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Christian

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About Christian

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    ATXaholics Anonymous

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  • State
    VA
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  1. I find no federal deduction. As best I can determine they can contribute to a Virginia 529 plan. Each parent would need to establish an individual plan into which the max contribution is $2,000. This money plus accrued interest could then be withdrawn tax free to fund the child's private school tuition. How soon after setting up the plan the funds can be withdrawn I do not know and the parents will need to carefully review the plans with their fiduciary to iinsure no slippage in the rules.
  2. A client called today stating he and his wife have taken their child out of the local public school system and are going to be paying some $6,000 per year for home schooling. He wanted to know if this is a deductible expnse. In so far as I know it is not a deductible expense on the federal or Virginia return. I plan on looking a bit closer but I do not think I will find any law change which permits it's deuction. He asks if it may qualify for the child care credit but had I to nix that idea as well. If any of you know that this reading of the law is incorrect please advise.
  3. P.S. She finally made contact with the correct area of the Service and wallah! they provided her instructions needed to set up a new account. Chalk up another victory to the friendly forum members on here. I finally resolved the clergy issue as well.
  4. Y'all have basically reenforced what I thought. She needs to have a chat with the folks who handle these accounts and get a new account set up. I've got as much as I can now take care of and I ain't gonna do it. And this wireless keyboard is causing more spelling errors than I can deal with !!!
  5. I volunteer at a local tax exempt museum. It's a tiny local musuem celebrating the history of our small community and a has a tiny income. The member who handled the annual tax filing died last year. He filed an annual Form 990-N which is apparently efiled only. I do not prepare tax exempt returns but was called by his successor for the following problem. The museum has a laptop for it's use. Instead of using this the former member used his personal computer inputing the tax info on it and identifying his computer as the only one to be used for submission of the museum's tax account. His succ
  6. I am always saving and stuffing the information I receive from this forum. You can be sure I too will always be extending in future although I think I will be able to get any penalty excused. I simply thought the couple would get a refund based on what I had and the size of the refund I was looking at. I should have known better. My bad.
  7. A lady brought me her tax info at the very end of the season. Her husband had always prepared their taxes but like no few others has now become unable to do so. She knew almost nothing about the taxes. After getting together most of the info it looked to me they would receive a refund so I saw no need to file an extension but was lacking one item which took some time to get. I thought it would not change their getting a refund. Lo and behold after working the new info in they owe tax. I'll get this back to them on Monday and as they have a good record I am wondering if I could get them a one t
  8. The paraagraph below sorta sinks the ship so to speak. The loss in question generated by the wife's business is effectively lost. Their standard deduction was greater than their agi so no income to apply it against. Well worth a try. NOL.pdf
  9. My reading is that since the business was disposed of in 2019 the client's wife having died in May and the business simply closed (no sale) the loss cannot be carried forward. But it never hurts to check yourself.
  10. A new client has come in whose wife passed on in 2019. She was a beautician and operated a small business. For 2019 the business shows a loss and , of course, was closed. The standard deduction eliminates any federal income tax for 2019. As the loss is not deductible can it be carried forward or is it simply dropped. If memory serves this matter has come up in here and the loss is simply lost.
  11. I will photocopy the exact words from the Taxbook on the HA.What is crystal clear is the salary is fully subject to SE tax and not placed on Schedule C. Fees, baptismals, funeral services are the items placed on Schedule C and are of course allowed deductions on that. The HA not exposed to regular income tax is indicated to be fully exposed to SE tax but I will photocopy it and place it into my next submission.
  12. P. S. I now have had time to look over what the client's former taxperson did in respect to her salary and HA. In prior years returns I noted Form 2106 showing mileage expense and a few other miscellaneous expenses incidental to being a minister such as uniform maintenance, telephone calls, etc. These expenses subject to the 2% limitation normally appear on Schdule A. A recapitilation sheet I found showed the following. An addition of the salary and HA into a single figure. The total reduced by unreimbursed employee expenses which ccomprised most of the amounts reported on Form 2106. This grea
  13. Welcome Newbie I am the chief stumbler here as some of my fellow members will attest. Abby I am glad you mentioned turning off the form and program updates something I used to do from the first and simply forgot this year.
  14. In response to John. The church bookeeper evidently reviews the clients yearly expenses and comes up annually with a close approximation of what the church should pay. Any shortfall can be adjusted or so it would appear as the HA matches the FRV of the client's home for years. This has evidently been ok as it has not been questioned in prior years. I worked through the worksheets and now have a new client. Thanks to all for your assistance. This is a good example of the value of this forum.
  15. I too have been considering retiring. The business is slowly downsizing due to clients passing on and the fact I rarely take morning calls anymore. Basically I have shifted all appointments to the afternoon and this is well accepted. I likely will try to go on for five more years unless bad health intervenes. To that end I am getting back into exercising more. Around here taxpreparers just quit. I don't recall anyone selling out although I probably could.
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