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About Pacun

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    ATX Supreme Guru

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  1. Pacun

    Docu Sign

    How much per client? If I may.
  2. Pacun

    Depreciation Question

    You do it right regardless of what the auditor will or will not do in the event of an audit. I agree with Gail. Report the income and depreciate the asset.
  3. Did you initiate the communication? If you did, make sure you are dealing with the IRS and not scammers.
  4. Pacun

    EIC question child of divorced parents age 19

    Yes, let the father claim the exemption and the mother file as you did before, Head of Household with Earned Income credit. Your child must meet one [UNO] of the following: Be under age 19 at the end of the year and younger than you or your spouse, if you file a joint return Be a full-time student in at least five months of the year and under age 24 at the end of the year and younger than you or your spouse, if you file a joint return Be permanently and totally disabled at any time during the year and any age.
  5. Pacun

    Non-filer coming out of the woods.

    All I tell my people is: "Since you owe $2,000 for 2010, they will penalize you $500 for not filing, $500 for not paying and then you will have interest calculated for each year. So technically, the amount you owe will almost double, but the IRS will gladly calculate everything for you". Some people say "But I want to know now".... my answer is "This return was due 7 years ago and all the sudden it is urgent????"
  6. Pacun

    NT Aberdeen MD

    Baltimore is the closest city that you can compare. Aberdeen is NOT DC metro Area. Even Annapolis is closer to Aberdeen than DC.
  7. Pacun

    Non-dependent child claimed by parents for Marketplace subsidy

    Maybe you can allocate 0 to son and 100% to parents, if not, allocate 99% to parents and 1% to son.
  8. Pacun

    Amended MFJ to MFS - Denied

    You have a hard one in your hands, unless you go after the previous preparer, which is hard to do and maybe we are not trained for that and a lawyer is needed. I have a husband with a wife in Mexico, they didn't file jointly and for immigration purposes, they wanted to file jointly so I added $50 a week on line 21 that the wife makes selling hot dogs and filed jointly. Of course, this was the opposite from your case because client filed S and the amendment was from S to MFJ. I would explore the possibility of correctly filing an amendment as MFJ so that a new direct deposit is issued. Of course, filing MFJ while spouse is outside the US, is available only to U.S. Citizens, I believe.
  9. Pacun

    Amended MFJ to MFS - Denied

    ILLMAS, as long as they are married, they have the right to file jointly so MFJ is a correct filing status. Now if they didn't cash the check and now they want a portion of the refund, that's another story. My brother, US Citizen, got married on December 31, 2017 to a student in El Salvador. My bother is here in the United States and his wife will be there for at least a year while her visa is processed. He applied for an ITIN for his wife and they attached a letter signed by both stating that they wanted the wife to be treated as a resident for tax purposes and they were including global income. IRS gave ITIN to wife and needless to say that my brother saved more than $5K.
  10. Pacun

    ATX Letters Seminar Video

    I wonder if we could have a posting with links to this type of posting for example a pinned post that lists only links to instructional postings: Maybe we should have voting for good postings and when the votes make it to 5, then we added a link to the pinned post of links. I am talking about link and an explanation: https://www.atxcommunity.com/topic/20902-atx-letters-seminar-video/ Video showing how to add client letters https://www.atxcommunity.com/topic/20886-can-the-home-office-deduction-be-taken-for-a-second-house/ Answered: Can home office deduction be taken on second house? Etc.
  11. Pacun

    Depreciation Recapture - Former Rental Property

    That's very interesting. Let's say you owned a house for three years and it was your principal residence for the three years. You also run a business and you use 1/3 of your house as a home office. Let's say that the house cost $390K and you sell it for $540K. Technically you could approach this instance in two ways: 1.- You report 2/3 of the sale as a principal residence and use the exclusion to kill the $100K profit. AND You report the sale of a business asset and report its cost as $130K and depreciation taken $30K. Then you will have a profit $80K and you will pay taxes on it. (will $30K of depreciation recapture be reported as ordinary income)? 2.- You report the sale as I reported it on the 1040 above and just entered 0 days (as you said... but I am not sure it is correct). If you do that, you will have to pay taxes ONLY on $30K which to me doesn't sound right. The $150K of profit will be killed by the exclusion... I hope someone else researches this instance and finds out that you have to enter 365 days (1/3 of three years) as the non-qualified days and then you will pay taxes on $80K as we did in option 1. One thing these examples tell us is that we don't know how much we don't know.
  12. Pacun

    Finally the IRS corrected a flaw

    I wouldn't be surprised that that was only a portion of what they got from the IRS doing the same thing every year. I doubt they amended every year. Most of the time they only amend the years needed for their immigration cases.
  13. In the past, the IRS would give $1000 child tax credit and the other perks that come with an ITIN. So, I know of places where they asked their clients to request passports from children living in Central America and put them as a dependent and request an ITIN. These tax preparers made extra money and they were busy all year long. So when I hear the famous phrase "they pay taxes" I laugh because I know that a bunch people only get money from the IRS. They never pay anything... BUT that's another subject. Recently the IRS changed the ITIN rules and now when you apply for an ITIN, you need more than a passport if you don't have a visa on it. You need medical records for children under 5 and for children above 4, you need to send school record and any other records that prove that the child is in the USA when you send form W-7 to the IRS, except for dependent living in Mexico or Canada or dependents of militaries. So if you apply for an ITIN, please send passport and proof that the child is here. For taxpayers, the W-2 is a good proof but for dependents, you better send something else.
  14. Pacun

    Depreciation Recapture - Former Rental Property

    No one has commented? I thought I was doing it wrong. Not every year you get an exclusion from a house that was rented. Not only you have to research it but also you have to figure out how to enter the info on ATX. I saw the video on another post, maybe each one of us should share something we researched and post from A to Z so when tax season comes, it is easier for other to follow.
  15. Wow, I wanted to drive to TN but I cannot do it this weekend. Every four years and I get glued to the TV.