jklcpa

I haven't seen anything more from the AICPA either, only what Ron posted directly above.

This has to be the biggest time waster I've ever seen in my entire career. Why didn't someone think of the novel solution to scrubbing the old fixed assets to have a code within our depreciation programs to create the schedules for the net 481 adjustments to flow onto the return automatically if the net end result was a small amount. We could have even scrapped the asset with a new indicator code also. Or how about a Form 3115EZ for those making only changes of nominal amounts for this automatic change in method.

Household income would include the husband and the wife. None of the programs are able to calculate that figure automatically because there is no way the programs would automatically know about dependents' income where they might be filing their own returns.

Yes, Ron is correct on that. The only thing I want to add is to consider if notifying the state is necessary also, Are there any state or local taxes that having differing rates depending on the business activity? We have a Delaware "gross receipts tax" with a stated rate applied to amounts over a stated exemption, and those are all assigned when the business files its first business license application. The state has a variety of rates and exemptions that it assigns depending on the activity of the business. Filing frequency can also differ.

This booklet and template has helped me a lot. Thank you again for posting it! Now for the stupid question of the evening. I am still pulling my hair out with this because I have about 30 small assets to write off that will amount to a total deduction (negative change) of a whopping $339! I'm filling out the worksheet for a company with a fiscal year end. If an asset is put in service, say in March 2004, and the company has a May 31 fiscal year end, technically that asset appeared on the 2003 tax form. So on my worksheet, should I be entering the 2003 tax year, or should I enter 2004 because that is the actual year of purchase?

Honestly, I highlighted your code with my mouse and right-clicked to "google". It was more likely yahoo search. One of the choices was to the IRS site, so I chose that first and found that very quickly.

That is weird. I think I might call ATX about it, or try to recreate and resubmit. It looks like something wasn't included properly on ATX' end. There's nothing in their knowledgebase about that code either. The IRS site says this about that code: All electronically filed returns are required to have a Software Identification Number (SIN) transmitted as part of the return. If the number is not provided, the return will reject with MeF Business Rule R0000-904-03. The Software Identification Number is designed to identify software products used when transmitting returns to the IRS. It is not used to track the serial numbers of individual software packages. Note: Individuals or firms who purchase another Developer's current year approved software for the purpose of using and/or marketing it under their own name, must complete and submit an application requesting a separate Software Identification Number (SIN).

See the snip from the instructions in 8965, page 12 I've copied below. Bolding is mine on that last sentence. I'd make sure that the client understands that they can allocate using any percentage they agree on. If they agree, your client will use 100% of the subsidy in calculating his return. If they don't agree, then your client is limited to 50%: Taxpayers divorced or legally separated in 2014. You and your former spouse must allocate policy amounts on your separate returns to figure your PTC if both of the following apply.You were married at some point during 2014 but were no longer married to that spouse at the end of 2014.You and your former spouse were enrolled in the same qualified health plan, or you or an individual in your tax family (as shown on your tax return) was enrolled in the same policy as your former spouse or as an individual in your former spouse's tax family at any time during 2014. You will allocate with your former spouse a percentage of the total enrollment premiums, the premiums for the applicable SLCSP, and APTC for coverage under the plan during the months you were married. You will find these amounts on your Form(s) 1095-A, Part III, columns A, B, and C, respectively. You and your former spouse can allocate these amounts using any percentage you agree on between zero and one hundred percent, but you must allocate all amounts using the same percentage. If you do not agree on a percentage, you and your former spouse must allocate 50% of each of these amounts to you and 50% of each to your former spouse.

No, you looked at the figures for a dependent over 65 or blind. Your dependent has these filing requirement thresholds: when earned income exceeds $6200, unearned income exceeds $1000, or gross income was the larger of $1000, or earned income (up to $5850) + $350 Anyway, this dependent must file, and if his or her MAGI is the $7776, that is the figure you should add into household income.

Thank you, Ron, that is my basic understanding as well. The one that I have on my desk right now is a smallish retailer with 2 locations and the materials/supplies issue. If this business purchases preprinted bags, gift boxes and sales slips that are not all used by the year-end, am I really supposed to analyze that and move some of that expense to a supplies inventory?! Sort of rhetorical, but that is what I'm looking at today and trying to decide because the sales slips purchased near enough to year end to have not all been used up exceeded the $200 threshold. It's a measly $700 bill for these sales slips, and I think this is why the AICPA and other groups are arguing that the thresholds are too low. This seems like a big waste of time for something that is used on an ongoing and steady basis... or am I completely off the track with my thinking about this "supply" issue?

The OP asked how to properly file the gift tax return to make the election. I gave the technically correct answer so that he knows the proper way to do that, and he will decide how best to advise his client. If you don't want to do that then don't, but I don't know why you are taking such exception to me providing the OP with the technically correct answer here.

GeorgeM, please see pages 18-19 http://www.socialsecurity.gov/pubs/EN-05-11011.pdf

So it's your contention that if no one will EVER look then it's ok to miss an election, or to not file, or to file incorrectly, and that's how you advise your clients as an enrolled agent? Nice! /s The OP now has the correct answer. He can now decide how to properly advise his client.

Yes, this doesn't help me with the 5/31 that I'm working on that is due next Monday.

Yes, if both meet the requirements of minimum essential coverage, all you have to do is check the box on line 61, and it looks like that is the case.

Margaret, this is one of my worries too, forgetting to attach this election each year, and I think this will happen a lot. Fwiw, I think you should try to send it in too. I did read that a late election on an amended return is only available with IRS consent, so I'm not really sure how IRS will view this since you aren't really amending.

I think you should call for technical help. That would really annoy me if I had to jump through those hoops every time I wanted to open the program. It does sound like an installation issue that should be remedied.

Which, to read the instructions or to file properly? The OP asked how to file the gift tax return properly to make the election. He didn't ask about the effort or whether that effort is "too much". I would not suggest that the client forego filing and miss making that election, but in any case that is up to the client to decide, not the preparer.

I am stuck on review financial statements that I've been struggling to finish up and now I've got final figures and have NOL carrybacks to prepare also. This is a FY 5/31 corp with the return due 2/16. I pulled my hair out all summer and fall trying to get the complete records I needed from this company. The bookkeeper was extremely ill and ended up in the hospital fighting pneumonia, and then the owner's elderly mother was dx with a terminal illness and died. Plus, I do so few at this level any more that this is the one that will have to be submitted for peer review. I just want to scream! I won't even be able to get to individual returns for a few more days.

Because the funds came from an account solely in the wife's name, technically she gave the entire gift and she is electing to split the gift with her husband, so she needs to file a 709 and check the box electing the split for that to be valid. Husband must sign her 709 in the designated area for the split to be valid. If the the husband made no other gifts, there is an exception that allows him to not have to file a 709 as noted in the instructions, so only the wife needs to file. Wife would check "no" on line 17, and the husband must sign on line 18 of page 1 of the wife's form 709: Consent of Spouse Your spouse must sign the consent for your gift-splitting election to be valid. The consent may generally be signed at any time after the end of the calendar year. However, there are two exceptions. The consent may not be signed after April 15 following the end of the year in which the gift was made. But, if neither you nor your spouse has filed a gift tax return for the year on or before that date, the consent must be made on the first gift tax return for the year filed by either of you. The consent may not be signed after a notice of deficiency for the gift tax for the year has been sent to either you or your spouse. The executor for a deceased spouse or the guardian for a legally incompetent spouse may sign the consent. When the Consenting Spouse Must Also File a Gift Tax Return In general, if you and your spouse elect gift splitting, then both spouses must file his or her own, individual, gift tax return. However, only one spouse must file a return if the requirements of either of the exceptions below are met. In these exceptions, gifts means transfers (or parts of transfers) that do not qualify for the political organization, educational, or medical exclusions. Exception 1. During the calendar year: Only one spouse made any gifts, The total value of these gifts to each third-party donee does not exceed $28,000, and All of the gifts were of present interests. Exception 2. During the calendar year: Only one spouse (the donor spouse) made gifts of more than $14,000 but not more than $28,000 to any third-party donee, The only gifts made by the other spouse (the consenting spouse) were gifts of not more than $14,000 to third-party donees other than those to whom the donor spouse made gifts, and All of the gifts by both spouses were of present interests. If either of the above exceptions is met, only the donor spouse must file a return and the consenting spouse signifies consent on that return

I agree with Jack. If you prepared the return, you should enter your name. If you don't feel comfortable entering your name, you probably shouldn't be involved with the return. I just filed my sister's return that took me longer to print out her copy than it did to prepare the thing, and that was with a n/r PA and out of state credit on DE. It had a W-2 and a 1099R. No way I'd ask her pay me. Some day when she has time off, she'll probably bake some cookies or muffins and share with me.

TaxmannEA is correct about the GVWR of and F350 because that would be around 10,000 lbs. It sounds like it was all handled improperly from the beginning. The rule is that only for passenger automobiles with unrecovered basis at the end of the recovery period, those can continue to depreciate the automobile if it is still being used in the business. For listed property other than passenger autos, the depreciation stops at the end of the recovery period. It does look like your asset was entered as listed property, possibly with the first year using the mileage method and then switching to actual expense method. When that happens before the vehicle is fully depreciated, the straight line method must be used over its remaining estimated useful life, otherwise MACRS is the required method. So it would seem that since you have SL method, that might be what happened...unless that was an error also.

cbslee is correct. You would enter the business % used and keep depreciating it.

I'm so sorry, Naveen. I wish there were words of comfort that would help to ease your loss. Please know that if you need help or need to share, we have a great group of folks here that care about you.

Have you checked the ATX knowledgebase? There were issues like this in prior years also.