Hahn1040

There was a thread on this topic in the past couple of months that had a link to an article. I have tried searching but I cannot find it. My client owns several lots and this year she sold one of the lots and purchased a condo that is being renovated for business use.. She has never used it in the past, but but it seems like a good idea for the RE tax on the raw land. Can she use it for the lot she sold? What about the condo? I am never successful in finding old posts that i want to refer to. Is there a way to bookmark or otherwise tag them? Thank you for your help

Active duty can maintain their state unless they choose to change. Ask: did he intend to change? did they do all of the change residence steps: driver's license, vote, car registration etc. If he did indeed change, then he would be a part-year NJ and CT. CT is not a state that military tend to change to (FL, TX) . But he may have his reasons... If he did not intend to change, then I would file full year NJ. and non-res CT showing taxes withheld in error. In the future NJ does not tax his militaty pay if he is not in the state.

Neither is going to be MFS if you split them up- unless one or both were married to other people (which would be a whole other can of worms) Each would be Single then when there was a child one would be Head of household. depending upon who has what income and how much.... might not be so bad.... Standard deduction for HH + Single is more than MFJ

On the topic of "print Screen": Is there any way to print the "Bulk Disposition" screen within ATX? The only way I can do it use the snipping tool to print the screen. I have never figured out how to make ATX print it. I like to include it for my client to show where the numbers on the 4797 come from.

on the 1099R input screen : At the bottom there are check boxes: "Check the box to exclude Ins premiums for retired public safety officers. (PSO) and enter qualified amount". $3,000 be sure to reduce the medical insurance premiums by $3,000 if you are using medical deductions

ATX is putting the retirement income on line 4a for SEP. Shouldn't it be on line 1a??? In my cases it is military pension. IS anyone else having this issue? I can just move it (I think)????

Latest developments : I met with Grandma and mom yesterday. When the deceased son's condo was sold March 2021, they gave Grandma back the $200,000 that she had given him in 2018 to purchase it. Does that undo the 2018 gift? Or is it a new gift from the estate to Grandma. Only the parents are beneficiaries. then Grandma gave the granddaughter the $200,000 to pay down her mortgage (2021 gift) also found out that mom had transferred the balance of deceased son's investment account ($18,000) to daughter and she transferred his 529 ($47,000) plan to daughter. I know that transfer to a family member is fine for a 529 but does it trigger a gift tax return? the investment account was joint with mom, so it was hers at his demise. Mom is the owner of the 529 for both the children. this family wins the prize for the most tax returns in a year!

Having a FAFSA number is the key. Though, sounds in this case that it was reported on the 1098T. Often you pay your own school for the study abroad semester.

I am 99% sure that she has no concept that the depreciation will reduce her basis.... so I would say 110% that she has no idea of unqualified use! I suspect that they believe that the rental will be a great tax write off.... her income is over $150,000 so we all know where the rental loss goes each year!

Oh I know! We all have a millions stories like that. Now I am trying to tell the mom (same family) that it was not a good idea for her to be on the deed for the daughter's house. The daughter bought it to live in eventually but is posted overseas, so she is renting it. UGH! Mom has no financial interest but the house is in both names.

Thank you so much! Do I use the W-2 wages or the net after I subtract the IRD for the wages paid after death? I really appreciate your help! Just found out that the mother cashed all his savings bonds and the interest is reported under her social security number.

Can he get EITC? He died in Jan 2020, so his wages were only $5050... after subtracting the IRD wages $1,515. He was Single age 29 no children. He did not "live" in the US 6 months of the year, but he lived in US all of the year he was alive! There must be a place to look this up..... I am not finding it.

the home was purchased with the cash from Grandma. The mortgage was obtained 4 months later. In 2020 the sister bought a house with the help of cash from Grandma. This time she got the mortgage at the purchase. Also included Mom on the deed. Then she immediately turned it into a rental. Ugh! Mom contributed nothing to the purchase or maintenance.

thanks for your response: The original purchase was all cash. several months later he got a mortgage. So it was not a refi. There was no original mortgage The sale of the house was under the estate EIN Mom and dad were both named by the court as beneficiaries

Client died Jan 2020. Single. age 29. no will. Employer paid regularly scheduled paycheck two days after date of death; then paid final for vacation time . All was credited to deceased bank account. All is reported on the W-2. I know that the pay received after the date of death needs to go on the 1041. Can I just make the adjustment by subtracting it off his personal return or do I have to get the employer to correct the W-2. I hate to have to go to the parents for this. They have been through so much! He owned a condo. So they had to go through the courts to be able to sell it. The condo closed on 3/19/2021. Is there any way I can do one 1041 to include the house sale? I don't see how I can. A fiscal year will still end on 12/31/2020. Here is another twist: When he purchased the condo in 2018, Grandma gave him the money ($512,000) Then a few months later, for some unknown reason, they decided that he should get a mortgage and pay Grandma back about half of it. The mortgage interest was never deductible because it was not a refinance. There was no mortgage paid off. SO my question here, could the interest now be investment interest for the 1041? Further complication is that the mortgage was transferred to the mother's name while the condo was owned by the estate. So the 1098 has her social security number. Thanks for your thoughts and suggestions.

And did they want you to put all the staples back that you had to remove in order to run the pages through the scanner! I have one that has no less than 4 staples per doc where she attaches a computer printed label for each doc. Just to be sure that i will be able to know which is the mortgage interest and which is the pension income!

the issue is that you cannot have more than one RESIDENT state returns you can have combinations of Res, NonRes, and Part-year Res. BUT not more than one Resident I have been able to get around this limitation it in the past by duplicating the return and then filing the second resident state from a different return. you have to unlink it. This may not work for all states

Just the other day, I had this discussion with a 19 year old college student who has at least 6 K-1s from PTPs! i asked: "Why are you investing in PTPs!?!" He had no idea what I meant. He thinks he is making money... I told him to warn his dad that the charge for his return would no longer be the "nominal add on" for a dependent's return.

I opened ATX and it is NOW making the adjustment on its own! It even has its own line on the FDC worksheet!

Thank you! I have a whole stack of these waiting for this info!

Yesterday, I spoke with the IRS about an amendment that was sent 3/23/2020. IT has finally been worked. I asked about the backlog. The IRS rep told me that they are working on amendments received in April 2020. She had no idea when they would get to the ones sent in June/July!

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.

was is yesterday: could have been Leprechauns!

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)

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.