jklcpa

I wanted to add that I'm moving this topic out of general chat and over to the ACA forum.

Yes, it's confusing and that is why I reread the code sec and gave you the link to 6012(a)(1), because it doesn't mention self-employed persons, only lists the standard deduction and exemption amounts.

Where did you read that filing threshold for self-employed is $400? Filing threshold is same for self-employed persons as for others, and in determining that, the gross income from self-employment is the gross revenues minus cost of goods sold, and that is the figure from s.e. that is used in addition to any other income to use in determining whether the individual is below the threshold for filing. Ref is sec 5000A(e)(2) where it states - (e) Exemptions No penalty shall be imposed under subsection (a) with respect to— (2) Taxpayers with income below filing threshold Any applicable individual for any month during a calendar year if the individual’s household income for the taxable year described in section 1412(b )(1)(B ) of the Patient Protection and Affordable Care Act is less than the amount of gross income specified in section 6012 (a)(1) with respect to the taxpayer. and here is a link to 6012 (a)(1) And here is a link to IRS website, pub 554 with a chart of the filing thresholds where it defines gross income from self-employment that is use in determining if the person is below the filing threshold.

Drake has both the elections for de minimis and the small taxpayer for real estate under 1 million. Check a box and they are printed out and included with the e-file. I was also very pleasantly surprised that it also automatically calculates the circular formula for the SEHI when the PTC is involved.

What brought it to my attention was when I was reviewing the return, the credit was being limited to 1% even though the full rate for the resident of this township is 1.25%, and I thought I might need to override it and correct the rate and that's when I saw the new notation on the input. Either way, it's going to need an override to fix it, whether it turns out to be the full rate or the reduced rate, because as it stands now the return is wrong no matter what the correct answer is. It's one more that I thought I could finish that is now on hold.

I have a PA resident earned income return for a taxpayer that works in DE. After calculating the excess of out-of-state credit not used on the PA state return that is remaining and available to offset the local tax, the local return's instructions say to multiply the earnings by the local rate as an additional limitation, and that is how I've always done it. The instructions still have the same wording. What puzzles me is new wording on the input (on Drake's screen) that says to enter the local rate without including the portion for the school district tax. The notation on that screen is new this year, but the actual form and instructions available from Keystone Collections are still the same as in past years. Is the additional limitation for the credit really supposed to be limited to only the muni rate without the school tax? The components of the tax for this resident are .750 municipal and .500 school district tax for a total of 1.250%. Am I really to limit the credit to only .750% now? TIA for any help so that I don't have to call this collection group again tomorrow. I had to call yesterday because they didn't notice address changes on someone else's 2013 local, and didn't remove the husband who is deceased either. The woman really seemed put out to have to correct their oversights.

Yes, uploading a pdf is easy and is the same way to upload a picture. In the lower right corner click on "more reply options" and that will open up another screen. At the lower left of that screen you click on "browse" to select the pdf file to upload, then click "attach this file". After you've done that, over toward the right you should see "add to post" and that will put a link in the post to the file and will appear where your cursor is.

wha wah woo na do waa woo (Translation: I don't know what you mean, Terry) I keep watching it and laughing. Terry, did you watch others?

Hey, a friend shared a video the other day on facebook that might be a lot like what I'll sound like on 4/15 after going over and explaining the tax returns to my clients for the billioneth time. I finally found the link directly to the video, and actually I might be sounding like this already and I'm definitely not this wide awake:

Oh my, how people are different! The latest return I just finished was for a recent widow and former coworker of mine. Her broker had her cash in all of her EE bonds in one year, and the interest on those totaled a little over $168K. Last Nov when this happened and I told her she'd owe about $45K, she very calmly said "oh well, I knew it would be a lot". She opted to wait to pay it with the return knowing there'd be no 2210 penalty due. Have I said lately how much I love some of my clients? The broker mistakenly thought he could convince her to contribute $70K into PA 529 plans for each of her 3 grandchildren. Sure he did....

This page has a chart that goes through 2010 and has those oddball dates for the purchases to qualify: http://www.taxpolicycenter.org/taxtopics/Bonus-Depreciation-and-100-Percent-Expensing.cfm

I saw that they'd come out with a letter and can't get it either. I had to cut expenses somewhere and dropped my membership with the AICPA and am also only a member of my state society now. I'm hoping to find it elsewhere too.

Does the de minimis election apply to those employees with job-related costs on the form 2106 also? Client works as an auditor that checks the coding on medical billings, works from home and uses her own computer about 60% business use. Also has a small amount of supplies expense.

Oh, and when my husband heard whose return I was working on and the company, he brought home a chocolate fudge cake with chocolate icing. Hmm, I may have complained a little about this family before...like every month.

Thanks the for help. I'm glad people are agreeing. I have it printed out now and ready to go. It's so much easier to answer others' questions and see the bigger picture than it is with my own clients' problem returns.

It's been one of those days and got this email this evening. Client - I'd like a bonus of $100K. Please figure the taxes and let me know. Me thinking - Yeah, I'd like one of those too. Would you please just adopt me? Me - Your net bonus will be $58K. You paid off the mortgage, less deductions and are limited, exemption phased out, the AMT, and lots of investment income. I receive a 2-line email from client - I'd like to clear $70K. Please call it in ASAP. His company fiscal year end is 3/31, so I DO need to call it in ASAP. Me - Raise the bonus to $112K, leave in the 2014 overpayments, withholding on the next bonus WILL have to make up the difference AND cover the taxes on all of the investment income. Total cost to company ~ $123K. That was almost fun because I feel like a poker player with this guy. I'm waiting for his next reply. His dad was the same way only more difficult. With the son I have half a chance that he'll almost understand my explanation...maybe.

Eric, thanks for another great year! Pacun, thanks for the reminder.

Thanks Terry.

For cash contributions, I enter only the total for most clients. Remember, the worksheets aren't sent with the e-file, so unless you want to include that detail for your own files or provide it to your clients, it really isn't necessary. I have a couple of clients that I fill out the worksheet where they have very large amounts to their church or the one on my desk now that supports the U of Del athletic dept and whose contrib is limited because he receives season tickets, so I print the detail worksheet to include with his copy of the return. For noncash, I follow the rules for when the 8283 is needed, otherwise enter only the total without the detail.

Client sold a beach condo that was rented for a few years back in the mid-2000s. Depreciation was limited by the vacation home rules and had a carryover of disallowed depreciation. That depreciation would never be allowed due to the vacation and personal use limitation. Condo has been out of rental status since 2008 or 2009 and I removed the asset listing because if I left it in, the software was looking for a Sch E that didn't exist. My question concerns the disallowed depreciation. The depreciation schedule showed 61234 as accumulated depreciation, and the disallowed portion that was never taken is 13225. What figure should I report on the Form 4797 as depreciation allowed or allowable, the full amount of 61234, or 48009 that is net of the amount never deducted anywhere? All the facts: Selling price 495,000 Cost 260,000 A/D allowed 48,009 (this is net of the 13225 never deducted on any return) Sell'g exps 32,940 Gain 250,069 So, should I report it like that, or should I report the full deprec of 61234 and adjust the line for the cost and selling expense so that the gain works out properly? Sorry if this seems simple, I'm really starting to doubt myself the more tired I become.

I had a former client from 10 years ago call today. They've been doing it themselves and have 3 states involved! They didn't balk at the extension, but they also have a notice for an unreported mutual fund sale from 2013 that must be answered by 4/15, and they don't have the 1099-B or basis pulled together yet! Yeah, I shouldn't have answered that call.

*Ahem, cough, cough* I wasn't going to point out that fallacy, but I'll just give you the link below. My husband and I both worked on this car, restoring it after being in storage. We had this at quite a few car shows on the East Coast and national Chevelle show in Nashville, weekend cruises, and he took it to the local drag strip a few times too. Sadly, his cancer was a factor in deciding to sell, but we had loads of fun with it for about 10 years. Paul and Judy's 1970 Chevelle SS 396 with a 1969 427/425 Corvette engine, rectangular port heads, solid Crane cam with roller rockers, 850 Holley double pumper, 2" Jet Hot headers, and 3" Torque Tech exhaust, a Borg Warner Super T-10 4 speed that transfers power to the 4:10 12-bolt posi with Richmond gears. More info is in link that you can see and read about here, it was a feature of the month.

Doesn't seem high to me. Penalty is the greater of $95 per person (47.50 for children) or 1% of income over the filing threshold. Filing threshold in your client's case is $20,300 (basically 2 exemptions of 3950 ea + std ded of 12400). In your client's case, the excess over filing threshold is higher ~ $47K - 20300 = 267. It would be prorated for the # of months without coverage, so it will be less than the full $267. It sounds like you are on the correct path. Because they are so young with that level of income, I doubt they'd have any chance of saying the premiums are unafforable, but it wouldn't hurt to look up the premiums for the wife's age to check that. Also, I'm moving the topic over to the ACA forum.

Maybe not in an accounting concept, but the legal concept of cash is that it is considered personal property, especially when talking about one's estate, and gift and estate taxation centers on that. It's covered in code sec 2511 and reg sec 25.2511-1(a ) where it says: § 25.2511-1 Transfers in general. (a) The gift tax applies to a transfer by way of gift whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible. For example, a taxable transfer may be effected by the creation of a trust, the forgiving of a debt, the assignment of a judgment, the assignment of the benefits of an insurance policy, or the transfer of cash, certificates of deposit, or Federal, State or municipal bonds. Statutory provisions which exempt bonds, notes, bills and certificates of indebtedness of the Federal Government or its agencies and the interest thereon from taxation are not applicable to the gift tax, since the gift tax is an excise tax on the transfer, and is not a tax on the subject of the gift.

Ouch!!!! Literally and figuratively.