Leaderboard

yes, just had a client with modest income who took $15k out of her IRA with 20% withholding--she still owed because of the additional Social Security income being taxed. It's been $25,000 and $32,000 since...the 90's?

Almost every client I have, has "some" Social Security included in taxable income. When I started in this business, only the "pretty well-off" did.

$3,000 net capital loss allowable per year. I have clients who won't live long enough to use all their capital losses!

Intentionally lowering benefits without having to actually vote on lower benefits. Making up a new CPI index to determine your COLA increase also cut your lifetime benefit by about 15%.

I started in '88. It was 25/32 then.

good point, although in this case it wasn't Marie's decision. I cancelled my policy and knew that any discoveries for past events would no longer be covered, so I paid for two years of "ERP" coverage. We know how long the IRS can take to get around to sending out notices

Sadly, we have a lot of realtors in Colorado that think they are tax experts when selling a property. Colorado will assess penalty for not withholding and submitting taxes at time of sale if your client is a nonresident and transaction is taxable in Colorado. I'm betting the realtor didn't tell your client that little nugget. The Colorado capital gain exclusion is not something that most realtors are familiar with. Assessments for improvements are added to basis. HOA expenditures are not added to basis we follow must federal rules.

Well, cry me a river. To be at the 20% LTCG rate, their marginal rate is at a minimum 35%. So, they get a discount of 15%. Those at 12% marginal rate have 0 for LTCG rates or a 12% discount. Middle income people at 22% marginal rate and 15% get a 7% discount.

NQ deferred comp? Many times the year-end paystub has the details in the YTD figures used for the W-2.

I believe it would, unless it falls under the Sec. 1.263(a)-3(h)); lessor of $10,000 or 2% basis safe harbor rule.

The 25/32 income figures go back to the 1983 change to make 50% of social security possibly taxable.

Frog, how does someone who works but doesn't earn enough be affected by the NIIT?

Many elements are not adjusted for inflation. Which is the worst, i.e. needs adjustment more than any other? My vote is for Child Care Credit. The $3000 and $6000 limit has been around forever. The increased percentage?? Forget about it - if the couple gets more than 20% they can't afford to pay babysitting nowadays. To make matters worse, employers have gone absolutely ga-ga over a new benefit - up to $10,000 tax deferral for babysitting. Some employees are going after this like a pig after slop. But it only works if it negates the Child Care Credit in its entirety. And if the spouse doesn't work or have earned income, ALL of it is taxable. My clients find out about it too late, and drop it after one year of misery. Yes, my vote is for the Child Care Credit - dubious benefit, and nowhere NEAR the hyper-inflated cost of paying a babysitting service.

Sound like trickle down voodoo economics to me.

Thank you all for this post. Had the issue, followed the above and the issue was resolved. Appreciate this board so much. Tom Longview, TX

If you take the position that it is not part of a building system per Reg §1.263(a)-3 (e)(2)(ii)(B)(2), why would you use 20 years instead of 15?

The employer is the place to ask. I am sure we could come up with some possibilities, but our guesses will not help your client.

Looks to me like it falls under Sec. 1.263(a)-3(k))(1)(iv) "Returns the unit of property to its ordinarily efficient operating condition if the property has deteriorated to a state of disrepair and is no longer functional for its intended use"

Up until this year, WI has only allowed $500. This year they increased it to $3000. Will save a lot of calculating on the WI WD form.

Thanks for the help. It was explained to me incorrectly by the leaving partner. I should be receiving a copy of the agreement tomorrow. The partnership redeemed the interest.

For that amount it sounds like a repair and maintenance

You don't know my visa bill, if only paying minimum payments.

If the partnership made the payment to the former partner it is considered a redemption of his interest by the partnership, instead of a buyout of his interest by the remaining partners.

Hopefully this will help: https://www.thetaxadviser.com/issues/2008/oct/terminationofapartnershipinterest.html

There are some pre-MACRS court cases that seem to me to be of limited application. For those who want to take a deep dive into the cesspool (sorry, couldn't resist) Publication 5712 is an IRS audit guide to capitalization. page 27-28, looking at structural components under Building Systems are Plumbing Systems which include "Water and sanitary sewer collection equipment" Audit guides are not authority, but looks like the IRS position would be for 27.5/39

anyone able to efile (successfully) recently? Getting EFC Reject 38--"This efile was created before downloading the latest program or form update in ATX." As suggested, went through Support: Customer Service Utilities: Refresh App Configurations...but no luck. I might add I have green on Program and Forms. Someone on ATX Facebook page says they are on the phone with ATX and was given an explanation: there is an update out that is not yet available.