Max W

After looking over the forms and instructions, I think you right.  A fiduciary can't use 2848 unless it is a family member, so Form 56 and the durable POA are sufficient.  They have to be mailed, along with 8453, within 3 days of the E-filing.  It is mailed to the same center where paper returns would be sent.  

Has form 56 been submitted to the IRS?  This simplifies the process as a 2848 can be used instead of a non-IRS POA which has to state specifically what year and tax form it applies to and contain wording used in the 2848.  After that, if the return is e-filed, the POA, or the 2848, has to be mailed in with form 8453.

http://www.mclr.net/siteAssets/site12603/files/MCLR_Signing_a_Tax_Return_for_Someone_Else.pdf

https://www.irs.gov/instructions/i2848

From IRS Pub 559-

Publication 559 - Survivors, Executors and Administrators - Income Tax Return of an Estate— Form 1041

Funeral and Medical Expenses. No deduction can be taken for funeral expenses or medical and dental expenses...

It is normally common use and int. & taxes Are deducted on Sch E.  Four days rental of the yard would be 1.1%.  As I say, not really concerned about LY, but now and the future.

Client is owns a house with 4 apartments.  One is his residence and the other 3 are rented out.  Last year he rented the back yard on 4 separate occasions, a couple of wedding and 2 parties.  His income was $1500.   Not sure how to handle this.  My idea is to pro-rate the usage and apply it to the M.I. and Prop. Tax.  It would give him a deduction of $270.   My concern is for now and the future as he is very aggressive and might be renting the yard every weekend, for 1 or 2 days.

TIA

It really doesn't matter what it is called as long as it is deductible.

18 minutes ago, grandmabee said:

I would deduct as a professional fee.  Is this a lease or straight month to month rental?

 

It is a lease.

I took the finder's fee as it is like advertising to rent, just more expensive.

On 5/6/2020 at 12:50 PM, BulldogTom said:

There was a little tongue in cheek in my post that did not translate very well without verbal nuance.   Sorry about that.

Tom
Modesto, CA

Apology accepted.  

Client pays a $4500 finder's fee to rent her property.  Is it deductible?  should it be amortized? 

Oh, Tom!  Get off your high horse.  I think Randall can speak for himself and charge or not charge as he sees fit.   In unusual times, caring people like to help others less fortunate than they are.     

BTW,  Is it your custom to charge for tax returns that are not needed? 

It works!  The computer has nothing to do with it.  

Why couldn't you offer to enter the information for her?  

Well, at least he is a US citizen.  Thousands of checks went out to foreign students, many of them not even living here anymore.  Apparently there was a software error in  coding of the type of visa they were here on.  They all filed tax returns, but used 1040 instead of 1040NR.

I am no longer familiar with ATX, but other tax programs I haved used over the last several years have a Year to Year tax comparison worksheet with the both the actual and marginal rates.

Yes.  Send the company a letter explaining the situation and why she should be reimbursed for the additional tax.  However, it is not a good time to be asking a lot of co's for money as so many are struggling.     

You might want to look into getting Gainskeeper, or some similar software to handle it.  All you will need is access to the brokerage account, the software does the rest and prepares the 8849's for download, no matter how many pages are needed.   I had a client years ago before the IRS required the basis to be provided on the 1099B's and there were over a 1000 transactions.

On 4/25/2020 at 7:38 PM, Jack from Ohio said:

Anything paper filed, will take at least a year to be processed.  IRS is renting trailers to store all paper returns, until this virus thing is over.  Paper filing will mean extremely long wait for it to be processed.

There is no way it will take a year.  90% of returns are efiled leaving 10% of 150 million, or 15 million paper returns.  40% of returns had been filed by the end of Feb.  That would leave a max of 9 million paper returns to be processed.  Of those, there are many on extension and those who will put if off until 7/15. Let's say it is 10% of each.  That would leave approx. 7 million returns to be processed, which is almost the number processed in Jan-Feb.   

IRS mail room employees have gone back to work, which means the IRS is ramping up to start processing returns.  If the processing starts June 1, it should be caught up in no more than 3 months, or less.   

On 5/2/2020 at 9:22 AM, Catherine said:

I have successfully scanned and electronically deposited torn checks.  Using non-glossy tape is important, and lining it up well also.

As long as the tears and the tape can not be detected, it will work, but it takes a talent which you obviously have.

If check is not torn through either of the rtg or acct #'s or the signature, I would go back to the B of A and try to have a teller deposit it.  They have to run it through the magnetic number reader, so if the critical part is damaged it will not go through.  If the teller refuses, politely ask to see the manger. Managers are paid to solve problems.

I learned a log time ago that the lower level employees are trained to say no to anything that deviates from the rules, but people at the top are the ones that can bend the rules and say yes.   

Don't tape the check.  Let the bank do that if it needs to be done.  As for ATM and mobile, those will be rejected if they detect the tears, or the tape.

As for replacing the check, here are the FTB's contact numbers and chatline link.

https://www.ftb.ca.gov/refund/help-refund.html#Contact-us-about-refunds

Thanks again Lynn.

Thanks, Lynn.

I'll try that.

For Get My Refund, how do you enter apartment numbers?  Apt A, Apartment A, #A, Apt. No. A ??

Do people with a balance due still get the stimulus payment check, or do they have to take it as a credit on 2020 return?

On 4/25/2020 at 12:20 PM, JohnH said:

Several people on an investing forum I participate in have been posting that they filed paper returns within the past few weeks, and of course nothing is happening since IRS isn't processing those returns now.  So what would happen if the taxpayer e-filed a return now?  Presumably it would have processed and the refund would have been issued by the time the IRS gets around to processing the paper return.  Would the taxpayer be in any sort of trouble in that situation?

 

If the bottom line on both returns is the same. the IRS will treat it as a duplicate return.  If the numbers are different, because something was changed to allow efiling, it would most likely be treated as an amended return.    Although, the IRS says "don't do it", I know of no penalty, or consequences resulting from doing so.

WALK!  The time and aggravation of dealing with this, the lack of uncertainty without the trust document, a possible legal matter with the check and having to deal with the IRS sometime down the road, makes this rife for having a lot of sleepless nights.  Life is too short!