jklcpa

I got that, but I'm still old school here and would print a complete set of books. When entering the transactions after the fact, it's easy to enter the wrong date, especially if working in early Jan or Feb. Yeah the QB will give the warnings about the dates, but it's still easy to do when entering fast, or entering a transaction with the current day's date. I've done both on occassion, hit the enter key to fast and then had to go back to fix. At least I catch those at the time and know the transaction I had just entered.

Perhaps those wins had something to do with GA state law? Does GA have a provision that considers a separated couple to be considered unmarried after some length of time? As an alternative to that, I've had clients of long term separations that both still considered themselves married to each other, got along great as long as they didn't actually physically live in the same house, still called each other as "my husband" or "my wife", there was never a separation or division of assets, and didn't want a divorce.

I'm with rfassett and michaelsmars. I print the comparative BS and IS, TB, AJES, RJEs, and GL. I always check that the retained earnings still ties in.

It can be a qualifying relative for HOH.

That isn't working for me; I'm getting a message that the search must have 4 letters. Maybe that option went away with one of the forum upgrades we've had since then.

Right, HOH was never an option for this client. There are no children. I brought it up only because JB mentioned the length of separation and wanted to be clear that that was not a consideration in this case. The only consideration is the marital status at 12/31/14, by decree of divorce or separate maintenance.

The 1250 recapture should have been reported in the year of sale, and the GP% and installment gain to be reported over time relates only to the cap gain portion of the sale. The installment portion of the cap gain and the interest income received are reported each year until the note is collected in full.

I remember the story of this client too. The only status she can properly file is MFS and must itemize. At least she is now living apart now.

Maybe these will help some, defines what an eligible plan for PA purposes is: from the PICPA: http://www.picpa.org/ask/public/View.aspx?id=251&ReturnUrl=Search.aspx%3fi%3d9%26k%3d%26c%3d1 from the PA Dept of Revenue's site, the PA PIT Guide, see chapter 7, section XVI starting on page 92 (has the same criteria as the PICPA page): http://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Documents/pitguide_chapter_07.pdf

Please see pages 11 & 12 of the PA-40 instructions. The first is about how PA taxes pensions and if it is from an eligible plan, and the second page specifically addresses those early distributions that are taxable, and the requirements for when those are not taxable.

I agree with Rita. The only instance when the length of time living apart comes into play is if the person meets the definition of "unmarried" AND wants to file as HOH.

If they can claim this person as a qualifying relative, they will owe the penalty for the 29 year old without insurance coverage unless they meet one of the exceptions.

I have had clients call this week to make appts a couple of weeks out and saying they still don't have the 1099s from brokers!

Uh oh, two math teachers giving us lessons....

I'd be very careful about providing any information about this for the reasons already mentioned, plus there can be a wide range in a valuation for this kind of service business depending on its size. As Lion said, I'd point the roofer back to looking for that information through trade organizations that he can provide directly to the "requester" without involving you. Here's an interesting article about why these types of businesses have such low values, and at the end talks about how a roofer could increase the value of its business. You'll see from this that a roofer with a couple of trucks with signs on them and operating out of a small office will have a vastly different valuation than a larger one that has multiple levels of management, a sales team, a large number of roofers employed, etc. It is from roofingcontractor dot com. http://www.roofingcontractor.com/articles/84818-how-much-is-your-business-worth

ha, Pacun, I saw what you did there. It was clear to me, but I only included that part about the qualifying child because Yardley's snippet seemed to be only a portion of the criteria for that, and he didn't have any rules for being a qualifying relative.

No, your client can't take either son as a dependent. For being a qualifying child, they each fail the age test. For being a qualifying relative, they each fail the gross income test.

I see that but it could mislead some readers because of the way it was written. Your first sentence sounded like the law, and it was only made correct and complete by taking the example into consideration as law also.

I don't know the answer about entering zero. Do you want to do that to document that you've considered the income and reported "something"? I pulled out an old Master Tax Guide and was then reading Reg 1.183-1 through 1.183-4. Maybe the answer is in there somewhere. Are there any costs that might be moved out of COGS as more indirect costs, or any that should be considered withdrawn for personal use, or is this person really not able to get the prices she dreamed of? Is she making jewelry and wearing it or giving some of it as gifts? I had one of those clients that was doing all of that and had big dreams with tiny profits. lol

I would say 'no' since, in general, hobby losses cannot offset other types of income. If gross income from the hobby is less than zero, I don't think you can put a negative figure for hobby "income" on line 21 and have it reducing other income to arrive at total income or AGI on the 1040. I don't have a cite for this without looking though.

...or not entertainment, at least not in terms of how we describe it for tax purposes.

No, unless the instructions are wrong, I don't think what you are saying is true. Pacun, do you have a cite for this? From the instructions for Form 8965, under the definition for "tax household" it says: Tax household. For purposes of Form 8965, your tax household generally includes you, your spouse (if filing a joint return), and any individual you claim as a dependent on your tax return. It also generally includes each individual you can, but do not, claim as a dependent on your tax return. To find out if you can claim someone as your dependent, see Exemptions for Dependents in Pub. 501, Exemptions, Standard Deduction, and Filing Information, or Line 6c—Dependents in the instructions for Form 1040 or Form 1040A. However, an individual is included in your tax household in a month only if he or she is alive for the full month. Also, if you adopt a child during the year, the child is included in your tax household only for the full months that follow the month in which the adoption occurs. But then it goes on to say this: Dependents of more than one taxpayer. Your tax household does not include someone you can, but do not, claim as a dependent if the dependent is properly claimed on another taxpayer's return or can be claimed by a taxpayer with higher priority under the tie-breaker rules described in Pub. 501

Right! Is that something specific to the medical professions? I took my dog to the vet and was told she'd lost weight and was 7.12 lbs so I'm thinking the tech meant 7 1/8 lbs. Nope, the .12 was 12 oz or 3/4 lb. So I'm standing there asking the vet about the entries and she's looking at me like I'm the crazy one. It seems some techs do this and others don't so there was no consistency in the entries to tell what was really going on with the weight because some entries were 7.50 lbs. That was enough to aggravate this bean counter!

I googled out on the web and looked for any that were to the irs site. I have better luck than searching directly on the IRS site itself.

Service options. The IRS is providing information in several ways ranging from a special section on IRS.gov devoted to identity theft to a special phone number available for victims to obtain assistance and resource information for resolving tax issues. The IRS Identity Protection Specialized Unit is available at 1-800-908-4490. Margaret, the above came from this page on the IRS site: http://www.irs.gov/uac/Newsroom/IRS-Combats-Identity-Theft-and-Refund-Fraud-on-Many-Fronts-2014 More, this page says that # is for those that have already contacted IRS and have not reached a resolution. I might be inclined to call that # though because I've heard some horror stories about hold times when calling in on the main numbers any more: http://www.irs.gov/Individuals/Identity-Theft-Information-for-Tax-Preparers