Pacun

I don't understand the loss portion of it. Let's put names to the items: On the real property, you have an old tractor, a combine and a plow. The scrap company says: If you bring these items to my lot, I will pay $300 for the Tractor, $200 for the combine and $100 for the plow. Since the company comes to your field and grabs these items, you will receive only $300 as full payment for all three items. To me this is the FMV of the items unless you can find someone else who pays more. It will be nice if you would say if your client received these items 10 years ago when their FMV at the time of death was $10,000, which will create a loss. But since I can only assume that the inheritance took place not long ago, you will have a break even transaction since the selling price will be the FMV of the items and in turn it will be the basis of your client.

Yes, spouses with equal income will continue to file MFS when the other spouse is only reporting half of his income. Or when the refund of a MFJ return would be withheld to cover child support.

Windows 10 Pro 1803 is perfect for what we do. Home is not domain oriented. Enterprise is the best but it might be more expensive and for what we do, it might be too much.

As Jack said, this is what I would do. I would keep my Windows 7 machine on the network and using it as needed until the MS stops updating it. Then, I would turn it off and turn it on ONLY when I really need and then turn it off again. I will have the password handy because after you don't use it for a while it is easy to forget the password. Also I would have the installation codes handy for years 2016 and on since those years have password security when opening them.

What they called your computer is semantics. It doesn't matter what they call it but rather what the OS does. Embrace the new OS, there is no way around. Soon your Windows 7 computer will have more holes than a strainer and you will put your client's data at risk. I have not seen an industry (Tax preparation) with more information about people than the one we have on our computers AND yet we are hesitant to upgrade just because semantics. Keep in mind that after Windows 7, Microsoft released Windows 8 and then windows 8.1 and then it came Windows 10 1703, then Windows 10 1709 and then Windows 10 1803. Based on this information you have two facts: 1.- You will not be able to skip Windows 10 because it will continue to be Windows 10 for a while. 2.- Your Windows 7 OS is very old if you notices the OS versions that came after it and soon will have many security vulnerabilities.

I visit a Casino and they give me food and board. I wonder if they will be able to deduct the meals they give me. They also give me tickets to shows and other events.

Windows 10 is the best OS that Microsoft has come up with. Now that 2011 and after will work with Windows 10, I will have to upgrade. Of course keeping my old computer for a couple of years is not a bad idea.

Try another mouse. How about Word, Excel or any other software, do you feel you have to double click or mouse sensitivity while using those programs?

Before you upgrade, please check with your software company (ATX, intuit, etc) and ask them if their old software would work with Windows 10. Sometimes they have a patch but sometimes they don't. I believe the last three years of ATX will work and 99% of the time you will need only those three years. A while ago, I upgraded my computer and I installed the last three years on the new one. I kept the old computer without turning it on or connecting it to the network, so I have used it 0 times and that was 7 years ago.

How much per client? If I may.

You do it right regardless of what the auditor will or will not do in the event of an audit. I agree with Gail. Report the income and depreciate the asset.

Did you initiate the communication? If you did, make sure you are dealing with the IRS and not scammers.

Yes, let the father claim the exemption and the mother file as you did before, Head of Household with Earned Income credit. Your child must meet one [UNO] of the following: Be under age 19 at the end of the year and younger than you or your spouse, if you file a joint return Be a full-time student in at least five months of the year and under age 24 at the end of the year and younger than you or your spouse, if you file a joint return Be permanently and totally disabled at any time during the year and any age.

All I tell my people is: "Since you owe $2,000 for 2010, they will penalize you $500 for not filing, $500 for not paying and then you will have interest calculated for each year. So technically, the amount you owe will almost double, but the IRS will gladly calculate everything for you". Some people say "But I want to know now".... my answer is "This return was due 7 years ago and all the sudden it is urgent????"

Baltimore is the closest city that you can compare. Aberdeen is NOT DC metro Area. Even Annapolis is closer to Aberdeen than DC.

Maybe you can allocate 0 to son and 100% to parents, if not, allocate 99% to parents and 1% to son.

You have a hard one in your hands, unless you go after the previous preparer, which is hard to do and maybe we are not trained for that and a lawyer is needed. I have a husband with a wife in Mexico, they didn't file jointly and for immigration purposes, they wanted to file jointly so I added $50 a week on line 21 that the wife makes selling hot dogs and filed jointly. Of course, this was the opposite from your case because client filed S and the amendment was from S to MFJ. I would explore the possibility of correctly filing an amendment as MFJ so that a new direct deposit is issued. Of course, filing MFJ while spouse is outside the US, is available only to U.S. Citizens, I believe.

ILLMAS, as long as they are married, they have the right to file jointly so MFJ is a correct filing status. Now if they didn't cash the check and now they want a portion of the refund, that's another story. My brother, US Citizen, got married on December 31, 2017 to a student in El Salvador. My bother is here in the United States and his wife will be there for at least a year while her visa is processed. He applied for an ITIN for his wife and they attached a letter signed by both stating that they wanted the wife to be treated as a resident for tax purposes and they were including global income. IRS gave ITIN to wife and needless to say that my brother saved more than $5K.

I wonder if we could have a posting with links to this type of posting for example a pinned post that lists only links to instructional postings: Maybe we should have voting for good postings and when the votes make it to 5, then we added a link to the pinned post of links. I am talking about link and an explanation: https://www.atxcommunity.com/topic/20902-atx-letters-seminar-video/ Video showing how to add client letters https://www.atxcommunity.com/topic/20886-can-the-home-office-deduction-be-taken-for-a-second-house/ Answered: Can home office deduction be taken on second house? Etc.

That's very interesting. Let's say you owned a house for three years and it was your principal residence for the three years. You also run a business and you use 1/3 of your house as a home office. Let's say that the house cost $390K and you sell it for $540K. Technically you could approach this instance in two ways: 1.- You report 2/3 of the sale as a principal residence and use the exclusion to kill the $100K profit. AND You report the sale of a business asset and report its cost as $130K and depreciation taken $30K. Then you will have a profit $80K and you will pay taxes on it. (will $30K of depreciation recapture be reported as ordinary income)? 2.- You report the sale as I reported it on the 1040 above and just entered 0 days (as you said... but I am not sure it is correct). If you do that, you will have to pay taxes ONLY on $30K which to me doesn't sound right. The $150K of profit will be killed by the exclusion... I hope someone else researches this instance and finds out that you have to enter 365 days (1/3 of three years) as the non-qualified days and then you will pay taxes on $80K as we did in option 1. One thing these examples tell us is that we don't know how much we don't know.

I wouldn't be surprised that that was only a portion of what they got from the IRS doing the same thing every year. I doubt they amended every year. Most of the time they only amend the years needed for their immigration cases.

In the past, the IRS would give $1000 child tax credit and the other perks that come with an ITIN. So, I know of places where they asked their clients to request passports from children living in Central America and put them as a dependent and request an ITIN. These tax preparers made extra money and they were busy all year long. So when I hear the famous phrase "they pay taxes" I laugh because I know that a bunch people only get money from the IRS. They never pay anything... BUT that's another subject. Recently the IRS changed the ITIN rules and now when you apply for an ITIN, you need more than a passport if you don't have a visa on it. You need medical records for children under 5 and for children above 4, you need to send school record and any other records that prove that the child is in the USA when you send form W-7 to the IRS, except for dependent living in Mexico or Canada or dependents of militaries. So if you apply for an ITIN, please send passport and proof that the child is here. For taxpayers, the W-2 is a good proof but for dependents, you better send something else.

No one has commented? I thought I was doing it wrong. Not every year you get an exclusion from a house that was rented. Not only you have to research it but also you have to figure out how to enter the info on ATX. I saw the video on another post, maybe each one of us should share something we researched and post from A to Z so when tax season comes, it is easier for other to follow.

Wow, I wanted to drive to TN but I cannot do it this weekend. Every four years and I get glued to the TV.

I am jealous that people are meeting in the "Middle" of TN. Is there anyone in MD or VA that can accommodate a group gathering? You only need to have a few horses, a soccer field, a river and some livestock. If Kendall Jackson and Margarita with Jose Cuervo are invited, I can bring los limones. Joking aside, I believe gatherings are a good idea and I am wondering if it is possible to have one closer to the DMV area.