Lee B

Pick one, his barber, bartender or next door neighbor told it would save him lots of taxes

The few times I have had this happen, I just removed letters from the last name until it was acceptable.

The heirs would have formally relinquish their rights to this asset in writing.

The Tax Book says, "Distributions are not taxable if they are less than the beneficiary's adjusted qualified expenses for the year. Nontaxable distributions are not reported." I will go with this advice. Thanks, everyone

Now the Commissioner is saying, "The backlog will be cleared up by the end of this year."

I given this some more thought and there would probably also be maintenance supplies, replacement fixtures bought on sale, things like doors needing to be refinished and other projects needing to be refurbished.

Neither I or the parents do the child's return so we don't know.

Well in my case, it was the last term of Community College and the total distribution was about $ 500

Does he qualify as a Trade or Business for QBI purposes? If not, stop. Home office and a Maintenance Shop are two separate issues. If he does have an exclusive use Home Office then I like the optional $5 per square foot. As far as I am concerned the Maintenance Shop would have to be a freestanding structure used exclusively for his rental business. If it was then I would set up a separate column on Schedule E called "Indirect Expenses" category 8 "Other"

I only have one client with a 529 Plan. If the qualified educational expenses exceed the total distribution, then there is no reporting requirement? TIA

Client filing MFJ's youngest child was a dependent finishing Community College in 2019. Child moved out now self supporting, not a dependent in 2020. Unfortunately the 2020 tax return was not efiled until April 30th, 2021. Client received a third stimulus rebate totaling of $ 4,200 in March 2021 based on the 2019 tax return. So what happens with the $1,400 overpayment? First one of these that I have had.

Yes, there are multiple hurdles this taxpayer would have to clear, but it is possible with the right facts and circumstances.

It depends, if the basis was not reported to the IRS then file. Ir the basis was reported then I wouldn't file.

I would entertain the idea, but only if it was a freestanding structure and it was not mixed use. Also, his rental activity would have to qualify as being a trade or business for QBI.

What would lead you to believe otherwise?

Bad memories, I had a flurry of these Schedule C wannabies some years ago. You're totally right - no clue

I have filed a Schedule C for 3 or 4 years now with no expenses. The client is a full time caregiver with no W 2. No problems. Due to her husband's income - no EIC

Things must be different in the Midwest. Here Minimum Wage is $12.75 per hour with lots of jobs available. To attract anyone most places starting wage is higher. For example starting wage at the local Taco Bells is $14.25 per hour.

I can't even imagine doing that many! Of course most of my returns revolve around business entities and their owners, so I don't do that many returns any more. I can count my extensions on one hand.

Paying the SE Tax is an important lesson about the consequences of taking a job when you're told "no taxes will be taken out"!

Schedule C & QBI unless he's receiving his payments from one prior W 2 employer, then QBI may be out. No expenses, so he doesn't have his own tools or buy any supplies?

Working once for a 3 day weekend at a convention or a jamboree is my idea of "one off"

I guess I lean the other direction. I just print the forms , the important worksheets and depreciation schedules.

Sounds like it should have been on a W 2. If it was my client I would put it on Schedule C. I would find it difficult to argue that it was a "one off event" therefore "Other Income"?

It's not your printer, it's the ATX Program fulling up your printer buffer which is part of your operating system.