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Some Good News! My husband went to the Covid Clinic today and he does not have pneumonia. His lungs are clear and the horrible cough is Covid and his COPD combined. We just have to keep watching his oxygen levels. I do not recommend both people in the house having Covid at once. We are both exhausted and spend more time thinking about moving than actually moving. I was so active before this and I hate it. I hope that I get some strength back by the end of the week. I did pull out the vacuum and push it around tonight. I can only stand so much black fur from three cats. Thanks for all of the support. I am happy about the 5/17 deadline, but I don't know if any of my states will go for it. Bonnie

The "filing as surviving spouse" should be in the deceased person's signature line. the line for the signing spouse should be open Did you perhaps enter the the date of death for the wrong spouse? ( I started to say: Did you kill of the wrong spouse. but that seems too harsh even for a whiny procrastinator)

Is there a signature line for "whiny procrastinator?"

Oh, you know what I did? When the error message said you can't e-file when the taxpayer croaked way after this &^*% thing was due? I switched and made her taxpayer. Same *&^% message for the spouse croaking way after this &^*% thing was due. I forgot to switch the date of death. My bad, everybody. I'm losing it. Thank you, I am laughing.

It's nothing you did, Margaret, don't fear the weirdness (or Leprechauns) It was automatic, and it's called a Topic View Summary. It will sometimes be added to a thread based on a number of factors, but it's especially likely to show up in a thread that has seen a lot of activity. We don't see many threads that get this long here, so that's probably why you haven't seen it before.

I'm getting hit with clients who didn't get the full amount of (THIRD) stimulus regarding their children. They will eventually get the full amount, when the IRS catches up. Here is a good article that I am sending my clients: https://www.kiiitv.com/article/news/verify/verify-dependents-third-stimulus-check-money/77-087f2213-3fc1-417c-a60a-eb21210b171e I hope this is helpful.

you want to refer to MilitarySpousesResidencyReliefAct(MSRRA) https://www.militaryonesource.mil/financial-legal/legal/family-legal-issues/military-spouses-residency-relief-act/ The 2009 law allowed military spouses who were residents of the same state as the active duty member to maintain that state residence . Active duty members have long had this benefit. the 2018 amendment now allows a military spouse to elect to be a resident of the same state as the active duty member. He/she does not have to ever have lived in that state. For your couple, she will be a part-year resident of KY from before she was married. For the rest of the year, she can choose to be taxed as a MA resident with her husband OR she can make the choice of TX He will always be a MA resident unless he takes the steps to change. because he is stationed in TX, he has the opportunity to change to TX and never pay state tax again. MANY military take advantage of this opportunity. I can't tell you how many military members are TX or FL residents! There are many other state that either don't have a state tax or don't tax active duty- but TX and FL are the most often seen.

Nah.... just give her a hug....

I think Rita entered the date of death for when she's plans on murdering the surviving spouse.

Exactly.

I spent a little bit of time today watching TV & playing games. Now back to the salt mines.

keep us informed on how you feel and don't hesitate to reach out for help if you need it. I don't know what all we can do besides provide moral support, but we will provide that!

Happy Dance!!!

Have the trustee add the beneficiaries to the IRA then split the IRA into 4 separate beneficiary IRAs. No need to distribute it all out. https://www.fiduciary-trust.com/insights/naming-trust-ira-beneficiary/

I will say this, I had forgotten how much I hated those 2018 forms. The WOAT. So glad we only had one year of those.

Gee, Rita, you don't have anything else going on right now but this one tax return to do, right? In late March, early April I am sure we all work on one return until it is finished completely, then put it away and work on the next one. And we get them all done the same day we start them. Right?

was is yesterday: could have been Leprechauns!

For active duty military and Foreign Service Officers and a few other special exceptions, the 5 years can be suspended for up to 10 years. Sometimes it can get complicated if they own and sell other houses in those years. Some military people buy a house every time they PCS... then get orders the day after they have unpacked the last box. Indeed, you have to calculate the depreciation that they should have taken for the property even if the amount they actually deducted was less, If they deducted more then use what they actually deducted. Yes, I have seen this. Particularly with military... they go to a different preparer each year and it is not always entered consistently. I have seen where a t/p deducted a different amount each year for 5 years on a rental house ! Ugh! On ATX in Fixed assets on the disposition tab right under expense of disposition there is a box to check for personal residence. then you go to the worksheet on the 8949. This will put it on the 4797. Some people will use the disposition tab to take it out of service and then report it on the 8949 Sale of Residence worksheet. The main thing is that it excludes the appropriate gain and reports the depreciation as unrecaptured Section 1250 gain on line 19 on Schedule D. Sometimes the gain is less than the depreciation allowed or allowable. In that case, there is no gain to exclude but the unrecaptured Section 1250 on line 19 of Schedule D is no more than the actual gain.

Thank you Abby!!!! The article you cited is EXACTLY what i spent an hour searching for on Google but to no avail. Ringers

It was actually pretty handy to check the old ones since we're still doing 2020 returns. IRS - always out to help the preparers......not.

One of the requirements to be qualified property under sec 199A is that it must be held and available for use in the trade or business at the close of the year, and this may be why the program is stopping the deduction. I think it is available at the close of this person's tax year because the tax year for the deceased ended on his or her DOD, but you may want to research this or wait for someone else here to chime in. Perhaps someone else has run into this, because I have not as yet. Rather than marking this as disposed of and not calculating gain, you could try indicating that it is out of service and see if that correctly calculates the depreciation and still allows the QBI, or override the depreciation expense and not indicate out of service at all to allow the QBI to calculate. Sorry I can't be more help.

I'll do as many as I can by April 15 with the longer hours. I will cut back to normal hours (and less) after April 15. But I won't do extensions for April 15. I'll be able to get more returns done by May 17 so why do the extra work and time.

I'm pretending it hasn't changed. Still filing extensions before Apr 15, unless the client info fails to show up. A month is something, but not much.

From the horse's mouth https://www.irs.gov/newsroom/tax-day-for-individuals-extended-to-may-17-treasury-irs-extend-filing-and-payment-deadline

Is there ANYBODY in government standing in the gap for Tax Pros? #askingforafriend

You need closing summary from when property was purchased which the title company would have or alternatively the property records from that year. You need all of the tax return copies she can find. If you have enough documentation then you could file Form 3115 to catch up all of the expenses and depreciation, which would be deductible in the current year. Remember it's your client's responsibility to keep all of this stuff.

The ARP specifically refers to tax year 2021 with respect to claiming any RRC related to the third round of EIP.

I do my own and my daughters and I always treat those returns as if I am paid. If I am not mistaken, as long as the return leaves my computer it will be counted against my efile number.

A little déjà vu? Did you try marking the return as filed by ERO only?

Does anyone know when ATX will actually update? I have 2 clients waiting to file because of this.

This is what "power naps" are for zzzzzzzzzzzzzzzzzzzzzzzz

Last year I added an hour/night to my sleep when the IRS extended the deadline. With this short extension, I'm not doing that !! I am going to keep preparing returns longer before breaking my stride to prepare extensions, though. Maybe the first week in May.

I've been getting that also. However, I have lots of clients over $150,000 and EIP3 has a phaseout range of only $10,000. But I have to stop and calculate and reassure... Thanks for that article.

Exactly! I was certain it was something I did and still might be thus ruining it for everyone. Oh well, eventually that thread will disappear and so will the weirdness. Thanks for replying, Gail! It's good to know one is not alone.

I think ATX has an option to 'Amend' the return. Not just duplicate the return. I think you have to open the original, then there's the option to 'Amend'. It creates the 2nd return with the 1040X. Make sure you close the original and are working in the amended return.

I definitely wouldn't paper file anything these days unless really have to.

At first I thought the advisor for the client w/ the $28K fee in 2017 didn't have the fee listed on the 2019 1099, but I was wrong. The fees were $25K in 2018 & $22K in 2019.

When you click in the original (or a duplicate) return to amend, Form 1040X appears, right? Then you change the numbers in the 'original' 1040 to populate the amended column. You already know the figures for the original column. When creating the e-file, 1040X does NOT appear but, by its presence, the system knows that it is there. See the responses in General Chat where you have also posted this. I believe that the original must also have been e-filed though not necessarily by you. After you e-file, the tab under 1040 EF Info, E-filed Forms, will list all the forms that were sent including the 1040 that you altered and the 1040X as well as all other schedules some of which you may have had to add when amending. It works, really!

No, you don't see the option for 1040X. If the 1040 is there and the 1040X showing the original figures and amended figures, the system knows it is filing the 1040X because it is there. When you submit, look at the tab to see the documents e-filed and Form 1040X will show there. It is a bit disconcerting but works. One would like to think that there would be an option showing 1040X but....

Saw one earlier today. 434 different sales some with only a 5 cent gain. fee excess of 10k. TP is not a broker and doesn't know how to read statements.

A modest compromise, only applies to filing 2020 Form 1040 and the balance due. Does not apply to any other forms or payments.

Drake announced 38 mins ago that it was ONLY being extended to MAY 17. It does not include an extension for estimated tax payments - still Apr 15.

Oh Bonnie, that's horrible, I hope you both make speedy recoveries!

He inherited that IRA (she died in 2020) and moved it to his own IRA. There isn't a 1099 for that move, so next year when she is off the return, I believe I can move her basis onto his 8606. It will come out the same. Yes, I'll wait.

I can't offer to help with extensions since I don't use ATX and would probably cause more problems than I would solve, but I will keep you and ESPECIALLY your husband in my prayers. I sincerely hope you have mild cases that you recover from both quickly and completely.

I mean it sincerely, so shout out (or pm :)) if you need help.

My grandson, my daughter and my son in law all had covid 19 in early December. They had a tough week, but they are all fine now. Focus on taking care of your husband and yourself.

Why wait to announce this? If the plan is to extend to July 15, make the announcement and allow everyone to plan accordingly. We're less than a month away from the normal due date. It's not like this is a new concept. Put all politics and ulterior motives aside.

But if they have the auto extensions like last year, it will save a lot of time not to deal with the individual ones. Form 8878, etc.

Solid advice. Extensions are life savers and sanity checks, especially at this time of year and in these unusual circumstances.