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It seems that we have come full circle as tomorrow we elect a new President and we also start classes for the 2024 Income Tax Year. Little by little, I am getting ready for the new year, which I hope won't be my last. I nearly didn't make it through 2024 and am very grateful to be here. It doesn't take a lot of strength and breathing to sit in a chair all day preparing tax returns and visiting with clients. However, it takes a fair amount of brain power and stamina and I have been preparing my body ever since July. I lost a lot of color in my hair while in the hospital; but I learned a lot about breathing. I practice breathing every day. I follow this board every single day and couldn't do this job without all of you. So, Thank you all for contributing; answering and asking the questions that spur me to research. I am thankful for so many things and I feel that it would be wrong not to share my knowledge with those who need it. I anticipate a tough tax season. So, let's keep on keeping on.

It is certainly not a Sch A charitable contribution deduction. If you feel it is ordinary, necessary and customary and are inclined to make it a deduction, it would be more appropriate as a business expense. Pick the category for which you feel it most closely fits your situation best, in other words is it: professional development that would include continuing education and learning, dues/subscriptions/memberships, software & its licensing if your use is more closely is associated with setting up and utilizing the tax software, books/library/research type items, miscellaneous?

Marilyn, your level of determination and willingness to push yourself is life lesson for all of us. Good Luck and I wish you the best of tax seasons.

I set up a reminder to donate a small sum to Eric for the benefit I receive from this website. It is a paltry sum compared to bringing questions to the group and getting knowledgeable answers from people whose expertise far exceeds my own. I'm sure many of you will do the same before year-end. I am wondering, however, about the deductibility of such an amount. It is not a donation freely given with nothing of substance being expected in return. In my opinion, there is a great deal of substance returned (whether required or not). It could possibly be a business expense (such as a membership) rather than a Schedule A contribution. Perhaps I should not tarnish the conversation by combining the tax consequences with the greater message. I can promise I am not trying to deduct millions of dollars...

No QCD from SEPs or SIMPLEs unless they are inactive. Active plans are those that are maintained under an employer arrangement under which an employer contribution is made for the plan year ending with or within the IRA owner's taxable year in which charitable contribution would be made.

Right, I figured that Corduroy Frog was asking about the automatic enrollment in Secure Act 2.0 when I separated his post from another topic. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-automatic-enrollment

I'd probably pick consultant, because it's the knowledge being tapped, rather than a patient being seen. YMMV, I could make a case the other way as well. However, since both are SE income, in the long run it doesn't matter. FWIW, I have had plenty of psychologist/therapist tax clients whose 1099s from insurance companies have, in the same year, run the gamut between medical, consulting, and "other" income. We put it all on their Sch C, since that's where it all belongs. Never a question.

From the original post, the son paid for materials & supplies with that $20k. That is a completely valid claim against the property & there should be no issue with him being reimbursed at close. If for materials, he could put a lien on the property. I had a case (that I got after the house sale dust settled) of a surviving spouse who was not part owner of the house - it was 100% owned by the spouse who died - who paid all the house costs until the legal paperwork was settled to the point of the house being salable. Mortgage, maintenance, repairs, even replacement of a furnace that died. Added up to nearly $100K over some years (spouse died in the early days of C19 [from cancer] and the courts were shut down for months, so it was a long haul to settle this). Survivor got a big chunk paid directly as reimbursement. Executor then split the proceeds among the heirs (of which SS was one of 3, the other 2 being children of a prior marriage). As for basis, I think a lawyer's opinion on the implied life estate is needed before any other determinations can be made. No life estate = basis is FMV when adult daughter died. If there is legal basis to claim life estate, basis = basis on date of transfer, plus daughter's improvements. Ah, these juicy convoluted weird situations people get themselves into.