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I've had a policy for years - and my annual tax letter states in bold - that any return not ready for signatures and e-filing as of April 1st *will* be put on extension. My cutoff is March 15th, but the poison pill in it is that I have to have all the documents and information in-house by that date. People rush to get me docs on March 14th & 15th - but it's never, ever, complete, so they have not made the cutoff. Manage your clients, or they'll manage you into premature gray hair and high blood pressure.

Second time this has happened to me this year (first was my own return), initial opening of a return in ATX that's been rolled over and there are entries on the 8949. This one was short term gain from "excess distributions" to the tune of $97k. Because this client has a complicated K-1 (1065), I thoroughly went through last year's return and all the worksheets (including basis). Definitely nothing that should show up on this year's return (except some passive losses).

Wow

I was a W2 commissioned salesperson. I got minimum wage whenever my sales did not exceed minimum wage for the hours worked.

I don’t have a definite answer for your question, but I’ve usually followed the “when doubt, file” rule, even if there’s no tax due. At least that starts the SOL clock running.

No, you must calculate the average for each separately and then add the two averages together to arrive at the amount to enter on line 7 of the worksheet. You probably aren't using the interest method, so for each mortgage you would either have the average of beginning + ending divided by 2, OR if you have lender statements you would add each month's balance divided by the # of months that mortgage existed during the year. At least yours shouldn't be terribly complicated. I've had some that were refinanced, or mixed use where some of the balance was segregated out as n/d home equity debt where principal was applied first until that portion was repaid.

My hair skipped grey and went directly white (sans color). But then again, I have hair, so no complaints - other than the cost of a cut. I say it is from kids, they stole the energy I used to have, as well as my hair color . For me, the "days" are the W2 deadline date, and every quarterly deadline date. But, as someone told me so long ago, there is NO such thing as an accounting emergency. No ambulances come, no specialists are on call, etc.

There is a company I know who has all 1099 outside sales staff. In light of the new Biden Admin DOL ruling, they are looking to convert them all to W2 employees with full benefits, but only pay them straight commission on their sales. Is this proper? Seems to me there are wage and hour issues with this approach, but sometimes salesmen get special rules. I looked a the rules for statutory employees and those rules do not seem to fit. Anyone have experience with Commissioned Salesmen? Thanks Tom Longview, TX

That's exactly what I did but I think there is a more elegant way of doing it. In any event, the end result is the same. I entered "Less scholarship already reported as income elsewhere in the return" 3,000. And then I entered 3K on Sch 1, other income, SCH 3,000 Thank you.

The last one I had I put on Sch 1, Page 1, line z, Other Income. You can jump to the list which includes Taxable grants and more but I just added in the bottom space Taxable Scholarship and the amount.

From your original post, here are the details: 1st home prchd before 12/16/17, debt $881,000, sold 8/30/23 2nd home purchd 4/28/23, 12/31/23 mortgage balance $2,248,000. Also paid points. Vacation home - No details. Original post said none is deductible. About the vacation home - What was the reason you originally said you knew its mortgage interest is nondeductible? Was that statement merely because there are 3 properties during 2023 or some other reason? When was it purchased, and did you take this mortgage into consideration in prior years for the mortgage interest limitation? It looks like the vacation home would qualify as the second home from 1/1-4/27/23 and again from 9/1 - 12/31/23. It's during the period of 4/28 up through the date first home was sold on 8/30 where you have overlap and the problem where taxpayer owned 3 properties and must choose only 2 properties that you can say are first and second homes. For whichever property is the "third" (not the principal or 2nd home), then that interest isn't going to be deductible.

I have been able to file Wi without filing Federal. However, Federal return has to be created and is attached to WI return as Pro Forma.

Some states I've been able to file without a federal efile, but it seems they've been dropping.

come to think of it, that's how I was paid at H&R Block (And why I wasn't keen on bailing out preparers who started returns they didn't know how to do).

I'm pretty sure that's not how market discount works, though I could be wrong. But on the consolidated 1099 I have, the interest income for each cusip is less than the market discount for that cusip.

Pub 936 has easy to understand explanations and the worksheet you need to calculate the interest that is deductible. You'll need to use that since you have pre- and post- 12/16/17 debt over one million. You will need the average balances of EACH mortgage and the totals are used on the worksheet. The pub also has excellent examples for you to follow. There are 3 methods for calculating the averages, and you can choose which one works to your clients advantage, depending on the actual circumstances. Points are separate and aren't included on the worksheet's calculation, BUT they will be limited based on the percentage of nondeductible interest you arrive at using the worksheet, and that reduced amount is what you will include on Sch A.

The client will have the refund before the 3911 gets processed. Plus the refund isn't lost, it's delayed due to taxpayer error.

That is correct! they can file a form and it may get there faster - for lost refund 3911 I think this happens to me at least 3x a year! Silly clients.. D/WI

"Tax Court denied HOH status to a taxpayer whose spouse would not move out and therefore slept in her home at some time during the last six months of the year (Hopkins, T Memo 1992-326)"

I was just checking this for a possible new client. Per QF, A married taxpayer who is a US citizen or resident during the entire year can file as HOH if all of the following tests are met [IRC Sec.7703(b)]: 1. The taxpayer files a separate return. 2. The taxpayer paid more than half the cost of keeping up the home for the tax year. 3. The spouse did not live in the home during the last six months of the tax year. 4. The taxpayer's home was the main home for more than half the year of the child or .... The child must be a dependent.... It seems that #3 could be the problem in your case. I'm waiting to hear back in my case, not sure when spouse moved out.