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The formula for partnership basis calls for a decrease if there are nondeductible expenses. One example is 50% nondeductible meals. However, in a "limited" partnership, nondeductible losses could include losses disallowed because they are passive. Question: Are passive losses required to be deducted from basis according to the formula? I don't see why they wouldn't but thought I would ask...

“The problem with socialism is that you eventually run out of other people's money.” Margaret Thatcher "A tax is a fine for doing well, a fine is a tax for doing wrong." Mark Twain "A person doesn't know how much he has to be thankful for until he has to pay taxes on it." Ann Landers "Worried about an IRS audit? Avoid what's called a red flag. That's something the IRS always looks for. For example, say you have some money left in your bank account after paying taxes. That's a red flag!" Jay Leno

“Don’t steal, the government does not accept the competition.” Unknown

"Everything is bigger in TEXAS!" Oh, you said TAXES....oops Tom Longview, TX

By far my favorite satire site is The Babylon Bee. A recent parody news story pictured one of them with a bar code on their head with the following explanation “To make purchasing congresspeople easier and faster for lobbyists, congresspeople will now have barcodes printed on their foreheads to be conveniently scanned at newly installed self-checkout machines.” The article in and of itself is funny, but the video “News Bulletin” is hilarious. I’d post a link, but it probably violates a few terms of our forum.

That's funny since Al Capone was taken down partially due a forensic accounting investigation of his finances by a U S Treasury Agent.

“They can’t collect legal taxes from illegal money.” Al Capone “The income tax created more criminals than any other single act of government.” Barry Goldwater

“The art of taxation consists of plucking the goose so as to obtain the most feathers with the least amount of hissing.” Jean-Baptiste Colbert

Government's view of the economy could be summed up in a few short phrases: If it moves, TAX it. If it keeps moving, regulate it. And if it stops moving, subsidize it." — Ronald Reagan

Copied from Forbes: “For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” — Winston Churchill “Income tax returns are the most imaginative fiction being written today.” — Herman Wouk “I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.” — Arthur Godfrey “A liberal is someone who feels a great debt to his fellow man, which debt he proposes to pay off with your money.” — G. Gordon Liddy “The taxpayer: that’s someone who works for the federal government, but doesn’t have to take a civil service examination.” — Ronald Reagan “The income tax created more criminals than any other single act of government.” — Barry Goldwater “Collecting more taxes than is absolutely necessary is legalized robbery.” —Calvin Coolidge “This is too difficult for a mathematician. It takes a philosopher. The hardest thing in the world to understand is the income tax.” — Albert Einstein “The difference between death and taxes is death doesn’t get worse every time Congress meets.” — Will Rogers “In 1790, the nation which had fought a revolution against taxation without representation discovered that some of its citizens weren’t much happier about taxation with representation.” — Lyndon B. Johnson “Why does a slight tax increase cost you two hundred dollars and a substantial tax cut save you thirty cents?” — Peg Bracken I'm smiling but I don't feel any wealthier

I truly asked my hairdresser yesterday and she said that I was doing just fine. She is self-employed too.

Can he use up the old excess in 2025 by not contributing that amount this year? Or, does he not qualify to make any Roth contributions this year?

I think they call it the sausage making in DC. I call it Halloween - Senators go to the doors of lobbyists and hold out a bag looking for cash to be put in. The more cash the AICPA can put in the senator's candy bag, the more chance the senator will make changes to the sausage recipe. Not appealing to watch.... Tom Longview, TX

The 6% penalty applies each year the excess contribution remains in the account. The excess and associated earnings must be distributed before the penalty disappears.

Articles in both Bloomberg Tax and the Tax Foundation say the Bill closes use of the PTET deduction by SSTBs. It also restricts the use of the 199A deduction by SSTBs. As a result the AICPA is putting a major emphasis on getting the Senate to remove these changes! Are we having fun yet

It is an SNT with the standard Health, Education, Maintenance, and Support clauses from what I am told. The trust will be funded upon her death to preserve her disabled adult child's SSI benefits. Her other children will just inherit from the estate. I wanted to familiarize myself with more information on the SNT to see what expenses the trust can deduct, as well as if the trustee has to pass any income via a K-1 to the beneficiary and what that will do to his SSI reporting requirements. The client has been working with a lawyer to update the Trust documents that were created many years ago. Her other children will be the trustees. Wanted to educate myself on these types of reporting. Thanks

Is it an ABLE account or a SNT account? It can be confusing to interpret what the client is telling us. If it is a SNT, then all income is taxed to the trustee. Not a tax advantaged plan. Take a close look at what she is doing and see if it makes sense for what she is trying to accomplish. Tom Longview, TX

Was working with an elderly client on other matters, when she told me she has updated her will which includes provisions for a Special Need Trust for an older child collecting SSI and ask if I would work with her other children and or their accountants to answer any questions on her finances if need be. I will not be handling either the Estate or Trust. Wanted to do some reading on SNT's and QDT's and looking for more information? Does anyone have any recommended articles, links or recommendation for CPE courses regarding the matter? Thanks in advance

It must be. I have never heard of a Wisconsin Energy Tax Credit on taxes.

If it's any help (NOT), I saw it the same as Catherine.

Tom beat me to the RIGHT answer!

"Go to the ATX forum, idiot."

Thanks for all the comments. Looks like the "plan" won't really work. This is not "acquisition debt." Dan, I did research the (voluminous) instructions to Sch E, line 12. Lots of cross-references to other situations. I'm happy you understand it. Thanks.

Put your house in a trust Buy an SUV Move to Canada Have another child

How much of a Roth contribution did he qualify for in 2024?