Terry D EA

Client's place of employment, main office for example, is further away than the job site. So instead of going to the place of employment, the client goes straight to the job site to save fuel. He is an employee and not a sub contractor and receives a W-2 at the end of the year. I say this is a commute and not deductible. Opinions please.

Does anyone know if form W-7 for a dependent on a NR1040 return can be included when the return is filed?

For our non-resident experts. After 21 years of filing taxes, I had my first 1040NR today. I advised this client that it would be better to seek the assistance of someone who was experienced with these type of return. I have refused to file the return at this time due to my lack of experience and understanding of some of the laws surrounding non-resident aliens. However, I was asked to still take my time and see if I could complete the return. So, here is the basic information: 1. Client is a resident of Jamaica 2. Client is here on a J-1 Visa 3. Client is performing teaching services in one of our local elementary schools. 4. Has been present in the US for 189 days beginning June 26, 2017 5. Client has an ITIN, passport and I94 form showing the type of visa 6. No income from any foreign sources only US source 7. Client has dependent child with no ITIN just passport 8. Client is married and spouse is in Jamaica 9. Client is living in an apartment locally. 10. I failed to ask how long they were going to be in the US. Do I need to know that information? Questions: 1. I see the filing status as other married 2. Would I have to obtain an ITIN for the dependent child? 3. Is the US income exempt from US tax? 4. I need to make sure I have all the proper forms to file this if I choose to do so. Sorry for the lengthiness and I do appreciate any information that anyone can give me.

Thanks everyone, Judy you did clear up my thinking. This client asked me so many questions in one interview and threw out various scenarios for me to consider, it became easy to get confused. Some home, he thought the 5k would be taken off as an expense because it was business funds used as a deposit to the building. The building is not finished nor is it in service. Knowing this validates my very first response that it is not deductible this year and all other expenses should be figured in the total cost then begin the depreciation. All is not lost but I hope I can put his mind at ease a bit. Thanks again

Client is having a building built that he will use for both personal and business. He paid for the building in 2017. He is a sole proprietor and took 5k from business funds toward the down payment on the building. The 5k represents 1/3 of the building which will be used exclusively for business. Can the 5k be deducted as an expense as it will be used to construct the portion used for business. Wouldn't this be the same as a remodel for business purposes that would be a direct business expense. The building is one solid structure and not portioned off. At first thought I said no. After giving it some more thought, it looks as though he might be able to do so. I looked at using the safe harbor method for business use of the home but am not sure about using this either.

I'm, so glad I switched to Drake. I have never had to wait on a form since the switch. Matter of fact, I have not had to wait on a form release since I left ATX. Just saying....

Sounds right to me. FMV of new items is the purchase price. Just be sure the client keeps a list and the receipt from the charity. It would be helpful if the charity would put the price on the receipt. Better to over kill the documentation if the IRS requests it.

I agree totally. I like to cut one loose as well just to avoid any potential conflicts. However, I do have two divorced couples who cooperate with each other very well. They insisted there would never be a problem and wanted me to do both. These folks are both very good friends as well so it would seem things could really get sticky. But...so far so good. Yes there are kids involved but again, and it may not be the norm, all is well with this.

>>>>>If scholarship is truly greater than tuition expense, then it is taxable to the student. (Don't rely on the 1098-T- look at the record of payments!) In many cases this is moot because it would not cause tax liability to the student.<<<<<<<<< The amount taxable would be the portion of the scholarship that was not used for educational purposes. Example; if the student used the funds for room and board, those funds would be taxable. Normally, this doesn't happen in a community college. I do agree, however, to not rely on the 1098T. Also, it is noteworthy that the taxability of the scholarship depends on the scholarship.

I don't know if you can or not either and I agree with SaraEA the PMI has expired. However, what about the safe harbor method where you are limited to a 300 SQ Foot figure. I usually come out better using that method than using actual expenses.

Drake makes this so easy. Just sayin

Can you give me a resource for this? I have looked in several places and don't remember seeing the exception you speak of. Of course, I do see you are saying "If the new business interest expense limitation applies"

I am trying to find a definitive answer regarding the deductibility of mortgage interest to rental property owners under the new tax law. Does the 10,000 cap apply. My reasoning is: Frist, for a rental property owner the mortgage interest would not be a deduction but an interest expense. After reading several articles regarding the new tax laws, what I have found that it appears rental property owners regardless of their structure, would be subject to the limitations of business interterest to 30% of business investment income. Other words, the interest expense deducted cannot exceed 30% of the rental income. Code section 163d exclusively describes "property held for investment" which in my opinion includes rental property. So, it appears if the interest deduction causes a loss, then it is not deductible but can be carried forward. Can anyone provide some clear answers and references to this.

Hmmm, are you sure the IRS has accepted the returns or have they only been accepted by your software company? Official IRS filing starts 1-29 just wondering.

I agree it is slower than normal. I have had a few calls with questions and others wanting to know if I will still assist them. I have prepared three individual returns and two partnerships. I got lucky with the partnerships this year as these two had year end information to me on Jan 1. Both rental clients, cash basis, one is tough and one is somewhat easy. So, hang in there it will be crazy before you know it.

Thanks Judy, you know how many times I looked at that section and didn't see the check box????? Geez, I know its time for another eye exam but really. Again, thanks so much for your help.

Thanks Gail, I did look on the due diligence forms. There is a section for a disabled child and I thought I had that all entered correctly. I will double check the entries again.

Thanks Tom, and at first glance I agree and still feel fairly comfortable they do qualify so maybe I am being too apprehensive with this and when I get to the office, I will look deeper into Drake. It seems as though the program doesn't know the dependent is disabled which is disallowing the EITC.

Another good reason to justify why I left OneDesk. Not that it needed any further justification. I wish you the best and maybe a suggestion to get thru the year would be to look into the pay per return options that other vendors have. Good luck!

I have a new client that has a brother that is one year older than they are. The brother is permanently disabled and is being claimed as a dependent on the client's tax return. Drake is not allowing the EITC. My first thought the client is not eligible due to the fact they are younger than their dependent. Most of what I have read would seem to indicate they may qualify for the EITC. I don't do too many of these returns any more so the waters are a bit cloudy. What is also throwing me a bit is this taxpayer cannot provide me with the 2016 return because a copy wasn't provided. But...the client provided the W-2 from 2016 which is the only thing they had to prepare the 2016 return. They had zero withholdings and received a refund of 1700.00+. The preparer took around 300.00+ for a fee and bank loan. It would appear the refund would have been all EITC. Am I missing something here? Also, I couldn't find in Drake on the dependent scree a place to enter or check that the dependent is permanently disabled. Any help will be appreciated.

Its funny how things work sometimes. We get so involved in what we're doing that it clouds our ability to recall stuff we usually know. Then posting here all of a sudden turns the light on. I guess its good to just talk about things. Happens to me all the time.

I mentioned this situation to another support agent via a chat. I forgot how to enable invoice numbers so I had to ask. Anyway that agent did escalate my concern and I did get a return phone call. She also said she would have someone look into the poor support I received. So, I guess you're right they either get up to speed or else. I worked for a company a few years back that would discipline for not answering the phone properly. Customer service/support will either make or break a company.

I agree with both posts above. I too feel he should leave well enough alone.

I did finally get the envelopes to print by sending them to the Drake pdf printer. My printer is new and more than capable of printing envelopes and labels. The support person I got was virtually useless and I am sad to say, I have never received a return phone call from Drake. I think the support person just plainly dropped the ball. On another note, the new secure fil pro connect is a bit quirky. Another agent didn't know much about this and I assumed it was because it was so new; maybe. None of this changes my mind regarding Drake. Hopefully, the agents I spoke with will get up to speed.

It is important to know what you are trying to do. Are you downloading the program or installing from a CD? I have loaded Drake on Win 7 and Win 10 with absolutely no problems. I agree as Abby said, if you are downloading turn off all security software and pop-up blockers.