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About jklcpa

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  1. You quoted me in error. I am not the one waiting to hear from the IRS, and the original poster has not visited this site in 2 1/2 years. I googled her name and she is listed as a tax preparer with a "consumer alert" flag saying that the information is out of date with the notation that this person may no longer be practicing or might not have renewed her PTIN.
  2. You may be able to find his DOD by Googling for "his name & obituary".
  3. See pub 502 for more information. Medical expenses paid to foreign providers are deductible for those expenditures that meet the same criteria used to determine deductible medical expenses paid to U.S. providers, and these must be legal, not cosmetic, etc. Make sure that the expenditures meet the general definition of medical treatment for the diagnosis, treatment, cure, prevention, mitigation and provided by a medical professional. I'd question whether this is legal and treatment being administered by a medical professional since this is out of country, and other countries have different regulations over medical personnel. Is this treatment not available in the US, or is it available but the patient is travelling to see an expert in this particular disease?
  4. Evan is correct, it is 4980D. You should also read IRS Notices 2013-54 and 2015-17 that explains why the reimbursement is problematic. This was commonplace to allow tax-free reimbursements prior to passage of ACA, but once that law went into effect these reimbursements were themselves deemed to be group plans that may have been reimbursing premiums for health insurance that didn't meet all of the requirements of the ACA, and that is the reasoning for the penalty of up to $100 per employee per day. The tax-free aspect also went away with the ACA, and these reimbursements would have to be included in compensation subject to payroll taxes. Your client is probably not handling that properly either. Here are two articles that explain the problems of the old HRAs and talk about the newer QSEHRAs: This one from NOLO legal encyclopedia in layman's terms that may help you. And this one that also talks about QSEHRA's and has links to the two IRS notices also. You'll have to use the second link above for the IRS notices or google those and look for the the ones that direct you to IRS.gov. They are coming up as pdf files on my tablet so I can't easily link to them here.
  5. Yes, this is correct that it can be deductible on Schedule E. The default is that this borrowing would be considered "home equity debt" but may be uncoupled from that definition by "electing" to use the interest tracing rules. That election is made by reporting it on Schedule E. I would strongly advise to NOT comingle the loan proceeds with other personal funds so to have a clear and unambiguous trail of use. Reference is §1.163-10T(o)
  6. It looks great. I do agree with Abby Normal about the size of the picture though. One odd thing that I ran into was that my AV blocked the links shown at the right side of the main page for "More Information" and all of the items under "Helpful Links" with a popup message that a certificate in the certificate chain was expired, but those same pages were perfectly accessible when I used the drop down menu under "Resources" in the heading area.
  7. Link to IRS for all draft forms: https://apps.irs.gov/app/picklist/list/draftTaxForms.html Great, let's waste more time and money on another redesign and programming at IRS and all the vendors. The 2019 1040 draft does allow seniors to file that form with notation for those checking age or blindness to see the instructions for the proper amount of standard deduction. The only difference between the 2019 1040 and the 1040-S (senior) is that the "S" form has a chart at the bottom of page 1 for those checking age/blindness boxes. I guess there were too many mistakes in the standard deduction in 2018 for those self-prepared returns.
  8. Hmm, I'm not sure about this. Last fall I loaned another member my disk from 2006 after the ATX rep said that they could only provide back to 2012. Has ATX expanded the number of back years available since then?
  9. I'm not sure why your client got that notice, but if it is a straightforward as you say, here is the text of the TCJA as signed into law that answers it: Sec 11(b) of the tax code now reads as follows:
  10. You've brought up two separate issues in this topic, first this one and then the second about the PSC rate for C corps and mentioned a medical professional. See my post immediately above related to the PSC discussion and notice received. As for the 199A deduction, you didn't give enough information to answer definitively. Is this the same SMLLC medical professional mentioned in discussing the PSC rate? If it is the medical practice, that would fall under the rules for a "specified service business" and would be subject to the phase out rules.
  11. The new rate applies to tax years beginning in 2018. What tax year is the notice for?
  12. PSC C corps now pay the same rate of 21%. Some early proposals had the PSC rate at 25% but that didn't make it to the final legislation that was passed. PHC tax and accumulated earnings tax are both still in effect, rate unchanged at 20%.
  13. jklcpa

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