Christian

As if we don't face enough issues Intuit is going to offer consultants in their tax package this year. Wonder how accurate their advice will be?

I printed a test page. This will be my 37th year in 2019. In my wildest dreams I would never have thought the Service would sqush (this is the Southern form of squash you Yankees !) the Form 1040 on a half full page. Maybe as Abby suggests we can add some snappy add on the bottom.

I was going to point that out Abby but Catherine beat me to it. And Taxman are you saying the 1040 is not going to fill a full sheet. Good grief. It sounds kinda naked.

In looking over the new form and attached schedules I can see how it may be more simple for some but more confusing for many. Subtracting figures in a line item arrangement wasn't all that bad was it ? Who knows maybe it will increase our traffic.

Oops. It looks as if I have made an error and confused clients. Have patience you too will get older.

In trying to understand these new rules I have this situation. A client and his business partner own an LLC. The client receives a W-2 each year from the partnership. As I read the rules his W-2 income is not subject to the twenty percent reduction. Am I correct on this ? The twenty percent taken at the corporate level ?

Another reason she is your ex right Abby ?

The new software looks to be working a ok. I am still using my old computer and it actually seems to load material much quicker.

What a relief ! I feel confident I can handle the new setup. I won't have to sell out lol.

I usually buy a Compaq or an HP but oddly enough I never pay a great deal for a good computer. If memory serves I've had this one going on seven or eight years. I always shut mine down after use and my guess is this prolongs their life considerably.

Thanks for all the input. If I make the change I will likely wait until after April 15th next year. With all the ballyhoo about security an encryption file is probably a good idea going forward. I have had no problems as I maintain virus and malware security in place at all times and run one or the other on shutting down my system. Unless in use I do not leave the system running.

My processor is an AMD E1-1200 APU with Radeon (tm) Graphics 1.40 GHz.

I note ATX is recommending Widows 8 as it has an encryption file unavailable on my current Windows 7. I have a 64 bit machine and would like to know if any of you upgraded with a 64 bit computer and had problems as I may do so. Th argument can be made I should move on to Windows 10 but I am no tech whiz and fumbling with a conversion just before tax season and the coming release of ATX 2019 is definitely not in the cards.

That is to say his attorney should raise this point. In view of the fact he was clueless about the change in the law leaves room for being pessimistic. I sent his attorney an email discussing the new law including the paragraph from Divorce Magazine and suggested he have further discussions with the firm's CPA. I wish them luck since it apparently has been a contentious divorce.

I must be missing something here. Under the new law the former wife will receive the same alimony amount even though her former husband is now paying tax on it. It is not reduced by the taxes he is paying and looks to be a win situation for her.

In reviewing the replies and looking over the highlighted items as well I come away with the thought that IF the parties have drawn up the divorce settlement as the client tells me they have ("We have already agreed to everything.") and signed it he will likely be able to continue deducting the alimony EVEN THOUGH the decree itself falls on January 4th of 2019 as is noted above " Experts believe an instrument signed before December 31, 2018, will qualify for pre-TCJA tax treatment, even if the divorce is not yet final". In the end I suspect his attorney has been outfoxed by her attorney and that the final settlement document has not been signed nor will be until after January 4th.

Well maybe not. Since the alimony was part of a bill of separation prior to 2019 he may be able to use that as his basis to continue deducting the alimony payments. What do y'all think?

A client has been involved in an ongoing divorce for some three plus years. Back in 2015 the judge decreed that he pay his wife spousal support (alimony) which will now continue after the final divorce decree until the end of 2027. The final decree will become effective on January 4, 2019. The client has agreed to file as married filing joint through 2018. The question is whether the alimony payments going forward are taxable or non-taxable income. Does the date of the initial decree determine this or the date of the final decree in 2019. I am thinking it is the final decree but I could be incorrect. Any input is appreciated.

I renewed on or about October 5th which I do every year since it falls in line with my birth month. I have read that the Service will have to refund all those fees collected earlier since they could not legally charge for the PTIN. Imagine that! I am just itching to get my money back.

That was my thought as well Abby. Perhaps the form will still fit the 81/2 x 11 page even though it has fewer lines. I can only imagine the effect that a page with a huge white gap followed by another with a big gap would have on clients.

As the proposed new 1040 is reportedly smaller than the usual photocopy sheet I am wondering if it will not look a bit odd to our clients. Any thoughts on this?

I have reviewed the material and find it answers my concerns. Many thanks to Judy for her kind assistance to an aged taxman.

A client informed me that some of her stocks had been claimed by the State of Virginia due to a foul up on her part in the securities registration. I told her to immediately contact the relevant state agency and have it resolved asap. It never occurred to me she and her daughter would dilly dally over something like this. Two months ago I was told the matter was resolved after the mother was able to demonstrate ownership of the stocks. Unfortunately so much time had elapsed Virginia had sold the stock and instead of returning the stock sent the mother a check in the amount of $115,000 ! This is something I have never encountered. I am just wondering what kind of reporting form Virginia will send them. My suggestion to them was to ask for the brokerage statement from the state in order to determine capital gain just as if the mother had sold the stock herself. On the other hand Virginia may just send them a Form 1099-Misc which is not a great outcome. The daughter opined that since Virginia had sold the stock no tax was due. I have a sinking feeling that ain't going to cut it. Any comment will be appreciated. Since they received the funds this year this will be reported on their 2018 return.

I thank all of you who responded. I determined not to deduct the $15,000 agreeing with most of what was said. I am certain he is not reporting it and of course no 1099-Misc will ever see the light of day. As it turned out the parent's huge deductible medical expenses eliminated any tax due and they are being refunded all taxes withheld.

He basically pays all bills and oversees his parent's properties as well as having the power to sell assets. I doubt he is reporting any of it as he is unemployed. It could be looked on as a parental gift and like Roberts I see it as nondeductible legal fees.