Max W

Ah! The plot thickens. Exterior painting would fall into the 10 year category. I think I ran into that before and I think it only applied to commercial bldgs.? Wasn't the 10% cost rule under the Safe Harbor Small Business, where the expense was limited to 10% of the basis and property under $1M? That went out with TCJA.

Yes, repainting the entire exterior of the buildings. There are 2 with 12 units each. And it definitely falls under the category of a business. Under the De Minimus rules only invoices of $2500 or less can be expensed. So, I conclude that the $18000 exterior paint job would dep'd over 27.5 years.

Since it is greater than $2500, it would be depreciated at 27.5 years? That seems unreasonable since even good paint jobs, once the lead was removed, only last about 5 years, now.

We know how reliable tax advice is coming from brokers, bankers and lawyers, so I would take it with a grain of salt. In the supposed case of the airline issuing a 1099-Misc, that can be dealt with later.

Can Sec 179 be applied to painting of a residential rental? I could not find anywhere that painting was specifically mentioned. Isn't Painting considered as maintenance?

Deceased had a revocable living trust. The way I understand it is that the Revocable trust makes the 645 election file as a 1041 estate. However the attorney for the trust obtained a EIN for an Administrative Trust. Does this kill the 645 election? Is there any remedy?

These are two people in their early 50's, both divorced, not interested in marriage. But, anyhow it doesn't answer my question.

What about paper file. It would also be on extension.

No wedding! Neither wants it. A 1099-Misc doesn't work because she is really an employee using his equipment and getting reimbursed for expenses. P/Ship solves all of this.

Client wants to file partnership with his girlfriend for 2019. If he gets EIN now and files extension, will this fly? They are both currently Sch C, but she essentially works for him. She uses one of his trucks and works about 2 days a week.

Thanks, everybody.

That's right. Don't do anything. The IRS always adjusts for payments not reported, or for payments reported and not made.

If the return is mailed in, you don't have to enter all that garbage. Just add 'em up and enter the total. For E-filing, according the rules for W2G, you can aggregate amounts from the same casino, for the same type of bet on a 24 hour gambling day, which means you can start on one day and finish the 24 hours on the next day. Rhe larger problem is getting clients to substantiate their losses.

One of the bonds was sold LY and it shows $20,000 proceeds and $20502 Basis, the $502 being an adjustment, Realized Loss -$502.

Yes, it does. The detail sheet shows this years amort. as well as total. Does it get reported? And where?

Help! I'm stuck on this one. The premium is over $7000 and I'm doing it on Lacerte.

Does PA have a first time Penalty Abatement?

For Single, the filing threshold is $17693.

I have seen a few businesses (Sch C) recently that are being held in trust for the express reason of avoiding SE taxes.

It depends on the school. For grad students, it can be 9, or lower.

Steps 1 - 3. Fill out the form and for the missing ITIN's write "applied for" in the SSN box. Send the completed W-7's along with the required documentation on top of the return to Internal Revenue Service ITIN Operation Po box 149342 Austin TX 78714-9342 The return and the W-7's will both be processed there.

If he has been doing his own 1040, maybe he got the K-1's and ignored it. The distributions must have been small, or negative, otherwise he would have gotten a CP2000.

I would want to be sure that the credit was actually appplied to 2019 by getting the Account Transcript for that year. The reason - 2016 will be closed on Apr 15, and if the credit does not get included in the refund, trying to find out what happened to it may cause the time to slip by Apr 15 and the credit could be lost. As for the question, I don't think it matters one way or the other. It is the same as somone filing a return and forgetting the $1000 Est Pmt made. It will still get credited even if it is not on the return. If it is on the return and it is too much, like Est Pmts that were never made, the IRS will discount them. And as Illmas says - Charge for it.

Maybe this will help. BTW if it is a small amount under $50, I wouldn't argue with the client just to prove a point. You might lose them. If it is more make sure he signs a note they you advised it was taxable income. Those things are either to be added to the W-2, or 1099 depending on the circumsatnces. Double check the W-2. This is one of the things some businesses do to try and hide bonus payments. https://support.creditkarma.com/s/article/Are-prizes-and-awards-taxable-US

Are we talking about Gift Cards from a business to an individual. or from an individual to an individual?