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About jklcpa

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  1. They can file jointly, but each of the two gain exclusions is calculated for each individually and limited to $250K for each, not a combined exclusion of $500K as any other joint couple would have. IN other words, if one as a gain of $300, it would have a taxable gain of $50K. So, it is acceptable to claim both on a joint return, but I can't tell you whether or not it is possible within ATX or how or where to input in that software. Is it possible to add a second 8949 and indicate that the first is for taxpayer and second one is for the spouse?
  2. Because the taxpayer is only 48 years old (under 59 1/2), the earnings withdrawn will be considered as income and subject to income taxes and a 10% penalty tax. The 10% penalty may be waived if you meet one of the exceptions.
  3. FDNY, it's part sec 101 of the Victims of Terrorism Tax Relief Act of 2001 that was H.R. 2884 found in this link. Check out the full text here: https://www.congress.gov/bill/107th-congress/house-bill/2884/text And the code references are there in the text of the bill, specifically referencing sec 6013(f)(2)(B) and sec 692. Also, there's this non-official news brief: https://www.gillibrand.senate.gov/news/press/release/gillibrand-reminds-9/11-first-responders-survivors-of-possible-tax-relief-available-through-irs , and this Journal of Accountancy article that came out shortly after the bill passed. Hope these links help with your documentation.
  4. Mine is a crosscut also that makes confetti, but it wouldn't meet the new requirement of the chip being 1mm or smaller in width.
  5. Gah, what next! There's always burn or mulch too. One more great reason to go totally paperless. Maybe I'll offer my chips to my neighbor with the dirt farm that could churn it in with his used mushroom soil compost, and no one would touch it then.
  6. If anyone needs a reference for this, it is Reg 1.6013-1(d)
  7. Because the deceased's tax year for the individual return ended on the date of death, and on that date of death the deceased's marital status was married, and because the widow(er) remarried, that person gets to choose MFJ or MFS.
  8. I'm starting to panic more than a little. I got the flu in late Feb and was so sick for a full two weeks that I couldn't work and then was finally able to work enough to meet the March 15th filing deadline because I had the accounting or bookkeeping in good enough shape to complete those. It's taken a full month to recover completely, and now though I'm in a real hole with the individual returns. How ever many I finish in a day, it seems I'm getting double that many in.
  9. Came from this pdf from the IRS site: 4491_filing_status (1).pdf
  10. file the deceased as married filing separate
  11. jklcpa

    Fixed asset

    How was your predecessor coming up with the figures for the 4562? There are no fixed asset schedules for any of the clients in prior year files or workpapers? If this former preparer was using another software program to generate the figures for the 4562, it might be easier to purchase that program too rather than starting to input all from scratch into ATX in the middle of this season, then deal with moving all of it to ATX when you aren't so busy.
  12. Yes, the payer of the third party sick pay is acting as agent for the employer and the payment is considered wages to the extent it is subject to withholding and includable in income, so it does qualify as earned income for EIC.
  13. Agreed with the others. This is clearly an ethical violation for CPAs here, and both the State Boards for Accountancy and for Law, and the DE Bar Association would quickly find out and put a stop to it, especially in my small state where everyone knows everyone. This happened to a public accountant with an EA that lives close by in my small town, and he was ordered to cease and desist by court order that he flagrantly ignored and ended up with fines for nine violations totalling of over $35,000. He was also brought before the State Board of Accountancy on 3 separate times resulting in cease & desist, lost his license to practice for 2 years the first time which he ignored and it was finally permanently revoked. His fines in these instances totalled over $582,000 that was based on revenues that ultimately went back to aggrieved former clients. He was writing wills, trust and estate documents, giving legal advice related to those, and other legal work too that the DE Bar Association had been watching for a while before all of this transpired. He used to come to the CPE breakfast seminars and was pretty much lobbying our state representatives to give him a CPA license because he wanted to issue financial statements beyond compilations. He'd sit at my table and once asked me if I'd speak to my state rep on his behalf. My response was that we'd each tested and worked hard for those hours of experience to qualify, that we each had hurdles that we overcame, and that we'd EARNED the certificate and he should do the same. If you want to read about all that he did, his case is always included in my DE ethics course. I've wondered if his case is in the courses for other states too, or if it's only in ours because he was licensed here: Estep case.pdf
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