Lee B

Charitable Contribution Acknowledgement Letters

13 hours ago, Tracy Lee said:

TP bought rental property in 2022 and took a $20,000.00 loss on it because of the amount of repairs....however they could not take their loss because their AGI was so high they phased out.  

I am puzzled because it sounds like the repairs were made to get the rental ready to rent in which case they should have been capitalized.

1 minute ago, DBerg said:

The private equity firm can do what Wolters Kluwer did to ATX 2012. I think that is how many people found Drake and started using them.

I have posted before that I expect that Drake's software will be totally rewritten with most of the work being outsourced to India.

However Cinven is very experienced and owns many different companies around the world

so we may not like the changes, but I don't expect them to mess this up.

Manufacturers/Installers are required to give them the relevant documentation as to the credit they qualify for.

 I have had several clients in the past come to me with their tax stuff anticipating a big tax credit, promised by their salesperson.

but they had no documentation. When I had them call the company who did the installation they were told no credit was available.

Of course their salesperson no longer worked there.

Generally speaking, an NOL is limited to 80% of taxable income,

In theory he could own AMT but without working through the 6251 step by step who knows?

Not enough information to help you, except to suggest that you read the instructions for Form 6251

My state of Oregon had 5 or 6 counties with a series of really damaging ice storms about 6 weeks ago.

Unfortunately for Oregon and now Texas it takes months for disaster relief is officially declared.

https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

Corrected 1099s from brokerage firms are sometimes issued between the middle and the end of March.

"Scheduled Maintenance Build: A routine system maintenance build is scheduled every Sunday from 12:01 a.m. to 8:00 a.m. Eastern.

During this maintenance period, MeF will accept submissions but will not generate acknowledgements or process any state services such as Get Submissions, Send Acknowledgements or Send Receipts."

I think I will invest my money in my mental health and spend it on a nice vacation

https://apps.irs.gov/app/vita/content/globalmedia/teacher/tax_treatment_scholarship_4012.pdf

1 hour ago, Max W said:

In CA, still accepts those deductions that were eliminated on the federal return.  some other states may do the same.

 

Oregon has very low standard deductions, so many taxpayers still itemize.

However Oregon does not allow the 2% misc itemized deductions.

The Senate is on a two week break, so there's no progress to report.

Also, the bill requires 60 votes to bring to the floor for a vote.

According to news reports there aren't 60 votes to do that.

Aw shucks, i'm disappointed.

According to the IRS:

"Inherited Roth IRAs

Generally, inherited Roth IRA accounts are subject to the same RMD requirements as inherited traditional IRA accounts. Withdrawals of contributions from an inherited Roth are tax free. Most withdrawals of earnings from an inherited Roth IRA account are also tax-free. However, withdrawals of earnings may be subject to income tax if the Roth account is less than 5-years old at the time of the withdrawal."

"Designated beneficiary (not an eligible designated beneficiary)

Follow the 10-year rule"

I will get some popcorn and read the responses later this afternoon

At first glance I would agree, but aren't most client's current standard deductions larger than if they were able to itemize including the 2% misc itemized deductions.

I have a client who has a commercial vehicle brake, frame and alignment shop. They require their mechanics to provide their own tools.

It's a common industry practice. Unfortunately it falls under the 2% misc itemized deductions category which the TCJA eliminated.

Since she probably takes the standard deduction it's probably a moot issue.

I sympathize, when we moved my mother in law in to live with us her dementia was causing problems.

She couldn't remember whether she had taken her prescriptions.

She had stopped paying her bills and the city was getting ready to turn off her water.

1 hour ago, DANRVAN said:

Oregon does not yet accept e-filed OR-41.

 

Interesting, since I have efiling OR 41 using Drake

I reread the Journal of Accountancy article again and I still stand by my post.

There is also a discussion about catch up distributions and the reduction in excise taxes on late distributions that should help Deb.

ATX has along long history of not providing entity forms to smaller states.

Last year all of my clients except one filled out their tax organizer.

Although I did hand back their documents to 2 clients and told them to come back when it was filled out.

If you don't have them fill out an organizer, how do you find out when there are changes in their tax situation,

which they otherwise might forget?

A classic case of Income in Respect of a Decedent

Here a very good article in the Journal of Accountancy:

https://www.journalofaccountancy.com/issues/2023/apr/beneficiary-iras-a-guide-to-the-rmd-maze.html