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I think I'll just stay within driving distance of home.

I think this is one of those cases where intent actually matters, as Tom pointed out. And being military, there out to be some evidence that they were separated as well as under separate roofs. For example, while his wife was deployed was he the emergency contact for her, and while he was in the hospital was she the emergency contact for him? Did they actually agree to separate in 2010, and the deployment and hospitalization in 2011 were irrelevant to actual living arrangements? Or were they living together until circumstances separated them and they decided that they liked it that way? Facts and circuses matter.

Disagree with Jack. If you intended to be unmarried, and did not sleep under the same roof as your spouse for ANY night of the year, you were separated all year. Millitary deployment, hospital stays, etc do not count for anything in this situation. Did he spend 1 night under thse same roof as her is the only question. Tom Hollister, CA

If you have two computers, and both of them have cookies for this site, if you log off on one, then you log on on the other one, you will be logged on automatically, too. So if you have two computers, pay attention to that.

Exactly, my daughter who is a Registered Nurse and employed by a hospital receives a Tax Free Reimbursement for graduate level classes she is currently taking. The tax free reimbursement is for less than 100 % of the tuition.

We had a policy that we would pay for the course if it was related to the employee job and increased their skill. But we would not reimburse unless the employee recieved a grade of B or better. Had to wait until the course was taken and the grades posted to get your reimbursement. It ensured that the employee was serious about the courses they were taking. What happens if the employer is paying tax free dollars to the employee? Make sure to consider that angle. Tom Hollister, CA

No. ATX must have the data files and operating files on the C: Drive. Buy the 500GB. Don't listen to all those that say they moved this, or moved that without issues. Lots of misunderstanding and misinformation about the way ATX does things now. Buy the big drive, and then get an additional 1 or 2 TB drive to store data from other programs on. We have 3 systems with 240GB drives and have been just fine. 500GB is much better.

And, a 2013 deduction will be what? 2106? LL? How much is that worth to her 2013 bottom line? If she's really sure she'll be reimbursed, as KC said, she can save reporting income in 2014 if she forgoes the 2013 deduction. But, if she has any doubts on the reimbursement, she may choose to take the 2013 deduction. Lay out her options with the corresponding consequences and let her choose.

Well, it can be used now, since she paid it. If so, then the reimbursement become 'income' in 2014. If not used in 2013 the reimbursement won't be taxable in 2014. So it gives you some planning options based on timing issues.

It's never 7 year property, even if practitioners are using that shorter life incorrectly. First, the definition of seven year property includes property with a class life of 10 years or more but less than 16 years (Code sec 168(e)(1)). This includes office furniture, equipment and fixtures that are not structural components. Further, Code sec 1.48-1(e)(2) actually defines the structural components of a building - (e) Definition of building and structural components. (1) Generally, buildings and structural components thereof do not qualify as section 38 property. See, however, section 48(a)(1)(E) and (g), and §1.48–11 (relating to investment credit for qualified rehabilitated building). The term “building” generally means any structure or edifice enclosing a space within its walls, and usually covered by a roof, the purpose of which is, for example, to provide shelter or housing, or to provide working, office, parking, display, or sales space. The term includes, for example, structures such as apartment houses, factory and office buildings, warehouses, barns, garages, railway or bus stations, and stores. Such term includes any such structure constructed by, or for, a lessee even if such structure must be removed, or ownership of such structure reverts to the lessor, at the termination of the lease. Such term does not include (i) a structure which is essentially an item of machinery or equipment, or (ii) a structure which houses property used as an integral part of an activity specified in section 48(a)(1) (B )(i) if the use of the structure is so closely related to the use of such property that the structure clearly can be expected to be replaced when the property it initially houses is replaced. Factors which indicate that a structure is closely related to the use of the property it houses include the fact that the structure is specifically designed to provide for the stress and other demands of such property and the fact that the structure could not be economically used for other purposes. Thus, the term “building” does not include such structures as oil and gas storage tanks, grain storage bins, silos, fractionating towers, blast furnaces, basic oxygen furnaces, coke ovens, brick kilns, and coal tipples. (2) The term “structural components” includes such parts of a building as walls, partitions, floors, and ceilings, as well as any permanent coverings therefor such as paneling or tiling; windows and doors; all components (whether in, on, or adjacent to the building) of a central air conditioning or heating system, including motors, compressors, pipes and ducts; plumbing and plumbing fixtures, such as sinks and bathtubs; electric wiring and lighting fixtures; chimneys; stairs, escalators, and elevators, including all components thereof; sprinkler systems; fire escapes; and other components relating to the operation or maintenance of a building. However, the term “structural components” does not include machinery the sole justification for the installation of which is the fact that such machinery is required to meet temperature or humidity requirements which are essential for the operation of other machinery or the processing of materials or foodstuffs. Machinery may meet the “sole justification” test provided by the preceding sentence even though it incidentally provides for the comfort of employees, or serves, to an insubstantial degree, areas where such temperature or humidity requirements are not essential. For example, an air conditioning and humidification system installed in a textile plant in order to maintain the temperature or humidity within a narrow optimum range which is critical in processing particular types of yarn or cloth is not included within the term “structural components”. For special rules with respect to an elevator or escalator, the construction, reconstruction, or erection of which is completed by the taxpayer after June 30, 1963, or which is acquired after June 30, 1963, and the original use of which commences with the taxpayer and commences after such date, see section 48(a)(1)© and paragraph (m) of this section.

I found the new "safe harbor" rules for OIH beneficial this year for a few clients just because of odd situations like this one. Most of them don't like taking depreciation on their home in any case.