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I don't give a date anymore. I did that once, and got hit with a mother-load on that very day. Ever since then, I just surprise them. Anyone not in by April 1 will get an extension if they have more than a simple return. I'm already pretty deep in the hole, but I'll get them done. Started closing my office on Saturdays (always closed on Sunday) and that helps me immensely.

Thank you so much. There wasn't a place to attach an explanation, so I created a scratch pad page where AMT would go. I think if flies with the tax return. If not, I'll be ready for a letter. 2016 and 2017, I'll have to charge accordingly, knowing this won't be the end of this story. That was a great help, and I have documented the source from the IRS website.

So, my little girl who gets the pension because both parents died while in the military, does not pay Kiddie tax but now the program is forcing AMT. I have looked this up, and I do not see that she should pay AMT, but before I override the program, I thought I better check here. 7 years old. Not adopted, but placed with her aunt. 1099R income is $20,724 (Military benefit paid similarly as a pension) interest income is $479 No Sch A. No other income. Does anyone else agree that AMT is not necessary? I think the program is forcing it because it's a child's return. With no living parents, no kiddie tax, does anyone else know if I can override this to zero AMT?

We CAN trust the military W2 for HOR. If the military HOR is FL, no state tax return is done. If the same military taxpayer gets an extra job (which is not the usual military gig) in a state he/she happens to be living in, that particular income is subject to THAT state's taxes. As far as the military spouse relief act goes, in order for the military spouse to claim the same HOR as the military taxpayer, they must have BOTH been residents of the HOR state when they began their married life together. If they were not BOTH residents of say FL, (or the same state as HOR) then the spouse must file MFS tax returns in every state the spouse works in for as long as they are on this journey.

They can claim any related expense that took money out of their wallets for those charitable gigs, and mileage, but not lost money. You are correct. Strings, picks, etc.

I stole a heart once.... just sayin'...

Was a penalty puffed in to the tax return?

I am so flippin' excited to see you again, girlfriend! This will be so much fun! I'll bring the 'Ritas! And maybe a Cowboy!

Thanks, y'all!

Cuz is paying $400 and the client GUESSES FMV is $800. I doubt FMV is that much, but I'll use it. He sent some comps and the comps are dumps.

So, 2 brothers bought grandma's house for $200k. Grandma's stuff is still in the house, all "downstairs." They are renting upstairs to a cousin for $400/month. They intend to clean the place out, clean it up, and use it as full-rental property within a year. They didn't want it vacant, so cuz moved in. Not sure how to depreciate upstairs, especially knowing this will change for 2018. Any suggestions?

Well, Aunt didn't *have to adopt her. She was awarded her niece in court, and I have a copy of the papers.

The interest on savings from the 1099R income was $480 in 2017, the first full year of income. So, there must be a good amount going into savings. Aunt's income is about $55k. She has one other child of her own. Since the income is on a 1099R, it is unearned and that's why I was doing the kiddie tax. Does that help?

The tax is hitting them real hard, yes. I do need to get the Aunt to check on SSI for her, too.

HMMMMM..... Aunt isn't treated as a living parent? I thought she was since she has legal custody. I need to re-think this if so. Aunt is providing over half the support, and is saving much of the money. Not sure how much, but there's plenty of interest income derived from the savings account.

Cha CHING! Getting paid for amendments is good for me. I hate amendments. I love money. I'm so torn... TORN, I tell ya.

He does get guaranteed payments. I still adjust for the SEHI, right? I'm confused about the guaranteed payments statement. I didn't think that had anything to do with the SEHI.

AHHHHHH THANKS! I'm sorry... it's an S Corp, not a partnership. I knew that. I just wrote it wrong. So, I am right to adjust the SEHI, but not the SIMPLE. Whew.

My client receives a W2 and K1 from a partnership. The W2 has box 12 Code S amount of $12,500. Has this already been adjusted out of Box 1? Or do I take the adjustment for a SEP contribution on the 1040? The difference between Box 1 and Boxes 3 and 5 is not $12,500. Box 1 = 83,786 Boxes 3 and 5 are 90,804. Box 12a is S 12,500. Self employed health insurance is 5,482, reflected in Box 14. I always take the adjustment for SEHI. I hope I have not been missing the SEP or SIMPLE adjustment.

New client is raising her niece. Client's sister was murdered by her husband who committed suicide, all with the then 4-yr-old at home. They were both military. The child now receives income from the military which will last I don't know how long. It's about $20k annually, with a 1099R for reporting. The child is now 7, and I need to do 2016 and 2017 returns. Do I need to know anything special for this? Aunt has all the paperwork to claim the child, and will sign for the child. Aunt claims the child on her tax return, and the 8615 kiddie tax of course is played.

I'm doing the Dorito Dance over those 2% deductions, ISTG.

Thanks! The land was in there. Property assesses for much less than purchase price, and has nothing to do with FMV, either. So the original preparer really did these people an injustice. I would never have known, just following the prior returns.

Clients sold a rental property that had been depreciated at $192k, which was a tax assessment value and not the true basis. They were new to me last year, and I followed the prior returns for depreciation. This didn't come up until they sold it. The real basis should have been $232K purchase price plus $6856 closing costs at purchase. I believe to correct this, I must do the 3115. But I want to know if there is an adjustment I can make on the tax return in the year of sale (2017) without the 3115.

If they would audit tax-in-a-box, VITA, free military prep services, and every single DIY'er, I'd be good with it. But to line us up and use us as free auditors, well... it goes all over me. I can't tell you how many clients we all have lost because TT allows them to click a button saying health care was unaffordable, and totally dish off the penalty. Rental property, depreciation, on and on... DIY'ers. They are making a killing. I truly believe that after this year, if a client goes away for a year, I am not taking them back. I've taken back at least 6 clients and the thrill is gone. When trust is broken, I am not taking them back anymore. It's trouble, and it's no fun. Sorry, I got off topic.

Thanks for all the input. I really appreciate it. I do just love this machine. I take good care of it, keeping it clean, etc. I don't mind spending money on good machinery, though. Never thought of a refurbished printer. Some things to think about. Thanks again~