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If he has income under the table and is not willing to report that income, then wife may prefer to file MFS rather than sign a return that deliberately under-reports income.

Congratulations, Catherine! She is beautiful! We have 5 grandkids from my step-children raning from 15 to 1. We are very blessed. My 10 year old grandson is so excited to have tax season over so that he and I can spend a day together. Andrew and Katie are hoping that we will move to Colorado in a few years so that we can be closer to them and the children that they hope to have. I am already making plans. It's so expensive to move there, but we will have to really downsize. He's already picked out what he hopes will be our neighborhood.

How gracious of her to wait until after tax season I have one daughter who will be 34 soon and has no intention of marrying nor bearing children. A part of me is proud of her for bucking the norm but another secret part of me would simply adore a grandchild. Maybe that's why I'll stay in business. A client here today with her 2 yr old grandbaby who blew me kisses. They drove away and I have nothing to worry about and nothing to pay for and no need to update my will. Congrats Catherine. She's breathtaking. Spoil her rotten then give her back

Cordelia Rose arrived on the 19th. 7 lbs 10 oz, 19" They asked us to stay quiet until they got home and settled, so I've had both hands over my mouth at all times for four days now! And I just had to share with all my dear friends here.

What everyone else said. The 3115 will NOT cause problems with prior years - its purpose is to correct all those prior year problems in one swell foop, without making any changes in the deep dark past. Lisa Ihm's book/booklet is terrific and well worth the price. Once you actually sit down with it, you'll be surprised how relatively straightforward it is. What you will need to do is to manually correct depreciation on that property, because the 3115 corrections do not automatically flow anywhere; there are too many possibilities. The hardest part is to remember to MAIL in a copy to ...wherever it goes; Ogden maybe, in addition to attaching the form as a pdf to the return.

Very true. I am good at self-study and crammed for five weeks before the exams. The totally unexpected side benefit was I had zero complaints about homework from my girls that entire school year; they had seen up-close and personal what real studying looked like!

My informally-adopted (absorbed?) son and his wife are also expecting a baby girl, in September. So I'll get to be a grandma-equivalent again!

If they sell it as soon as they receive it, then it was a contribution of property and not investment income or UBTI. If they hold it until it has appreciated in value considerably, then the gain would be investment income.

Congrats, Catherine!

Lisa Ihm of Brass Tax Presentations has a self-study course on Form 3115 for only $20: https://brasstax.com/other-on-demand-webinars#548450be-8c9e-4353-83e8-2cfe301cce8f Also, download her free spreadsheets for attachments to Form 3115: https://brasstax.com/practice-aids The form is about eight pages, but you're not filling them all out, just the appropriate pages to correct depreciation.

Congratulations !!!

Gail is correct. Interest and capital gains are not taxable to 501(c)(3) organizations. They are not considered business income unless directly related to unrelated (purpose of exemption) business.

I did not think that investment income, such as appreciation on stocks, was subject to UBTI unless it was debt financed. Most of the organizations that i deal with sell stocks as soon as they get their hands on them, however, so I could not say for sure without research.

I don't see the quandry! The only thing to do is to paper file MFJ along with an ITIN application to Austin if that is where they still go. Any other approach would be ignoring the rules and regulations. In addition not doing this blocks eventually getting a green card and ultimately citizenship. I have some longtime clients who are in this exact situation, which has worked out just fine. He has renewed his ITIN multiple times with no issues.

Thank you everyone for the advice and encouragement! I really, really appreciate it.

Possi is smarter than she gives herself credit for, but this really is not as complicated as it looks at first glance. Like most IRS forms, take it one step at a time and read the directions (slowly, in my case, and sometimes two or three times!)

The 3115 isn't as bad as it looks. Use the line by line instructions. Also, if they are in a high tax bracket, they might have some suspended losses that can be used to their benefit. You can do this. It's not hard, honestly. I'm not the sharpest tool in the shed, but I can do the 3115. You got this.

The 1139 that I did for 2019 using Drake, prints it on 2 1139 forms. First page, far right column 1st preceding tax year, middle column 2nd, 3rd year far left column. Second page also on Form 1139, middle column 4th year, far left column 5th year. Check instructions for attachments. It took a while, but they received their refunds plus interest.

Since the 3115 fixes the skeletons in the closet, I don't think there is anything to worry about. You have some fixed asset allocation issues and depreciation errors to fix. You're aware of the problems, it's your responsibility to bring them to your client's attention and to fix them. Not to do so, would be a huge problem! I have never had any problems as a result of filing a 3115.

I think you're missing that they get to take all of that missed depreciation this year. See form 3115.

Congrats from a ~3 month member of the club. One never knows where or when, but it can happen anytime. Personally, family is earned, not given by birth. Adoption and absorption abounds in my family lineage.

CATHERINE: Welcome to the Grandma Club, one of the most fun clubs around !! Your daughter and granddaughter are glowing. Did you squeeze Cordelia's cute cheeks?! We spent Saturday morning with my stepdaughter, SIL, and almost-two-year-old grandson Everett on his first visit to an aquarium. He was fascinated. If he saw lettuce for the turtles or anything that might be fish food, he'd point to a fish and say, "Eat your dinner!" MARGARET: I'll share Everett plus my two granddaughters with you any time. PM me your cell, and I'll send pictures from this proud Nana. Or meet us in PA when we visit the girls who live at The Inn at Starlight Lake.

Congrats. Grandchildren are a gift from God!

What beautiful pictures! And it looks like mother and daughter are both doing well, which has to make Grandma feel well too! Congratulations!

She is beautiful. Congratulations!

Very interesting thought. The thought never really occurred to me, as I'm someone who has no kids. I do have a number of friends' kids who look to me for guidance in a number of different matters, usually financial but there has always been tangents to health and some social issues. I've gotten close to some of them and actually named one as my executor. I always say, I know a lot of good kids, now they're in their 30s and 40s, and would like to think I had something to do with their successes. Catherine has a wonderful life ahead as she watches little Cordelia Rose grow into a fine person. And Cordelia is fortunate to have a terrific grandmother.

She's four days old, and this was on Day 2.

I got to meet her today and she's even MORE beautiful in person!

Congratulations to the whole family! She is a beauty and smart too! We know because both run in the family. Enjoy this precious love.

Congratulations! And welcome to the club!

Congratulations Catherine...... Granny Shows her excitement when she hears the news...

Depends on the amount of UBTI... Are you the church treasurer? Stewardship chairman? An officer of any kind? Even if not, get the work to those that are: selling stock gifts upon receipt is a best practice.

It doesn't matter whether he received any Forms W-2, 1099-NEC, etc. All that matters is does he have taxable income? If the couple is working with an immigration lawyer, ask to be looped in. If they are not, recommend a good immigration lawyer to them. (Ask around your local networks.)

I have an identical situation, only that the wife has already filed with another preparer as HOH claiming the EIC and CTC. The husband is illegal does not have a tax ID, came to me subsequently wants me file for a tax ID and file a tax return as a self employed. His papers are in process. I am also a Certified Acceptance Agent. My dilemma is that if I filed him as MFS, if the IRS reviews his wife's tax return along with his, they might have to pay back the EIC because they are living together and he does not have a SSN. If I filed him as a single person along with his W-7 form to obtain his ITIN, then that might be a problem with immigration because the wife-legally married- is sponsoring him. This might have a negative effect on on the husband's application to be a green card holder. I have referred to the husband's attorney and advise not file an ITIN and a tax return at this time, because this will create chaos in the home if the wife has to pay back the EIC. Let the immigration attorneys sort this mess out. In Christian's case, you can paper file a joint return, and applying for an ITIN for the husband, only that the EIC would be denied. Anything is possible, only a price is involved.

MFS with a dependent and paper file. MFJ with ITIN application mailed to Austin (? where ever the instructions specify). Is there any expediting of a SSN for a marriage? Have her speak to an immigration lawyer or an Acceptance Agent. She's twenty something and owns a home but never filed before? POA and eServices to see what's up re prior years.

Good point, Patrick Michael. Now you can check on CEs uploaded to the IRS. Which reminds me that I haven't done that in a long time and should do it. Of course, keep your paper/electronic certificates, also. Look for the CE inside a square and the words IRS-APPROVED CONTINUING EDUCATION PROVIDER when registering for a course. But as PM says, make sure you know the provider or look them up to be sure. Also, CE usually means IRS/EA CEs while CPE usually means CPA CPEs, but that's just a clue.

I also used Gleim back in early 2000's and passed all the sections on the first try. I found that I never used it to do representation work. In 2018 The IRS audited my CPE and disallowed one of my 8 hour courses because, even though the provider said they were an authorized CPE provider, they were not. No mercy from the IRS and I would have to take the test again so I decided to forgo it. Make sure you verify the credentials of the CPE providers!

Really, there are more than one? You learn something new every day. Tom Modesto, CA

I used Gleim when I took the EA exam in 1999, and like Catherine, I passed all four parts in the first attempt. I was part of a study group organized by the VASEA that was using Gleim and found it very helpful. I like the organized study group for forcing the pace and for having others to work with. However, some people are better at self-study than others, so the group might not matter to you. When I took the test, I think all of the study materials relied heavily on published copies of previous tests for the practice tests and to guide the materials used. In fact, when I actually sat for the exam I recognized some of the questions as being identical and there may have been more that were but that did not stand out as much. GOOD LUCK!

@Max, CSEA decoupled from NAEA a few years ago. One could join either organization without being required to join the other. Many current members of NAEA are from California.

god bless you margaret cpa blood line inheritance is a compelling attraction still as you reference, positively influencing another blood line can do more social/cultural/genetic good than direct blood lines as a general cliché: blood is thicker than water...but often just barely and sometimes not at all

I've been around for a few years but I'm Irish and stubborn so have rarely asked for help. I'm also a one woman band here so rarely chime in because (I apologize in advance) I read daily to learn yet have little time to help. Unfair to all of you that I take yet I don't give. I learn something new every day from each and every one of you. I've done taxes since 1987. I remember peeling the label off and sticking it to the blue form at the kitchen table. I went computerized with a software called Pencil Pushers and I loved it but it went away. Then I turned to Lacerte. Too expensive so I switched to ATX which led me here. The debacle of 2011 sent me back to Lacerte but I'm grateful my short time using ATX introduced me to this incredible group of people. I lost my partner in 2018. Not my business partner but the man I simply adored so 2019 season was a shit show. Sorry if I'm not supposed to say shit. I work from home. Every single day people came in and asked "where's Eric?" I had to say "dead." 2020 was business as usual until it wasn't. 2021 has been the worst I've seen in 33 years. No one in my office. Meeting in the driveway. I won't even list the insanity of the government because I've been here daily. I know you know. I guess this post is to simply say thank you for getting me through another year. Thank you for sharing your knowledge. Your struggles. Most of the time you were helping others but you were also making me feel less alone. Going forward? I'm probably downsizing because I'm old and I'm tired and I'm furious to have done such hard work for so many years only to have them make my life and my job harder. I wish all of you a week on the beach with your family. Or the mountains. Or wherever. Most of all - I thank you. From an old woman in upstate NY who's been doing taxes way too long and still trying to do her best. My sincerest thanks

Congratulations!

She's precious, Catherine. Congratulations!

Congratulations

I used Gleim back in 1977 , helped me pass the final 2 parts of the CPA Exam

This topic is about post-season activities, and mine are still preparing returns on extension and taking webinars. I've been enjoying meeting and learning from tax preparers all over the country. That's how I manage working in a home office by myself, interacting with all of you and others online. But, I did want Sara to know how much I enjoyed meeting online and learning from VASEA members, such as Knox, Eric Duncan, and others, and hope she takes time to meet them at live functions now that she's in VA or even online.

@Lion EA, not sure if you skimmed passed the part where Sara said she misses the in-person interaction of working in an office with others and meeting peers at live seminars compared to how she now works remotely from home since moving to VA. Finding quality CPE wasn't her issue.

Gee, I'm up here in CT and have taken multiple VASEA webinars these last two years. They do a great job. I'm a fan of Knox Wimberly. That's been a benefit of this long-lasting pandemic, that there are great instructors, great courses, being offered online. So, we can take a class that might be too far away &/or too expensive (hotel room, meals, travel, etc.) if it were held in person, learn from an instructor who might not travel to our area or be too expensive for my budget. Over the last 15 months, I took courses where I wanted the topic but knew little about the instructor; but I was willing to give it a try for the small price (sometimes free). I've found instructors that way who I really, really like, great teachers with great handouts and great at reading all the pages of new laws and outlining them so I can understand. Knox Wimberly, Kathy Morgan, Tony Nitti, John Sheeley and any panel he gathers.