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Agree. I read the OP's post as having one rental owned by H-W, and asking how to report it on Sch E, assuming that this client is in a community property state.

Lion asked: "How do I note that the missing months for W and baby are on Medicaid and, therefore, MEC all year?" mcb39 asked: "What if they have a premium tax credit?" Doc1.docxDoc1.docx To simplify this, I made the summary chart above with what happened with Lion's son's family regarding this coverage, the dates, and the type of 1095 received that is shown in brackets. Those 1095s, whether A- or B-type, shows that everyone had coverage. This shows that each member of the household had MEC for the entire year, or in the case of the baby born in Oct, for the entire period of its life during the tax year. Check the box on line 61 of the 1040. For the 8962, if the software allows entry of multiple 1095As, enter each 1095-A as reported and received. If the software doesn't allow input of more than one 1095A (mine does, making it easier), simply add the numbers from the three 1095As together and enter the totals for each month. Add them up and enter the totals. If entered correctly, the monthly totals from the three 1095As will be reported on the 8962, part II, lines 12-23 in cols a, b, and f. The software should complete the rest of the form.

According to the 1040 instructions, check the box on line 61 of the 1040 if everyone had MEC for the year, and that would include if the baby was covered for every month after the birth month through the end of the year. Baby doesn't have to be covered in the month of birth to still be able to check the box. Or are you asking how to fill in the 8962?

Use one column for each of them. FTR, it was the OP that started the original discussion a couple of weeks ago by posting this topic about the rental owned by H-W LLC. My post from that topic said: Determining whether or not a husband-wife LLC is a disregarded entity is a matter of state law. If the LLC is formed in a state that is NOT a community property state, the LLC defaults to a partnership unless an election is made to be treated as a corporation. The exception is where the LLC is set up in a community property state and meets the exceptions in Rev Proc 2002-69. If it meets the criteria, it is considered a "qualified entity" and may be treated as a disregarded entity for federal tax purposes. The IRS will accept this position for federal tax purposes. Likewise, LLC may file as a partnership for federal tax purposes and the IRS will accept that position also. Consistency in filing from year to year is key, otherwise a change in filing is considered a conversion of the entity. The requirements under 2002-69 for the LLC to be a "qualified entity" are: The business entity is wholly owned by a husband and wife as community property under the laws of a state, a foreign country, or a possession of the United States; No person other than one or both spouses would be considered an owner for federal tax purposes; and The business entity is not treated as a corporation under the applicable Treasury Regulations. None of the above addresses state reporting. Please check your state's law to verify that filing as a disregarded entity is acceptable.

I think conflict of interest would depend on their particular situations. Are these returns where decisions need to be made on how to split itemized deductions and who claims the kids, or are these more basic than that?

Determining which year to report the return of the excess depends on when it was withdrawn, before April 15th or after makes a difference. Please see this IRS page (safe link direct to IRS site), about mid-way down the page starting at "Treatment of Excess Deferrals".

Maybe after the busy season and after my divorce from the guy in residence...or we'd have to move to Utah and become sister-wives.

No. In addition to the example Pacun gave, the other time you may have more than 2 months of gap in coverage and still be ok is if 2 consecutive months are in the current tax year and continues on into the subsequent year, then the taxpayer could use the short coverage exemption for the current year but not the next. Example: No coverage for Nov 2015 through Feb 2016 for a total of 4 months. Taxpayer can use the short coverage exception for 2015 (because only Nov & Dec = 2 months lacking insurance) but couldn't use it in 2016.

Rita, thanks for the laughs and making my day a little brighter. I needed that.

Agree with Jack eleventybillion percent. You haven't cut the ties and your divorce won't be finalized next month because you keep allowing yourself to be involved over and over again. At the point when your should-be-former clients start receiving notices a year from now, will you still be hand holding this guy and looking these over for him or for your former clients that contact you directly? I said it before and I'll say again, cut the ties now. It is up to the guy to meet the clients' needs and expectation, and if he doesn't, the clients should seek out other preparers. At this point, you are free labor for him, and he and your former clients will continue to take advantage as long as you let them. As far as reviewing the returns, if you weren't *so* available to these people, this preparer would make the decision to finalize the returns without your input. The return is between him and the client, and it is also the clients' responsibility to know what is on the return and what they are are signing. Your reviewing and providing guidance opens up a can of worms that exposes you to potential liability.

There are month-by-month alternative calcs for the year of marriage to determine the repayment of APTC that may yield a better result, but none to help minimize the SRP. The only remaining option is testing whether MFS is better than MFJ, and the OP already said that MFS causes a larger decrease in education credits than the reduction in the SRP, so that filing status is of no value in assessing the overall tax effect.

My software also allows input of more than one 1095A. I can't believe ATX wouldn't have this feature. It isn't uncommon to end up with multiple 1095s. On your input screen, is there an "add" button near the top to click to add additional forms?

I was just posting what Abby did. All the employee did was bypass the step of rolling into a trad IRA first. If it had gone from the 401K to trad IRA and then converted to Roth, the TP would be paying on that conversion. From pub 590A - Income. You must include in your gross income distributions from a qualified retirement plan that you would have had to include in income if you had not rolled them over into a Roth IRA. You do not include in gross income any part of a distribution from a qualified retirement plan that is a return of basis (after-tax contributions) to the plan that were taxable to you when paid. These amounts are normally included in income on your return for the year of the rollover from the qualified employer plan to a Roth IRA

Glad you figured out a somewhat workable solution.

While this site is accessible to the public, it is privately owned and maintained for use by tax professionals only, most of whom use the ATX tax software packages. It is our policy that we don't help the general public with tax questions here. I'd suggest you find a tax professional in your local area that can address your specific issues and tax preparation needs.

To take either education credit, the school must be an eligible educational institution. From the IRS site (bold not mine): An eligible educational institution is a school offering higher education beyond high school. It is any college, university, vocational school, or other post secondary educational institution eligible to participate in a student aid program run by the U.S. Department of Education. This includes most accredited public, nonprofit and privately-owned–for-profit postsecondary institutions. If you aren’t sure if your school is an eligible educational institution: • Ask your school if it is an eligible educational institution, or • See if your school is on the U.S. Federal Student Aid Code List. TIP: A small number of schools, not on this list, may be eligible educational institutions. So, you may need to ask the school.

True.

I don't think allocating the son's portion of the 1095A is the problem. The problem is that the parent's return now has only 2 exemptions instead of 3, and that changes the federal poverty level used in the calculations in the top portion of Form 8962 for the PTC. The 400% of federal poverty level is more than $16K higher for 3 people than for 2.

I think you mean that "1F" is in box 14? The employer's insurance isn't MEC, so the employee is out of luck as far as avoiding the penalty. The employee had the choice to accept the employer's non-MEC policy, or to purchase one meeting the MEC directly with an insurance co or on the exchange. Based on the income, that penalty sounds about right. You should see if he meets one of the exceptions to the SRP, possibly that the premiums for a MEC policy are unaffordable, but if the person is younger and has low premiums, it may not come up as unafforable in the calculations.

It would be a different, new partnership in their names only for 2015 because they are already acting as a partnership without having formalized it. This partnership I am talking about is not the existing LLC.

I see it was someone else that brought up the mortgage discussion. Anyway, it's useful advice for anyone else reading the topic in future. Yes, they can file the 1120S as first and final if that is what you are going to do. As Lion said, if you file a final return, be sure to dissolve with the Sec of State so that it is truly out of existence. However, I would follow the advice cbslee gave above for filing the LLC return as an S corp with no activity for 2015, terminating the S election beginning 1/1/16 and contributing the property into the LLC. The LLC entity offers some liability protection. That is what they were designed to do. For 2015 the H/W-owned activity should be reported on Form 1065 unless they meet the criteria to be a qualified joint venture. The material participation test might be an issue precluding them from QJV reporting. Safe link to IRS site on QJV rules: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Election-for-Husband-and-Wife-Unincorporated-Businesses

Michael is right on with his answer also. Be aware that if they contribute the property to the LLC, the 1098 will be issued in the name as shown on the original mortgage because the banks don't change the mortgage or name and EIN on the mortgage. I had a H-W commercial rental that they contributed to their LLC, and each year I'd attach an explanatory note to the 1040 and 1065 when I deducted the mortgage interest on the 1065. IRS never questioned it in the 10 or so years that this was an issue, but I wanted to make sure there was a trail and explanation attached with each year's returns.

I agree with Dan and I think you should look at the bills. The day care facility may bill by the week or the month, but many that I've seen will break the bill down and state that the week's charge is for X number of days times a daily rate with an added $ charged if picking up later than agreed. If that is the case, take only the days of care that correspond with the wife's work schedule. She may have some smaller credit out of this, but I don't think you should generalize as you are trying to where you said she is already over the maximum so that makes it ok.

Are these the same assets as in prior years, or were new assets added that aren't flowing to the proper lines. I'm not sure if the input is the same as in prior years, but on the asset entry screen, ATX used to have a line to designate where to carry the current year's depreciation expense to, and it had to be entered for each asset. It was on the asset entry screen, line 10, and input could be chosen to carry the depreciation to line 9 of the K-1. If these were existing assets, perhaps that input was lost somehow in the rollover. Not sure that helps since I don't have the current program. Also check to make sure you don't have an entry somewhere in global settings that is overriding the expected flow of data to those lines.

Ken, while this site is accessible to the public, it is privately owned and maintained for use by tax professionals only, most of whom use the ATX tax software packages. We don't help the general public with tax questions here. I'd suggest you find a tax professional in your local area that will be able to address your issues and tax preparation needs.