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Patrick Michael

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About Patrick Michael

  • Rank
    Advanced Member

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  • State
    NY
  • Gender
    Male
  • Interests
    Woodworking, DIY Projects

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  1. Never had to amend a 1041, but there is a first time for everything. Previous preparer neglected to take the additional exemption on a special needs trust on a 2018 return. Client paid $1,000 when they filed. How do you report the $1,000 previously paid? Does it go on Line 25 Payments: 2018 estimated tax payments? Thanks.
  2. Thanks Judy. I get so few of these I can never remember of it's the starting or ending year.
  3. I tried to Google this but can't find the answer and this always confuses me. Client's mother passed away in November 2018. Nothing happened with the estate until 2019. Client filed his 2019 taxes in May and last week he received a 2019 K-1 with a fiscal year ending date 07/16/20. Should I amend his 2019 return to include the K-1 or does it belong on his TY 2020 return? Thanks.
  4. Client has a 10 year old son who is legally blind and has other developmental disabilities caused by a rare genetic disorder. His grandmother's will established a "Special Needs Trust" last year when she passed away and there was substantial income this year . Parents started the application process for SSI several years ago but gave up, because of the household income, the amount he would receive was not worth the time and hoops they would have to jump through. My research shows that a qualified disability trust must be established for the sole benefit of a person under age 65 (which it does) who meets the Social Security Administration's definition of "disabled" (no question he meets the definition) and that the beneficiary of the trust is almost always going to be receiving either Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). I cannot find anything that says he must be receiving SSI or what situations he would be eligible for Qualified Disability Trust designation while not receiving SSI. I'm leaning towards saying this is a Qualified Disability Trust and taking the extra exemption amount. Anybody ever deal with this or any thoughts? Thanks.
  5. My clients received the 1099 only.
  6. What exactly are your concerns? I had a couple of them and treated them like any other Schedule C. Deducted mileage for deliveries (one used a app to track mileage and the other a pen and paper log) and a % of their cell phone because they used it in the store to scan items and for the GPS while delivering.
  7. I agree with Tom. Takes a little extra time setting up formulas the first year but after that is makes it much quicker.
  8. I have been using IDrive for the last two years. It's about $50 a year for 5 TB. It is set up for automatic renewal but sent several emails before renewing so you had the opportunity to opt out before the renewal.
  9. I have one client who enjoys gambling and every year I get a scratch off ticket along with check. Actually won $50 on a $2 ticket this year.
  10. We might be able to go that route The non-profit paid for all his living expenses while away. Parents are trying to see if they can come up with enough evidence that they provided over half his support but it will close based on the amount of time he was away. I think we can claim it was a temporary absence since he intended to return home. But we would rather not go down that route in case of an audit.
  11. He's tried for over a week but nobody answers the phone and he can not go the office due to Covid. He's freaking out because tuition is close to $60K a year (almost double what he makes).
  12. Client works for a major college and his son gets to attend the college tuition free as a benefit. He could not claim his son as a dependent in 2019 as he took the year off from school to perform missionary work. Son will be attending college in 2020, full time, is under 24 and will be living at home, so the parents will be claiming him in 2020. All was well until the college's HR department sent him a letter stating the tuition would be included in his taxable income for 2020 because he did not claim his son as a dependent in 2019. From my research I believe the tuition would not be taxable. I could not find anything that said the son would have to be a dependent in the previous year for the tuition to be tax free, only for the year the tuition was for. Am I missing something? Thanks
  13. Recently all the calls about the stimulus checks have been taking up a lot of time.
  14. Started out with TaxAct in 2001, then switched over to ATX from 2005 until 2012 and been with Drake ever since. Part time gigs reviewing for other firms I have used Proseries , CCH Prosystems, and another god awful program whose name I have erased from my memory.
  15. Good point. I didn't think of that. If I put it on Sch E would it have to be depreciated and that depreciation "recaptured" when sold (which is what I'm trying to avoid)? How about putting the $645 on Line 21 and then a negative amount on Line 21 to net it out? Or just putting the $645 and eating the tax?
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