Pacun

Think of crypto as any other stock except that you don't have wash sales. So, since you don't expect a 1099 from Fidelity Investments for stock sales, don't expect one from crypto exchanges.

I have noticed that if use $10,000 of fiat to purchase a coin and you stake that coin and hodl it, this could happen. Let's say that the coin your purchased was luna coin. For staking, you get $200 in Luna and let's say that Luna made to the moon and you sell everything for $11,000. You will enter the basis for $10,000 and proceeds for $11,000, you will report $1,000 short term. I doubt the IRS will say anything because you didn't split the profit as $200 and $800. 

You should have efiled on January 24th so that the next return is rejected. If someone else is filing for 2021 tax year, they will be enjoying the refund while you are waiting for PIN. 

I think in this case "child" means son or daughter:

"Have a child, stepchild, or adopted child who qualifies as the taxpayer’s dependent for the year or would qualify as the taxpayer’s dependent except that he or she does not meet the gross income test, or does not meet the joint return test, or except that the taxpayer may be claimed as a dependent of another taxpayer."

So, I would say your client doesn't qualify for QW.

Correct. He has pay Federal Taxes on CA and GA unemployment. He has to pay GA taxes for the GA unemployment received.  CA unemployment is not taxable on GA or CA, unless he was a GA resident while receiving CA unemployment.

I would file a return and charge them only half of what I charge.  It will be easier to see they have filed their taxes when dealing with the estate. 

You need to enter the dates they resided in DC and the dates they resided in NY.  Then you need to go to D-40 page 1 (I think line 7) and enter the income that was "earned while not a DC resident". In this case, I believe your DC income will be 0.

Let me change the name of the company to Fidelity investments to make it easier and let's say that the fee is only $100. Is Schedule A the only place to deduct that reasonable price?

I want to double check this:

I have a statement from Robinhood Securities LLC for stock sales. 

Short termed:
Proceeds $1,500, basis $1000

Long Term:
Proceeds $2,000 and basis $1,200

The report shows $400 in expenses. Is Schedule A, itemized deductions, the only place to deduct those $400

I have not dealt with your situation because all my clients want $14K refunds from the IRS. 

Yes, as long as you enter the children correctly, the IRS will adjust the refunds. 

So, let's say you have a client with three children and $2,000 of withholding and a salary is $20K, you are requesting $2,000 refund and that's it? How about someone with $70K income, 10K withholding and 5 kids, are getting $10K refund and overriding the other entries? Preparing a return to make sure  you only get a refund equal or less than what was withheld is very, very hard. 

PATaxlady, First decide where the children resided and if one of the parents qualify as HH. If the other parent made less than $45K, then you can have the HH claim both.  I think you will end up doing what you said you were going to do because $1,500 in my pocket is better than $3,000 on my ex's pocket.

If it is a Roth IRA, nothing is taxable and it makes no difference if they invested their money in a first home and spent it at the local casino.

12 hours ago, grandmabee said:

I don't think you could put 8,000 in an regular IRA back in 2012.  Can't even do that now.  Maybe over several years?

anyway it is all taxable but only the amount less 10,000 is subject to the 10% penalty.  12,000 subject to penalty.

Yes, TP could have opened an IRA in April 10, 2012 and split $4,000 for 2011 and $4,000 for 2012. 

Your are right, It seems that this taxpayer will pay penalty on $12,000 and Federal taxes on $22,000. 

I don't think CPAs will take offense on your comment, but I think it makes sense what the CPA is saying.  I have read that the only income that is considered to be earned evenly through out the year is income reported on W2s.  It makes sense that an estimated payment needs to be sent to the IRS on quarter where the money was received since this is a one time event. 

This is like reporting the sale of any other item since there is no exclusion and you have to report the profit as long term.

Cost(including land)+improvement-depreciation for the cost and then saleprice to come to a profit or loss.

I know others will give you better, more detailed answers.

He could easily benefit for three years by filing MFJ, QW, QW but he was desperate to get married. 

He has only two choices now, married filing Jointly or separate with his new wife.

22 hours ago, Pacun said:

Yes, it goes to schedule C.  QBI depends on the other rules, such as profession and total income for your client.

2 hours ago, Lion EA said:

Was the whole house again personal residence in 2021 up to the sale? If so, you have to deal with the ratio for unqualified use vs qualified use.

On another thread a couple of years ago, I was clarified that once you have lived in the house before renting it, you don't have unqualified used. Meaning that as long as you lived in the house 2 year out of 5.  So no unqualified use here.

4 hours ago, cbslee said:

What was the status of the apartment from January 1st thru March 31st 2021?

The rooms were converted to personal use on 1/1/2021 until the primary residence was sold. 

4 hours ago, ILLMAS said:

The other apartments were never rented before 2019?  

No, the portion where the owners lived was never rented. The half of the house rented was where the adult children lived prior to getting married. 

That's legal. Keep in mind that on line 28 of 1040 you will get $4,500*1.5 and on line 30 you will get $1,400*1.5 on the "tp" return. Keep in mind that if wife itemizes deductions, his standard deduction is 0 or he has to itemize too. 

Another point to remember is that if spouse makes more than $40K (a bit more since there is a $500 cushion per kid), spouse might need to return some of the advanced payments. 

Give the kids to the person that makes over $40K and leave the person with > $40,000 without any child.

The kids don't belong to anyone since they are married, anyone can claim them.

The exclusion will take care of the capital gains since they file jointly and have owned and lived there for 10 years.

What are the chances that the states will mail her something meaningful? She can pay her bill to the states from the print out you give her or her refund directly to her bank account. 

Send address change forms to each state and that should be it. Just keep records. 

49 minutes ago, Abby Normal said:

If you mean at the windows file structure level, you can't because ATX is a database. What are you trying to accomplish?

If I save the file by mistake when giving an estimate, my old information will be gone. I was just wondering how to use the efile file to recover the data for the original client. 

So far this has not happened to me, but it is just a matter of time.

When I get a new client, I interview him/her and  I look for another client in the same state or county with the same situation, which has been already efiled. I delete w2 forms and all income forms, then I add the income info for the new person and give then an estimate on the fly. I tell them their situation and  I close the file and I don't save.  I know that if I save, I will destroy my copy of my previous client and I will have to recreate if needed. I know that the efile file that I transmitted to the IRS is intact and still shows the correct amounts for my client (not the potential client).  How do I put my hands on that efile file since it seems to not be a real file but a pointer.

Can you use form 3115 with your current filing?

house has 4 floors and it was purchased 10 years ago and tax payer has lived there with wife since it was purchased for $600K. For two years 50% of the house (two floors) were rented and depreciation allowed or allowable was $14,545. Rented the whole years of 2019 and 2020. On march 31st 2021 was sold for $1,100,000.

A class instructor said that as soon as you rent, you split the property into two, which doesn't make any sense. Any ways, based on the information above, the tax payer will pay taxes only on the $14,545 which is depreciation recapture, correct?

Yes, it goes to schedule C.  QBI depends on the other rules, such as profession and total income for your client.