Terry D EA

Yes a separate line on the schedule. The bottom line comes out the same but I normally put add all capital expenditures to the depreciable basis of the rental property.

You gotta love it. As if we haven't got enough to deal with now this.

I agree with Judy that MAMalody is the resource. However, I am in NC and have done a few clergy returns. If I can be of any assistance I would be happy to do so.

Please do and if we can't find anything then I will contact them as I really want those worksheets in the return. If necessary they can be downloaded from the IRS site.

I guess I opened my mouth too soon in the other post with this topic. Just had a client who we missed last year come in with two rental properties purchased in 2012. Their preparer made a few mistakes with the depreciation in my opinion. In the preparer's defense, they did a good job with what they had to work with. This client is not difficult but is elderly and sometimes doesn't fully understand what you are asking for. Replacing a heating unit... not a capital improvement but depreciated for 27.5 years. There were capital improvements not added to capital but depreciated for 27.5 years separately. A five figure renovation that was not added to capital but depreciated separately. Acquisition costs were depreciated for 27.5 years and did not include the legal fees for acquisition in capital and survey fees expenses and not capitalized. So it looks like form 3115 here we come for this one. Not exactly the way I wanted to start the season off. But here goes.

I did look at all of the pinned items but still want something that I can put in the client's file with their signature that they have the MEC. I know there is no specific guidance yet but I bet it is coming down the pipe. Also, and maybe I am a little paranoid, but if I get a compliance audit I want to be sure I am covered. Here is the file in a pdf so I welcom any comments. I will include a jurat statement with signature as well as clean it up and make it look more professional. ACA Questionairre.pdf

I think Jack is right on this. No filing requirement then not included in income for purposes of the ACA

Good to see you back! I hope all goes well with the pace maker. Just take it easy and don't let all this ACA stuff and other things get to you. Have a wonderful season

I know there is not specific guidance with due diligence regarding the ACA. I am a little anal with wanting to protect myself and have decided to create a questionairre that my client's can answer without going into detail. I don't have a jurat statement included yet but think it necessary to add one. I have attached it here for others to look at, use it. delete it or help improve it. This is an macro enable spreadsheet that I plan on just printing. Any and all feedback is welcome. Well never mind apparently a macro enable file is not permitted. I'll try to remove the macros and post again.

I have just finished a return where form 8965 was required. The taxpayer and spouse did not have essential coverage all year and the dependents are on medicaid. Taxpayer has the only income which falls above the filing threshold of 20,300 but the bronze level premiums were in excess of their annual income so the code A exemption applies. Unless I am missing it, the worksheets don't provide the calculations necessary to arrive at the above 8% figure. I know the IRS worksheets for form 8965 do have this section. If any other uses of OneDesk have found different worksheets please post here where they are.

I always check the box as well. I do take responsibility for the returns that I prepare. To me it is only fair to the client.

I seem to remember something on this as well. However, I do remember the years when HRB and others charged a fee for electronic filing. I never have. I enrolled for the bank products again this year and noticed that Santa Barbara has a fixed "transmitter" fee of 19.95. Hmmm it would seem this would fall under the same category. As Lion EA said, let us know what you find Jack.

I agree we need to keep discussing this issue so we ALL have a better understanding. It is important to note that for me, when a question arises that I need help with, this is the first and usually the final place for me to get answers. All of the collective research, knowledge and professionalism displayed here makes this one of the most valuable tools we have. Thanks to all involved.

I registered for it but all I was given was the start times.

Okay I entered my responses to the poll. After looking at the links, my initial assumptions were correct. All of my rental clients and Sch C clients that have tangible assets, startup costs; etc have been classified properly so I don't anticipate filing the 3115. I may suggest to one client who engages in rental activities as a partnership to change the method of accounting to accrual to record rental income losses for the year and later recovery. This client has 12 properties as a partnership and 7 individually so the change would benefit them. I will research further before I suggest the change.

I'm a little in the dark here. I have been looking for information regarding what you are talking about. By your post I am assuming you are talking about the difference between a repair or a capitalization that improves the property??? Miss classification of those items in the past and if so, this would give need to the 3115? Please give me a link to visit. Thanks,

Got mine today. Must have been shipped via Pony Express. Glad I didn't wait on it.

Judy, Might want to pin this one so it can be found easy. I feel there are going to be a lot of questions with this part alone. Thanks for the other links as well.

I am with Lynn on this one. The 2014 penalty is the greater of 1.0% of income above the filing threshold or a minimum of $95.00 per adult and $47.50 for each child capped at $285.00. $65,000 - $20,300 (assuming MFJ) = $44700 X 1%= $447.00. Hmm, wondering why the amount of Federal WH was given?

Judy as you said, the worksheets are with the IRS instructions that have "draft" all over them. There is a worksheet for calculating the 8% exemption and you need to know the bronze level for your State to calculate this. That is why I posted the link in my other post.

Here is a link that maybe very helpful that answers a lot of questions that we and our clients may have. If you need to determine the eligibility for an exemption while preparing the tax return, this site has the 2014 and 2015 market rates for the bronze plans for all States. The link will take you to Burlington, NC which is my main target area but you can navigate to any city once there. For Bronze - http://www.legalconsumer.com/obamacare/rates.php?CITY=Burlington&ST=NC

Judy, I am way behind this year getting sample returns done through the software. I am using OneDesk and have asked the questions about worksheets and didn't get a clear answer yet. So, I will take some time this evening and look.

Here is what I am looking for. Is there a form to calculate and prove the 8% of income exemption. Looking at form 8965, section II is the place to claim this. However, how do we prove that? A separate calculation in a statement with the return and form 8965? Been looking hard and hope someone can clear the mud for me.

Well the entire key to this conversation is if we are reasonably sure the information presented is accurate or do we have reason to believe it is not. Hence the need for the additional questions and documentation. I guess I should have stated my feelings about the one notebook paper guy I had. He was always skiddish answering questions and if I read into everything he did make me feel his figures were inaccurate. Bingo, last time I seen this guy he was trying to answer why he forgot to give me a 1099R that cost him big time. Never felt comfortable but always had the engagement signed that stated as Catherine said that all receipts for expenses and income must be substantiated and that an independent verification wasn't being done. The was good enough but now with all the due diligence issues I think we need to further protect our selves. Now, if I smell a rat as in my other post, I tell them I can't help them or throw such a ridiculously high fee at them they leave. Not worth it.

Me too! I will not get involved with these guys. Catherine you, Jack and the others are correct. My reputation and good name is not worth anything they have to offer me. I wanted to walk out during the interview session but wanted to try to find a professional way of saying no. Would you guys send a letter stating your position or just call and tell them you can't do it. What is the best professional way to do this without sounding like I am blowing them off or being a jerk.