joanmcq

Do you put the amount of payment on the efiled extension or zero?

It's the way other countries like the UK do taxes. In the UK, only self employed have to file returns.

Client has filed MA returns with the rental losses and losses are showing on the return, but not netting against the capital gain. The losses are from the property that was sold. Am I missing a checkbox on the MA return somewhere?

Client had MA rentals as a nonresident for years, never had income. Sold one property this year at a huge gain. Are there any carry forward losses available to deduct against the income now? Losses were deductible for fed & home state, but never paid any MA tax. Or does MA compartmentalize types of income?

I did just have one of my habitual non filers (well, he'd show up every 3 years or so) file for maybe the first time ever before April 15. I told him the IRS computers may explode.

Yup, it's only a part of the employee contribution that you use each year.

Well not all of them, but it's looking like 2/3. That ain't my usual, other years it's only a very few. This sucks.

I qualify in less than 10 if I sign up at 62, 12 at full retirement age. Speak for yourself!

file it late and there will be penalties. Not your fault they didn't tell you about the income.

You need to calculate it using the simplified method. However, if he is below normal retirement age (whatever that is for the post office) it is all taxable until he reaches retirement age.

What 'make money on rentals'? I make money on my rentals! Maybe I should try farming?

You are amortizing the gain over several years.

Yes, I've actually had to explain to some clients that, yes, glasses and hearing aids and wheelchairs do count as expenses. And if you are paying premiums and not getting insurance through your employer I can see a lot more people taking medical expenses. Of course I'm also going to start amending that extremely egregious fraudulent return I got as a prior year return for a new client. I ask, I explain, and I always want the prior year. How else do you know if they itemized, or have carryovers without looking at the prior year?

I'm totally fried on this return. Anyways, depreciation. On the vacation home worksheet, there are checkboxes I'd the expense is 100% allocable to the rental. Like advertising and management fees. Got that; we get to take them at 100% against the rental up to the income limit. So we have two columns: expenses disallowed due to ratio, disallowed completely. Then disallowed due to income limit, available for carryover. Nearly all the dep goes to the latter column without the box checked. If I do check the box, it allows the depreciation in full? I'm thinking, well there wouldn't be dep if it wasn't a rental? And then think well, that doesn't seem right that the program is allowing a loss above and beyond income if I do. i believe I am overthinking and should just leave the damned box unchecked and move on. But then I get a nagging voice saying what if I'm wrong? I'm way too tired to muddle this through.

The last one is one reason I have Square.

They have a separate property agreement. So no 50/50 split.

I'm only starting my extensions tomorrow. I have some that are in prep already that I'll likely finish because I'm mostly just reviewing, a bunch that have just come in that I've told are on extension (anyone in the last two weeks or so) and some I am struggling through.

Ugh, I'm working on amending both MA & NY. NY is a breeze compared to MA. I gave up on trying to make the $20 of interest non-MA. Sch E & E1? Try having a vacation home allocation and it wouldn't subtract out the Unallowed expenses. Had to manually zero to get them to match federal. And they should have; no bonus depreciation or anything.

You can't deduct the remaining c/f. It just carries forward up to 20 years.

CA doesn't have any type of penalty for MFS vs single, but I don't have a tax table in front of me to look at MFS /single vs MFJ. If they have a separate property agreement in place, there isn't any CP allocations. Can you give us some numbers?

The records at the courthouse/tax assessors' office might not be computerized, but they probably exist. Permits should have been pulled when the original house was razed and the new one built. When the house was sold were there any areas that couldn't be included in the square footage because they weren't done under permit? I see that all the time here. This is not YOUR job; tell the client the basis is zero and work from there. And ask mom unless she's got dementia.

S-corp predates marriage although they were RDP before they got married. Client is looking at whether mixing real estate and coffee shop could run afoul of the licensing for RE if it is co-owned. Attribution is different than actually owning the shares. Anyways, I think we are going to treat it as 100% client and then spin off the coffee shop in 2016 to its own corp. But we can't pull out the coffee shop from the corp; all income and payroll is under S-corp EIN.

Ignore the tax amounts and net income. Code V plus cost to exercise shares should equal basis. Oftentimes the shares 'sold' to cover the tax withholding aren't included in the shares sold.

Yup, MSBA Taxation here. AND I understand accounting. Should I start saying 'unlike EAs who only focus on tax and aren't trained in accounting' every time we are discussing a business entity with a balance sheet?

If it was me, I was in the middle of a post and never finished it until this morning. Last night, after spending and hour & 45 minutes with a new client that will be worth it; needs extensive planning work and understands 'extension' and 'May', I got dinner, played with dog, watched Justified. Checked on some efiles. Then my roommate/2nd assistant/mother hen told me I was going to bed. No phone, no iPad, I could read some comic books if I need to relax to get to sleep. So in bed just after midnight, asleep before 2, got 9 hours of blissful sleep. Still really tired but ready to attack a few more returns.