Hahn1040

I have a Brothers all in one. It is plugged into my regular landline. when the phone rings twice, it hears the fax tone and picks up. I don't have to do anything. I can use the landline as usual and my answer machine works fine. For a time, I had it connected so the faxes went to my computer, but I keep my computer off the WIFI, so now they just print out. I only get an handful of faxes any way. So it is not a big deal. My brother told me he can't fax..."because he lives in the 21st century" LOL The reality is- most of us need a fax machine... if nothing else to fax to the IRS.

Right After I posted that I went down to cook dinner and I realized. "She already knows that- that is what she posted" I apologize.

Possi, Are you saying that Virginia Tax is saying that MIP is not deductible for VA? That is not what that Bulletin 20-1 says!

Perhaps your client's letter was generated before VA Tax had the bill from the General Assembly with the conforming items. That notice is dated 18 February, but I had read it elsewhere before that. RE: The sales tax vs. state tax subtraction on line 18 of the VA sched A: At the start of the year, ATX was subtracting both Sales tax and State tax. I called VA Tax on 2/3/2020 to ask about it and was told that the software was correct. Then about a week later, ATX changed the software.... so I called again on 2/14/2020 and was told that sales tax is NOT subtracted on line 18. Each time, the person I spoke with had to go ask a supervisor. This was not an issue that was on their radar because it was not a change. In the past, when we used sales tax we did not have to deduct it. The big change for us and for VA Tax is that before last year, there was not a separate schedule A - any changes from federal were adjusted on the 760. Even on the 2018 Schedule A there were no adjustments on the Schedule A. They were done on the 760. I would say that if you have already filed returns that had sales tax subtracted on line 18, I would give them a look to see what difference it would make for the t/p. if it is material you might want to amend. Certainly VA Tax is not going to make the change. They did not make any adjustments on the 2018 returns when they changed the calculation of line 11 on the 760 in mid-season which made it more favorable to the t/p. I confirmed each time I spoke with them, that they were using the 10% for medical rather than the federal 7.5%. But at least they started the year with that rate compared to 2017 when they changed mid-February and t/p were getting adjustments because we had already filed. Possi, In your position I would certainly call on behalf of the t/p and do not give up until you find a person who realizes the VA Tax error and will make the correction.

see TAX Bulletin 20-1 https://www.tax.virginia.gov/sites/default/files/inline-files/tb-20-1-date-irc-conformity-advanced.pdf?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term= Further Consolidated Appropriations Ac tOn December 20, 2019, Congress enacted the Further Consolidated Appropriations Act, 2020 (H.R.1865). The legislation provides tax relief to victims of certain 2018 and 2019 disasters, makes significant changes to several retirement tax provisions, and repeals unrelated business income tax on specified fringe benefits. Advancing the date of conformity to December 31, 2019, will allow Virginia to conform to these provisions.The federal legislation also extends for three years over 30 tax provisions, commonly known as "extenders," which generally expired at the end of 2017. These provisions include the following:Virginia Tax Bulletin 20-1 February 18, 2020Page 2 •The above-the-line deduction for qualified tuition and related expenses for higher education; •Exclusion from gross income of a discharge of qualified principal residence indebtedness; and•Treatment of qualified mortgage insurance premiums as interest for purposes of the mortgage interest deduction.Advancing the date of conformity to December 31, 2019, will allow Virginia to conform to these extenders. Virginia’s Deconformity from the Increased Medical Expense Deduction: While taxpayers may continue to claim an itemized deduction for medical expenses on their Virginia returns, Virginia will deconform from the reduction of the deduction floor.

I should know this but I am drawing a blank: t/p rented house 2014-2016 while overseas; then lived in it until 2019 now posted overseas again and starting renting july 2019 For depreciation: do I just start up where I left off or do I adjust the basis for depreciation taken and start over with 27.5 years with new basis. Thanks!

Love it! I'll use that one for my guy who listed windows for $850 donated to a Restore type of place. Original price $1,200. "They were new never used" And $350 for a bike! UGH!

I just checked TaxWise and it is still subtracting Sales tax on line 18 While ATX, with the version updated today, no longer subtracts it. I am going to put any returns with this issue aside until I have a clear answer. Like I said above, I called Virginia Tax on Monday and was told that sales tax must be subtracted on line 18. So either the person I spoke with did not understand my question, did not find the correct answer OR ATX has changed it incorrectly.

Good Grief! ATX just revised the form so that NOW it is NOT subtracting sales tax on line 18. I had called VA tax to ask this and was told that the software was correct in subtracting sales tax as well as state income tax. ... so what is correct?? guess I'll call VA tax again. UGH!

On the 2019 Virginia Schedule A, line 18 subtracts state and local income tax AND it subtracts sales tax. In the past, if you used Sales Tax on federal, Virginia did not make the adjustment. Now it does. I called Virginia tax to ask about it. I was hoping that the software was incorrect. On the positive side, if the Real Estate and personal property taxes are greater than $10,000, they allow the entire amount. BUT NO SALES tax anymore. ALSO for medical they are back to the 10% subtraction. ... well, at least they started the year with that threshold compared to 2017 when they changed from 7.5% to 10% after filing had begun.

thank you so much! deep down, that is what I thought, but I was hung up on that you check the "estate" box. that certainly makes sense- name has to match the EIN!

for my client: there is no estate and she are electing to file the QRT as an estate then use EIN for the trust obtained after DOD. so what is the name on the return: Estate of Sally Taxpayer or Sally Taxpayer Trust? The EIN is in the name of the trust, so it makes sense that it is named the trust. However, the election is to treat it as an estate. sometimes, you think of somethings for so long.... nothing makes sense! Thanks!!!

no ss or med it is added to line 7 wages (or what used to be line 7) thus, if the student's income is below the standard deduction, then there is no taxable income This can be used to "free up" qualified tuition for the American Opportunity credit on the parent's return

I am rejuvenating this topic now that some time has passed since the latest discussion in the height of tax season. I know that I risk being accused of beating a dead horse. However, I feel that my horse is not dead and it is keeping me up at night. Likely there are others who are working on extended returns and struggling with the question: "Does this rental rise to to the level of a Qualified business under section 162?". I have read countless articles and discussions on this topic. Reading through the IRS reg is really no help. It pretty much says that is is not going to give that "bright line rule" that so many are seeking. Indeed Facts and Circumstances. I don't know that I trust myself to interpret the facts and circumstances on my own. I know the whole things with the Safe Harbor. I don't know that any of mine would qualify under that, but I do have some that I truly believer are qualifying businesses. We know that people have been stewing on this for many months now. I have taken a number of webinars seeking some specifics. Pretty much what I get is lots of details about SSTB and income limits but when it come to rentals, they all say, "Your rental could qualify if it rises to the level of a trade or business. " No specifics! Do any of you have any recent articles or discussions that I can read that could give me some piece of mind that i am on the right track? It would be great if some of you would share your experiences: which rentals you determined do qualify and which you decided do not and your reasoning. Thank you so much for your help! I really appreciate any input you would offer Laura

thanks for the confirmation. I know it only impacts a few people, but when it does, it can be significant. I was able to override the field on the worksheet to get the correct calculation.

I don't see that ATX has corrected this yet Am I missing something?

VAGI on the form 763 is Federal adjusted gross with some adjustments for age deduction, social security, state tax refund and those plus and minus for Fixed date conformity. Pretty much, if you are required to file federal and you have non-resident VA income, you are required to file 763. The form prorates VA income to total income and taxes that. i have one with a Virginia rental: net income of $230. federal AGI: $160,000 Tax is $3 Virginia wants it! and... they only file joint if BOTH have VA income. VAGI for resident and part-year resident is only the VA income and if under the $11,950 then they don't have to file

recharacterization of a conversion is no longer allowed contributions can be recharacterized Though, my first question is: did they contribute too much to the ROTH because of income limitations or because they were over the IRA limit? If they contributed $6,500 to the ROTH or any IRA but they were only 40 years old, then they have an excess contribution that must be withdrawn including earnings. Taxed on the 2019 return because that is when it was distributed. If they contributed $5,000 but earned income was only $3,000 then again: excess that must be withdrawn If they contributed too much because of income limitations, then they can recharacterize the excess plus earning. It must be accomplished by the due date of the return (including extensions) The contribution is treated as if it had been contributed to the traditional IRA originally. Report the contribution on form 8606 Include an explanation in the notes on form 8606 : include date, amount and reason for the recharacteization 1099R will be issued for 2019 with code R. IT is NOT reported on the 2019 return. The distribution is not reported on 2018 or 2019 line 4a or b.

I also attach the car... ok not the car the receipt for the car I attach everything...never mail 8453 I recall a few years back, I had to send the 1099B details with a trust return. Not sure why it was a paper return, probably the state. That was back before most things were A or D or there were wash sales... needed to send the 1099B. IT was a zillion pages, so I copied it 4 on a page double sided. I didn't want to waste all that paper and postage to print single sided... you know NO ONE was ever going to actually read it!

this is an IRA nothing taxable or reportable until distributions are taken. The statement should just be an annual report to show the activity and the value. IF there is a 1099int, 1099div or 1099B, then this is not set up as an IRA. Either they are mistaken about the kind of account it is OR it was done wrong. The most confusing IRA reporting are the K-1s when they have invested the IRA in one of those PTPs or other partnerships. At first, the K-1 looks just like the ones that must be reported However, they do say IRA in I1 and I2.

Pub 970 page 5-6 A scholarship or fellowship grant is tax free only to the extent:•It doesn't exceed your qualified education expenses;•It isn't designated or earmarked for other purposes (such as room and board), and doesn't require (by its terms) that it can't be used for qualified education expenses; and•It doesn't represent payment for teaching, research, or other services required as a condition for receiving the scholarship. Expenses that don't qualify.Qualified education expenses don't include the cost of:•Room and board,•Travel,•Research,•Clerical help, or•Equipment and other expenses that aren't required for enrollment in or attendance at an eligible educational institution.

if they are living with a parent. then at least one parent is alive SO NO refundable credit (see above and Pub 970)

it is not just providing 50% of support. The greater than 50% of support must be earned income. .... and having a living parent factors in: You don't qualify for a refund if items 1 (a, b, or c), 2, and 3 below apply to you.1.You were:a.Under age 18 at the end of 2018, orb.Age 18 at the end of 2018 and your earned in-come (defined below) was less than one-half of your support (defined below), orc.Over age 18 and under age 24 at the end of 2018 and a full-time student (defined below) and your earned income (defined below) was less than one-half of your support (defined below).2.At least one of your parents was alive at the end of 2018.3.You are filing a return as single, head of household, qualifying widow(er), or married filing separately for 2018.Earned income.

I see in the forms update report that this was changed with Version 76. Wonder what day that was?? When did VA revise the form vs when ATX made the update??? BE SURE TO check your figures for all Virginia returns with Schedule A that you had sent to clients or have printed a few days ago. Your tax may have changed with this revision.