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About jklcpa

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    ATX Supreme Guru
  • Birthday 05/01/1960

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  1. Tax Star of the Week for 2/16 - 2/23/18

    OK, posting is over for this week. I'll start a new topic for the coming week. Voting will end tonight at 11:59pm eastern time. I gave it an extra day to allow posts late in the week to have a chance to be seen by members that visit the forum less frequently.
  2. Clarification - Heloc; 2nd's, etc.

    Yes, the interest on home equity loans and HELOCs already in place will still be deductible, up to the limitations, IF the proceeds were used to buy, build, or substantially improve the residence or second residence. This is because the "buy, build, or substantially improve" is part of the definition of "acquisition debt" that was already contained in existing tax law, and acquisition debt will continue to be deductible. Keep in mind lenders use the term "home equity" in the title of products they offer (home equity loans and lines of credit) but the tax code's definition of the term "home equity debt" shown below specifically says that if the debt qualifies as home acquisition debt, then it is NOT home equity debt. This is why the interest on home equity loans and HELOCs NOT used to buy, build, or substantially improve will be nondeductible starting this year.
  3. NT - Where is JohnH? Where is OldJack?

    Both have visited this site today.
  4. W2 Verification Code

    Here's info from a client's W-2 produced by ADP - control # 000128 BALT/HYE verification code: bcea-4c7f-24e6-372c One more W-2 from Paychex - control # appears as 2 lines: 0027-0027MP30 0000000017- verification code: efb7-f5bd-cdf8-93ad Is this helpful at all?
  5. Clergy W2 - Is this correct?

    It really depends on facts and circumstances of how they were hired, how they are directed by the organization, if they can be fired...much like any other employee that we look at to determine employee status v. self-employed person. Your client may actually be properly classified as an employee, but you should ask to be sure the W-2 is prepared correctly. If you google "topic 417" on the IRS page, you'll find more information. Even for a minister that should be reported as you described and expected, the minister and treasurer can agree to withhold as FIT amounts sufficient to cover the minister's FIT and S.E. taxes, making it possible for the minister to avoid paying quarterly estimates altogether. In that case, the W-2 would be reported with boxes 1, 2, and 14 filled in.
  6. help with basis

    Terry, where property is held as joint tenants, the surviving spouse does get a step up or step down of basis for the 1/2 of the property inherited from the deceased, just as JB described. It is different with community property.
  7. help with basis

    JB, if the house was held as joint tenants, not community property, then I basically agree with what you have written that I quoted below. Remember that basis of the gift will be donor's basis plus any additional improvements, but would be FMV at time of the gift + improvements if its disposition results in a loss (obviously not the case here since its current value has continued to increase): I also agree with Lion that there could be additional basis in each of the holding periods: mom & dad may have made improvements after its purchase in 1978 and before dad's death in 2001 where mom would share in 1/2 of those expenditures, mom alone may have made additional improvements between 2001 and the transfer to 3 son's, and there could be additional basis if the son's did anything to the house beyond ordinary repairs and upkeep.
  8. There's been some discussion on various tax forums that I visit where members are debating whether or not this interest paid on home equity loans, HELOCs and second mortgages will continue to be deductible. IRS has issued IR-2018-32 in answer that is shown below:
  9. Resources on new tax law - PLEASE, NO CHAT

    Link to IRS News Release & Statements page concerning the new law.
  10. Tax Star of the Week for 2/16 - 2/23/18

    NONVOTING POST - Look, I took a selfie : Aww, Tom, sorry. I've been waiting to see if anyone else would nominate someone or make more posts. You're all stars in my book.
  11. Tax Star of the Week for 2/16 - 2/23/18

    Vote here for @RitaB as I am nominating her for a star because of her announcement last Friday in the "ATX client letters" topic that she is willing to play host to a bunch of you this coming June 23rd. Rita, you are a treasure, always willing to help and always with good humor.
  12. K1 and W2 box 12 code S adjustment?

    Don't worry about the guaranteed payment statement. That was mentioned because you originally said this was a partner in a partnership that issued a W-2 and a K-1. Yes, your client still gets the SEHI, assuming he meets the requirements.
  13. Taxable event

    Those dividends won't create a taxable event until the policy's cash value exceeds the total of premiums paid over the life of the policy.
  14. Extenders update

    Huge thank you for posting this! I have only one affected so far and client is scheduled to pickup at 1pm tomorrow, to be amended later on. It's an easy fix that I'll take care of in the morning.
  15. More Oversight Again ?

    I swear to God