Pacun

If it is a Roth IRA, nothing is taxable and it makes no difference if they invested their money in a first home and spent it at the local casino.

Yes, TP could have opened an IRA in April 10, 2012 and split $4,000 for 2011 and $4,000 for 2012. Your are right, It seems that this taxpayer will pay penalty on $12,000 and Federal taxes on $22,000.

I don't think CPAs will take offense on your comment, but I think it makes sense what the CPA is saying. I have read that the only income that is considered to be earned evenly through out the year is income reported on W2s. It makes sense that an estimated payment needs to be sent to the IRS on quarter where the money was received since this is a one time event.

This is like reporting the sale of any other item since there is no exclusion and you have to report the profit as long term. Cost(including land)+improvement-depreciation for the cost and then saleprice to come to a profit or loss. I know others will give you better, more detailed answers.

He could easily benefit for three years by filing MFJ, QW, QW but he was desperate to get married. He has only two choices now, married filing Jointly or separate with his new wife.

On another thread a couple of years ago, I was clarified that once you have lived in the house before renting it, you don't have unqualified used. Meaning that as long as you lived in the house 2 year out of 5. So no unqualified use here. The rooms were converted to personal use on 1/1/2021 until the primary residence was sold. No, the portion where the owners lived was never rented. The half of the house rented was where the adult children lived prior to getting married.

That's legal. Keep in mind that on line 28 of 1040 you will get $4,500*1.5 and on line 30 you will get $1,400*1.5 on the "tp" return. Keep in mind that if wife itemizes deductions, his standard deduction is 0 or he has to itemize too. Another point to remember is that if spouse makes more than $40K (a bit more since there is a $500 cushion per kid), spouse might need to return some of the advanced payments. Give the kids to the person that makes over $40K and leave the person with > $40,000 without any child. The kids don't belong to anyone since they are married, anyone can claim them.

The exclusion will take care of the capital gains since they file jointly and have owned and lived there for 10 years.

What are the chances that the states will mail her something meaningful? She can pay her bill to the states from the print out you give her or her refund directly to her bank account. Send address change forms to each state and that should be it. Just keep records.

If I save the file by mistake when giving an estimate, my old information will be gone. I was just wondering how to use the efile file to recover the data for the original client.

So far this has not happened to me, but it is just a matter of time. When I get a new client, I interview him/her and I look for another client in the same state or county with the same situation, which has been already efiled. I delete w2 forms and all income forms, then I add the income info for the new person and give then an estimate on the fly. I tell them their situation and I close the file and I don't save. I know that if I save, I will destroy my copy of my previous client and I will have to recreate if needed. I know that the efile file that I transmitted to the IRS is intact and still shows the correct amounts for my client (not the potential client). How do I put my hands on that efile file since it seems to not be a real file but a pointer.

Can you use form 3115 with your current filing?

house has 4 floors and it was purchased 10 years ago and tax payer has lived there with wife since it was purchased for $600K. For two years 50% of the house (two floors) were rented and depreciation allowed or allowable was $14,545. Rented the whole years of 2019 and 2020. On march 31st 2021 was sold for $1,100,000. A class instructor said that as soon as you rent, you split the property into two, which doesn't make any sense. Any ways, based on the information above, the tax payer will pay taxes only on the $14,545 which is depreciation recapture, correct?

Yes, it goes to schedule C. QBI depends on the other rules, such as profession and total income for your client.

send 1040 signed by both, passport and w7 signed by wife to Texas.

It is not clear to me if the spouse has an ITIN already. If she has an ITIN, you can efile 2021. All you do is to enter the fake ss# on the W2 form that is correctly tagged as "spouse". The only problem is that some of the W2s now hide the social security number with XXX-XX- but they might have previous W2 showing the fake number and you can enter it or they will tell you what number they were using. Then I would amend 2020 by efiling if husband efiled last year. If she doesn't have an ITIN, I would amend 2020 and request an ITIN as spouse of a resident (for tax purposes) and enter the name and SS# of the primary tax payer on form W7. You will need the wife's passport, her current address, the address where she lived abroad and the date of entry to the US. The rest will be from her passport. Sometimes, you will need the city, state and country where they were born. Send 1040X, passport, W7 to Texas. When the ITIN comes, you can efile 2021.

Yes, deleting form 8915-E is not a problem (it is obsolete anyways). Deleting both is not correct.

The last time I checked, if both forms are present, the correct amount is entered, then when you delete form 8915-E, you are ready to go. You have to make an entry if the person re-invest money up to 1/3 of the amount distributed in 2020. XP4ME, remember that people has to 1/3 or re-deposit 1/3 to their retirement plan, deleting both is not correct.

MD has reciprocal agreements with PA, DC, VA and WV. I know for DC and VA, people pay taxes where they live. So, if this would be a MD person who worked in DC (my area of semi expertise), I would file MD as resident and file a DC non-resident form requesting the tax withheld by mistake. Employers in DC should withhold taxes for MD and not for DC since the person told them he was a MD resident. I am not sure if that's the way it works for PA, but I am 77.777% sure that it might work the same way.

It was assets purchase.

On April 14, I change my settings from "hold state" to "do not hold state" and that allows me to send both at the same time. I guess people do it from the very beginning. When the IRS rejects a return that affects both state and federal, those people wish they "held" the state return. On April 14th and 15th, I don't have time to be waiting for the IRS and that's why I make the change. Now that we have sorted out that portion of my info, can someone help me with my original question/concern?

I also got my acks, today. Now that we have sorted out that portion of my info, can someone help me with my original question/concern?

How do I report one month of income for a C corporation without closing the FEIN? New owners will continue using name and everything from previous set up.

As long as the child didn't support herself more than 50%, it doesn't matter who supported her. Support matters for HH.