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Christian

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Posts posted by Christian

  1. I think he qualifies for the LLC even though he is still in high school. These courses are from a local community college and he has the relevant 1098-T from the community college. Of course he is taking them online and the courses are given by a professor at the college who is at the college giving the courses.

  2. A client couple has a son in the eleventh year in high school. He is taking one or two college level courses while in high school and has received a Form 1098-T showing the tuition paid by his parents along with box 8 of the form being checked. Can they get the AOC for this. I have reviewed the instructions and cannot find a restriction that keeps them from doing so but it is possible I have missed a disqualifying reg somewhere. If not this maybe the Lifetime Learning Credit ?

  3. This minister receives a small W-2 and a housing allowance. So no Schedule C hence my line problem. Like not a few she continues to try and expand the list of ministerial connected expenses creatively. 

  4. I am adding clergy related business expenses and am in Line 2 (Schedule SE(1040)-Net Business Profit or (Loss) Worksheet. I am down to line 11 and need two more lines for items but see no toggle to add the additional lines. Does anyone have a solutional ?

  5. A client has come in with a Schedule K-1 with ordinary business income in box 1 on which he must pay tax from a publicly traded partnership. On the attached supplemental income page the partnership advises this is subject to section 199A. Do we need to manually enter this info on Form 8995 ? " Your QBI includes qualified items of income, gain, deduction, and loss from your trades or businesses that are effectively connected with the conduct of a trade or business in the United States. This includes qualified items from partnerships (other than PTPs), S corporations, sole proprietorships, and certain estates and trusts that are allowed in calculating your taxable income for the year". This from the instructions on Form 8995 seems to exclude this and since I rarely see this I would appreciate any info.

  6. A client has come in with his recently received Schedule K-1 Form 1065 for a publicly traded partnership he has. In box 1 ordinary business income is reported on which he has to pay tax on even though he did not receive this income (so he says). I prepare a tiny few of these and normally have no problems but this one has an item I have not seen. On the second page of the form under information for line 20 Other information it indicates that all the ordinary business income shown in box 1 is Section 199A Publicly Traded Partnership Income. I read this to mean that 20% of this income can be deducted on his Form 1040. The problem is I cannot seem to find a line item in the ATX K-1 entry form which will carry this amount to Form 8995and then carry the 20% to the Form 1040. Has anyone a solution for this ?

  7. 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.  

    • Like 3
  8. 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. 

    • Like 2
  9. 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 !!!

  10. 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. 

  11. 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.

  12. 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.

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