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Or stop processing such 'hot' stuff!

The 'fair tax' is highly regressive, increasing the tax burden on the poor. Also, I'm sure a national sales tax would lead to a lot off-the-books cash deals, because it's such an easy way to avoid the tax. I much prefer the Robin Hood Tax.

I don't think that any states will allow the PTE deduction, because it's not a 1040 page 1 AGI adjustment and it's not an itemized deduction. It's probably going to be slipped in where personal exemptions used to be.

When I was encoding the screen capture videos into hi-def wmv files, my computer started overheating. I use SpeedFan to monitor my computer temps and alert me when it's too hot. My CPU normally runs about 45-55C, and the alarm sounds at 60C. The alarm sounded and the CPU temp climbed to 64C, so I turned my AC down to 68F and had to blow a fan on my computer to get the temp down to about 57C. Maybe I should have a bigger CPU cooler installed.

Oregon has 4 personal tax brackets, 5 %, 7 %, 9 % & 9.9 %. In Oregon the 9 % rate is reached rather quickly. Oregon never allowed the DPAD deduction at the bottom of page 1 of the 1040. Four years ago Oregon passed a reduced PTE tax rate of 7 % for any S Corps or Partnerships who employed at least 1 full time employee ( not an owner ) in each calendar quarter.. Therefore the TCJA's 20 % PTE Deduction created a double dip situation. Oregon's response was to not allow the TCJA 20% PTE Deduction. Instead Oregon decided to keep their reduced rate of 7 % for PTE 's with at least 1 full time employee plus allowing Schedule C filers with at least 1 full time employee to also use the lower rate.

This is the way this worked out. If I added 100K in a W-2, then AMT kicks in but remember you will be using the 2018 ATX software package. When I clicked on form 8949, under options, I selected type of transaction 2, but please correct me if I am wrong. Then I clicked on “Sale Principal Residence” on the bottom choices. I entered “House” on the description of property. I entered 05/01/2000 as the purchased date and 08/31/2018 as the selling date. The software automatically calculates the total number of days you owned the property. Then you have to enter only the non-qualified days which are 1,399 days. Why will you pull out the calculator and add every month (46 months) when you could simply state that the non qualified days are the “date purchased” and the “date sold” AND then the computer will give you the exact number of days. Let me explain it a bit, not for you for the others (I know you are smart). Enter 01/01/2009 and 10/31/2012 and put the computer to work to give a total of days of 1,399, which are the non-qualified days. Once you took note of the non-qualified days, please enter the correct dates. The rest if just answering yes or no and entering $100K on the accumulated depreciation. A video is worth it 100 pictures but I don’t have a video…. So I have a picture… so I am attaching a pdf. Please don’t argue that a pdf is not a picture. CPAYARDLEYandATX.pdf

Nice instructions. Thank you!!!!!!!!

Here are a couple of my short and sweet letters, if you want to play around with them. I don't add the late payment penalties part of the letter until after 4/15. It's a little tricky getting the estimate portion arranged because each payment must be pasted into ATX separately, and you need to rearrange the 4 lines that are the default in ATX, into 2 lines. Federal Refund Direct Dep.rtf Federal Refund Direct Deposit Partially Applied.rtf Federal Bal Due-Penalties.rtf

A while ago there was a thread on the best and worst states when it comes to handling taxes. As the states get their teeth around the TCJA, we'll start to see those that have uglier sides. I nominate CT. On May 31 the governor signed a law that pass-through entities must now pay tax at the entity level, at the top rate of 6.99% of course. Partners and S corp members will get a credit on their individual returns. Problem is that we tax pros found about this on June 13, two whole days before the 2nd quarter estimates were due. So now all these entities are two quarters behind, and interest and penalties are threatened unless the individuals "recharacterize" their individual estimates as paid by the entity. It gets worse. Yesterday we learned that the state has decoupled from the new bonus depreciation that went into effect Sept 27, retroactive to Jan 1 2017. So anyone who filed a perfectly accurate return this past season and took advantage of the bonus now has to amend their CT and pay interest (at 1% A MONTH) and possibly penalties. To ask for abatement, taxpayers have to go through the usual channels and send "evidence and documentation" to the DRS legal department. I feel like sending them the whole 1100 pages of the TCJA! I can't wait to spend days culling client returns to find out who was affected and then tell them they owe CT money and us money for the amendment. The fact that no notice came from DRS until it was too late suggests they were being sneaky, didn't want anyone to notice. We need a DRS liaison in this state, and a legislature that doesn't pass laws that penalize taxpayers retroactively. I can't wait until November!