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Well, I'm not really at liberty to discuss my other problems. Gag orders, you know.

for Rita -

Right on - ROLLOVE!!! That's what I'm talking about!

I just want that last "R" in "ROLLOVER" to print. Here's to another year of "ROLLOVE". You know I gotta write it in. Sigh.

IRS = Lois Lerner = corruption from the top down = IRS Nothing new here....

I'm thinking a lot of that should be a capital loss. See what you think after reading pub 535, page 3, middle column at the bottom under the heading "going into business", if you don't go into business and the expenses were incurred for a specific business or project. About the legal fees, were those to handle the purchase of the business and all that involves, or was part of that to try to recoup his deposit? The part of the legal fees that were for the investigation and purchase of the specific business, I'd consider part of the capital loss. If part of those legal fees were incurred in an attempt to recoup the deposit, I'd be inclined to separate that out and put that portion on Sch A as a miscellaneous itemized deduction as legal fees that are paid for the production or collection of income, or preservation of assets. Those are my thoughts right now on how I would consider this without research. Maybe some of our other members with more experience with purchasing businesses will chime in if I'm off the mark on this.

I've missed a few myself. We all have something to contribute, JB. It's never a 'dumb question' if it's an honest one. Heck, sometimes it's the seemingly 'easy' question that turns out to highlight some tricky issue. I've learned a lot from just answering some of those. We all appreciate you, JB, so don't ever hesitate.

JB, you and anyone else should never feel that way. I know I've made my fair share of mistakes on here, and research materials and internet searches have save my butt at times too. Everyone brings something of value to the site, and I can say unequivocally that I'd be begging for reassurance if I had to do some of the EIC returns that are presented that others here answer with ease. The same goes for obscure farm issues.

In regard to Turbo Tax. I had a new client yesterday who did his taxes on TT last year. He didn't print a copy. Since he is a new client and I always like to see the prior year return, he went online on my computer to access his 2013 return; which he had been told would always be available online. It is available all right; but in order to access it you have to purchase the program for the current year. If anyone has ever questioned my vendetta against anything Intuit; you can believe that this only made it worse. Unbelievable!

I use the import/export too. But the Backup files is in Program Data/CCH Small Firm Services/ATX 2014 Server/ATX 2014 Backup. Listen to Jack, don't mess with it. But I do copy it to external backup HD.

In addition to the spot on answer above, I would simply ask if the monies were spent personally; or did he have an entity set up that the money was being funded through? It would make a difference in the answer.

I was having the same issue on my own return; I kept bouncing from having a 3k refund to owing that amount (I've received no advanced credit because when I got insurance I didn't think I was even in the ballpark for getting a subsidy). I figured next year if I am close, it is very easy to manipulate income when you are SE; sec 179, IRA, solo K contributions. Or just take a week of CPE at Disney World again :)

If I read the article correctly, the former employees with prior conduct issues who were re-hired had new conduct issues. Well Duh, ya think? The ones who had unauthorized access to tax records were re-hired? Now that really bothers me. Unauthorized access would leave one to believe access was gained by unscrupulous methods for possible criminal actions. Geez.

When people are busy with actual returns, and someone posts a complex 'sample' problem, you are not going to get a lot of responses. Especially that one, which had so many factors and weird $ amounts, IMHO. Made my head hurt just reading it.

Naveen, This is off topic, but I have been thinking about you. Hope you are hanging in there strong. Let me know if there is anything that I can do for you. Tom Newark, CA

Within ten miles of the zip code where I work, I am #1

Thanks Tom & Judy. This is the English I understand now. At one time I was planning to claim the whole premium paid minus credit and let the IRS bounce it back with CP notice and deal with it. The problem is from 60k SE income with MFJ & 1 dependent, 11K out of pocket premium and 3k Credit from market place in NY. So playing with the formula the REG 14-41 explains is from 6+K refund to -3K pay back is crazy. I am not even sure IRS computer has some kind of cross check for SEHI for now. But then it becomes issue with wrong filing and possible preparer penalty. I am sure that I am having fun this year. All other cases of Shared responsibility is easy to work with so far but this SEHI seems like a BIG ONE. Again Thanks for explaining in plain English. I appreciate it.

The $200 and $500 amounts both apply to the "De Minimis Safe Harbor Election" and that is the 1.263(a)-1(f)(i-ii) one. They both fall under the same code section so there are not separate elections. Your accounting policy could have both amounts or not. They are annual and do not require a 3115. The "Small Taxpayer Safe Harbor" is the 1.263(a)-3(h) and that applies to eligible building property whether owned or rented. The Form 3115 requirement comes in relation to the new definition of "units of property" and various other new descriptions in the regulations. So even if you feel, as I generally do, that my clients are not actually making a change in the way they account for all of these costs; it seems you still need to file for a change since these items or terms did not previously exist in the Code so going forward you need to adopt them to protect yourself and your clients. Just a lot of effort to kill some trees, paper your and the IRS files, and generally drive everyone crazy during the coming months. Thanks IRS !!!

Yes, always backup your backups! I back up the whole ATX 2014 Server folder. Actually, I backup the entire (hidden) ProgramData folder even though a lot of the stuff in there isn't really important.

I totally use export and can find all of my files on the jump drive as well as the total system backup. I don't have time to mess with anything else. You know that, Jack!

JB: Your client never spoke to a lawyer about changing the title. They might have, but probably didn't. And if they did, I do not know a reputable lawyer who would not have told them to go to the court house and file this deed to put the title into your clients name. Heck, the lawyer would get paid to prepare the documentation. Your client was not interested in paying the small amount that it would take to fix this mess. So your client was just covering their butt. They haven't done the most basic steps to figuring out what to do after the death of the mother. Call an attorney friend, and recommend that they get your clients straight. The mortgage can be transferred, and if not, then the lawyer can do the paperwork to file if there ever IS a sale, transfer or other issue that may make the title a problem. Sometimes we are doing tax returns, and sometimes, we are the only professionals with whom many of our clients interact with on any regular basis who have any clue about fixing stuff like this. Rich

Good news! I was able to locate new software and drivers for the Samsung, and now it is working just fine.

Yours is older.........mine is a 5 or 6.

Never is that going to happen! You have no idea how many times I feel that way.

Oh My!!!! Am glad that is your biggest problem right now.

Dan, I stand corrected on the 8965 submission. IF you are not claiming any exemptions, etc. there is no need to file the 8965 -- you would just use the worksheet to figure the penalty, etc. but you do not need to "file" the worksheet. Sorry, I got hung up on "shared resp. pay worksheet" and TOTALLY went brain dead on the bigger question. The instructions if read "slowly" (at least slowly by me) does state no need to file 8965 unless exemptions, etc. Apologies again.

There is no way to code the 1099G worksheet if the only amount shown is a repayment. If it is for a prior year and is less than $3000, you would have to enter it directly on line 23 of sch A, and if client can't otherwise itemize then there is no tax benefit derived from the repayment. Repayment of unemployment compensation. If you repaid in 2014 unemployment compensation you received in 2014, subtract the amount you repaid from the total amount you received and enter the difference on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. On the dotted line next to your entry enter “Repaid” and the amount you repaid. If you repaid unemployment compensation in 2014 that you included in income in an earlier year, you can deduct the amount repaid on Schedule A (Form 1040), line 23, if you itemize deductions. If the amount is more than $3,000, see Repayments , earlier. If over $3,000 and for a prior year, see pub 17 for general handling and possibly taking a credit against tax under a claim of right.

With all the new information, I agree that this is clearly a case for your client taking the deduction.

I'm glad to see the client name in the backup file names.

Jut found this: Example 11—unmarried parents. You, your 5-year-old son, and your son's father lived together all year. You and your son's father are not married. Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, and joint return tests for both you and his father. Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Neither of you had any other income. Your son's father agrees to let you treat the child as a qualifying child. This means, if your son's father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed earlier, you can claim him as a qualifying child for the EIC and any of the other tax benefits listed earlier for which you qualify. I don't do a lot of EIC returns so it's not an area of expertise.

Hey, I'm not greedy. Left you some room there. I can't think past two siblings. Are you kidding?

Here's the part that bothers me: Why in the world would it ever make sense to have a regulation that says you can not consider known prior bad conduct?

OK, I've taken myself around in a complete circle. Is it $200 OR $500? $200 AND $500? Or is one materials/supplies vs. capitalization and the other something else entirely? And, which election section is which? I'm getting more confused the more I read.

Yes, Rita L is correct, right above the tiebreaker rules: "If they cannot agree who will claim the child as a qualifying child, and more than one person actually claims tax benefits using the same child, the tie-breaker rules (explained below) apply."

The tiebreaker rules come into play if two people try to claim one child; the IRS steps in to break the tie. If the parents living together cooperate, which I would expect since they're both parents and living together, you can work it out to the best benefit of the whole household staying within the law. Pacun's way works. However, did she (maybe via a joint checking account) pay half the upkeep of the house? It is possible for her to be HOH if the housing costs aren't expensive. You see their whole picture. Run the numbers every way you can think of. Do a housing spreadsheet. Also, some planning for 2015 is an opportunity for you to help them pay the lowest legal tax liability.

Client can't deduct the mortgage interest because client has no ownership interest in the property. Mother can't claim the deduction because she didn't make the payments.

Use only the amount that applies to 2014. There is a worksheet on the SS tab.

Do you have an answer or just wondered if I knew to use gross income? Anyhow I'm hating having ACA questions over here all lonely and nobody looking and sniff, sniff.