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This topic wasn't about whether someone chooses to round, how to work around the issue by not entering decimal points, who has the ability to round or be a tax preparer, program stability, or whether it's a particular user's priority; it was a question about how ATX chose to program the form.

I also got a warning message that the 150% ADS method was not allowed under the TRA 1997 law change when I tried to enter 7 years as the ADS life, but it did allow me to select "MACRS 150% Farm" with a 7-year life. Numbers didn't change, still gave me the message about switching to SL when it was better and limiting 2014 to 1/2 in the year of sale no matter what date I entered for the sale.

I agree with you and jmdavis that it should be 1/2 year in the year of sale. I'm not using ATX, and I checked it in UltraTax's depreciation module that I use and it calc'd it at 1/2 year's expense. However, what I saw when I displayed the calculation was that the program made an automatic switch to SL when that was advantageous and then limited that expense to the 1/2 year. Is it possible that is what ATX is doing?

Can you show me where I said it wouldn't generate a CP2000? I didn't. The statement I made was because Catherine's original post and her post #9 indicated that she was in doubt about the transaction being a valid rollover since it went back into the same account and because your post #12 said that rollover was not the proper treatment. I also said that she should keep the documentation that Randall suggested. I agree with that because she'll need that if the client receives a CP2000, and I included the PLR reference if the IRS tries to say the rollover isn't valid because it went back into the same account. I can't believe I had to explain all that. Sheesh.

I'm wondering too. I don't like to use the word "supplies" for these small equipment costs that are now being expensed since supplies now has its own de minimis threshold and rules. These small equipment or furniture costs aren't really supplies or materials in my mind since those labels connote things that are somehow used up. For those small tangible property costs formerly capitalized, I'm leaning toward a label that includes "De Minimis" something-or-another-that-is-descriptive.

Not sure who you were asking or if you were even being serious. If you want to discuss pricing for these forms, you really should start a separate topic instead of including the ensuing discussion in a topic entitled "Calculate Penalty?"

No, it's a valid rollover. Report it as such. Keep the documentation Randall suggested. Client must deposit the full amount withdrawn before taxes withheld, obviously. From Pub 590 - Rollover From One IRA Into Another You can withdraw, tax free, all or part of the assets from one traditional IRA if you reinvest them within 60 days in the same or another traditional IRA. Because this is a rollover, you cannot deduct the amount that you reinvest in an IRA. PLR 9010007 is the authority cited in TTB.

Form 8965 for calculating the penalty or reporting an exemption. You might start there by familiarizing yourself with that form and its instructions. Some exemptions can be claimed on the return without any additional paperwork, others require that the person apply for and receive the exemption from the marketplace and will be given an exemption # that is shown on the return. Form 8962 is used for reconciling the amount premium tax credit the person or family is actually eligible for against any advance credit (subsidy) they used during the year to offset their premium payments. You might want to take a look at Pub 5157 that is the VITA guide on the ACA used to train those preparers.

Income because the SSA has a specific order it pays the funds out, and it paid directly to the son and not the estate. The order of payment is included in the link you provided to SSA's form 1724. The son filled out that form and he must have indicated that he had the right to receive it, if he didn't and if it should have been included in the estate to be distributed to all beneficiaries, then he should have filled out the 1724 for the payment to be paid to the estate. Social security benefits are one type of income paid that is IRD. IRD retains the same character on the recipients return as it would have been reported on the original owner's tax return. SSA doesn't issue 1099-misc. Anyway, if the son's income is high enough that 85% of his own SS is being taxed, at least he is getting a break of 15% of the parent's SS not being taxed also.

We were probably typing at the same time, and I type slooooow any more.

Enter the code to show this is a single family dwelling. Because this was the taxpayer's primary residence, do not enter any days if the unit was a full rental beginning 5/1 with no personal use after that. The entry of those days are for vacation homes, short term rentals, and days of personal use after converting to rental. The days prior to converting to a full rental property are not counted as days of personal use. Put 8/12ths of real estate taxes and mortgage interest on Sch E, 4/12ths on Sch A, also put 8/12ths of insurance on Sch E, zero deduction for that on Sch A. Enter other monthly utility bills, management fees, etc incurred and paid after becoming a rental on Sch E. Depreciation on the real estate begins 5/1, should calculate ok since it is monthly. If you are entering any depreciation for tangible items, I think you would have to override so that the system doesn't enter a full year depreciation for those.

I thought of your posts too, Deb. Delaware has some affected too.

The gift tax return will show the value of the gift, the $14K exclusion, and the portion that is taxable. The page 1 of the form 709 will calculate the tax and will also allow you to apply the unified credit against the tax and he won't pay any gift tax on this. There is a lifetime limit on the unified credit that is tied to the estate tax, but in this case it sounds like that isn't in the realm of possibilities that the credit would be used up at this point. Not sure if there is any state gift tax in NY.

Taxpayers in 12 states will be unable to use certain federal tax breaks on their state tax returns because of Congress’s late passage of tax extenders legislation, leading to lower state tax refunds. Link to whole article from Accounting Today. These 12 states tend to pass yearly legislation to conform to federal tax breaks: • Arizona* • California • Georgia • Hawaii* • Iowa* • Idaho* • Indiana • North Carolina • Ohio* • Virginia* • Wisconsin* • West Virginia* * These states have introduced bills to update their conformity date and will likely conform in the near future.

lol Tom, I think we're all frustrated at this point with this ridiculousness and that of the ongoing changes to the repair regs also. I found my answer about when and how the gov't will be notifying those with incorrect forms. The marketplace will call +/or email those that are affected. The SLCSP shown on some 1095-A forms was the 2015 premium in some cases, not the 2014 amount. Here's the page on the marketplace that describes the issue, and it has a link to look up the appropriate SLCSP for 2014. ETA - Accounting Today's article said that people can log in to their marketplace account and should also see a notice in their mailbox that will state whether or not their 1095-A was one with the error. 2nd edit - log on to the marketplace, open the 2014 application, and then click on "Tax Forms" which is the bottom choice in the list at left. If the 1095-A is affected, a big red box will appear with the message stating that the 1095-A originally issued is wrong.

If this isn't a vacation home that the person isn't using after converting to rental, then you probably have the wrong code entered into ATX. Is this a home that the owner converted fully to rental beginning in May that has no personal use after that date of conversion? Or is this a second (vacation) home that they decided to rent and still also use themselves?

ATX used to have a "Detail" tab right next to the one that is labeled " Detail - Items". That's the one I always used. Maybe it's still there?

I don't know why the U.S. News & Report didn't show the AP's whole article. Here is the AP's entire article that says the government is still investigating the root of the problem, it appears to be with a "benchmark" figure, and that the 50,000 that have already filed will receive special instructions on what to do from here. I'd assume that the "benchmark" referred to is the SLCSP. I want to know how and when the government will be notifying those with incorrect forms.

Code T indicates that the preparer of the 1099R was not sure if the 5-year holding period was met. Agree about the 8606, but read the instructions for line 19 to see if the distribution should be included there. There is an exception for death and if there were contributions made to the Roth between 1998 and 2009.

...file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. If you filed your original return early (for example, March 1 for a calendar year return), your return is considered filed on the due date (generally April 15). However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it July 1, your return is considered filed on July 1.

That's not always true. It can be taxable if there is a negative capital account. Even if no money changes hands, the fact that the partner is relieved of that negative capital account is a deemed distribution that is taxed as ordinary income.

Hmm, the way I understood the law and this new one easing the penalties is that the reimbursements weren't allowed starting in 2014 but there wasn't total clarity in the law, and so if employers did do that and are still doing that, then the IRS has given companies through 6/30/15 to remedy these errors, and the $100/day/employee won't be assessed on small employers that did it wrong prior to that date. If the error continues after 6/30 of this year, then the IRS can assess the penalties. That's all I thought this new rule meant. Am I totally wrong too?

Instructions for 5329, line 2 - for the exception # 05 : Qualified retirement plan distributions up to the amount you paid for unreimbursed medical expenses during the year minus 10% (or 7.5% if you or your spouse were born before January 2, 1950) of your adjusted gross income (AGI) for the year. Yes, $16,000 you entered on line 2 was after this limitation. Yes, the part that is subject to the penalty is $9,000. Correct. If the loan from a 401(k) exceeds 50% of the nonforfeitable balance in the retirement account, the loan can create taxable income under §1.72(p)-1. You can see some of that discussion in my post #10 from >this topic. See this page at IRS re: statutory maximums of loans and here is a whole Q&A section from Cornell Univ Law School online library on the topic of loans treated as distributions.

The ex-spouses may agree to any allocation between the two of them, and must apply that same % split to all of the figures on the 1095-A. If they can't agree on a split, then all the figures are divided 50% to each. It doesn't matter who worked or paid the premium if they can't agree, then it's a 50-50 split.

Yes, really, I wasn't joking. It's not available yet anywhere that I've found, not even in draft form.