Gail in Virginia

I can only see this as taxable income if it were first deducted as an expense. So if this is a business trip that they paid for last year, and they are cash basis taxpayers who deducted it last year, then potentially it could be income if they get a refund this year. BUT I don't see it.

Life is full of trade-offs. Yes, they have to pay both halves of the SS and Medicare, and they are probably not covered for unemployment. On the other hand, they are probably paid a higher rate per hour than they would be if the employer had to provide benefits. If everybody is happy with the arrangement, who am I to rock the boat? I am bothered when whoever hired them doesn't explain this from the beginning but as long as everyone understands the rules of the game, I think it is reasonable even if not technically correct.

But for 2020 she has the intention to remain in FL, and has sold her home. I assume she has changed her voting registration (if not, she should), her driver's license and anything else she can think of to show her intent to become a FL resident. So hopefully this will be the last year she files a VA return.

My understanding from reading the IRS instructions is that as long as the check is payable to the charity, it can be sent to the client for delivery to the charity. But I agree with what has been said.

I think that is politician.

And maybe we are just paranoid. Hard to tell anymore.

Even though you are not in a disaster area (and since you are in DC I would beg to differ - I think that is a HUGE disaster) you can take out money to loan to a child, parent or other dependent for their disaster in another part of the country. I believe there is only a brief window of time that this is available, and that you are not forced to stop contributing to your 401(k) the way you ordinarily are if you take a hardship withdrawal. I don't know all of the details.

Many times, they don't realize they have been given a 1099S. It is just in with the huge packet of papers they received at closing and which they never looked at except to sign where the attorney pointed.

If it is inventory, wouldn't that make it ordinary income? Whereas investment property would qualify of capital gain treatment? Or maybe not. I don't know much this time of year.

The problem with the free services is that they assign the phone number. I am afraid if I change (or eliminate) my fax number, clients will find an old tax return or business card and fax something to me that will go God only knows where. Even if they have never before faxed anything to me at anytime.

Thanks all! Sounds like it is going to be close for this particular taxpayer, but no way to tell for sure.

Actually, one employee, or two or three. there isn't much difference in how much trouble the payroll is. If $1300 is their per pay period cost that is outrageous. On the other hand, if it is a weekly payroll 52 weeks per year, that is about what I would charge just to do the payrolls - $25 each, plus an additional charge at the end of the quarter for the VEC and 941 reports. And I don't think that my charges are high.

If income for single person is above $87,000 for 2018, then in 2020 the medicare premiums increase from $144.60 to $202.40 (as long as income is below $109,000.) Does anyone know if the income figure is indexed at all for inflation, and what the amount for 2019 income would be to generate the additional premium cost? I have a client that is over by $2600 this year. I am thinking that even if it is indexed, it won't be by that much.

I am just wondering if the market value of the property had dropped, if you would have to put it in to service at the lower FMV when the use changed again....... Hopefully, that is not the case.

The way that I read the article, the first Sch C would be eligible for QBi while the second sch C would be from an SSTB and would not be eligible if the income in total is above the thresholds. That was not really clearly stated in the article, but was implied when it referred to that income as SSTB income. This is just an article and not something that can be relied on even thought the source is reputable. I agree with CBSLEE - good luck!

Maybe in addition to the codes for thrift sale price, or consignment shop price, we need one for overstatement of value by taxpayer against advice of preparer. That wouldn't throw up any red flags, I'm sure. And then IRS could develop an algorithm for how high it has to be before they decide to audit. JK.

Just be sure they are AFTER tax contributions, and not before tax. Not always easy to tell from a pay stub, and taxpayers never seem to know the difference.

I agree with Rita. If the mom remained in the house, continued to pay the taxes and upkeep, then she had the "incidents of ownership" and has an implied life estate. IMO, they may be able to get the step up in basis. But, as always, it depends on the facts and circumstances.

I can't help, Catherine. I have one client, an NP Anesthetist, who does some of that but does it on a regular enough basis that we have always treated it as SE income. I would tend to agree with your thinking from a logical standpoint, but logic does not always have much to do with taxes. On the other hand, if he is an expert in this field I would suspect that it at least relates to the way he makes his living and could therefore be considered an extension of that and be the reason that IRS considers it subject to SE.

Lion, to get back on track. If the payments were considered reimbursement for travel expenses rather than payment for participation, then they are not taxable. If the participant in the study has a "rare" disease, then under the Ensuring Access to Clinical Trials act of 2015, they may not be taxable. I found this article that may help you to find further information: https://forteresearch.com/news/payments-to-research-subjects-what-is-taxable-income/

ProSeries will also split the returns.

Not a question I had ever considered. Thanks for the info!

I believe that INH-2010 refers to property from a person deceased in 2010 whose executor made the election to file form 8939 for the property. That is the form for the allocation of an increase in basis for property acquired from a decedent.

I don't know what, if anything, you can do at this point that won't make matters worse. I feel your pain! Maybe someone else will have a suggestion, or if anyone says something about the someone else on the list, I guess you could always blame it on two lists getting mixed up but I don't think you can take it back at this point.