Lion EA

Monday 20 April end of business day.

If they are MFS and she itemizes, then he must itemize also. Otherwise, his standard deduction is zero. Or, they could file MFJ with an innocent spouse form for her included.

Did she repay in 2019 or 2020?

I don't think so. Involuntary conversion is more like the state taking your property for a highway. But, someone on here will have dealt with that.

If he values his job, Schedule C. If he left that job, use Form 8919 and SS-8 to report it as wages and pay only his half of FICA and Medicare. Let your client decide. It is NOT other income.

The toughest thing for me is to NOT touch my face. I tend to lean on my hand, scratch my itchy eyes and nose (allergies), brush hair out of my eyes with my hand, and otherwise touch my face. I'm making a conscious effort to NOT touch my face, but it's very hard.

I have lots of "remote" clients but am pushing for all the rest to upload to my portal, mail/UPS/FedEx, fax, or use the mail slot in my front door. I'm using eSign when possible (NY won't accept any type of electronic signature) and otherwise use my portal for delivering signature pages, return to review, payment vouchers if not paying electronically, etc. I mail tax folders after e-files are accepted. We do wipe the front door handles and mail slot now, as well as all door knobs and light switches and bathroom counter/fixtures and my desk. I'm washing my hands before and after handling each client's documents. I have a bottle of sanitizer on my desk and a small bottle in my purse and tissues on the desk. It's a home office. I have a couple of biz clients that I work at their sites; haven't been to one lately, but was at the other on Wednesday and took my wipes to wipe down the desk and chair before and after I worked and had my hand sanitizer with me but washed my hands frequently, didn't shake their hands, etc. They were using paper towels in their bathroom instead of cloth towels as in the past. My clients are mostly long-time, so lots of hugs and even kisses and, at least, handshakes. But, not this year. Just smiles. I love the idea of pens, taking them with. I'd done that with pens with my info on them for years but didn't buy any this year. Still the mug of pens for clients (mostly handouts from seminars and samples mailed by imprint companies) -- I'm going to have them take them with them as they use them. I do keep the pens I use on the other side of me to NOT loan to clients. Going to be extra careful about that now. Thanx, Lynn. I got some push back from a couple of older women who drive a fair distance to come to me. We struck a compromise: they'll drop off in my mail slot; I'll call their cell with any questions; they'll return to sign (they won't use a computer and don't trust the mail) at my front door or front hall, not my office. We usually do a fair amount of chatting at their appointments, but this year we did that on the telephone instead. Signatures and out of my house. I think they want to sit in their car in my driveway for hours while I prepare two sets of returns!

Westchester County, NY, with a big outbreak, is right next door to Fairfield County, CT, so it's leaping this way. One man at a large party in Westport, CT, who didn't show symptoms until days later (he'd gone back to his home country, so a communication lag added more days) led to 14 more cases in Westport who didn't show symptoms until days later. How many people did those 14 contact before showing symptoms? Their own children, work colleagues, children's school events, religious services, more parties and social events, political events, grocery shopping, routine doctor visits, etc. During that time, my hubby was at Westport stores (Stop & Shop, Trader Joe's, dry cleaners, post office, and nearby Costco, plus three different doctor check ups for eyes, feet, etc.). Did he come into contact with one of the 14 or any of the people that previously contacted the 14? Hubby did our shopping and touched everything in this house. How many other people touched the soup can, frozen food box, dry cleaning, etc.? One of the CT cases is a hospital worker in TWO hospitals. How many people, including those with already compromised immune systems, did he contact before he knew he was sick? Another lives in NY so counts as a NY case, but worked in two CT hospitals. All of our doctors provide services in those hospitals. The CT cases will grow exponentially, not linearly. If one of us -- both old and type 2 diabetic -- gets sick, the other can't isolate, is the caregiver. How much higher is the 14% for TWO risk factors. How much higher for the second to get sick after spending weeks caring for the first? Do you understand why I don't want my clients in my home office? I need to protect them and their families, as well as my family, and everyone we come into contact with before we know we are sick.

There were a lot of deaths from AIDS before we had time to develop a protocol of anti-viral drugs, and we slowed the spread by safe sex, getting bleeding athletes out of the arena, and other lifestyle changes. Only now are we seeing a vaccine, and it's been around since the early 1980s. Without hand washing, social distancing, no hand shaking, etc., we will not slow the spread of the corona virus. It lives for hours on surfaces, so that paperwork we handle (how can I sanitize paper without the print running?), the desk or light switch we touch, etc., can be deadly to an old lady like me with type 2 diabetes. Look at Tom Hanks and Rita Wilson and they're a decade younger than I am. Our medical facilities cannot treat (there is no cure) or control this virus. If they have enough respirators, they might be able to keep some of us old people alive long enough for our bodies to recover.

I haven't done one, so it's not in my memory which way is which, but it depends on if the rental was before or after the personal use whether you get a percentage of the exclusion or the whole exclusion (except for depreciation). Look it up to make sure ATX is doing it right. "Period of Qualified Use" might be the term.

Yes, haven't really had to deal with Repair Regs issues since TCJA, but there are changes.

As well as the $2,500, there's a % of cost rule. No other renovations, just new paint? There's a rule about repairs/services/replacements you need to make every ten years or less. Those repair regs have a lot of paths. You can probably find one that lets you deduct the painting cost.

My grandmother lived to be 103. The funeral director said he ran out of magnetic flags for the cars, because he never had so many great-grandchildren old enough to drive!

Did they act like a partnership in 2019? Guaranteed payments? Business bank account/credit card? What name was on the checks they received from clients; do they have a partnership name/dba? Did they register with the state as a partnership or MMLLC?

Why doesn't he hire her in his business?

Doesn't have to be safe harbor; although, that would cinch it. Rise to the level of a trade or business. How much land is it!! But, it could happen. Ask questions. If the land is in a partnership, the founding partners could've thought they saw the possibility of making a business out of it. What do they rent it out for? Parking near a stadium?

I wait until after biz returns, usually end of March, to email them if they want me to e-file extensions.

Your client DOES have a profit motive for working. He accepted the checks. It's not a hobby. You said eight hours per day. And, he is in the business of HVAC services. (The business of being an employee would not be QBI.) Didn't he deposit his checks, so he can confirm his annual amount on his bank statements? Lay it all out for him, including whether you are willing to prepare his return under which conditions. Let him decide. He might be ready to blow it all up. Although, I'd recommend he find another job first and THEN file his returns. He can always extend and pay something with his extension. In my software, I have to chose "Qualified" or "Specified Service" or the income is not counted as QBI.

It might not be what was supposed to happen, but it is what happened. We report the past and help our clients plan for the future. It is the client's decision to accept what's reported or not. And, you can decide to keep him as a client, or not. By the way, would an IRA help him -- paying himself for his own retirement to pay the government less?

Trust Judy! Report on a 1041 at the 1041 rates.

Check that out in the IRCode. Don't trust just any old article. An Irrevocable trust is a separate entity, so I don't think it gets to use the tax rate of the grantor, who is separate from the trust. (Whose rate would you use if a bunch of siblings put an asset into a trust to separate themselves from liability?) That would be true in a Revocable trust that is NOT separate from the grantor and reports on the grantor's income tax return so, of course, uses the grantor's tax rate. But, don't trust me either, because I do very few trusts anymore!

If the apartment house was titled into the trust, the trust reports income, expenses, depreciation, etc. Make changes with the mortgage company, insurance company, etc.

The broker is not verifying that the charities are qualified per the IRS. "Taxable amount not determined" is correct. The tax preparer with the client determine and report as your software allows for QCD to print. (In my software, I have a tab where I put the amount of the Qualified charitable distribution.) On 2018's 1040, line 4a was $100,000; b was QCD; 4b was $95,000, for example. I keep the acknowledgements from my church and charities with my tax return; plus Morgan Stanley did provide a detailed list. I've been doing this and talking to my clients about doing it.

I think you have a choice for 2018 and 2019 of parents' rate OR trust rate. If low income, trust rate might be the same. If you have to deal with a contentious divorce or other than the parents (auntie hired you), you might need trust rate. I have a grandfather doing the investing and hiring me to do his grandkids' returns; luckily, the father in TN is great about emailing me select numbers off his joint return for me to use for his kids' kiddie tax schedule. (And, that's two 2018 amendments I'll prepare after tax season, because the 2018 kiddie tax did jump up over 2017 for grandson and granddaughter.)

Unless it was an incomplete gift, a life estate. Please research, but I think when dad died, mom got 1/2 step-up. Mom is still alive, so her basis is unchanged. Mom sells house? Or, daughter sells house? Or, did daughter inherit dad's 1/2? It's late, so I'm not following the timeline!