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Christian

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  • State
    VA
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  1. Interesting to see so many of us are pulling the plug or like me signing off by reducing working hours ( no more morning work), dropping advertising commitments, and basically realizing that advancing age and increasing health problems are lowering the curtain on a business that has meant a great deal to us. I will miss it when I prepare the final return but think I can last awhile longer. For me it will be the closure of a profitable small home based business taken over from an Uncle who was an IRS agent some forty plus years back and the retirement of the last member of a family of entrepreneurs with a record of continuous service in some form of business by a family member since the 1870s.
  2. The individual sold the toys to raise money for college and I would say did a bangup job. She has no clue what they cost so I would submit the basis is zero. Even so this is now merely a technical discussion as I have just about completed entering them on Form 8949 and Schedule D. Her income is well below the level at which the capital gain will be taxed. She is not in any form of business as these were simply items accumulated over a period of years and as noted the money went toward her first year tuition. I am really glad of this outcome as she is trying to advance her station in life. And Ebay did send her the 1099 with every item listed with selling price.
  3. A client sold a large number of toys received over time on Ebay to the tune of over $11,000 worth ! They cost her nothing having been received as gifts. Having been received as a non cash gift they have now been sold for a considerable sum over costs. Do they retain their status as a gift and no tax is due or are they shown as individual sales on Form 8949 with profits falling to Schedule D. In 42 years of helping folks with their taxes I never dreamed of having to report the sale of toys on Ebay !!!
  4. An older retired couple recently married. They lived in different states with her moving to Virginia late in the year. They advised they would file MFS for 2023 which seemed ok to me. His wife reputedly worked for H&R Block in the past and wanted to file her own she said so ok to that. This year the husband comes in with his info only. I advised him that filing jointly would likely be the better option since filing MFS but living together was by my reading of the law not a great idea. He said his new wife had not filed a return in years to which I replied that so long as she fell beneath the filing requirements there was no problem. Two problems occur to me in this matter. If he files MFS can she simply not file assuming her income is below the filing requirement limit ? Secondly in reading the regs on couples with Social Security income filing MFS looks to expose more of that income to tax if the couple lives together which seems odd. I would like clarification on this point as I myself could have misread the regs. As you may guess I have never seen this particular situation in the years I have been in business.
  5. Well if you set the vehicle up for depreciation does the Fixed Asset module offer you the Vehicle Expenses module ? It was formally a choice offered when you went to line 10 of Schedule C or Schedule F.
  6. I too have done that on Schedule C and F with no problems. For some reason on a Schedule F I recently used I was offered no choice for the Vehicle Expense form but was directed to the Form 4562 to use the fixed asset feature. I have no need to depreciate the client vehicle.
  7. Where has our simple Vehicle Expenses form used for the standard mileage rate gone off to ?
  8. So the phase out limit for singles begins at $50,000 which is of course one half of the MFJ amount of $100,000 ?
  9. Well then at their modified AGI they do not get any deductible loss and have to carry it forward. My thinking was that a married couple had a limit of $150,000 before the $25,000 began to phase out. The $100,000 limit applies to couples ? The $75,000 limit applies to singles ? No rental clients I have dealt with ever reached the applicable limit on the $25,000 allowed so regrettably I must have misread the applicable limits. I thank you for clearing this up and will review the material referenced by you. The 8582 clearly shows that when their $192,000 AGI is subtracted from the $150,000 limit wallah they get no allowed loss for 2023. I am assuming going forward the loss can be applied to years in which they show a rental profit.
  10. A client couple has approximately $192,000 in modified AGI for 2023. They have a rental loss of some $6,500 for last year. ATX shows none of this loss as deductible even though I checked box 8 for active participation. In doing the math $192,000 - $150,000 = $42,000. $42,000 times 50% = $21,000 of the $25,000 loss allowed if their MAGI was less than $150,000. $25,000 - $21,000 = $4,000. ATX does not show the $4,000 as an allowed deductible loss on Form 8582 with the remaining $2,500 loss carried to next year. Have I missed a toggle or what ?
  11. I always have them mail them in so no problem there and will advise that even though the estate bank number is provided they will likely get a check.
  12. A daughter has been appointed executor of her late father's estate and has of course set up an estate checking account. Will the Service direct deposit his refund to this account or do they send a check only ? I see no reason why they would not the return is going in with the required Form 1310 and court certifications but I like to make sure.
  13. Ah Abby such a treasure you are.
  14. Christian

    Tools

    I was thinking it was in the 2% category which was formally used on Schedule A. Well trying to help a client never hurts. Many thanks.
  15. Christian

    Tools

    Ac client has come in who is a highly skilled mechanic employed by a large truck sales dealership. She receives a W-2 each year as an employee but curiously must provide the tools she works with at her own expense. Her costs in 2023 for these tools is close to $4,000. The question here is are these tool expenses deductible for her and if so where on the return. She is not self employed so I am left wondering if these expenses are in fact deductible.
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