Max W

Client owns a multi unit rental property and he occupies about 40% of it as his residence and wants to install solar panels this year. I just want to be sure I am not overlooking something here with all the recent tax changes. so is this correct? He would get a 26% credit on his portion of the building, and the remainder of the investment would be depreciated over 5 yrs./MACRS, with the credit being taken by the installer. The credit on the residential part reduces the basis on that part of the building. TIA

The bank account info can be changed at ssa.gov; or the form can be filled out and taken to the nearest SS office.

On HRB's they state that food stamps are included as income in the 50% support test. I'll accept that.

Pub 17 is not definitive and only gives a generalization. I would need to see the law stating what is included in income and what is excluded before making such a bold statement. Under Sec. 8, HUD excludes food stamps from their income calculations, as one of 20 exemptions. The IRS excludes food stamps as taxable income, which, of course, does not necessarily mean it is excluded from the income calculations for determining dependency.

I don't believe that food stamps are included as income and the Sec. 8 housing does not usually cover the full amount of the rent, but apparently does in this case. If the support can be established, Mom can be still be claimed for HOH, even if she lives all year on her own.

..... plus another $20 billion the auditors expect to uncover. 1700 claims went to one address. Now, we will probably be tod that taxes will have to be raised to pay for the fraud losses.

If there were no prior penalty issues in the last 3 years, then on the 843, write in at the top "First Time Abate", or just simply FTA. It can also be requested by phone calling the PPL.

I think this is a recipe for a 100% chance of an audit. You would be changing the the Code from 1 to G and you would be changing the taxable income (not the distribution) to zero. This would not match the information reported to the IRS. An adjustment to income as an offset to the 1099R is far more likely to avoid scrutiny.

I just checked my Account Transcript for 2020 and it shows both last year's and this year's payments.

You have to report the amount on the 1099-R, then offset it as an Adjustment to Income If the the 1099R is not reported, the client will receive a CP2000 and then the transactions will have to be documented.

Are you sure it is an Irrevocable Trust? If it is a Life Estate, yes it would be a Grantor Trust, which is a Revocable Living Trust.

You can take RRB, or SS, but not both. Congress tried to change this 20 years ago under HR1140 which passed the House, but it died in the Senate.

For anyone that wants to confirm the number I provided, it is under paragraph 3, just after the SSA address. https://www.ssa.gov/OP_Home/hallex/I-01/I-1-4-2.html

It will be rejected. I have had that happen when I keyed in an EIN which had a typo.

Here it is. SSA's employer identification number (EIN) (52-6004813)

In actuality, it breaks down to 4.5% late filing and 0.5% late payment per month, so when the IRS issues a letter with the penalties it will show late filing as 22.5%. The late payment penalty maxes out at 25%.

Here is a start, but I wouldn't try to unravel this by myself. SS is the oldest entitlement program and goes back 85 years. During that time it has managed to create volumes of byzantine, ambiguous and contradictory rules and regulations, all written in legalese. What your client needs to do is consult an attorney that specializes in SS benefits. https://maximizemysocialsecurity.com/what-if-im-eligible-both-railroad-retirement-and-social-security

The IRS says "each month or part of a month" and nothing about the 15th of each month. So, all of Jan is 5% and then after Jan 31 another 5%.

Glad to help!

The 2020 tax credit for solar panels is 26%. If the client paid $23,077 for solar panels, the credit would be $6000. The generator could also have some deductions (not credits) if it is used to power medical devices. http://alternate-power-solutions.com/3-ways-installing-a-whole-home-generator-is-tax-deductible/ There is also a deduction if the generator was used as the primary power source during a federally declared disaster. VA also has a deduction for 20% of the sales tax paid for purchasing solar panels. As for the savings? A lot of purchasers of solar panels increase the use of their electricity and that wipes out any of the savings that might have occurred.

According to the IRS ( https://www.irs.gov/individuals/international-taxpayers/fulbright-grants ) there is a good chance that a payment was received in December, as that is when the first payment goes out for a Fulbright Grant starting the following year. There are a lots of traps and pitfalls that could occur, such as, blocked foreign currency, foreign taxes paid, whether it is W-2 income or Other income, plus more.

Receiving an IRS bill to pay does not mean the account year is in collections. When the client receives a CP504, Notice of Intent to Levy, that is a yellow warning light. The next letter will be an LT11, FINAL Notice of intent to Levy. There are 30 days to respond to this one before the IRS CAN levy/garnish wages, or bank accounts. The designations CP504 and LT11 are found in the upper right corner of the letter. The time gap between these is anywhere from 6 weeks to several months. BTW, sometimes the IRS sends out a CP501, a CP503 and then the 504. If it were my client, I would just tell them to wait as the whole thing might be resolved before the Final Notice comes out.

This does not pass the smell test. I have received dozens of these letters and do not recall that they requested calling the IRS. If the TP has not defaulted on his payments, I would ignore it, anyway, even if legit. There are 4 companies that are outsourced and you can check their phone numbers here - https://www.irs.gov/businesses/small-businesses-self-employed/private-debt-collection

This looks like it may be a good place to start. It gives 4 different scenarios with bookkeeping entries. Your case is simpler as there are only 2, not 3 persons involved. https://www.yourarticlelibrary.com/accounting/partnership-account/admission-of-a-partner-goodwill-revaluation-and-other-calculations/54425

My question to Tom is - Is it Efax or the IRS? I have been using efax for a long time and I do a lot of faxing to the IRS PPL while the agent is on the phone. It is usually takes about 3-5 min. for a 2 page 2848. Every once in a while there is no confirmation even after 10 minutes. Then the agent will give me another fax number and the fax goes through smoothly. The IRS computer system is notorious for technical problems with slowdowns and unplanned outages and this may also affect the fax system.