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Patrick Michael EA

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About Patrick Michael EA

  • Rank
    Advanced Member
  • Birthday September 21

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  • Interests
    Woodworking, DIY Projects

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2,150 profile views
  1. Patrick Michael EA

    Fewer refunds expected

    I'm sure many of us will be getting calls from clients asking for projections to see if they're having enough withheld after they see this (already saw the article posted on social media). Just wondering on how you are planning on handling these requests. Will you be charging for the projection and if so, how much?
  2. Patrick Michael EA

    NT: Too funny!

    A classic telemarketer prank! https://www.youtube.com/watch?annotation_id=annotation_420523&feature=iv&src_vid=mkdoogjic4I&v=-7OgWcwgB50
  3. Patrick Michael EA

    Uber Drivers Losing Money

    I disagree that "Basically, only miles driven while a customer is in the car is the deductible portion." I believe the mileage from the time they drop off their last fare to where they pick up their next fare would be deductible as long as they were "working" (signed onto the app and not going home between fares). I have a couple of Uber drivers and they also told me that the mileage reported by Uber does not include the mileage when driving from one fare to pick up another so I have them using one the phone tracking apps to make sure they capture all their miles..
  4. Patrick Michael EA

    Reimbursement of Medical Travel

    Thanks everyone.
  5. Patrick Michael EA

    Reimbursement of Medical Travel

    Client has a special needs child and has to travel from NY to Minnesota every year to see a specialist. She submits her travel bills to a charity which then reimburses he for the travel expenses. All is good until the charity issues her a 1099 Misc with the reimbursement amount in box 7. The charity insists they have to issue the 1099 and will not issue a corrected 1099. She does not have enough medical expenses to clear the 7.5% hurdle for schedule A. I don't believe this should be taxable and not sure how to handle this. Leave it off and wait for the CP2000 notice, put it on line 21 with an offset to zero it out, or a schedule c with an offsetting expense to zero it out? Any thoughts?
  6. Patrick Michael EA

    NY Charitable Donation Fund

    According to Kiplinger: "A new report by the N.Y. Dept. of Taxation and Finance outlines a series of tax-related proposals. They include giving New Yorkers the option to donate to a state-operated charitable fund in exchange for a credit to be used against their N.Y. individual income tax liability" If this goes through how is it going to deductible on Schedule A? Wouldn't the credit against the income tax liability be a benefit received, negating the ability to deduct?
  7. Patrick Michael EA

    SALT Cap Workaround

    Maybe I'm missing something, but how is switching from an income tax to payroll tax going to help the workers? Sure, businesses can deduct the payroll tax (until the congress changes the law to exempt the deduction) but the businesses will still end up paying out more then the deduction is worth. I assume the businesses are not going to just eat this increased expense and will lower wages to make up for it. I can see businesses that use minimum wage (or near minimum wage) employees laying people off since they will not be able to lower wages to make up for payroll tax. I live in NY and wish Cuomo would work on lowering taxes by controlling spending instead of spending money on a law suit that is doomed to fail.
  8. Patrick Michael EA

    First Sale of Rental Property

    Thanks to all. I learn so much from all of you.
  9. Patrick Michael EA

    NY Drivers License

    Attended a CPE class night and one of the speakers was from NY Tax Department. Good news for those of us in NY; you have to enter only the first three characters of the driver's license document number this year! First i heard of it.
  10. Patrick Michael EA

    First Sale of Rental Property

    Preparing my first return with a sale of a residential rental unit and trying to understand how the gain is taxed. The house was purchased in 2009 and has been depreciated, straight line, over 27.5 years. There is a a $106,877 gain and $31,772 in depreciation, none of which is considered "additional depreciation". This is were I'm getting confused. Some of what I have read says that the total amount of the gain that is the result of depreciation is taxed at 25% and others said the entire gain is considered a LT capital gain (which I do not believe is true). When I look at the Schedule D Tax Worksheet it looks like the gain from the depreciation is taxed at ordinary income rates with a maximum rate of 25%. Is this correct? Thanks
  11. Patrick Michael EA

    1099 or not

    Thanks for all the input.
  12. Patrick Michael EA

    1099 or not

    New client owns a hair salon and rents three chairs to other stylists. The stylists who rent the chairs run their credit card transactions through the clients machine and he then writes checks to the stylists for their share, less the fees. The 1099-K will show the total amount run through the machine so he will have to show that as income and then back out the amount given to the stylist. I'm thinking he should send 1099's to the stylists as other income. Any thoughts?
  13. Patrick Michael EA

    Energy Tax Credit

  14. Patrick Michael EA

    Energy Tax Credit

    Need a sanity check with all the changes recently. Client called today to ask about the energy tax credit for replacement windows. Her installer told her that the windows, which were installed in 2017, were eligible for a residential energy tax credit. I thought that credit ended in 2016 and from what I can find the 2017 credit only applies to: qualified solar electric systems; qualified solar water heaters; qualified fuel cell property; qualified small wind energy property; and qualified geothermal heat pumps. Client insists this is not correct. Has anyone heard if the credit was extended to 2017 for replacement windows? Thanks.
  15. Patrick Michael EA

    Co-Signer 1099C

    Same amount on both, one in the mother's SSN and the other in the daughters SSN.