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This goes with my research materials, such as AnswerConnect. I think. Or, continuing education. Or, with dues & memberships. Or, something VERY usual & necessary for my biz. (I haven't done my own taxes yet, so don't remember. Not enough room in my head. This is overflow storage.) I read everything here and learn from everything here. Thank you, Eric. And, thank you, everyone.

A great reminder. I am a donor, but when someone steps out to help me, I like to donate a little in their honor, too. Quietly of course. It just helps my spirit. Shhhhh... don't tell anybody.

Actual footage of me enjoying coffee with the phone off the hook.

A while ago, if we liked something posted, we would reply and write "I like it". This would cause posts with dozens of entries and few answers. Now we don't have to type but just to click. Have you donated lately, if not PLEASE donate while supplies last. Eric deserves a token of appreciation. On this post, please don't use the new features, but rather reply with a "I will donate now" or "I don't have much work so I won't be able to donate"

Great site. Although I haven't posted any questions or issues this season, I have posted a response or two and have enjoyed reading some of the posts. I just donated! I actually never noticed the "Donate" tab until the subject was brought up in one of the posts. Thanks to those who make it possible! Scott

I use dues or subscriptions - this forum is worth FAR more to me than a bunch of journals I get and never have time to read.

And thanks for having a site that puts spaces between the groupings of the credit card number. I love sites that do that! Now, what expense account to put this very necessary expense to. Software and fees sounds about right.

The replacement property's basis should have already been reduced by the deferred gain, if it was done correctly, so there should be nothing you have to do. The current gain will include the deferred gain by virtue of the deferred having already reduced the basis of the property being sold.

That's one more reason to use the "duplicate return" choice from the "file" pull down menu. By doing that, you leave the original filing intact. This is what you can do if having two returns causes you confusion: 1. Open the original return which is name John Smith. 2. Pull down the file menu and select amend return. This will create Copy 1 John Smith 3. close both returns and rename John Smith to "John Smith Original" and the other you can rename it "John Smith Amended" 4. Open the "John Smith Amended" return and make your changes. 5. Next Year roll John Smith Amended. Once you have in ATX2019, rename it to John Smith to avoid future confusion. I do rename after the roll over because I don't want to think that we have amended in future years. I know that some of you create a PDF of the original return, which is a good idea but I don't do that. The above instructions always work for me.

Tom - there are specific rules. Many of the conferences have 'blurbs' about it in their ministers guides or some such thing. Copied below is one of the Lutheran 'blurbs' because I don't know how to attach a .pdf. We have a few clergy experts on this board - MAMalody, JJstephens, and I think there is at least 1 more. They can explain it far better than I can. I think all of the conferences/denominations school their clergy in these rules, because the Ministers definitely know about it ;). Retired Ministers – Housing Allowance If you are a retired minister of religion and at the time of your retirement your name appeared on an LCMS official roster of ordained or commissioned ministers, you may exclude eligible housing expenses from taxable retirement distributions reported on your federal tax return if certain conditions are met. Benefits earned while a minister are eligible for housing allowance exclusion when distributed to a retired minister. To be considered “retired” for this housing allowance exclusion depends on a minister’s specific circumstances. Ministers who are uncertain whether they are “retired” for this purpose should consult with a tax advisor to discuss the facts and circumstances involved in their individual case. The relevant issues involved in determining “retired” status are beyond the scope of this brief summary and are specific to each individual. Please note that if you are receiving an “in-service” benefit from the CRP, you are not considered to be retired for purposes of claiming a housing allowance exclusion on the CRP in-service payments distributed to you. If you are eligible to claim the housing allowance exclusion on retirement benefits and your eligible housing allowance expenses equal or exceed the amount you listed on Form 1040 Line 4a, then enter $0 on Form 1040 Line 4b. If you did not use the entire distribution as housing allowance, then enter the unused amount on Form 1040 Line 4b. The housing allowance exclusion applies only to those retirement benefits earned while a rostered worker. It does not apply to any benefits you might receive as a result of some other member’s participation in one of these plans or survivor benefits you or your spouse may receive. While the Internal Revenue Service has granted retired ministers this exclusion on their own retirement benefits, it does not extend to beneficiaries of a retired minister or survivor benefits paid to a retired minister. If both you and your spouse are considered retired ministers of religion, only one of you will be allowed to take the housing allowance exclusion unless your eligible housing expenses exceed the total retirement distribution amount received by that one person. In that case, the additional excludable amount can be applied to the retirement amounts received by the other retiree. It is equally important to remember that while benefits from retirement plans are reportable and taxable (minus applicable exclusions) as far as your federal and state income taxes are concerned, they are not reportable or taxable for Social Security purposes. You are not required to pay any Social Security or Self-Employment tax on any retirement benefit received from the CRP or CRSP. For more information of interest to ministers, go to www.irs.gov for a copy of Publication 517. Publication 517 contains details on housing allowance, social security, taxable ministerial income and includes various worksheets that you might find helpful.

OP said 1099R. I agree with you on the 1099-Misc. To clarify, my comment above refers to a 1099R.

One of the reasons I love working remotely!!!

I usually wait until after Thanksgiving to purchase. Usually early December. I got a call from my rep at the end of November and he gave me the 10% discount if I would purchase before the end of the month. My credit card was charged on November 30th. Tom Modesto, CA

Should be zero federal tax after the 600 exemption. State may have tax.

About 3 or 4 years ago, CA realized that people were doing exchanges, deferring taxes, moving out of state, and then selling the asset they deferred gain on without telling them and paying their tax (imagine that - sounds like good financial planning!). They now have a form 3840 that you must file every year to tell them about the asset, even if you do not have a filing requirement in CA. Fail to file the form and you get hit with a tax bill for the amount of deferred income. This is probably TMI. Tom Modesto, CA

If there were zero distributions then the income stays in the estate. If income was partially distributed, part will pass out and part will stay in. It's just like a trust.

Case in point: Several years ago while changing payroll software I transposed 2 digits in the SSN of the office manager of my 2nd largest write up client. She didn't notice and I didn't catch it for 2 years. I filed the corrected W-2s for 2 years. She never received a letter from the IRS or the ODR regarding the wrong SSN.

New law eliminated like-kind transactions on anything other than real estate. For cars and other tangible property traded in, you would report this as a sale using the trade-in allowance as the sale proceeds. Record the new asset as a purchase separate from the trade-in.

There is another post about the same question and it was answered with graphics for people like you and me who spent a few minutes locating something on the first page.

Let's keep it within our business: We are suppose to be able to file the taxes for the capo if he escapes prison and walks to our doors and states that he made a few millions last year... CORRECT? We are supposed to file the taxes for the prostitute in the corner and I normally don't issue 1099 to her nor do I have her on my payroll, DO YOU? As state before, as long as they don't hit the sweet spot for EIC or as long as they don't want to make their return look better as requested by the realtor, I add their cash and I like those type of clients. Send them my way. (I am talking about this paragraph, not the two examples above)

I agree, if there is no W-2 or Schedule C on the return for either spouse, they shouldn't contribute to an IRA. Technically, you should ask them to take out those $1K and earnings before April 15 because they made a "not permitted transaction".

I agree with jasdlm and Gail. Retired ministers can indeed benefit from the H&U allowance. They must file paperwork with the pension plan designating ALL their pension benefit as H&U allowance. The 1099R will show the gross benefit, but there will be no entry in the "Taxable Amount" box. (That is the clue that they have filed the paperwork to designate the H&U allowance). The H&U amount excludable from income is subject to the same rules as those for employed clergy - lower of 1) amount actually designated; 2) amount actually spent; 3) FRV of the residence, fully furnished and with all utilities paid. In most cases, this is why they should just designate the entire amount as excludable and then make the calculation for 2 & 3. They then attach a worksheet to the return showing the total payments per the 1099R, a reduction for the amount actually spent for H&U expenses, and the net taxable retirement benefit. I show those calculations on the worksheet in summary form only. I also photocopy the 1099R onto the worksheet. --> Incidentally, there is no requirement for the H&U allowance to appear on the tax document (whether it is a 1099R or w-2). The box 14 entry on the W-2 is informational only. Even if it is missing, the HU& allowance is still excludable if the other conditions are met. <---

And I found it. Never mind. For anyone looking, it's under the "over 65, blind, deaf, etc." boxes.

I have had a couple of retired ministers, and I do it basically the way JASDLM describes. I do ask them for their actual expenses/ rental value as well and use the lesser of the three, just like with a working minister. Usually the portion they have designated is the least but it doesn't hurt to be sure. As far as I know their are no clergy worksheets to go with the 1099R, at least not in ProSeries.

I believe you just subtract the housing allowance portion from the gross distribution box and enter what is actually taxable, if anything, in 2a. If the minister is actually retired, no SE, but if the minister is not retired, I think you have to consider whether subject to SE.

I looked into this last week sometime and came to the conclusion that if the premiums are deducted by the taxpayer, any benefits paid would be taxable. If premiums are not deducted, benefits are tax free. I think it's in IRC section 104. I remember telling clients in the past that you can't deduct owner disability premiums on Sch C. It may not be so much that you can't, but that it would be a bad decision to do so.

Exactly then the next thing they say is I could probably just do this myself.

The couple has to take those contributions out right now. If they do so before the filing deadline it will be treated as if they never contributed. I don't know what the software is doing, but sometimes software is quirky when trying to handle something that is not possible (like contributing to an IRA with no earned income).

Just file it. The IRS doesn't get around to matching until November at the earliest. I just checked wage transcripts the other day and they were still blank. The shutdown really screwed everything up.

Whoever took vacation with kids left the other parent behind in a QUIET house! Not sure that doesn't qualify for a "win" all by itself, lol.

Tell them getting good tax advice is like buying oats. For a reasonable fee, I can provide you with good-quality oats. But if price is your only consideration, you may wind up with oats that have already been through the horse.