Terry D EA

Got it Judy and sent one back to you.

I'm with Pacun on this one. Any mortgage interest on rental property that is used for investment purposes is deductible on Sch E subject to the loss limitations.

Long time client who deals in rental property experienced a total loss due to fire of one of his properties in March of 2014. Insurance company paid off 140K and he sold the lot for 10K in August 2014. Used the remaining proceeds and lot proceeds to purchase a replacement property in 2015 for which I don't have the HUD-1 yet. Here are a couple of questions: 1. Remaining depreciation of 25K on loss including some expenses plus two months rent collected. Reportable in 2014 as usual correct? 2. Disposition of property and proceeds used reported in 2015 due to having two years after loss to either rebuild or re-purchase correct? 3. Do i show anything with a casualty loss for 2014? 4. When calculating disposition of property remaining depreciation after 2014 is a loss taken against the proceeds correct? Sorry for so many questions just want to keep this straight and re-assure my thinking.

I too have several folks that I have not heard from and the phone calls will go out. On the other hand. there is still plenty to do.

I've learned that no matter what the income level is, the insurance is always affordable. Well, by the calculations anyway. And, I've learned that it appears that our freedom of choice is being infringed upon by being forced to have health insurance coverage. Like jmdaviscpa, I had to put my wife on my insurance with my employer. Cost me 642.00 per month. Better coverage than that offered at the market place for more money. Finally, I've learned that the ACA isn't going away and will only get worse and in the grand scheme of things we will all be paying for something that has limited or no useful value. Deductibles so high with coverages so low, how good is it?

Is it me or does it really seem like the more complicated returns came in later this year? I have at least three that take a considerable amount of time and my annual CRUT just came in. Anything after Monday gets an extension.

Rita that is just too funny. I have several scheduled after April 30th. I usually don't talk to anyone about taxes till I have at least two weeks to rest and completely forget this crap exists.

Pacun you totally missed my point. The procedure to replace a rear differential is definitely a "repair procedure". In this case the actual rear differential was not "repaired" it was "replaced" which is a separate unit and if we want to split hairs here there maybe a need to have an itemized statement to properly allocate the expenses so let's not play word games. Yes, the "replacement" of the rear differential extended the vehicle's useful life simply because if it wasn't "replaced" or "repaired" the vehicle had no useful life past the date of failure. I too would agree that first thought was repair and expense the total. However, and I will stick by what I said, the first two criteria makes me think capitalize the cost of the rear differential and labor to install it and expense the rest. Tires are maintenance and along with other items of maintenance should be expensed. From reading the posts related to this discussion those of us who are being careful with this have not lost our minds and are not over thinking it. Read the new regs more than once and each time you do, you won't come away feeling less confused.

Same here and it seems this stack is worse this year than any others. I had Sch C,E with rental properties send me the final day care expenses yesterday. Today I get the question, do you have the depreciation done for one of the new properties I purchased? I mean really?? I haven't bothered replying yet.

I don't know if I completely agree Jack and I do understand your position cause I too am a current ASE Master Certified Technician with other ASE certificates as well. so, here is my take: 1. The repair of the rear differential did restore the vehicle to it's original operating state. 2. The repair did extend it's useful life. 3. The repair did not add additional worth. Simply put you won't sell it for more because the rear diff was replaced. I think this still deserves some consideration both ways. Two out of three tells me capitalize. Initially I too would jump to the repair, but, does this client have an audited financial statement to where the repair would fall under 5,000.00 per ticket? If not, then no choice but to capitalize. I

First order of business here is to obtain the trust instruments and read them completely. Doing so will give great insight as to the related tax issues with the trust.

Me neither. Look at what happened to Turbo Tax this year.

The examples given are not the same as my client. 10,000.00 was taken from a Coverdell savings account. No scholarships and the amount paid for the qualified expenses exceed the distribution so I don't see that any of the examples applies here. Thanks for alerting me to this.

Just thought I would check with my friends here for a confirmation of the following example: Client receives form 1099Q with amounts in Box 1 totaling 10,000.00. Client paid 10,260.89 in college expenses for his son. So, $260.89 can be used for form 8863 or tuition and fees correct?

It seems this was part of the 5 yer look back. Some State laws state that even if the asset changed hands during that five year look back window, then it has to be cashed in and spent on person's care. Funeral expenses are only deductible on the 1041 and not on an individual return.

Okay so now I feel a bit better. This is TY 2012 return that was due April 2013 so three years from the due date. This one just went to the bottom of the pile and hopefully not seen until after April 15th.

I think this is the last year to do so and must be done by April 15th correct? Had a client drop off an amendment that I told him about last year. Arrgh!

Under the scenario of a long time client who was in the system before should still be there. Strange problem there.

Thanks

I need a little help or reassurance from my friends here who prepare non-resident tax returns. One of my client's moved to Portugal two years ago. He has retirement funds here in the US. He did not denounce his citizenship but is no longer a resident of the US. One of his accounts, Charles Schwab is the custodian over the account and due to the custodian address, NC taxes were withheld. Naturally, he is not a resident of NC and hasn't been for the last two years. Last year we filed using form 1040 and I am wondering if we should be using form 1040NR? I think I should file NC as a non-resident as well. Is there anything else in this scenario that I need to know? Only two 1099R's so nothing huge.

Jack I am so sorry for your loss. Travel safe and return safe. I will include you and your best friend's family in my prayers and ask for comfort at this time of grieving.

Don't get mad at me for asking this but did you save your work when you exited the program? i got caught this way once and only once. I would think that once you were in the general information screen the program wouldn't let you open the W-2 without asking you if you wanted to save or leave the page without saving.

Margaret this definitely sounds like an after tax season project. Don't forget the possibility of an OIC once the mess is cleaned up. The IRS interest clock runs to the point of no return with some clients and they can't see any light at the end of the tunnel. I have a client that we will be looking at a possible OIC after season. Their comment of going to their grave owing the IRS well in the five digits after trying to pay for 20 or so years is what prompted my offer to look into this. A tax debt owed to the IRS that is impossible or seems impossible to get ahead of is worse than any credit card debt ever. I do agree with the 3115. Make sure you get paid for all of this as well. If you're like me, my heart gets in the way when it comes time to collect my fees with some of these clients. While I know you should never feel bad about your fees sometimes it is hard when you want to help.

Tom I am not against using ATX. I was a long time ATX Max user until the CCH takeover. The hell all of you went through plus some issues I have read this year tells me to proceed carefully. Two years ago, all of us went thru hell with one software program or another and I was a victim of the TRX debacle. The support you mention is another issue which is a negative. Remember the days of William and I can't remember the other guys name but they were tops with support. Their pricing is out of my range now but I may try to get a CD after season to do some returns to see if I will put them in the list of choices. Last time I inquired they didn't even bother trying to get my business back.

I took some time and looked through the entire reject code charts from the IRS and mine is apparently correct. So, I am just going to enter $1.00 interest on line 8 and will see if it is accepted. I am with you with not trusting the software any longer. I've seen too many things this year that make me feel terribly uncomfortable. I need to know what else is out there that is somewhat reasonable that handles various levels of returns usually under 150 returns per year.