Lion EA

There is no age test for a permanently disabled child. If the other tests are met, the child will be a QC.

If it's the final return, final K-1s, then loss passes through to beneficiaries. I would take a loss if the executor has documentation: DOD valuation, comps at time of sale, not to a related party, and it seemed reasonable. If it was a $2.38 mil house that sold for a loss of $23,800 so out of state benes don't have to travel to look after it, sure. If it was a $100,000 house, no. That said, you'll have to find your own comfort level inside that range! And, if I'm taking the loss (even if I'm not taking the loss) I'd have to look into handling the RE tax refund. Seems like if it was an estate deduction, it would now be estate income. Or, netted if same year. Or, was it deducted while owner was still alive and refunded after death? As I get older and all my clients getting older, I need to learn about estates. But, not today while I'm in a panic over partnerships and S-corporations! And, clients are wanting their returns TODAY before the blizzard.

Lower of cost or FMV at donation. Different rules for appreciated property. And, maybe for inventory; but it doesn't sound like this was inventory in the hands of your client,.

I'm so very sorry. Allow yourself to grieve.

I know! They were told that only two of them qualified for Medicaid and for Rob to go to marketplace for a couple months until he qualified. WTF? And, then the marketplace accepted him for January. But, Medicaid still said No, so marketplace accepted him for February and March. Then Medicaid said they would start Rob before the end of April, to not worry as his gap would be less than three months, so he could drop the marketplace coverage during March, which he did. Yeah, less than three months, retroactive back to 1 January! That didn't show up in any of the rejection correspondence. Oh well, it was not alot, and they get their tax prep free -- partnership and join returns, NY and PA. Thankx, Jack and Ladies.

This just keeps getting better. Now DIL found her Form 1095-B online covering all three of them for all 12 months. But, I still have the two Forms 1095-A for the husband covering him via the marketplace for three months with APTC. Yuck!

Yes, several, due to change in family size, five in all if I remember correctly, from both the starting insurance company and then medicaid but two different starting dates in 2015 for three different family members due to different eligibility dates. She's a pretty good researcher but says she's not receiving 1095s from Medicaid this year. I just told her to check again.

I was afraid of that. But, the forms show only three months for one person.

I will check the box. After all, they are a freebie! But, I think they received Forms 1095-A last year, about five forms altogether as she became pregnant and their family size changed and little Miss Avery was added resulting in changes in March for one and the second week in October for the other two. And, I misspoke above, my son's forms are both 1095-A so I have three months of APTC. Now do I have to enter them? Still check the box?

I have almost none of these with Medicaid, and it's always the freebies that get me. My son has two Forms 1095-B for January, and then February-March. Then he was on Medicaid for April through December. His wife and daughter were on Medicaid all 2016. How do I enter that on their MFJ return? If I put in the 1095s, it looks like he didn't have insurance for nine months. Do I check the box AND enter 1095s? Daughter said Medicaid did not send 1095s. True? What do I need to know?

Does she pay motor vehicle tax on it? Or, real estate tax on it. Is it anchored? Or, do the renters move it &/or travel in it? Does your client drive it to the renters. Or do the renters go to the RV's permanent location?

I haven't had to get into it, so few marketplace clients, and all refunds, but something is in the back of my mind from the inception of Obamacare. Does the IRS have the authority to collect the non-coverage penalty from the client OTHER than from reducing his refund? Or, am I thinking about the APTC payback? Or, just sleep deprived? Seems like, if the client owes, we can prepare a complete and accurate return and he can choose NOT to pay the penalty portion of his balance due with no consequences to him. And, we gave him full disclosure. Is any of that true? I do have a marketplace client coming in this month, but he was a refund last year and had all months in 2015 so hopefully was covered all of 2016. And, I have a couple of clients who come in late each season who did change jobs and might have had a gap in coverage....

Nice explanation, Catherine.

I give my clients everything. That said, I just received the 2015 TT return from my new son-in-law so I can prepare their 2016 MFJ return. For a W-2 and 1099-INT, it's 80 pages.

That's just good parenting, Catherine and Pacun. Personal family expenses, incentives, gifts. Years ago my son did some counselor-in-training work with his former summer camp, having been told no tax documents. A 1099-MISC showed up. We opened a Roth IRA for him immediately. Years later, he's made use of it as they work on the bakery, Hancock NY: http://www.thebakeryhancockny.com/online_orders/default.html Order his wife's macaroons; they travel well.

If your client is organizing as an LLC, then after organizing the LLC he just files the S election to be taxed as an S-corporation. You get to skip one form, because he's already an entity in his state. I too don't understand why lawyers suggest an LLC taxed as an S-corporation and not just an S-corporation from the beginning. Some states, such as CA, have high LLC fees; so sometimes starting as an S-corp can save money. By the way, starting as an S-corp or going from a sole proprietor to an S-corp does require incorporating and then electing S status, two forms.

Not the question you asked, but have the parents check on working requirements for minors before they put their kids on payroll. In CT, kids get their working papers from their high school counselor. Different ages for different occupations, but I think 16 for office work, older for restaurants, labor, more accident-prone jobs.

I've told clients to send out W-9 requests and keep the envelope with the yellow USPS sticker re the address being no longer good. Done same with recipient 1099-MISC with Refused in the SSN box, keeping the returned envelope. And/or the return receipt requested route, and keep the documentation. Can also request tracking and emailed progress, so client can print out results from email or USPS online. That only shows you tried, and tried after the fact. I've sent the government copy in with Refused, but long ago. Client never got the $50 penalty I warned him about. Probably different now. If the client convinces me he paid and it was for business, I explain the risks and include the deduction if client chooses. The mood of the auditor will be the ultimate judge!

Thanx for the clarification, Terry.

Oh, I missed the 1120-S, just saw the K-1 from an 1120-S. (I really do need some sleep.) My $800 or more was for the personal returns. Another $750 minimum for an S-corp, which might come out to $850 or more in my system and then receive a discount for the multiple returns, again IF I like the client. But, I usually discount heavily when I have multiple returns from organized tax payers, especially when I can export/import.

It's been a while since I've done a CA return with all those schedules. I'd guess about $800 if only one non-resident state and really organized bookkeeping and no calls/emails/etc. asking if I'm done yet. I think my forms-based invoice would come out closer to $1,000 and I'd give a Loyal Client Discount of $200, if I liked the client.

And, is CA's $800?!

You are right. You do NOT charge enough!

Pretty sure it's temporary absence. Probably still lists his parents' address as his permanent address, right?

Not until he sells the property in a fully-taxable transaction. I think. I didn't get much sleep. If the losses were deferred due to his income being too high, can they be released if his income drops while the house is NOT a rental? (I'm heavy into partnerships and S-corporations, so can't think straight about anything else. Don't like the new deadlines!)