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Terry D

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About Terry D

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    ATX Guru
  • Birthday 08/08/1955

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  1. help with basis

    When reading your post, it does appear that mom gifted the house to the kids. If so, I agree with Lion EA that kids basis is mom's basis. I'm not sure about your calculations for mom's basis. If the house was joint owned at the time of death, why would mom receive a step up in basis? I fail to see how it would be considered an inheritance if it was joint owned. As I see it, mom's basis is 32,000
  2. IRA distribution tuition exception

    Yes, form 5329
  3. should be payroll but got a 1099

    I think you have to advise the client of the proper steps to take and insist they do so. That is, file the 8919, pay the tax and move on. I agree with Max W and don't like how this looks. I wouldn't touch the corp end unless I had full cooperation, understanding and well specified engagement agreement signed and in place. Your responsibility is to your client and not the corp. Just my 2 cents worth
  4. Double amend

    I missed it too. Lynn's post is the way I have always thought correcting a return was done. Never heard of the IRS accepting a superseded return.
  5. 1040NR

    Thanks Max W for the information. It is very helpful. I have already decided to pass on the return. I just wanted to know a bit more. This client gave me the opportunity to look into this so I did. I am not sure that I cannot handle it but really don't want to cut my teeth on this and in all reality, I may not ever see another return like this.
  6. Commute or Not

    I looked at all of those rules and nothing seems to fit. In my opinion and according to my past experience and the IRS rules, it is a commute. Just wondering if anyone might know something I missed. My explanation to the client was exactly as FDNY's explanation. If I get a fee more folks agreeing, I will tell this guy no deduction and if he insists on me including it anyway (already been suggested) I will send him on his way. Already explained the circular 230 consequences I will face for doing this while all he gets to do is pay back the tax. Well maybe a bit more if they determine it was willful intent. Thanks!!!!
  7. Commute or Not

    Client's place of employment, main office for example, is further away than the job site. So instead of going to the place of employment, the client goes straight to the job site to save fuel. He is an employee and not a sub contractor and receives a W-2 at the end of the year. I say this is a commute and not deductible. Opinions please.
  8. W-7 for dependent

    Does anyone know if form W-7 for a dependent on a NR1040 return can be included when the return is filed?
  9. 1040NR

    For our non-resident experts. After 21 years of filing taxes, I had my first 1040NR today. I advised this client that it would be better to seek the assistance of someone who was experienced with these type of return. I have refused to file the return at this time due to my lack of experience and understanding of some of the laws surrounding non-resident aliens. However, I was asked to still take my time and see if I could complete the return. So, here is the basic information: 1. Client is a resident of Jamaica 2. Client is here on a J-1 Visa 3. Client is performing teaching services in one of our local elementary schools. 4. Has been present in the US for 189 days beginning June 26, 2017 5. Client has an ITIN, passport and I94 form showing the type of visa 6. No income from any foreign sources only US source 7. Client has dependent child with no ITIN just passport 8. Client is married and spouse is in Jamaica 9. Client is living in an apartment locally. 10. I failed to ask how long they were going to be in the US. Do I need to know that information? Questions: 1. I see the filing status as other married 2. Would I have to obtain an ITIN for the dependent child? 3. Is the US income exempt from US tax? 4. I need to make sure I have all the proper forms to file this if I choose to do so. Sorry for the lengthiness and I do appreciate any information that anyone can give me.
  10. Business Expense or not

    Thanks everyone, Judy you did clear up my thinking. This client asked me so many questions in one interview and threw out various scenarios for me to consider, it became easy to get confused. Some home, he thought the 5k would be taken off as an expense because it was business funds used as a deposit to the building. The building is not finished nor is it in service. Knowing this validates my very first response that it is not deductible this year and all other expenses should be figured in the total cost then begin the depreciation. All is not lost but I hope I can put his mind at ease a bit. Thanks again
  11. Business Expense or not

    Client is having a building built that he will use for both personal and business. He paid for the building in 2017. He is a sole proprietor and took 5k from business funds toward the down payment on the building. The 5k represents 1/3 of the building which will be used exclusively for business. Can the 5k be deducted as an expense as it will be used to construct the portion used for business. Wouldn't this be the same as a remodel for business purposes that would be a direct business expense. The building is one solid structure and not portioned off. At first thought I said no. After giving it some more thought, it looks as though he might be able to do so. I looked at using the safe harbor method for business use of the home but am not sure about using this either.
  12. Form 4562 Depreciation - has ATX announced a date?

    I'm, so glad I switched to Drake. I have never had to wait on a form since the switch. Matter of fact, I have not had to wait on a form release since I left ATX. Just saying....
  13. Charitable Contributions - Brand New Clothing Donated

    Sounds right to me. FMV of new items is the purchase price. Just be sure the client keeps a list and the receipt from the charity. It would be helpful if the charity would put the price on the receipt. Better to over kill the documentation if the IRS requests it.
  14. Marital Blues

    I agree totally. I like to cut one loose as well just to avoid any potential conflicts. However, I do have two divorced couples who cooperate with each other very well. They insisted there would never be a problem and wanted me to do both. These folks are both very good friends as well so it would seem things could really get sticky. But...so far so good. Yes there are kids involved but again, and it may not be the norm, all is well with this.
  15. Check my thinking on AOTC please

    >>>>>If scholarship is truly greater than tuition expense, then it is taxable to the student. (Don't rely on the 1098-T- look at the record of payments!) In many cases this is moot because it would not cause tax liability to the student.<<<<<<<<< The amount taxable would be the portion of the scholarship that was not used for educational purposes. Example; if the student used the funds for room and board, those funds would be taxable. Normally, this doesn't happen in a community college. I do agree, however, to not rely on the 1098T. Also, it is noteworthy that the taxability of the scholarship depends on the scholarship.