Abby Normal

Enter the code to show this is a single family dwelling. Because this was the taxpayer's primary residence, do not enter any days if the unit was a full rental beginning 5/1 with no personal use after that.  The entry of those days are for vacation homes, short term rentals, and days of personal use after converting to rental.  The days prior to converting to a full rental property are not counted as days of personal use.

Put 8/12ths of real estate taxes and mortgage interest on Sch E, 4/12ths on Sch A, also put 8/12ths of insurance on Sch E, zero deduction for that on Sch A.  Enter other monthly utility bills, management fees, etc incurred and paid after becoming a rental on Sch E.  Depreciation on the real estate begins 5/1, should calculate ok since it is monthly.  If you are entering any depreciation for tangible items, I think you would have to override so that the system doesn't enter a full year depreciation for those.

If the real estate taxes are paid in July and they're for 7/1/14 - 6/30/15, I would put 100% on the rental. Same with insurance if it was paid after conversion.

Here's the Maryland page if you're doing any MD returns.

Life insurance is rarely deductible. I'd show as draws or guaranteed payments.

You can always amend a return. You just can't get refunds later than 3 years after 4/15 or the filing date, whichever is later.

I've never had coverage that didn't start on the 1st of a month, except some older employer plans. So this is really a 2 month gap.

You're welcome! I wanted to look it up for myself, too. I've not filed 1041s for estates with less than 600 before. Now I'm wondering if I was wrong!

From the instructions for 1041:

The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic trust taxable under section 641 that has:

Because they added a new preference to make the letter always say 'will be efiled', whenever you need the letter to be for a paper filed return, you have to go to Preferences, Client Communications and temporarily change it to Calculate based on efile status.

Horrible impementation, ATX!

Yes, it's not a taxable event to distribute assets to partners, like it is with S corps & C corps.

I always seem to have good Friday the 13ths! There will be several alcoholic beverages in my near future!

http://www.irs.gov/uac/Newsroom/IRS-Makes-it-Easier-for-Small-Businesses-to-Apply-Repair-Regulations-to-2014-and-Future-Years

Rev Proc 2015-20 attached.

Rev Proc 2015-20.pdf

Had my first ACA today. They recieved 1700 credit but had to pay back 1500. The 1700 was for 8 months. If they keep getting subsidy for 12 months in 2015 they'll get over 2,500 and pay back 1,500. Why wouldn't they do that? They get to keep paying 130/mo for health insurance and use their child tax credits to repay the 1,500. Improved cash flow and a $1,000 bonus is hard to pass on.

 

Just put a note on my calendar to update the evening of the 18th. Hopefully they'll have this worked out before then.

Year Calculation Deduction

2013 $500 × 20% × 10% $10.00

2014 00.00

2015 $500 × 19.20% × 10% 9.20

2016 $500 × 11.52% × 20% 11.52

2017 $500 × 5.76% × 10% 2.88

2018 00.00

Total $33.60

This cycle would be repeated beginning in 2019 because the taxpayer has not

recovered the total cost ($1,000) of the property. If the fair market value of the property

in the beginning of 2019 is less than the undepreciated basis ($1,000 − $500 − 33.60 =

$466.40), then the recovery percentages are applied against the fair market value.

See also Example (2) in ACRS Prop. Reg. § 1.168-2(j)(7).

That's nuts!

They moved the Admin Console program for 2014. It's located here:

C:Program Files (x86)Common FilesCCH Small Firm ServicesATX 2014 Admin Console

You just have to manually override the depreciation every year until it's done or sold.

I have only prepared a few returns so far, (Win 7 Pro 64 bit standalone) but I have noticed the following:

 

1.  I turn my computer off at the end of the day and reboot every morning.

 

2.  ATX 2014 will not open ( can't find server)

 

3.  Prior in installing ATX 2014, I had to go to the Admin Console to get the servers started before ATX    . 2013 would open   

 

4.  Now ATX 2013 opens without any problem (Although there is a new window that tells you the servers are starting up)

 

5.  After opening ATX 2013, ATX 2014 will open without any delay.

 

I get the impression that ATX has modified the server start up process which has also improved the opening of ATX 2013.

 

But it is kind of annoying to have to open 2013 every day so that I can open 2014.

You probably just need to wait longer before opening 2014. Opening 2013 may be just a red herring.

Agreed. Installs all went smoothly and quickly. Updates have been fine too. Program starts faster too.

Yes, always backup your backups! I back up the whole ATX 2014 Server folder. Actually, I backup the entire (hidden) ProgramData folder even though a lot of the stuff in there isn't really important.

Attorney said "No need to change it"

 

 

Good luck ever trying to refi or sell the house! I would get the name changed sooner rather than later.

Jut found this:

Example 11—unmarried parents.

You, your 5-year-old son, and your son's father lived together all year. You and your son's father are not married. Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, and joint return tests for both you and his father. Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Neither of you had any other income. Your son's father agrees to let you treat the child as a qualifying child. This means, if your son's father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed earlier, you can claim him as a qualifying child for the EIC and any of the other tax benefits listed earlier for which you qualify.

I don't do a lot of EIC returns so it's not an area of expertise.

Tie-Breaker Rules

Under the tie-breaker rule, the child is treated as a qualifying child only by:

• The parents if they file a joint return;
• The parent, if only one of the persons is the child's parent;
• The parent with whom the child lived the longest during the tax year, if two of the persons are the child's parent and they do not file a joint return together.  
• The parent with the highest AGI if the child lived with each parent for the same amount of time during the tax year, and they do not file a joint return together;
• The person with the highest AGI if no parent can claim the child as a qualifying child; or
• A person with the higher AGI than any parent who can also claim the child as a qualifying child but does not.

If he is the father, only he can claim the EIC because he has the higher income. If he is not the father, she can claim it if she chooses.

Edit: http://www.irs.gov/Individuals/Qualifying-Child-of-More-Than-One-Person

There is a difference when the owner and the other person lives in the same house. In my case, that court decision doesn't apply.

The reg and the court case have nothing to do with the owner living in the house. If you're paying mortgage interest and you're living in and paying all the expenses of the house, you get a mortgage interest deduction and real estate tax deduction, even if your name is not on the title or the loan.

I use pdfFactory for my ATX pdf printing.  Once in pdfFactory, I can click on Acrobat button and convert to Acrobat.  I have Acrobat 11.

I considered switching to PDFFactory. It looks much slicker than PDF995.