Christian

The husband is a non-owner employee. The way I see it they have effectively exposed his HI benefit to regular income tax while denying him the ability to dedut the premiums on Schedule A as he formally did. In other words a foulup in the front office.

A client has come in with a W-2 unlike any I have seen. Her husband's company established a plan for 2014 which permits him to deduct his health insurance premiums pretax and therefore he cannot use the premiums on his Schedule A. All the W-2s I have seen show a LOWER amount in box 1 which shows his wages than is reported in box 3 Social security wages. Her husband's W-2 shows a lower amount in box 3 and the higher amount in box 1. If you subtract his premiums from the gross wages you come up with the amount reported in box 3. I could be wrong but this looks as if an error may have been made at the husband's company. Any info is appreciated.

A client wants to give $14,000 each to two nieces this year. Is the $14,000 limit what can be given by a person each year? Or, is it the limitation on how much he can to each person. I read it to mean he can give $14,000 to any one person which means if he wants he can give $14,000 to as many folks as he wishes.

I thank both of you for your timely response. He elected some time back to carry forward the loss so no problem there. I do a few farm returns but most of them turn a profit. I find it ridiculous that the loss cannot be deducted on Schedule F. I was reasonably sure it was deducted on the 1040 but it's great to have folks who can help.

I have a farm return with an existing operating loss carried over from a prior year (new client). In deducting this loss for 2014 (farm had a profit in 2014) is the loss deducted as an expense item on his farm Schedule F or shown as a separate line item deduction on Form 1040 ?

A couple who own a farm has come to me this year. They have not filed returns for 2012, 2013, & 2014. I have completed 2012 and given it to them. They have an insurance program they participate in called Agri Business which for an annual premium pays medical expenses for them. In addition, so long as the wife is shown as an employee of the farm at a nominal salary they can deduct the insurance premium and expenses as an employee benefit on their farm return thus reducing not only their regular tax but also their social security self employment tax as well. Their problem is they did not file their W-2 for 2013 in 2014 and pay the required social security tax on the wife. I will file the one for 2014 (no problem there as it is for them an annual one time payment). They are hoping to file one for 2013 thus allowing them to deduct an employee benefit from their farm return. As I do virtually no payroll accounting I am unable to answer whether at this late date social security would accept such a late filing even with payment of a substantial late filing penalty. Can anyone address this issue ?

Since a component of this rate is depreciation does it reduce after five years to reflect the full depreciation of a vehicle used for business? Oddly enough I have never needed to address this. In reading the regs I do not see where this is addressed.

Frankly for my part I would just use the sum $300 and applied it against maintenance expenses and let it go. Her former guy used EVERY conceivable thing to show a loss even a small one to decrease their taxes.

A client has come to me this year since her former taxman passed away. She has among her property a couple of timeshares. She rents one or two of these each year for nominal amounts. I have looked but can find no definitive info on deductions from this income. Her former taxman took deductions which I can easily identify but I cannot quite figure his taking depreciation on these units. Can anyone advise a definitive source on this or simply identify the few deductions allowed on a timeshare.

A client who lives out of state married in 2013. In filing her return she chose to file mfs listing her husband on her return as required. This year she sent me his info as well. Lo and behold he filed as hoh listing his daughter as his dependent for 2013. The couple lived together as man and wife for less than six months in 2013. I have never encountered this in 30+ years and am wondering if the Service will be sending him a notice down the road disallowing his filing status. Any info would be appreciated.

Thanks Judy. That's what I needed to confirm. I entered 50% of the reported amounts on Form 8962 and indicated on the second page an allocation of 50% under his social and 50% under hers. They are barely speaking soooooooooooooooooo.

He paid an additional monthly premium for both. She will be filing her own return but not through me. My only issue is if I am reading the division of the advanced premiums paid by the government for them. I am pretty sure I have it right but since this is likely going to be the only one of these I will see this year having additional input is a good idea.

I have a couple who divorced last year. Before things went south they enrolled through the federal exchange in a health insurance policy which covered both of them. The husband has received Form 1095-A from the exchange showing the advanced premiums paid for by the government for both. I am filing his return and as there is no agreement as to allocation of advanced premiums have allocated 50% to each. If I read the form correctly I will need to divide the monthly figures provided by two thereby giving him one half of the premiums. This should then give me his refund or his amount owed. As this is likely my one and only client having this problem I would appreciate any input.

​A client donated a pickup truck to a charity last year. He tells me the Blue Book value is shown as $1,000. My understanding of donated vehicles is that a client can deduct only what the charity receives for the donated vehicle. What is y'all's understanding ?

Virginia Schedule OSC/CG will not populate. The form is correct but has no lines for figure entries. Any other Virginia practitioners having this problem ?

​A client wants to give his aged mother some stock he has owned for some time. I advised him he can give her some $14,000 with no tax consequences to him. She will sell the stock to pay off some debts. I am assuming her cost basis in the stock will be what he paid for it. She would then be liable for any capital gains taxes if any. Is this correct ?

I resolved this by overriding the calculation. The original depreciation was set up using the defective software for ty 2012.

In preparing a return with a Schedule E I find the depreciation module does not compute he amount for this year (2014). Anyone having problems with the depreciation function not working ?

Many thanks Judy. Since she chose not to use any of the credits I'll give them to him. Every tax season I thank my lucky star for this board.

A couple for whom I have worked for years picked last year to divorce. They had applied for health insurance through our federal exchange and obtained coverage beginning 3/1/14. The Form 1095-A provided shows premium credits in excess of $9,000. The problem is the credits are based on both spouses. The former beloved wife has trotted off and filed as a single person for 2014 using none of the credits. Now, faced with filing the husband's return I am scratching my head as how to divide these credits or do I just credit them to his return. Anyone got a clue ? The husband paid the premiums due above the credits amount.

The problem resolved itself. May have been a software upgrade or something.

I wait until my federal efiles are accepted and then mark and transmit the state. I just had the program unmark my Virginia efile of a client and not transmit it. In checking the department website I note they are having problems with fraudulently filed returns but can find nothing about not accepting returns or there being a suspension in place. Do any of my fellow Virginia practitioners know what's going on ?

I also am wondering about line 61. I have a family in which three members have exchange issued exemptions but the fourth family member is fully covered under the Chip program. On Form 8965 I find no way to indicate she is covered. If I check line 61 I am wondering if the Service will understand the coverage is only for the dependent or should I attach a note of explanation?

Thanks guys. It was unclear to me whether the parent's having both been granted an exemption number would need to report their dependents on the Form 8965. After all they have been granted an exemption why would it not apply to their dependents since the parents are responsible for the kid's health coverage? I see however that I will need to show the daughter as covered for the whole year and report the son with his exchanged generated number on the parents Form 8965. Oops Guru is a gal ! I apologizes .

Luckily most of my folks are covered by health insurance. I have a couple with two dependents. The daughter was 17 in 2014 and the son (a student) was 19 in 2014. The daughter is covered under Medicaid and the son was uninsured all of last year. The couple has obtained a hardship exemption through the local federal exchange. The son filed a tax return for 2013 listing some $4,000 he made in a part time job and, of course, did not claim himself. He likewise obtained a hardship exemption through the federal exchange which will be shown on the return he needs to file for 2014. He received a 1099- Misc form and pays the required social security himself. In filing the couple's return I can show the two exemptions provided by the exchange and can show the daughter as covered for the full year. In reading the regs I don't fully understand why since the parents have been exempted it is necessary to list their dependents on the Form 8965. Assuming I do would I use the exemption granted to the son ? All of a sudden retirement looks more attractive.