BulldogTom

I still use QB 2003 desktop on my Win10 computer. I have the install key so every time I change computers I can re-install without QB knowing about it. I turn off the internet when I install, turn off automatic updates within QB, and then turn the internet back on. Never checks for updates, never changes anything about how it works. I don't use it for payroll, just my own bookkeeping. No hiccups. Never an issue. Intuit can bite me, I am not paying for a new version every year that does nothing more for me. Tom Longview, TX

Start up cost it is. IRS allows you to expense 5K of start up cost in the first year (rest is capitalized over 180 months), so it goes on the ID rental Schedule E. Works for me. Tom Longview, TX

How about this - the TP is already "in the business" of renting property to a tenant, and he continues to be "in the business" of renting property to a tenant. The only thing that has changed is the location of the business property rented. It is just a continuation of the same activity. Flimsy, very flimsy. Tom Longview, TX

TP exchanged Rental in CA for Rental in ID. While the CA rental was under contract but before it closed, he went to ID to look at property with a realtor, identified the property he wanted, and completed the exchange 1 month later. I think the travel to ID should be allowed as a deduction (it was critical to him completing the exchange), but I am not sure where to put it. I don't think the CA rental is correct, but the ID rental was not in his possession at the time of the travel. Is it part of the exchange costs for calculating deferred gain? Thanks Tom Longview, TX

I had the opportunity to work with Moss Adams when I was a Corporate Controller early in my career. I was not impressed. Overpriced and un-responsive are the first two words that come to my mind when I think about them. After I left, the Moss Adams CPA assigned to our account took over my position. He called me a week after I left and asked how to pay the corporate PR taxes online. The company was sued for wage and hour violations 5 years after I left. Big verdict. Your article does not surprise me. Tom Longview, TX

NATP. Speaker Jaye Tritz. Rita is correct. From the 1099 instructions. Form 1099-K. Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. See the separate Instructions for Form 1099-K. Tom Longview, TX

I am having a hard time with this one. Speaker at the seminar says that if you pay a contractor or vendor with a credit card or other electronic payment system, you don't have to provide a 1099NEC or 1099MISC since they will be getting a 1099K from the payment processor. My issue is, can you really transfer your liability to report the transaction to the payment processor? It seems too good to be true. What happens if the IRS audits? Tom Longview, TX

That is hilarious.... Tom Longview, TX

I am not doing PR returns anymore because of situations like this. CA company wants to hire a former employee. The former employee moved to AZ a couple years ago when she married a military member. They have permanent residency in AZ, but are now stationed in GA. The employee would be remote and work from GA, or whatever state they are in while the spouse is in the military. I think I remember a special rule for military spouses in this situation... Also, does having a remote employee in GA or AZ create an income tax filing requirement for the CA employer? Tom Longview, CA

Hope this is resolved by ATX. I am going to have to file K2/3 next year and I am not looking forward to it. Tom Longview, TX

@kathyc2 I am confused by this. Do you have the time to educate me on it? I put in the client information and it comes back with a $795 estimated PTC based on household size, age and family income. Then it shows me all the plans. I filtered on the silver plans. Do I have to go through each of the 27 offerings and figure out which one is the second lowest cost? Thanks Tom Longview, TX

OK. Thanks. I don't deal with these projections much, just the aftermath when they hit my desk in Feb/Mar. Did not realize that the SLCSP price was not established (hence the PTC they can get is also not known) until after the taxpayer has used the insurance for 10 months. Tom Longview TX

Trying to do an estimate. Client wants to know how much APTC they may have to pay back. I can't find any info online for the 2022 amounts. Everything is for 2021. Am I searching incorrectly? Is there a place to find it? Thanks Tom Longview TX

Not sure about NYS, but here are the instructions from IRS.gov for Federal. Call IRS e-file Payment Services 24/7 at 1-888-353-4537 to inquire about or cancel your payment, but please wait 7 to 10 days after your return was accepted before calling. Cancellation requests must be received no later than 11:59 p.m. ET two business days prior to the scheduled payment date. Tom Longview, TX

Manual entry? Yikes! Tom Longview, TX

I agree. Advanced age and forgetfulness is a condition that should qualify. The sense I get from the IRS is they really don't want to assess this penalty if the taxpayer has already fixed the problem. Compliance is more important than punishment on this issue (besides the optics of taking senior's retirement savings - even if it is justified under the law). Tom Longview, TX

I don't have an answer but I am interested to follow this string. Hopefully this is resolved before the 2022 returns are due as I will be dealing with this issue next February. Tom Longview, TX

Vote-a-rama is happening now. Looks like credits tied to EVs will also be tied to domestic content of the vehicles and batteries. IRS will have to publish eligibility lists of vehicles that meet the domestic sourcing requirements for the credits. Interesting twist. @NECPA in NEBRASKAyou may be waiting a while before you get a good selection of vehicles to choose from. The senators from Michigan predict it will take a couple years for domestic production of rare earth minerals to catch up to demand. Tom Longview, TX

It looks like this act has a good chance of passing now. The most interesting/challenging for us as preparers will be the energy efficiency credits. Lots of categories of improvements with different max credit amounts, and some of the credits come with regional income limits, and they will be able to be claimed in 2022. The credits can be big (leading to abuse/fraud?). I think I saw that you can get $14,000 for retrofitting your home electric panel and wiring if you qualify. I see big headaches for us trying to get this figured out. Get ready to take a few webinars on these provisions. I read one article that says these credits might be able to be "stacked" year after year (so you can do some windows this year to max the credit, then do some more next year and get it again). If this passes, we have another couple years of job security (until Congress decides to "simplify" the returns again and then we will get more job security) s/ Tom Longview, TX

Cheater! Tom Longview, TX

You beat me to the post. You must type fast..... Tom Longview, TX

Just to start the conversation.... At time of inheritance in 1987 wife gets full stepped up basis to FMV from decedent. At some point, W gifted half to H (per the recording document), and the basis in his hands is the same as it was in hers. So you need to find the 1987 FMV for your starting point basis. In 2014, because NY is not a community property state, I assume he inherited her half. He gets 50% of 2014 FMV basis for her half. Assuming there were no improvements or other changes to basis in the intervening years, the calculation is 50% of the 1987 FMV and 50% of the 2014 FMV. Tom Longview, TX

If you are asking who the Congressional Rep is, google "what congressional district is (clients address) in". That is what I did. Search came back with the congressional district and congressman's name. Went to his website and got the contact information for the client. Gave them a quick primer on what to ask for and what to be ready to provide to the congressional staffer. Told them to make sure they told the congressman's staffer about the disability status of the spouse (hey, it can't hurt for the congressman to know that disabled individuals are being hurt by the IRS inaction - but it may not help). Tom Longview, TX

In my client's case, I know exactly why it is being held up (and I completely understand why). I can provide all the backup documentation for the position taken on the return so they can make a decision. I am ready to go to appeals if they deny, and tax court if the appeal is denied. When I got through to the PPL (32nd phone call over 2 days), the PPL rep told me they cannot pull the return from the department where it is held and they can't take any info from me until it is released by that department. You can't fix something if the IRS is unable/unwilling to work on the return with you. That is why I am asking my client to call their Representative. When I first got my EA license, it was not this way. The PPL was the ticket to quick resolution of disputes. There seemed to be a more professional relationship between representatives and IRS agents on the PPL that we were both working to clear up the issue and move the return to the next point in the process, either a proposed change to the return by the IRS or no change and accept the return as filed. The returns we worked on represented both our backlog and it made sense to work together to clear up the dispute. How I long for those days to return. Tom Longview, TX

Congressional Inquiry. Each congressional office has an IRS liaison (so I am told). They will contact the IRS and ask them to get an answer to the taxpayer. Taxpayer has to make the contact with the congressional office, you can't do it for them. I heard this one at a tax seminar last week. Not sure if it really works, but it is worth a shot. The presenter said he has done it several times and usually the IRS gets on the ball within a couple weeks to at least get the return moving through the system again. It makes sense that congressional members up for re-election in a few months will want to make taxpayers happy. I am trying this method this week with one of my clients. I will post back if they get results. Tom Longview, TX