Lee B

8 minutes ago, JJStephens said:

I've been having more problems with Drake this year than any three previous years. Their previously legendary support was bad last year and this year is nothing short of horrible. I don't want to ... but might be forced to look elsewhere after this year. Since the Drake family sold out things have steadily declined. Sad.

What kind of problems are you having?

I did have one software glitch where the program got hung up.

I had to use the Task Manger to close the program.

The program did restart with not problems.

Interesting, I received one last year but I haven't received a single one this year

"Who is an eligible student for AOTC?

To be eligible for AOTC, the student must:

Be pursuing a degree or other recognized education credential

Be enrolled at least half time for at least one academic period* beginning in the tax year

Not have finished the first four years of higher education at the beginning of the tax year

Not have claimed the AOTC or the former Hope credit for more than four tax years

Not have a felony drug conviction at the end of the tax year."

According to the OP she has already finished her undergraduate and graduate degrees.

Once you have finished the first 4 years you are no longer eligible for the AOTC.

Just skimmed thru some guidance, you have a number of tricky issues to deal with.

If it was my client, I would either refer them to someone else or pay an expert to provide detailed guidance.

Just curious, who was the fiduciary for the 401 K ?

When I bought my house in the early 80s, I was excited because I go a state VA mortgage at 10.5 %.

I had an 11 % CD from Lincoln Saving & Loan.

I was able get 19% interest on overnight repurchase agreements on the surplus funds at the wholesaler where I was the controller.

My understanding is that the recipient processor issues the 1099Ks.

I know that this exception has reduced the number of 1099 NECs that I have to issue for my clients.

"Form 1099-K.

Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-NEC."

Perhaps this exception applies to your situation?

How would Quickbooks know whether to send a 1099 MISC or a 1099NEC?

In addition, the vendors may receive a 1099K from there payment processor.

Just think of all of the unemployed attorneys and accountants

Perhaps you should ask to see a copy of the invoice which should tell you what was done?

Be careful because many policies will not cover any claims prior to the initial coverage date.

You also need to check with your previous insurer as to coverage for acts which occurred before the cancellation date.

4 hours ago, Terry D EA said:

Thanks everyone for the replies. I will pass this by the client but am kinda stuck on the 27.5 life. Client doesn't really need the bonus depreciation either. This must have been a small system as the receipt is for $3200.00. I though it should be way more than that but then again, I have always been on a city system. 

For that amount it sounds like a repair and maintenance

Here you go:

https://www.atxcommunity.com/topic/34151-cyber-insurance/#comment-207714

https://www.atxcommunity.com/topic/33964-e-o-ins/#comment-206815

These are supposedly the restarted automated collection letters that have been suspended for several years.

The IRS says that these taxpayers should have received an initial balance due letter with an explanation?

Perhaps you could ask your client to request a transcript?

Just scroll back to that date in General Chat

Hopefully this will help: https://www.thetaxadviser.com/issues/2008/oct/terminationofapartnershipinterest.html

There were two discussion threads about this, the first on November 14th and the second on January 16th.

If you believe it's part of the plumbing system and an integral part of the structure then 27.5.

If not then you could choose 15 years.

Once again it just shows that out Tax Law is complex and that knowledgeable people can arrive at different conclusions.

I have closed some corporations over the years but not recently,

For some additional input on this topic, according to The Tax Book:

"A Corporation will terminate upon the complete liquidation of the corporation's assets."

"Note:   A complete liquidation can occur even though the corporation retains a small amount of assets to settle debts and pay final administrative costs.

Amounts remaining are then distributed to shareholders."

"Post-termination expenses: Expenses of a corporation incurred after a complete liquidation are treated as capital expenses (additions to stock basis)."

A classic example would the final bill for preparing the last corporate tax return.

I read a lot.

I haven't bought a physical book in about ten years.

I have well over 2,000 books in my Kindle account.

See Pub 4681

In Drake it's a software worksheet calculation

"How do I check EIN status?

Call the IRS. The best number to call is (+1) 800-829-4933.

When you hear the various menu options, select option 1 for English or 2 for Spanish, then option 1 for EIN inquiries, and then option 3."