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About jklcpa

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    ATX Supreme Guru
  • Birthday 05/01/1960

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  1. jklcpa

    Accounting Question

    If a client calls the insurance agent for changes in coverage that change the total premiums on a policy, I do take those into account for accrual basis taxpayers, but for prior year worker's comp audit additional premiums or refunds, like rfassett described, I run those through expense in the current year. I don't ever go back and amend the prior year return or make a prior period adjustment on financials for them. Terry, you asked for a ppd ins worksheet, so I took a snippet from one of my excel files and simplified it. This is for a fiscal year client, but easily adjusted. I've changed the fields to blue where I'd make an entry so you can more easily see how it works. The # of days keys off the date at the top of that column and are then used in calculating the expense since it is working off the expired portion of the terms of only the current year policies; the rest is simple addition and subtraction. Book1.xlsx ETA - sorry, I thought it would show a preview. W/S looks like this:
  2. jklcpa

    Deducting sales tax on gifted vehicle

    I'd say that this is deductible IF the car was purchased by taxpayer in his or her name before the transfer of the gift. If it was purchased directly in the name of the recipient, then taxpayer can't deduct it since technically he/she wasn't the party liable and title was never in his or her name.
  3. jklcpa

    Where is the Bulldog Tom?

    Point at his name or go to his page and you'll see that he visited this site yesterday.
  4. jklcpa

    Estate 1041 & rental property

    I can't provide the source of that from four years ago! Heck, I may not be able to remember what I wore or ate last week. I tried to answer before and lost the whole post, and not sure what happened there! As I understand it, in community property states, if the property is community property (not joint property that was brought into the marriage), then the 100% of the value of that property is included in the gross estate for valuation purposes and doesn't matter if a tax filing is necessary. For this to apply, at least 50% of the value must be included in the estate valuation, and if this is the case, then the spouse uses the stepped up basis on the entire property and depreciation starts over. I believe the references for this are: reg sec 1.1014-2(a)(5) and 1.1014-1, and IRC 1014(a) and 1014(b)(6)
  5. jklcpa

    LLC Reporting

    Whether or not the income is subject to SE tax depends on if this is considered trade or business income in the regular course of this entities business. What type of business is this?
  6. jklcpa


    You're right! Thanks for the reminder.
  7. jklcpa


    If TP sustained a loss that can be documented, if there was criminal intent, and if it can be determined to be illegal under state law, then the TP may be able to deduct this as a theft loss under sec 165(c)(3) and would flow from the 4684 to itemized deductions. Was a police report filed? If this is a 2018 event, with the higher standardy deduction the TP may not have any tax benefit regardless of the facts.
  8. jklcpa

    1040 PostCard

  9. jklcpa

    1040 PostCard

    For any that are interested, below are Schedules 1 through 6, wasting a few more sheets of paper for each return printed:
  10. jklcpa

    1040 PostCard

    I guess they could try and may or may not get the best result for state purposes here since DE allows itemizing while claiming the standard deduction on the Federal, so I've told my clients to continue to gather their documentation for Sch A deductions. With the added SALT limitation, the DE itemized calculation will now have the added step of allocating that limitation between the state, any local taxes, and the real estate taxes since DE doesn't allow a deduction for its own state taxes and any out-of-state taxes also claimed as a credit against the current tax liability. We had similar calculations all along for allocating those taxes when the Pease limitation affected the return, so nothing easier there.
  11. jklcpa

    1040 PostCard

    I guess it depends on the geographic location, income level, and composition of income. A lot of my clients are running into the SALT limitation. I ran projections for all clients and focused on the change in total tax liability compared to 2017. For a variety of reasons, most of my clients showed decreases in overall tax in the $500-$800 range with a handful of clients in the $1000-$2000 and a few of $2000 or more in savings. The reactions were mostly "meh" no matter what the decrease was. There were some that showed almost no effect on total tax because of the SALT limitations and loss of deductions for unreimbursed job expenses, home office and exemptions. Others of my clients are retired with mostly investment income from qualified dividends being taxed at LTCG rates, so they are still ending up with much of that income taxed at the same rate as before and the combined standard deduction + exemptions compared to the new higher standard deduction hasn't had *that* much of an impact to them. The one client with the highest savings is never happy no matter what the result, and he will also be one that will be cross-eyed over the additional schedules.
  12. jklcpa

    1040 PostCard

    I agree with this and think it's a waste of money. The last I read, the IRS was already estimating that implementing the new law would cost the agency in the $400-500 million range, and I'm not sure if this postcard was factored into that. What's more, this has a cascade of affecting the states too where every form and instruction that picks up entries from the federal forms or references any line numbers will all require revisions. In the end, we will all get used to it and learn where everything is, but it will slow my review of returns down slightly in the beginning, and I expect some clients will not like the subschedules.
  13. jklcpa

    NT Aberdeen MD

    I'd say, yes, the salaries in the northeastern part of MD area definitely going to be less that anything in DC, probably closer to our levels in New Castle County, DE, depending on the jobs. Years ago theirs used to be less but came up to our level with more people either commuting here or into the Baltimore area. The closer to DC, the higher prices and salaries will be, in general. Comparing to my area (use Wilmington DE/ New Castle County), wages are definitely higher in Philly, Baltimore slightly higher than Philly, and DC higher yet. I wouldn't use DC salary levels unless the job is specifically in DC. Jobs at the Proving Ground may require very unique skills that would carry a higher price tag, but unless that is the case, I'd probably use a median salary of ours and Baltimore's. As an example, a friend of ours is a surveyvor whose company did some work there on gov't contract and charged more, not because of any unique skills but more because of the requirements imposed on them by the government. Also, if your client doesn't already perform other government contracts, taking this on could also require them to have a higher level of financial audit and insurance too, and factoring those costs into the contract may make them noncompetitive.
  14. jklcpa

    Sick Pay and EIC

    Google and I are your friends. Found the selection for the one to IRS.gov site. See page 52 here: https://www.irs.gov/pub/irs-prior/i1040gi--2010.pdf
  15. jklcpa

    Sick Pay and EIC

    yes References: IRC 32(c)(2)(A)(i) and Treasury Regulation 31.3402(g)