Pacun

I think we will have to amend those who now qualify for EIC, especially if they didn't qualify before. I have a couple that will now qualify and a few that their refund will be increased by a couple of thousand dollars or more.

Can I create a payment plan on line for the client or the client has to do it? I usually ask the clients to call the IRS and to wait for the forms to be sent to them but now that regular mail is slow, I might need to help them on line.

I thought 3115 was a fix all form. I guess you can argue that the improvement doesn't need form 3115 because they simply used 0 basis on the improvement.

I am hoping for the best and my prayers to you and her.

My feeling is that the excluded amount will be treated as if never existed. That will trigger (if applicable) EIC, Child tax credit, additional child tax credit, stimulus, savers credit, educational credits and a few more credits or tax liabilities.

I am married but the Pacun Tower in San Francisco, CA is only under my name. I am 30 years old and the Pacun tower is being rented as apartments and retailers. I have decided to open the Pacun Corparation and collect all the rents from tenants and retailers using the corporation. I will lease the whole Pacun Tower to the Pacun Corporation and I will depreciate the building under my 1040 and report rental income. If I die when I am 71 years old, the Pacun tower will be completed depreciated and it will get step up basis and my wife will be able to sell it and pay 0 taxes... will that work? Also, I will have to depreciate the retailers portion of the building using 40 years and the apartments portion using 27.5 years and of course the land will not be depreciated. By the way, pacun doesn't exist on any of the forms mentioned above but please think about the pacun tower as a half billon construction. Is that correct?

Let's say you don't want to do a 3115, you ask when the improvement happen, depreciate it all the years in existence and add the remainder to the basis. You need to add the cost of land also to the bases or list it on its own. Even if it was under his name completely and get full step up basis, you still have to deal with the depreciation allowed or allowable.

Wishful thinking? That would be a disaster. I think I heard it when I went to get my haircut.

I am waiting on MD who will not tax any of the unemployment but ATX says that on Tuesday they will have the form. Now I have to wait for Federal. DC follows the Federal most of the time. They have the same standard deduction and 0 personal exemption. I believe DC will not tax 10,200 so that will be a breeze when 1040 is updated.

I do my own and my daughters and I always treat those returns as if I am paid. If I am not mistaken, as long as the return leaves my computer it will be counted against my efile number.

I understand you don't want to be responsible for that return... but I would just file as a regular customer. Make sure your click on the "Third party" and put your name on it so if there is an issue with the return, the IRS calls you.

Thank you. I will try tomorrow.

Can you try the same procedure with a sample return and let me know if you don't find any issues? I don't get a choice to create 1040X efile. I get only for the regular 1040 but then again, I have never done one so I don't know what will I get when I click create efile.

I am trying to amend 2019 but it seems that paper is the only way of going. Have you e-amended this month or last month?

I am trying to create an efile file to amend 2019 and I have tried by clicking amend return which makes a duplicate and I work on the duplicate. I only have a choice to create efile for 1040. I have also tried to duplicate return, amend it and still not able to create efile for 1040X. If I am not mistaken, I used to see choices for 1040 and 1040X when creating the efile file. Has anyone amended anything this month or Feb?

Yes, it will affect EIC credit if it lowers AGI. In February, when unemployment was fully taxable, unemployment put a lot of people beyond the EIC limit, if the new regulations just eliminate those $10,200 from income, they will qualify. If EIC is adjusted, the stimulus might run out of money. I have not done the math but maybe IEC is not even a billion.

It might be a good idea to answer the question at that time then. If I am not mistaken, you keep record of the basis by having 8606 forms. Let's say the IRA value is $30,000 and the basis was $20,000. If your client takes out $3,000 then the taxable portion is $1k.

What happens if you made $500K in 2020, will you still get the 0 advanced payment RE-payment? Correcting because Lion EA just posted a better answer to the original question, which is, what happens if you are above of the 400% poverty level for 2020?

Thank you Judy and I agree with ILLMAS, donations to pay for the server that host this site, the electricity it consumes, the programming hours and maintenance for this site, etc. are welcome. Thank you Eric for allowing us to get answers to our questions and to the moderators to keep this site as friendly, courteous and efficacious (Dr. Fauci's word) as possible.

I have had that situation a couple of times this year and the parent who is claiming the three children in 2020 gets a nice extra $3,300. I was hoping that swapping the kids could help but NO. I have a few unmarried people that each claim one child, at first I thought that if I swap them, I would get the benefit but NO.

Yes. I am asking my clients to sign it. When I remember and I sign it too as the preparer.

I guess Drake is grabbing the numbers from the wrong place to make the subtraction. They should have something like "StateDeduction=Unemploymentcollect-NotTaxablePortion". It should take less than 15 minutes to a programmer per state that doesn't follow Fed. Someone mentioned that now that AGI has been changed, they need to check the child tax credit. Keep in mind that now that this has change, you might want to see if checking EI for 2019 is more beneficial to the tax payer. If prior to this change you filed using 2020 EI and now the situation has changed and 2019 EI yields better outcome, you should amend. This could happen with a HH earning little IE in 2020 and having AGI of about $41,200. Now AGI will be $31,000 and there is more room for IC. If the EI was low but since there was no room for a lot EIC, it didn't make sense to use 2019 income but now it makes sense.

CARES ACT

Maybe the class is eating most of your bandwidth.

Check your internet connection or stop watching those videos or streaming music. Rebooting your router from time to time is a good idea too. It seems that you connect is very slow at the moment and that's why the communication is lost for a few seconds.