Terry D EA

Ok I guess I need to walk away from this for a while. My math is definitely not right. First mistake, 150DB to determine the percentage the 150 is divided by the years of useful life. In my case 150/15 = 10% and not 15% 38,932.97 x .010 = 3893.30, 3893.30/12*1.5 (months) = 486.66. Using this method, everything matches. My brain hurts. Something so simple and I made a major catastrophe out of it. Too early in the season for this type of brain fart.

Now I'm questioning my math. Isn't this correct? 150 DB is 15% for the period. So, 38,932.32 x .15 divided by 12 times 2 = 973.32 for the first year. The following years are off as well in Drake. If I use SL, then everything matches perfectly. Sorry to e such a PITA with this.

Crap. My stupid mistake, I chose the ADS instead of ALT. Now that I chose ALT, the amount of current depreciation is somewhat close to my spreadsheet but not good enough. I tried changing the date of in-service and still cannot get it right. Where is the program getting the "rate" at? Using the same data and change the in-service date to 9/1/2022, the rate changes to 5. This is driving me nuts.

Judy, I switched to the ADS on the input and this is what I got. I don't see why it switched to SL. I might try deleting the asset as it is the only one that I have entered so far, and do a repair index files. Based on the date in service, MQ convention is correct but not SL.

I'm wanting to use the 150 DB method of depreciation for an asset placed in service 10/1/2022. The snip below shows Drake current depreciation. It automatically comes up with the rate of 7.5. My calculations are: 38,933 x .15 divided by 12 x 2 equaling 973.32 for the first year. What am I doing wrong here. 150DB is 15% correct? I also noticed I cannot choose the 150DDB method in Drake either. How are you handling this?

Try this. Go to tools, repair index files. Be sure to click on all files. You can uncheck the test or sample returns. This tool runs very quickly and usually aligns everything back up.

John, By your original post and the reference Lion gave "KPMG NOTE: Beginning September 15, 2021, employees working remotely outside of Massachusetts should have wages reported and taxes withheld to the state where they are physically performing services. Employers will want to make sure they are registered for payroll in the states their employees are working remotely, and able to handle the complexity of compliance for a mobile workforce." the MA company is reporting correctly. To add another wrinkle, you stated he travels to MA for meetings. Is he performing any services while in MA? I would indeed check with the MA DOR and if a non-resident return is required, then file it with the credit to NC for taxes paid to MA. It would appear to be small amounts here.

Already e-filed a couple easy partnerships and individuals without any problems at all. I think everyone using Drake Accounting had the 940 issue. But, it was quickly resolved without any extra effort from me.

Even at 12,000.00 there had to be some SS deducted, paid somewhere. if he was self-employed, It seems like the EITC and CTC would have eliminated any SE tax. With that said, the SE tax generated is the SS portion still credited to his SS account? Never thought about this before.

Answering the phone quicker is a plus. Getting an Agent that knows what they're doing is another thing. I got through the other day and very quickly I could tell the agent wasn't going to be able to handle my issue. Then referred me to the phone number on the notice. This was a CP2000 they could have handled. The number on the CP2000 is far less helpful than the PPL.

No it doesn't. Crypto is considered property. The most difficult part is determining value. One would think the value is either FMV or owner basis at time of purchase, but not that simple. Add in forks, splits and other items to the mix. So, if I donated a bitcoin that my basis is $3000.00 to a charitable organization, is it safe to include this amount on the 8283? Can't be a cash donation because it is property. Like you said, it doesn't get any easier.

Key filing season dates There are several important dates taxpayers should keep in mind for this year's filing season: January 13: IRS Free File opens January 17: Due date for tax year 2022 fourth quarter estimated tax payment. January 23: IRS begins 2023 tax season and starts accepting and processing individual 2022 tax returns. January 27: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify. April 18: National due date to file a 2022 tax return or request an extension and pay tax owed due to the Emancipation Day holiday in Washington, D.C. October 16: Due date to file for those requesting an extension on their 2022 tax returns.

Pacun, I looked on the IRS website, clicked on the news tab and yes, the IRS has set the date to begin filing on 1/23/2023. Here is a link IRS sets January 23 as official start to 2023 tax filing season; more help available for taxpayers this year | Internal Revenue Service

Catherine, I think your issue was with the BSO. I uploaded files today and the only hiccup was changing the password. Just thought you might like to know.

I downloaded and have it all up and running. The only niche was the prior year clients were not showing when using the last year data screen. Had to select build EIN/Name from 2021 and all was well afterword. Only other hiccup I had was my secure file pro or drake portals would not let me access it. A few small steps on the account management page and again, all is well. Hope you all have a prosperous tax season.

The SS payments are included in arriving at the adjusted gross income. A percentage of the SS benefits may be taxable but all depends on other income. If there is no other income from the mother, then not taxable.

This is correct. I have done two of these without incident and did not file form 8832 just the 2553. Just to note. Both were filed timely and no late election was involved.

Mining Bitcoin may not always be reported on Sch C. If it is a small operation using a personal computer, the miner has the choice of business or hobby. If business, then Sch C. Larger operations can be considered a business and can deduct the associated expenses. An LLC can also be established that as we all know, can deduct the expenses against the income and may be a disregarded entity. Could be a partnership so there goes the Sch C. For your reporting in the original post, the transactions are reported on form 8949, especially if there is a 1099B issued. Of course, the associated expenses are not included in the 1099B or the cost amount on the 8949. A lot of good stuff here to learn. Pacun, I agree, the complexity gets worse with forks, splits, stakes; etc. Determining the cost basis and FMV is key. Cryotio is still very iffy in my opinion, so I choose to learn about it but personally stay away from it at this time.

Margaret, I'm going to jump in here. I was researching this very thing the other day. Below is a link to an article on Legal Zoom that should clear the mud. My companies are issuing 1099-NEC's to independent contractors who have provided a service. This doesn't involve the 1099-K. Yes, some entities may get the 1099K if they paid by credit card. Remember, the 600.00 rule is delayed for now. What is a 1099-NEC and when does my business need to issue one? | LegalZoom I talked to the IRS the other day when trying to get access to The TIN system. I asked the 6 million dollar question, what do you do when the person or entity refuses to provide a W-9 or at the very least, provide their EIN or SS#. Do you put refused in the box? How do you avoid the penalties for failure to file the damned form? The profound response, "Great Question". Gave me a number to the fire system to ask them so I still don't know. My only suggestion to my client's is if the individual or entity refuses to complete a W-9, don't do business with them.

<<<<<Is he getting earned income credit by using his winnings on schedule C?>>>>> I'm a bit confused. He has a regular job and earns 20-40K gambling. No mention of dependent children in the original OP or filing status. Enlighten me, how does the EITC come into play here? The main question is whether he meets the requirements to be a professional gambler. I agree with the other replies

Been through this as well and there is no easy answer. One suggestion, maybe contact an attorney regarding the ability to sign a POA competently. I would only do this after your discussion with both Mr. & Mrs. I would definitely try to find out if there were any other family members who could get involved. For you, I think you have to know the person who you are preparing a tax return for understands. Kinda similar to working with someone who speaks another language where an interpreter is needed. Maybe things will work out with Mr.

Thankyou!! Merry Christmas

Can we efile form 1065 or is that shutdown as well?

Thanks to everyone, just all be aware that I have not volunteered anything. I have no reason to keep data beyond the requirements mentioned above. However, with Drake, each year there is a document cabinet that is backed up and contains all the information used to prepare the return, copies of the signature forms, and copy of the actual return. Maybe I'm anal but I keep an archived backup of everything. In this case I can't provide everything the client wants because I don't have it. It's older than three years and not my problem. I've made that well known. The client seems to think that because he was/is the majority partner, he can give permission for everything. I told him I disagree. He thinks I'm being paranoid. Damned right, my license is on the line. I also told him I would not provide copies to his attorney of anything involving the spouse without her permission as well. Still waiting to hear from the attorney that I called.

Thanks Lynn, here is another concern and maybe I'm over thinking this. There are three partnerships that this client is the tax matters partner and has signed all of the tax returns. Should I obtain the consent of each partner prior to releasing any information of the partnership returns. I guess maybe the easiest method would be to eliminate the K-1 information for the partners except the client. I've contacted an attorney to get these questions answered. What about the spouse's information on the MFJ returns. I think by Circular 230, both have to authorize consent.