. Most of my clients that are subject to AMT pay it every year and have not been able to use the credit. With your client's situation, it may be possible for him or her to utilize some of that though.

Go to page 71 of the bill. It is sec 13304 that covers this. https://www.congress.gov/115/bills/hr1/BILLS-115hr1enr.pdf

If the estate was deemed to have paid the expenses itself, why couldn't it make an election under sec 266 to capitalize these carrying charges on unproductive real estate? Election is standalone year by year and made by filing with each year's original return, and no returns were filed, so could the estate file these late and capitalize those expenses? More questions than answers, but just thinking that this might work. Of course, I do realize that the real fact pattern is that the exec footed the bills and wasn't reimbursed until the home sold because it's a situation of a cash poor estate with the only asset being the house, so it had no available funds to pay expenses directly, not an unusual circumstance. I've seen this before, and also where an elderly parent adds a trusted child to a checking account for convenience when a child is helping out, and then the child-executor continues to pay the estate expenses out of that same joint account, and the attorneys report all of those payments as if made by the estate.

Would you mind if I move this post in its entirety to Gen'l Chat and include "pricing" in the topic's title? Some users don't look at this subforum as often and I think this pricing change is important for all ATX users to know about.

There's no need for the husband to gift the shares to his wife before it ultimately is gifted to the son. Even if the shares are solely in his name, he can gift shares directly to his son and elect to gift splitting the gift with his wife. It's as if husband gifted shares to the wife first without having to actually go through that step. If the total value of the gift is less than $30K, meaning with gift splitting that each gives an amount that is equal or less than the annual exclusion of $15K for 2018, then only one gift tax return is required with the split being reported all on the one return. If the combined total value of the split gifts exceeds the combined total of their annual exclusions, again the $30K, then each will file a gift tax return that reports the gift splitting, and it will also report how much of their share of the unified credit will be used to offset the excess of each of their gifts that exceeds the annual exclusion. Per the from 709 instructions, both returns should be mailed in the same envelope so that they are processed at the same time.

Bonnie, I'm sorry Hobbes is battling this at such a young age and am relieved for you that he got that second opinion! With a good vet, meds, and attention to details, I hope that your son and Hobbes will have lots of quality time for a long time yet. I've been battling this with my pack for years now and am finally now down to the 4th and final dog of my pack going through CHF. Getting the pet stabilized and out of oxygen is a big part of the battle, and then finding the proper dosage of meds to maintain that is critical. It will be especially important for your son to watch for signs that some fluid may be building and get it to see the vet when the dosages need adjusting.

iirc, HSAs can be used after retirement for the primary health insurance premiums including medicare and the medicare drug coverage, and long-term care policy premiums, but cannot be used for medigap supplemental policies. If the premiums aren't paid directly from the hsa, the owner can request reimbursement from the account for these. If paying for these or being reimbursed from the hsa, then obviously they aren't eligible for inclusion as Sch A deductions. HSA can also pay COBRA premiums.

Yep, some carrots in mine, red and black beans. Bacon Jalapeno (!!!!) would be a winner here and will have to try that next time.

We got lucky enough to be in the area with lower accumulations, but it's still drifting. As long as the power stays on, we're fine. If not, we'll fire up the generator. I do feel sorry for those suffering the more extremes of this storm and especially the southerners that aren't equipped. I'm fighting the bone-chilling colder temps and the wind (only at 45 mph here) with a big batch of homemade chili. Who's coming for dinner?

You might be interested in the topic linked below and take note of my posts within that topic starting on 12/20/14. It is related to Wolters Kluwer, and the poster touting it was less than transparent when he posted here, especially when he knew this is an ATX forum. You might also search the forum for "mytaxprepoffice" and will see some other posts on this also.

It's going to be interesting to see how well the W-4 choices applied to the new withholding tables relates to reality and the tax planning that we do.

Um, I woke up in a good mood? ______________________ Actually, I was reminiscing earlier today about a semi-amusing-turned-nice story of when the husband and I rode in a group charity bike ride on MD's eastern shore a few years back that I'll share. Not wanting to spend all day at this event in the mid-summer heat, we decided to start early in the day and chose to ride the shortest route that I think was either 20 or 30 miles. We started off strong and saw the arrows on the road but then an older gentleman that was assisting directed us down another road the wrong way because he read the course exactly backwards! We rode on for a while and discovered that we'd ridden back out to the main highway and hadn't seen any other riders, and believe me, there were lots of people participating. Still, we continued on remembering that we were told to look for the event's pit stop with drink refills and light refreshments. Out on the main road, sure enough there was a church with a large painted placard and arrow that read "BIKES" . . . and that's how we ended up in our full lycra bicycling kits complete with padded shorts and waddling around on our cleated shoes at a Sunday morning pancake breakfast for BIKERS, as in motorcycle guys. They invited us to stay and eat, refilled our water bottles, and were genuinely very concerned that we were lost and riding a long way out of our way. We ALL had a good laugh at how and why we ended up there! We both have a good sense of direction and decided to ride on down to the next town and then make our way back to the start area. That day was a lot of fun even though we never did meet up with any other riders!

Well, this quickly morphed from compulsory education for practitioners into best ways to study for the EA exam. On that subject, I have no doubt that the IRS will continue to try to find a way to regulate otherwise unregulated preparers. We've had lots of discussions here in the past and I think most of us agree that these paid preparers should have to show some level of proficiency. After that, I do think that there should be some sort of CE requirement so that these preparers without other credentials are keeping up with ongoing changes, some sort of update classes perhaps. I don't know if that is up to the IRS and think that this is more of a state regulatory issue much like states regulate any other profession. As for the review courses and study guides that have been mentioned, those are excellent suggestions. The creators of these courses and books have analyzed recent tests and trends and will emphasize those areas that they think are most important and most likely to be tested. They also keep the person disciplined to study and stick to a timetable so that the candidate has completed the studies at the appropriate time. The suggestions of finding a study group, a buddy to work with, and using prior tests are also excellent ones. As for memorizing things we'll never use again, well that comes with the territory of any testing really. My thoughts on any of these tests, whether it be the EA, CPA, or now defunct RTPT, I look at these tests not only that show a certain level of knowledge and competency, but as important is that they show a level of capability. Obviously I haven't taken the EA exam, but those answers to the written essay questions and problems on the CPA were intensely scrutinized in the grading process to make see if the candidate showed the proper approach and thought process in working through the problem. Finally, and something that hasn't been mentioned here yet, is that I think work experience in the field is invaluable, maybe even more important than any testing or any amount of CPE that is imposed, when it comes to actually doing our jobs.

You're welcome. I might be wrong but think this was the handling that we had in other years where legislation was passed very late in the year and the IRS said to keep using the existing tables until the revised ones were made available.

Happy New Year to you all. Here's to a healthy, happy, and prosperous 2018.

IRS updated with this statement 4 days ago: https://www.irs.gov/newsroom/irs-statement-withholding-for-2018

Margaret, is that form with the Nov date marked as draft, and is that Nov date possibly when ATX made it available or the date of the latest IRS draft? I'm asking because the IRS page of draft forms shows that the date of the latest draft of the 1040 is 9/29/17 on this page: https://apps.irs.gov/app/picklist/list/draftTaxForms.html Edsel, there are a couple of changes to 2017 in the new law: medical limitation on Sch A goes back to 7.5% for 2017 and 2018, and increase in bonus depreciation rate for certain assets after 9/27/17, and some rules about excessive compensation after 11/2/17.

Ah, it's interesting to see the emerging strategies coming out. This one doesn't affect me because, although some of my clients will be affected by the SALT limitation, the pattern cbslee described is about what I expect for my DE residents and for all of the same reasons. DE is also a state with no sales tax. For those of mine that are PA residents, again this will be a nonevent because PA's tax system doesn't have itemizing.

Glad it helped someone here! My first course is next week and will be their 4 hour session on the new tax law.