Pacun

This is what you do. You need to know if they qualify for the exclusion by looking at the 5 years before the sale. If within those 5 years they owned and lived in the house for 2 years (taxpayer OR wife), then they qualify. Now, you have to count all days that he/she or they owned the house and also count all the days that the house was rented. Let's say that he bought the house on January 15, 2013 and that he moved out and rented it on January 15, 2017, and let's say that he sell it on January 14, 2020, then you will have to this calculation: ALL days 8*365=2922 (two leap years) Rented days (not-qualified days) 3*365=1095 (no leap year involved) So you will divide the profit and only a portion will be excluded. Don't forget the depreciation allowed or allowable that he needs to considered and the recapture that needs to take place too.

You don't have any choice. Windows 7 is going away so back up your data and move to windows 10. By default, windows 7 will not comply with the security regulations after Feb2020. Do it now so you don't have to do it in the middle of tax season.

The fist thing I tell my users is to grab the laptop by itself and play Vincente Fernandez from youtube. If they cannot hear a famous voice, most likely they won't hear another user. What is common these days is that users connect a monitor that doesn't have speakers using HDMI cables and they cannot hear anything. As you might know, most users don't, HDMI cables transmit sound to the monitor which lacks an output device. I said laptops because my employer only has laptops.

I have a similar situation: An employer sold company to employee but the selling partner will always get 25% of what is left after a guaranteed payment of $150K to the new 75% owner. for the past couple of years, the company has had a loss of about 5K. I told my client (new 75% owner) to take less money as guaranteed payment to benefit from QBI but he didn't agree. He said that he deserves that amount of money because he works a lot of hours and he will have to share the left over with the silent "partner".

Thank you for the info. I found this on the merger info: "Time Warner shareholders received $53.75 in cash and 1.437shares of AT&T common stock for every share of Time Warner common stock" Let's say, I had 10 shares of Time Warner and it cost me $25 per share. My basis is $250. Since I got 14.37 shares of ATT, I will consider that those shares have a basis of $250. All I have to report is $537.50 which is the cash I got for the sale of my 10 shares. Is that approach wrong?

I have about 2K of "stock proceeds" that read "undetermined" for short or long gain. It also read that "basis not reported to the IRS" On the explanation I have $12 for selling AT&T INC with additional information as Sale On the next line I have TIME INC MRG for a total of $200 and additional information as "Merger" On the next line I have TIME WARNER INC MRG for a total of $1800 and additional information as "Merger" I love when people bring their documents 5 days before October 15. I normally don't do extensions but he is my good friend. Question: Should I start digging to see the cost of the stock for the proceeds labeled "Merger"? I am planning to add the $12 of AT&T with 0 basis since it will cost more to find out how much it cost vs paying tax on $12.

One of the rules to be a qualified widow is to have a child and to have had a choice of filing a joint return with the deceased, even if you didn't file jointly. I have thought about a circumstance when the person alive didn't have a choice of filing jointly and I only came up with this one: I get married in England in November 2019. My son is born in December 2019 and My wife dies on January. In February, I bring my child to live with me and lives with me for the next 17 years. Since my wife didn't have a social security, I was going to apply for an ITIN but we never talked about it. We both were going to sign a letter stating that we both agreed to treat her as a resident for tax purposes and that we were going to report worldwide income for her and myself. Since she never signed that document, I didn't have a choice to file jointly and therefore I don't qualify as a widow for 2020 an 2021. You can give your opinion to this statement. Besides the circumstance above, can you come up with another reason WHY you wouldn't have a choice to file with your wife/husband? Remember that you have a choice to file with your spouse even if that person sell drugs and kills people.

You wouldn't know that unless your client is itemizing. Remember that if the spouse itemized deductions, your client cannot get the standard deduction (except for 2018) for the other two years your client will have two choices. Itemized deductions or standard deduction becomes zero.

If the suggestions provided don't help, buy a better computer with 16G or 32G of RAM.

Rent the car to the corporation. charge just the depreciation amount and that should 0 the personal return. Is what am I saying legal? I believe it is the same principal as renting a building from your one-member LLC to your C Corporation.

Are you talking about numbers and figures or how to manipulate the asset in ATX?

The only thing that comes to mind is that your hard drive was compressed.

Perfect explanations. Thank you both.

Basically what I understand from the your post is that the plan administrator is correct in my case. It is up to me to keep records to prove that I have a basis on my 401k plan. That's interesting that I will have to show the IRS 30 years later that I have a basis on my 401k. How will I calculate earnings on that money (my basis)? It becomes a hard task. I am glad it is not that much money that I have to send to cover the defaulted loan.

This happened on a small scale. I have been working for the same company without interruptions for 20 years. in 2012, I had 200K in my 401k and I got a loan for $50K. For some reason, the loan defaulted and custodian issued a 1099-R for 10K in 2015. I had to pay taxes and penalty on that distribution. Last month, I tried to get another loan and they told me that I had to pay the 10K for the defaulted loan. I was planning to get a $25K loan but since I have to pay back the defaulted loan in order for the next loan to be approved, I will now have to get $35K. I have argued with the custodian that since they issued a 1099-R, the loan should be cleared and they said NO. I have also asked if those 10K will be invested in a 401k Roth and they said NO. I have told them that the 10K is in different category than the rest of my money and they said NO. I told them that they were doing a "not permitted" transaction and they said NO. I understand that the loan repayment comes from "already taxed" money but no 1099-R are issued when the loans are repaid. I feel that I will have to pay those 10K from "already taxed" money and in addition I got a 1099-R to which I paid taxes and penalty because I am not 59.5 years old. Am I wrong?

Win 7 will not be supported anymore when tax season begins. NO ONE should have so much client information on a Windows 7 machine that is connected to the Internet.

I normally use direct deposit and that covers this issue. I did a joint return last year and efile went through and only the surviving spouse signed.

I have done a few of these returns. My clients' wives don't work or make about 3K in a year. So it is very advantageous for my clients to get married right before the year end. You file jointly and send W-7 with wife's passport to request ITIN... along with 1040. You include global income for both and attach a letter stating something like: My wife and I got married on December 30, 201X in El Salvador. She is waiting for her visa in El Salvador and will join me later. In the meantime, we have agreed to file jointly reporting our world-wide income on form 1040. I normally ask both of them signed the return and the letter. Basically, I prepare the letter, the taxes and the signature page to wife and she signs the form and letter and send it back by mail to husband. Husband comes to the office and signs himself and we send the package to the IRS. I love when they marry University students because their income is 0 and most of them save about 5k in taxes. In my practice... spouse is NEVER a dependent.

I wouldn't get involved. It is not your fault and I would let them pay through the nose.

The good thing about VA is that their last day to file and pay is May 1. I am concerned about a couple MD returns that were efiled on April 16.

I will also buy one for me but in November. If you wait, I will share my DELL specs and price.

It sounds impossible. How much he made? Filing Status? Give the figures of what he paid and what the gov pay and we might be able to tell you.

I agree. If you are running out of disk space, it might be a good idea to by a new computer or remove other programs. Don't mess with ATX during tax season please.

Bulldog Tom, Good explanation of your customer's case and good analogy. If I am not mistaken, that part of ACA will not change next year. Once a person enrolls on the "exchange", the law will remained unchanged. I guess we will have ACA for a while and I am not a fan of it either.

Gail, I agree with you but how do we know that the "loan was really for the benefit of her husband and he is the one who defaulted on payments"? What we know is that the wife was the one that defaulted on the payments and that's why she got the 1099-R. In any event, my clients ALWAYS ask me: "Conoce algun buen abogado que me pueda recomendar?" (do you know any good lawyer that you can recommend?). My answer is "Such an animal doesn't exist!!!!"