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Opened one of my return mailers early this morning and found this, it fits all of you. I guess I can't raise her fee this year. I Love my Tax Guy (Gal) He's such a peach Whenever I need him He's always in reach He gives me wise counsel His rate is so fair He even forgives me If I happen to swear

No aunts? I guess this isn't a picnic.

S corp can rent the space but self-rental rules apply. Taking money out as rent reduces amount available for reasonable salary.

This is why I went with Square, Free mobile swiper, 2.75% fee.

Pacun, no, you were correct! A relative isn't necessarily a related party under the tax law that I cited. A cousin would NOT be a related party under the rules of 280A. Along with cousins, these people are also excluded from the related party definition: stepparents, uncles, in-laws, cousins, nephews and ex-spouses.

I'd suggest a 10% discount to a good tenant would NOT make it personal use, still close enough to FMR for me, but I don't have any clients with rentals right now so haven't researched that lately. However, IF it were personal use, you report income, gross income, on Line 21 and take NO deductions, I think. Maybe deductions on Sch A, but I think not. So, you haven't pocketed anything, less than if it were an arms-length rental on Sch E where you can deduct expenses and depreciation. I'm glad to hear that a cousin doesn't muddy the waters. Long ago I had a client who let his daughter live in his second home really cheap, so had to research at that time. He was not happy with the outcome! He was expecting to deduct his foregone rent or something like that.

Enforcement is being stepped up. What I mean is states (IN recently) are ruling and going after employers who are not withholding tax on the insurance premium. (Most handle by adding the annual amount to the W2 as described by the IRS and many/most states.) The enforcement change is not employee based, but is caught under audit of the employers. Even though, the WH ends up being a wash (via credits), the tax entities want the money up front (wise owner/employees already properly manage their tax deposits via W4 and/or personal payments). I found one reference where an employer was in trouble for not withholding or reporting the insurance amount, even through neither the employee or employer took the deduction! A penalty on zero... At first, I thought I had "missed" something, in the way we were doing what our customers asked (to just allow alteration of the EOY forms). As of today, I see many are still doing the same, asking for EOY figures only, not withholding on a per payroll basis. Not that this means I was correct, but only I was not the only one wrong... (Background, this all started with IRS notice 2008-1, the double dip prevention tool, where the amount was pushed to the W2 for compliance purposes.) When pondering what to do, I see there are important collateral issues. The insurance amount could be wages for garnishment calculations and WC calculations, among other things... (with some possible exceptions). Start new topi

Strictly not allowed.

QCDs can be made from inherited IRAs, but the owner must still meet the age requirement for QCDs, meaning that this new owner must be 70 1/2 or older.

Jasmin, You might want to look into "Go To My PC" a neat app that lets you work on your computer from a different location than where the computer is housed. The other location can be from another desk computer, etc.. I've use it often. My DIL works for a huge insurance company and introduced it to me. She uses it such as when she has a sick child and needs to be home but has to get a presentation finished for a meeting, etc... Take care, Cathy

I was mistaken with something I posted in the rules. Locking the topic stops any more postings, but it does not shut off the access to the emoticons like feature, so this is to record the final tally on the voting posts for those of you that shared - 10 - RitaB 8 - Bulldog Tom 7 - jcarlson 2 - NECPA

You don't have to benefit from the debt to be responsible once you signed the loan documents. What the 1099-C reads is that you were responsible for a debt and that the bank forgave that debt because it was easier to let you go vs trying to collect their money. I am surprise the bank didn't go after the co-signer since he/she is solvent and if I were your client, I wouldn't call the bank to re-open the case. You must be insolvent in order to use the 982 shield, so your client most likely is liable for the tax.

^ this. Sec 280A defines "family" by referring back to sec 267(c)(4) that reads as follows -

Was she still covered by her parent's insurance? If yes, leaving the box unchecked is correct.

From IRS instructions for form 1099-C, page 5. 7. Guarantor or surety. You are not required to file Form 1099-C for a guarantor or surety. A guarantor is not a debtor for purposes of filing Form 1099-C even if demand for payment is made to the guarantor. https://www.irs.gov/pub/irs-pdf/i1099ac.pdf

The 1099C was for $12 k. She is going to contact her son to find out if he also received one.

I use Go To My PC as well. I can log in from anywhere. I would use Square if I was not otherwise integrated with Qbooks. Rich

And thanks for replying, Catherine!

Yeah, I screwed up the Social Security and Medicare and deducted for the non-MA W2 as well. Surprised ATX doesn't have that right since W2s are coded to state. I could have overridden the interest, but I always feel like I'm doing something wrong when I override.

I can't tell if some characters in the code are lower case L's or number 1's...

Being responsible to the lender is one issue. Being responsible for the 1099C is another. The 1099C should not have been issued to the guarantor, but the banks invariable do this. Unless the bank issues a corrected 1099C, which is a near impossibility, the only solution is to wait for the IRS to issue a CP2000 and then appeal it. In fact, I´m doing just that for a client that co-signed on a $500K loan that defaulted.

Form 5695 has been modified and appears to be ready for the Windows credit that I've been waiting on. Sch A has been modified to accept the PMI payments.

Your cousin is NOT a related party. Your cousin is nothing more than your friend.

I practice a lot.

IRS released clarification of home equity interest deduction in this IR 2018-32 with examples. <<- that link goes to the IRS site. If you don't like links to outside of this forum, here is the post I made on this forum with the entire text right after the IRS issued its statement.

I'm sorry you and the others had to deal with that. Our work is stressful enough without that kind of drama and worry.

Oh heck, yes; perfectly nice agent promised me several years of transcripts yesterday morning, 7:20am -- had got into Practitioner's Hotline by 7:01am (with, yes, only a 1-minute wait). Last thing, last night I finally whinged to my spouse how disappointed I was; did the agent mis-transcribe my fax number (how come they seem never to read it off the 2848 or 8821)? Whom should I report my missing faxes to, too? Interestingly, I was resorting to PPS because e-Services had barred me for allegedly entering incorrect logins thrice, the day before. Well, even had I mis-typed the login the first time, I certainly hadn't, the second time. When I called that 'third strike' false to an e-Services Helper an hour later, he told me that e-Services recalls our errors for *weeks* now. And, yes, I had mis-typed a login some time ago in the misty past. (Sic)

I am so flippin' excited to see you again, girlfriend! This will be so much fun! I'll bring the 'Ritas! And maybe a Cowboy!

Happens to me frequently. Of course that section I quoted probably won't be extended for 2018 because I just spent $$$ on a new gas furnace last month!

You should be proud of yourself for only one incident of excessive vulgarity/profanity. If it wasn't excessive it would just be routine and normal and not even get an honorable mention. Proud of you brother, keep up the good work!

That ought to cover it!!

A discount to a good tenant who won't trash the place can be allowed. True below market rent to a related party is simple personal use. Line 21 income, no expenses.

From that... to Tax Stud. What growth you have shown! LOL! Rich

Hey, it was my first tax season with ATX. Swearing was the only way I could get through it. I had to enter all assets because none of them converted. And then the letters. Oh, the letters...

Thanks much. I get nervous when I don't see peeps.

Great F_ _ _ing post.

That's a damn good record!

I know we're deep into tax season so pardon the diversion, but I'll share one of my favorite pics from the past couple of weeks. And yes, we did hike all the way to the top & back down.

I've been out of the country off and on during the past few weeks. Still around - lurking but not posting much. But back active now - thanks for asking.

Both have visited this site today.

Does Judge Judy qualify for a star? Skipped to the 13:25 minute mark and enjoy

Did you try worksheet for line 14e? I'm sure Catherine will know what to do if that doesn't work.

IT's a Trap! Don't do IT!

Holy cow, the cost to take the exam just went up to $181 for each of the three sections? That's a major difference from when I took it 13-14 years ago (or at least it seems). The EA license was easily the cheapest license I'd ever seen a person could acquire back then.

I don't have anything to offer, but I wanted to say 'Good Luck'. You've got this!

I am a moderator on that page. I can let anyone in that wants to join.

JB or anyone else that would like to take the exam and if you are on Facebook, look up a person by the name of Don Overstreet, this chap has a FB page for EA candidates.

Testing for this cycle ends Feb. 28. The new testing cycle begins May 1. Most people in our group allow 4 - 6 weeks for SEE1, 6 - 8 weeks for SEE2, 4 - 6 weeks for SEE3. This is based on 2 hours a day study time.

I tend to think that the sooner you take the tests following April's deadline this year the better insofar as the questions should follow closer to what you have been accustomed to for all of these years. If you wait until late 2018 or 2019, you'll be dealing with the newer rules and regulations as a result of the new tax laws. I'd rather try to stick with what I know now than wait and take a chance on what I'll have to learn for the 2018 filing season especially since we are still waiting on confirmation of some Extender tax issues for our 2017 returns in progress. Food for thought: I've had clients in the past who have asked me if I was an EA. When I would tell them "no", the vast majority of them would say they were relieved because I wasn't an "IRS Agent". Just a free perk of living in the country! Take care, Cathy

So do we post our tax kook of the week nomination here? I had a client this week that I still have a headache from! Think of everything he said as being in a Gomer Pyle voice, because that's what it was. Last year, he came to me for a second look at his return because "there is no way she prepared it right last year. She didn't know what she was doing. Look at that high amount on that form (his Social Security statement). That high amount should've gotten me thousands of dollars in refunds." I had to explain to him that receiving Social Security did not actually amount to a large refund. If no money was withheld, there would be no refund from that. I also had to explain that last year's preparer did, in fact, prepare his return correctly. He argued with me for quite awhile - I had to chat my husband to come in and rescue me. I dreaded my appointment with him this year from the moment I saw it appear on my calendar. This year was worse! He insisted on claiming his daughter because it was his right to claim her because she was his daughter. No SSN. No support paid to the mother, and she did not live with him. I told him that I would need a signed form from the mother allowing him to claim him or a court order that gave him permission to claim her. Aside from that, I could not put her on his return. He told me he didn't care what the IRS or the courts said, he should get to claim her because she's his daughter. (Remember Gomer Pyle voice) Then he freaked out because "every tax form is required to have a dollar amount on it (?) and that form there (insurance documentation) doesn't have a dollar amount on it. While I don't think the dollar amount on it should be as high as a thousand, it should have at least $500 on it." He had to get additional documentation to me to finish his return, and I finished it last night. I knew I should've just sent him on his way with his documentation on Sunday, but I thought maybe I could talk some sense into the guy. He came in to pick it up today and refused to pay the measly $60 I charged him "because you must've prepared it wrong. You don't know what you're doing. You're scamming me out of my money. You wouldn't let me claim my daughter. That paper I brought in from the mobile home park (lot rent) had a lot of money on it, and I should be getting at least $1000. And $60 is too high. A normal tax return is only $25." Guess my nine plus years of preparing returns does not qualify me to prepare a simple property tax credit in Michigan. I can't believe I could only get him around $300 when he got all that FREE Social Security money! I did invite him to pick up his documentation and take it to the place that would only charge him $25 and would know how to prepare his return. I just hope all the paper they give him has dollar amounts on it! Have a great night, everyone!