David

Foreign TP has worked in the US for several years and has her green card. She is married to a US citizen and files a MFJ tax return. The couple provide more than 1/2 support for her foreign elderly parents who live in another country. I don't think the TPs can claim her parents as dependents since they are not US citizens and don't live in the US. However, I want to make sure there aren't any special regs that would allow them to claim the parents as dependents. Does anyone know if the couple can claim the parents as dependents? Thanks.

H & W own commercial property that is leased to their S Corp business. They have reported the rental information on Sch E in the past. Recently they put the property in an LLC for legal protection. I will be getting an EIN for the TPs. Can a H & W continue to file Sch E or do they have to file a 1065? Thanks.

New client has a commercial building owned by the 2 owners of his main business. They have each reported the rental information on their respective Schedule Es. They are now forming an LLC for the property and haven't used attorneys in the past for their rental properties. The property going into the LLC is a commercial buillding leasing space to their business as well as other businesses. Does anyone know where I can go to find a free Operating Agreement template to give to the client? The bank is requiring one. Thanks.

Thanks for the update. I see the ACA area but don't see the ProSeries area. Where do I find the ProSeries section? Thanks.

TP had $82K relocation expenses paid by her new employer. She terminated her employment after 16 months and did not realize that if she did not stay for 18 months that she would have to pay back 2/3 of the relocation expenses - $55K. $23K of relocation expenses were included on the TP's W-2 wages. Another $11K was paid for transportation of HH goods, which was not reported as income nor was it deducted on the TP's tax return. $42K was paid for home sale costs and was not reported as income on the TP's W-2. This is the largest amount of relocation expenses paid by the employer. Is my understanding of the correct treatment for the repayment, as follows, correct? It appears that the TP can either claim a deduction or credit for repayment of amounts under a claim of right only for 2/3 of the repayment related to the amounts included in the TP's income. Accordingly, 2/3 of the $42K home sale costs would not be able to be included in the deduction or credit. Or is there some way to deduct this amount? Also, is the TP allowed to deduct 2/3 of the $11K repayment related to transportation of HH goods on her 2014 Form 3903? Or would this be included in the deduction or credit for repayment of amounts under a claim of right? Thanks for your help.

Single shareholder S Corp is considering changing to a SMLLC. I know the S Corp will have to be dissolved and there could be a taxable event for fixed assets transferred to the SMLLC. Since payroll will not be processed how is the full 401K contributions/deferred salary issue handled on Sch C and the 1040 for the SMLLC? The TP also gets the catch up contributions. She has maxed the 401K benefits in past years. Since the TP is now a SMLLC is the only option available a SEP, SIMPLE or other retirement plan except a 401K? Thanks.

Thanks for your help with this. Regarding the reduction in basis from the distributions and the gain at the time of sell - I read that the tax on the distributions is deferred and when the MLP interest is sold the distributions are taxed at the TP's ordinary rate and not LTCG rate. I thought the gain would be taxed at the LTCG rate. Why isn't this treated the same as the gain from sale of a Partnerhip? Thanks.

Can anyone direct me to a good source regarding taxation of MLPs? A client's financial advisor is recommending an MLP, among other options, for retirement planning. My client is in his late 50s. Everything I read regarding MLPs cautiions the investor about the complexities of the taxation of their MLP investment. I don't see why the caution is prevalent in every article regarding MLPs. The K-1s are no different from other PTPs. Or am I missing something? I no longer have acces to Intelliconnect since I haven't renewed. I checked the IRS website and found nothing. Thanks for your help.

OK, thanks. So based on my client's situation, since they have equal custody and my client has the higher AGI, his ex is deemed to be the noncustodial parent and cannot take the credit. Is my understanding correct on this? As I stated at the end of my last post, if they both can't take their portion of the childcare expenses, he will want her to take the credit. If she does take the credit will the IRS care since only one person is claiming the credit for the child? Or are they a stickler about the noncustodial parent taking the credit while the other party does not take the credit? Thanks.

Thanks for helping with this. I read the same information and didn't think it answered my client's situation. I must have misread the information. Since the TP and his ex have joint or equal custody and the divorce decree says my client's ex will claim the child as a dependent for 2013, and the child stayed with each of them the same amount of time, does my client, who had the higher AGI get to claim his portion of the childcare expenses? Does this mean his ex cannot claim her half of the childcare expenses - a credit can't be claimed for the same child on two different tax returns? Knowing my client he may defer and let his ex claim the credit. I guess if that is the case, the IRS doesn't care as long as the credit isn't claimed for the same child on two different tax returns?

Newly divorced TP is filing single and is not claiming his child this year. He will be able to claim his child every other year. He and his ex split the daycare expenses. ATX is allowing him to get the child care credit for his half of the expenses. I thought the credit was only available if the child is claimed as a dependent. Is ATX treating this correctly? Thanks.

Thanks for clarifying. I thought if somehow I could attach the court order then I would be able to e-file.

I can't figure out what I need to do in order to e-file a decedent's final 1040. The decedent is due a refund and the court has appointed a personal representative. I included a pdf copy of the court appointment and tried e-filing with and without form 1310. Does anyone know a workaround or how I can get the return e-filed? Thanks.

New clients each receive a 1099-MISC from the same MLM business with each one's appropriate ssn reported on the 1099. The 2012 tax return shows a Sch C with both their names reported and reporting 100% of all revenue and expenses. Their records report all expenses combined. I am trying to figure out how I can report the Sch C in ATX the same way the previous CPA did but I can't figure it out. Anyone know how to do this and how to handle the 1099s reported to each TP's ssn? Thanks.

Thanks, Rita for the information. The client and I are re-visiting this. It may be worse than I thought. The TP is not 59 1/2. He received the total Roth distribution of $52K from his 4101K. Within 60 days he deposited the full amount into his self-directed company (which he owns) 401K plan. If $3K of the $52K distribution is earnings is my understanding, as follows, of how to treat this correct? Since this wasn't a direct rollover to a 401K Roth plan, the $3K earnings will be taxable income. The $49K principal will not be taxed. However, he is only allowed to rollover $3K (the earnings amount taxed) into the new 401K plan. If this is the correct treatment of this situation then what happens to the additional $49K that was contributed to the self-directed 401K plan? Will this be treated as excess Roth contribution? Thanks for your help with this.

TP has a charitable giving fund with Franklin Templeton. The TP received a letter from Franklin Templeton acknowledging his contribution to a charitable foundation. The letter also states that the charitable foundation has exclusive legal control over the TP Charitable Giving Fund. The total value of the stock given to the fund was $19K. Stock was held for more than a year before given to the fund. The letter appears to indicate that the TP gets a charitable deduction for the full $19K. Only $6K was distributed from the charitable foundation fund to various charitable organizations. My questions are: Isn't only the amount distributed from the charitable foundation fund actually taken as a deduction? In this case only $6K? Isn't the deduction for the stock reported on form 8283 and reported separately for each organization that cash was distributed to? The various organizations included the cash amount given from the charitable foundation along with other cash giving in their annual giving statement. Do I report cash giving to these organizations for only the cash given outside of the cash distributed by the charitable foundation? As you can tell, this is the first time I have had a client do this. Thanks.

I am completing a 1040 for an S Corp owner. I realized that the DPAD information wasn't entered on the K-1 statement for the 1120S. Of course, the 1220S has already been filed. I entered the information on the 8903 form in the 1040 as though it were reported by the S Corp. Is it necessary to amend the 1120S just for this K-1 statement information? Thanks.

Does anyone know anything about this? Thanks.

Thanks for your help on this.

I guess I should have used "foreign per diem" instead of "international per diem" in the search.

Judy, Thanks so much for the links. The weird thing is that my client can't let his parents, me or anyone else know where he goes. So I have no idea which country he was in. Right now he is somewhere out of the US waiting to be assigned to some country. Anyway, I am guessing that the ME&I per diem rate is subject to the 50% limitation. Is this correct? Thanks.

Does anyone know a quick simple way to find the 2013 international per diem rates? Intelliconnect is worthless and the IRS website doesn't show those rates. Each source only shows US rates. Thanks.

TP is filing for the foreign income exclusion on Form 2555 for his 1099 income. Not all of the 1099 income will be excluded since the income exceeds the max foreign income exclusion amount. Shouldn't the SE tax also be excluded to the extent of the max foreing income exclusion amount? I can't find how to exclude the income on the SE schedule. Please advise. Thanks for your help.

Is this a Sch D loss or Sch A subject to the 2% threshhold?

Client gave a day trader $7K to invest in TUI trading and lost all of his money. He has tried contacting the company and has not received any response. He understands the company is having legal issues. Has anyone had a client who lost money with TUI? Is this loss reported as a capital gain loss on Sch D or as a loss on Sch A subject to the 2% thresh hold? Thanks.