Pacun

Share your mistakes so we can learn not to do what you did. Trial and error is very common on computers and tax software.

Make sure code 1 is not entered. Your issue is with the code, so play attention to it and you will be OK.

ILMAS I am glad you noticed that the key here is the disqualified period not the gain period. So, if you own a house for 25 years (and lived in it as your primary home for 23 years) and you rented it for 2 years and you make a profit of $250K, you will be able to exclude $230K regardless of when the gain occurred (provided depreciation was less than 20K). I noticed that you will be disposing two asset in ATX. Is that the only of doing it? I do have a case where I have to disposed of a house (rental and personal) and I am wondering if ATX will do it correctly by disposing only one asset. Thanks.

I am glad people are coming back to ATX as I predicted it. Nice to have you back and I hope you have a nice 2015.

I checked my 3 states (MD, DC, and VA) and the information seems to be correct. I like that website and thank you for sharing.

You are right. Sorry.

I think it should be + $20,000 and - $30,000 on the second line. Those are just typos.

On, December 15th, 2009 client bought a house and used it as his primary residence on the same day. On June 15th, 2012 he moved out and rented the house. He claimed depreciation on the house and on December 15, 2014, he sold the house after being rented for 30 months. Cost of the house: 400K FMV at the time the house was converted to rental 400K. (Meaning that he house didn't increase in price while he lived there) House sold for $845K (Meaning that the price of the house went up while being rented) He changed the roof on the house and it cost him 20K Depreciation allowed or allowable 30K. How much of the gain can he exclude? I have not done any of this using ATX and I would like to know what forms to use and how the gain is reported and where. Thank you to those who are not afraid to give the correct answer and also to the ones who are not afraid to give the wrong answer.

Is this a duplicate post? I think the original was "how much tax preparers charge".

If you have a blank W2 and the client wants to pay SS, just go ahead. Maybe they were a statutory employee or something else. Don't think about it to much and just prepare the taxes the way the clients wants because he has taken an acceptable position.

I think Judy got it straight from the horse's mouth. All the classes I have taken, the instructors said that you only consider the dependents' income when they are required to file.

Share responsibility payments DO not apply to dependents.

It is not clear to me if it is the SS income from dependents or the non-taxable SS income for the filer(s). So, as a dependent, if you are not required to file, 1040 doesn't exist.... if 1040 doesn't exist, line 20 doesn't exist either.

Sounds good. I guess I was sleeping or the instructor didn't mention it. This document looks good and handy. http://laborcenter.berkeley.edu/pdf/2013/MAGI_summary13.pdf

Correct ONLY if filing requirements kick in you have to include income for dependents.

Good for you.... you will now have money to buy chocolates. In my case, money for my chocolates will start to come next week.

Most of the unemployment 1099s will be on line. DC has them (will have them) on line which makes it easier. Any other states that will have them on line?

I will say two things: I do feel that tax season has not started and some of the answers are too hard on this board. I don't mind if they do it to me but we have to be sensitive to other people. If we continue to be hard on people, we are going to lose good people and that's not the idea of this forum. I don't send the organizer to my people (so, to an extent I agree with Jack). I feel that if people answer the organizer correctly, the tax preparer only plugs in numbers on the tax software. (That's my personal choice). So, not having a lot of questions about ACA on the organizer is not an issue for me. Keep in mind that only 20% of the population will be affected by ACA, so for a lot of our clients ACA doesn't apply because they will check yes to: Did you and the people on your return have insurance all year?

I think you could argue it that "it happens that the referral was law related" but in reality that was a coincidence. This leaves an aroma. Under the exact same circunstances, could you have gotten a similar referral fee for suggesting a DJ? Your changes of getting away with no paying SE would be greater if you got the referral fee for suggesting a certain phographer to Bill Gates for promoting of his "water" machine and getting a huge referral fee. I chose the water machine but you can chose Windows 10 for that matter. Since you are an Attorney, would you add a note to the return letting the IRS know that you are taking a position of not paying SE taxes? Or would you like to have a good fight with IRS if by coincidence the return gets picked up from the 1% that are randomly audited?

Congrats.

What I meant is that sometimes we discuss a post for a while and until the end we get the best answer. In this case, I got the best answer from the very first post. Why will you get insulted? If you check most of the posts don't get the one best answer from the first post and in this case I did. Yes it is not a real life question. Detailed oriented people like you noticed that Saint Patrick's day, Father's day and Halloween dates were enter which would make this situation a bit more than a scenario rather than a real life situation. Did you like the warm up or not?

The question no one asked was: Was the loan a personal loan or a residential loan? I forgot to say that this was a personal loan. So, what are the choices of personal loans? You can borrow up to 50K and max payment time is 5 years. So, In this case, there was no possible way that he owed 40K on a loan if he borrowed prior to being 55. That's why I chose 40K but I failed to say it was a personal loan. So there should have been no question that the loan was made after he was 55 and regardless of when the distribution took place, he was over 55 and now the only question was when the distribution took place. So if the distribution took place after he separated from service, then no penalty. JKLCPA got the correct answer from her research. I brought this question because about 4 years ago, a person took out about 60K from her 401k after she separated from service and she was 57. 1099-R came with code 1 and the preparer made her pay 6K in penalty. She came to me a year later and I called Fidelity and I demanded a corrected 1099-R. The representative started to be smart with me and I said: How did the distribution start its process? The representative said: "We sent her a letter because she could not continue in that plan because she was no longer with that employer." My next question was do you keep date of birth data of people in your 401K plans? and the representative said yes. I said, so you knew she separated from service and that she was older than 55, correct? The rep said yes. At that point, I said, I need you to correct the code on the 1099-R and please mail my client a corrected copy. When my client got the corrected 1099-R, we amended and got a 6K in refund. I am surprised I got the correct answers from the get go. That proves that this forum is the best.

How about if the Loan was taken before he was 55?

So your answer is 0

Please give me the figure without explanation and then we discuss it.