ILLMAS

TP inherited a building (100% rental, no personal use) with a FMV of 1M, a family member lawyered up and wanted a piece of the pie, after of a couple years of back and forth negotiation, TP and family member settled on $200K, TP also paid about 50K in legal fees. Would the 200K be an increase to TP basis and the 50K could be expensed on Sch E? Thanks MAS

I could do that, however I like to sign the returns and stamp it "COPY" in blue ink before scanning them.

Filing cabinet

You are absolutely correct, just take a look at this: http://chicago.cbslocal.com/2018/02/27/change-of-address-scams/

If a client mails or hands me their documents, it's stay in my office overnight or even weeks until the return is completed, once completed, I then scan the return copy I am going to issue my client and any document that supports the tax return and save it as one file.

Have you considered just scanning and placing them in a folder per client on your computer?

We don’t, after going paperless all paper return are digitallly stored, just like the tax software files.

http://chicago.cbslocal.com/2018/02/23/napkin-dispenser-thief-walks-it-back/

Also read that both the co-signer and borrower should of received a 1099-C, was this the case?

If this was a federal back loan wouldn’t the co-signer be held responsible? Also you mentioned a $500K loan, in order for your client to qualify, her income had to be high and maybe that why they are going after her.

Does Judge Judy qualify for a star? Skipped to the 13:25 minute mark and enjoy

I hate when that happens. Thanks

Are you the famous person from Gliem?

Before I make the dreaded call to the TP, if one had a very low income during half of the year and qualified you for PTC, TP gets a well paying job that provides health insurance, PTC stops, yearly income is kind of high, is this a cause for PTC phaseout? Or would the TP still qualify for half of the year only at the lower income and there is something I need to click on ATX to calculate for half of the year? Thanks

JB or anyone else that would like to take the exam and if you are on Facebook, look up a person by the name of Don Overstreet, this chap has a FB page for EA candidates.

You got exam 1 & 3 if you passed the RPRT exam, very similar, exam 2 (basis) is another animal. Many of the exam 2 questions were from exam 1 so you should be good, expect 15-20 questions on basis, I recommend leaving all those questions until the end and answer back to back.

Can a TP claim HOH when parents live outside of the country (Canada)? TP at a minimum meets the more than 50% support. Thanks Special rule for parent. If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother doesn't live with you. However, you must be able to claim an exemption for your father or mother. Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. If you pay more than half the cost of keeping your parent in a rest home or home for the elderly, that counts as paying more than half the cost of keeping up your parent's main home. ^^^ Rule doesn't say anything about living outside of the country and I just want to make sure there is no issue down the road.

Was the penalty paid from any refundable credit?

If life insurance company uses your dividends to pay the policy annual premium and no 1099-div was issued so far, would this be considered a taxable event?

I remember it being a mess about 18-20 years when it was first introduced , even if you mapped an expense to the correct tax line, the bottom line never matched. We thought it was going to make business returns a piece of cake, the firm dropped it and went back to preparing returns the old fashioned way.

File all of them as 1120S (don’t be a hero and try to save them on penalties) it’s seems your new client is habitual non-filer. Most importantly, get a retainer and informed the client of the monthly penalty he/she is going to incur for the return being late.

Can a tax return be amended more then once? I have a new client that will benefit doing so.

I would request a copy of the sisters tax return, if the sister has a brood of kids and she doesn’t, that will make a difference.

Two words: Joel Osteen https://www.irs.gov/faqs/interest-dividends-other-types-of-income/ministers-compensation-housing-allowance/ministers-compensation-housing-allowance I like how they use reasonable in the above link