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Everything posted by Pacun

  1. What form are you talking about? 1040NR or 1040?
  2. Add that information on the explanation. Add Name, SS#, months lived with taxpayer, Relationship and date of birth.
  3. One of the items the IRS looks for active participation is the fact that you look for tenants.
  4. I would be more concerned about physical participation and QBI. IRS can argue that this is treated as a payment to a management company. It is deductible as a commission, as professional Fee, management company fee. I see two issues with this transaction... if there is a loss, the loss cannot taken this year... if there a gain and no 1099 was issued, the QBI credit should not be allowed. If you want to treat a rental as a business, you have to behave as a business. Businesses are required to issue 1099-misc.
  5. I would ask the parent to give the child $1,200 because it is legal and less expensive for them. If you take out child from return, it will cost them $2,000 plus what you will charge them.
  6. The smile on your picture goes in accordance to what you wrote.
  7. That's the lady that works for H and R Block in DC, correct?
  8. Cash the check and when it clears, pull out your checkbook and make a check payable to the sister and put it in her tomb.
  9. Just give them the depreciation schedule for the years taken and tell them to keep that handy when they sell the house. Chances are that you will not be their preparer when they sell or inherit the house.
  10. How much money did the person made while abroad and without "green card". File as resident by reporting global income and attaching a letter stating that both tax payer agree to treat the foreigner as a resident for tax purposes. Then you can take the credit.
  11. If you can see page 2 of 1040X, pull down the file menu and "print current page"
  12. Pacun

    Lost Files

    There are companies that try to recover your data but it is just a matter of luck if you get any files. Most companies with charge you about $1,000 just to look at your hard drive and then more if they believe they can recover your data. ATX will only keep track of your efiles. I don't know if they keep a copy of the efile files but for sure they have records if your returns were accepted or rejected. Doshikc, ATX will not charge you again for the software you have purchased already. Just log on to their site and you should be able to download it again and install it.
  13. Pacun

    Air bnb

    the main idea of an air bnb is to make money from renting your free space, not by selling breakfast. What is substantial? Let run some numbers... Let's say you rent a room for $100 a night. $90 is for the room itself and $10 for the amenities. Do you still think it is schedule C?
  14. Pacun

    Air bnb

    What's wrong with Schedule E with 27.5 years depreciation? They are renting living accommodations except that their clients select to use it only for temporary basis. If a client comes and decides to rent it for a year, the owner of the air bnb will not have any objection. The breakfast is incidental like the free continental breakfast that hotels offer. The fact that the hotel offers breakfast and snack doesn't make them a restaurant. If schedule C is the consensus, what if I have an air bnb and I hire someone to prepare breakfast?
  15. Pacun

    Client Fraud

    We all need a good excuse to visit the liquor store... and who said the liquor store are not essential???
  16. I sometimes create a return on the previous year and make it exactly as the previous preparer sent it. Then I roll over the client. As you know, overriding the forms create unwanted results and that's why I manipulate the overriding on a return I will never send.
  17. Pacun

    Client Fraud

    To me or to Christian? Let's analyze the situation... the fact that she said it, it doesn't mean that she did it or that she will do it. When that happens in my case, I just take it easy and think about the glorious times when they were my clients and I filed properly for them.
  18. Thank you I will check the links you sent me. After talking to my clients, they didn't report some bank interest each year so I am going to amend and add form 8938. Amending is to correct errors on filing and since tax liability will not change just for adding 8938, do you still believe I should do it under the IRS delinquent International Information Return? To other preparers, make sure you are adding that informational form, if your clients have accounts abroad with a lot of money.
  19. It was just a thought. The IRS is accepting paper returns and they will be processed in August the the post marked stamp will stand, correct? But it is good to know that once you applied a refund for next year, it is hard or impossible to get it back.
  20. Pacun

    Client Fraud

    Don't worry, the IRS checks the Premium Tax Credit all the time. There is no way they will get away with it. Please don't send a letter to the IRS for two reasons: 1.- The IRS will not do anything 2.- Tax preparers are already doing the auditing process for the IRS and we don't need to be the enforcers too. Just my two cents.
  21. How about another 1040 that will supersede the current filing? We have until July 15th to file.
  22. If Form 8938, “Statement of Specified Foreign Financial Assets" was not included on the last three filing, do we need to amend each return? Clients live in the US and have filed 1040 but not form 8938. Fbar and Fincen were filed for each year and I wonder why the IRS has not requested form 8938 with a letter.
  23. Pacun

    IP PIN expire?

    Paper file them.
  24. How about this? People who went to HR block in 2018 and got an Emerald card maybe got their stimulus check deposited to that card. I wonder if HR keeps those accounts active and I also wonder if users trashed those card after taking out their money last year. How about clients that went to HR this year and got those cards?
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