jklcpa

^^ This! Your client's basis is now the basis she and former spouse had as a joint couple, and there is no step-up. She is now selling as sole owner so the exclusion is only the $250K, assuming she meets the requirements for the full exclusion she is allowed.

How can that be though? The amounts for 2024 are exactly double at $4,150/$8,300, so applying the same inflation percentage should result in the amount for 2025 family being exactly double that of single coverage if what you say is true. Something else must be factored in because the amounts for 2023 weren't exactly double either. The 2023 amounts were $3,850/$7,750.

So it will be $11 until the third party contract is renegotiated in 2026 at which time the PTIN fee will probably be revised again. https://www.thetaxadviser.com/news/2024/may/regulations-finalize-ptin-fees-for-tax-return-preparers.html#:~:text=The IRS arrived at the,training%2C supplies%2C and overhead.

In determining gross income for the filing requirement, gains but not losses are used in that determination. It is not the proceeds, but the gain that is taken into consideration. That being said, even when the basis is reported to IRS and no gain exists, the AUR will be using the sale side only and this new client may receive a CP2000 in about 18 months. You should explain the filing requirement to the client, and personally I'd advise this client to file a return to avoid the notice. Even without an extension, there shouldn't be any penalties assessed since no tax is due and the client doesn't actually have a filing requirement. If penalties are assessed, those should be easily explained and abatement requested. Filing also establishes the statute of limitations date in the event that you are missing some piece of income from this new the client. What about a state filing requirement?

@BrewOne, I'm curious about how often you find issues by going through this exercise? I have only one client where I feel this may be useful but have never done anything like this and haven't personally known any preparer that does. Maybe this is will be year I get this client a POA.

It's in the 1040 instructions, pub 501, the interactive tax assistant on the IRS site, tax research books such as The Tax Book, Master Tax Guide, should easily be found using a search engine such as google, etc ....

The site does have the option to stay logged in, and stays that way until the user clears browsing history unless leaving cookies intact. I'm logged in almost all the time. The site also has the ability for a user to log in anonymously too and stay that way.

That's covered on the FinCEN site's BOI page of FAQs. See section D. https://www.fincen.gov/boi-faqs#D_5

I wasn't asking if the preparer must send two emails. Based on what Margaret said here: ...what I meant was, for example, must each party signing the 8879 have his or her own separate email address.

Does a form requring 2 signatures need to have two separate emails?

I am wondering that as well. Also, do you have access to the Drake forum?

Any time is ok with me for the conversion business-wise, but I may have withdrawal during the downtime. As always, thank you for taking care of us so well, Eric.

Oh right, he meant after the program updates. I had that happen once mid-season but hasn't happened since then. I'm more tired than I realized.

What program are you having to sign into again?

Yes, it has been like that almost since the beginning of this season for me. When the program would open, I had no alerts or notifications in that bottom left corner of the manager screen, and I wasn't able to get program updates. I didn't realize this at first because I was only waiting for state approval of a certain form. Also, MS Edge browser window would open on top of the program every time, and I couldn't make the support person or her supervisor understand this. I have never used Edge, and the supervisor's suggestion was for me to try changing to Edge as my default browser, or try Chrome. I could NOT make either of them understand at all that something with my computer's environment was blocking communication from the program to Drake's server, that it was not a browser issue. Finally after about 6 calls the supervisor sent a message to a higher level support person. Very frustrating! We worked on it and thought it was solved with me changing settings in my AV, but the problem reappeared again in late Feb. I ended up changing to a different AV software completely but had only disabled the original one. That worked until I rebooted the computer and a portion related to the original AV's VPN was still enabled, and THAT was the issue.

I haven't had anything from Drake yet. Tax Book's offer came in the mail today.

He's a cute little fluffball.

Yes, please see the instructions to preparing 1099-C and "Who Must File" and the large bold heading under that labeled "Exceptions". It seems that the form's issuance depends on the type of bankruptcy and whether the debt was for business or investment, or if it was for personal use.

Thanks. That's good to know, and so it would be up to Christian to find out the specifics for this student.

Christian, you may be correct. With the AOC, the student must be a degree candidate, and he can't be a candidate for a degree without graduating from HS. Most colleges and universities will not even enroll the student in the degree program without first completing the secondary education. The LLC, on the other hand, can be taken by an eligible student taking course(s) that are part of a degree program, but it does not require that the student be a degree candidate.

Student has to be a degree candidate, and since he hasn't graduated high school yet that would knock him out. No? Even if qualifying, AOC can only be claimed for 4 years. Maybe the parents don't want to claim in a year where the credit would be small.

The incomparable thrill of meeting the deadline. Almost 2 a.m. and 4 coffee cups, that would have been about right in many past years for me.

I'm done and done in. Last night I dug a hole on the edge of my foot to remove an already inflamed deepish splinter and went off this morning to the 5K charity event with a bunion pad and bandage. I completed only half of that, and then the sporting clays went about the same, like I was a raw beginner again. I had an awful season this year. My Mom passed at the end of Feb, and the I got the flu-a in early to mid March and missed many days. I actually sent 3 returns and a trust away because of it. There were a few days that I don't even remember in March when I started back working and was still very sick. Glad this season is over. If you made it this far, thanks for listening to me whining.

Yes, absolutely we want you to stay with us.

Have you included the nonresident/part-year ratio schedule in the return? That ratio from the schedule would be applied to the overall MT tax on all income so that the tax is reduced to the same ratio that the MT income represents of the total income.