Crank

• The penalty is pro-rated for the number of months you were without health insurance, but there is no penalty for a single gap in coverage of less than 3 months during each year. http://obamacarefacts.com/obamacare-individual-mandate/

Then why does worksheet A require you to select the months that the taxpayer didnt have insurance?

In ATX, even though I completed worksheet A showing the months without insurance,on the SRP questions, section section 4 line 8 defaulted to that I was not required to complete worksheet A. I had to over ride the question to yes to get it to pro rate the penalty. Did I do something incorrect? Anyone else have this issue in ATX?

Ive recently run into a few clients who have to pay the 2% penalty but they only lacked coverage for 3 & 4 months. I dont see anywhere on the forms, or have read anywhere, that the penalty is pro rated. Seems strange to have the full 2% penalty when they had coverage for the majority of the year. Any help is appreciated!

Thank you ! I did finally figure it out about an hour after I posted. This is the first time I encountered a taxable scholarship. And ATX did get it correct.

This appeared on a return I am working on in ATX. 1040, Line 7 SCH 2500. I have no idea what is means. Tried Googling it to no avail. Anybody know what it means and why is there?

Thank you!

I believe I figured it out ACA penalty of 363 for the year from the shared responsibility worksheet

That is the only item on the 1095c and its in the entire year box. No months of coverage are checked. TP earned $28,457, paid no premiums and the employer paid $1085 (box 12 code DD) for the coverage. How do I interpret this? 1F reads minimum essential coverage not providing minimum value offered to you. Does it mean that the TP is subject to ACA penalty for the whole year?

New client this year who went to Block last year. Personal return and 1065. I pride myself in having lower fees in relation to CPA firms and "Big Box" types like H&R Block. Now dont misunderstand I do believe I charge a reasonable fee and I am not selling myself short. I just have much lower overhead and I get a return client where I can bump fees up in coming years as appropriate. Anyway Block charged $379 for his personal return, my fee is $250. Not a complicated return at all. But missing from the Block folder for the 1065 is the fee print out. On the outside of the folder (like the personal return) is written $1. $1 for a very simple 1065. Client seems honest so I hesitate to believe he is lying. He claims it was the first year he went to Block and doesnt know why they only charged him $1 for the 1065. Seems way out of line for a 1065 and for Block also. Anyway I told him that there is no way I can match or beat $1 for a 1065. I buy corps on pay per return which is $54 each. He was ok with that. Im just amazed if Block really did charge him $1 for a 1065. Anybody ever hear anything like that?

Too funny! Or maybe it's not a laughing matter.

No reason to be sorry. I appreciate the input! Still waiting for the cash balance at YE 2015. Not much to compare from 2014-2015. One asset and it's accumulated depreciation, that's it, period. The cash balance at year end should provide the necessary information to determine if there was a distribution or not.

Very good point. I like to complete the balance sheet to make sure I havent missed anything. Billing isnt the reason and I adjust accordingly.

I have all those items except for the cash balance, which I am waiting on. My entire point was to get it right from the balance sheet item (cash vs distribution of equity) to the combined partners equity vs the total balance sheet equity. I dont cut corners but after I get it correct what is the point of filing the balance sheet if its not required? It will still be complete and everything tie out in the return.

Correct, there are no Liabilities. Hmmm, the balance sheet is page 5 (Schedule L) of form 1065. How would I not include it? Would I select "Yes" on 1065 page 2, line 6 to not include the balance sheet (Sch L) and the other schedules mentioned? Or is there some other option I'm not seeing to not include it?

I didn't do the books so that's my question. I'm assuming that the debit would be to cash to balance the books. I need to confirm with the client what cash balance the partnership had at the end of 2015. Assuming the cash account has something less than than the $4500 required to balance the books (it was $0 at the end of 2014) then the difference, I presume, would be considered a distribution and therefore a reduction in partner's equity instead of the debit to cash. On a side note, Block did this return last year and drove me nuts for the better part of an hour because their 2014 ending equity on the balance sheet didn't equal the combined partners equity on their K-1's. I just input Block's last year amounts and then couldn't understand why my K-1's combined basis didn't equal my balance sheet ending equity. Spent way too much time on what is really a simple return because of this.

1065 holds one rental RE property (the only asset). 2015 Depreciation $3000, Net Income $1500. Compared to 2014, Total Assets decreased by $3000 (the Depreciation) and Partners Capital Increased by $1500 (the net income). So the year end balance sheet is out of balance by $4500. What other balance sheet items are affected to have it balance? Would I increase cash by $4500? This is my first 1065 but I do know how a balance sheet works and Im having an issue trying to figure this one out. Sorry if this sounds stupid but I'm drawing a blank. Any help is appreciated

Over documenting by clients is one of my pet peeves. However I would rather a client give me too much information rather than too little and chance missing a tax item. Another pet peeve is the people that dont bother to open any of their mail that relates to taxes. i.e. w2, 1099, 1098 etc. I hate spending time being their mail boy. Open your darn mail and organize it accordingly. I can wish cant I

I must have missed the Pro Series offer. I used Tax Works for 2010 & 2011 and Taxwise for 2012 before coming back to ATX in 2013. So far so good with ATX this year.

I saw The Who in Sept 2000 in NJ. when there were still three original members. It was, hands down, the best concert I have ever been too! And that includes The Rolling Stones, Eric Clapton, Genesis, David Bowie, AC/DC, Yes, Rush, James Taylor and I'm sure a bunch of others I am forgetting. I hope you get to see them. I'm sure it will be a memorable experience.

Great Pics! Congrats to all!

Got my answer to #2, Gross proceeds reported on 8949. Selling expenses on 8949 go to columns F (with code E) and column G (amount of selling expenses)

1. Issued in the name of mother's estate which was closed in 2009 but has the client' tax id number. Client was the sole heir to the estate and never changed the name on the deed per an attorney's advice. Property sold and the client received the proceeds, no problem. Will the name on the 1099-S present an issue? 2. 1099-S show gross proceeds of $117K. Actual amount received, less the costs of the sale, was $102K. Do I report the proceeds received of $102K? I dont believe I should add the $15k difference to the basis of the property.

I was already going with the reduction of the sales price but then got off on the 1099 tangent too. Thanks

Hi all, I have a situation where real estate was sold (non-residence) with a 6% seller's assist. In other words the seller paid the buyers closing costs. Im wondering if this could be considered income to the buyer and should a 1099 be issued.