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Abby Normal

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About Abby Normal

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    ATX Supreme Guru

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  • State
    MD
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  1. People who died in 2019 are not entitled to the stimulus payment but those who died or will die in 2020, should be entitled to it. There is no "final" checkbox on 1040's, but the IRS learns quickly that you are dead from the Social Security Administration. When I see an obit for one of my clients, and I have a POA for them, I quickly download the latest transcripts because if I wait 30 days, I can no longer download transcripts.
  2. Home ACQUISITION debt is deductible when use to purchase or improve a home. It doesn't matter whether the bank calls it a mortgage or a HELOC. This means we have to track the original mortgage balance through refi's because the interest on refi costs that are part of the new loan are not home acquisition debt.
  3. Yes, you pay tax where you earn income, unless there's a reciprocity agreement between the states. And reciprocity is almost always just for W2 wages.
  4. I see it as an error, plain and simple, not an accounting change. I bet the preparer changed software and didn't enter the states correctly, because only federal matters, right? Right?!
  5. S corp late filing penalties are hefty. Hopefully you qualify for relief under first time penalty removal. Why didn't the preparer either file it on time or prepare an extension? I'm confused by this arrangement. Was this a paper filing? Was it done before 3/15?
  6. The IRS and the law said that no one should return stimulus payments. The IRS has set up procedures for decedents to return stimulus payments (which I disagree with) but has not said anything about dependents, as far as I know. My policy is for everyone to keep it and deal with it on the 2020 tax return.
  7. It's probably not there because 1040 SR is just for paper filing?
  8. Maybe I'm not doing 100% correctly, but in ATX I mark the asset 'converted to personal use', then use the 8949 worksheet for sale of a principal residence, and just enter the accumulated depreciation on the appropriate line. Same for home office.
  9. Next time support calls in, take notes or record the screen so you can learn how to fix it. Then share, please!
  10. 3115 is a federal form. CA must have their own rules for this situation, which, unfortunately, might just be amending returns, so you'll lose out on that earliest year.
  11. It's not your decision, though. The client has to make that decision. I'd probably let sleeping dogs lie and start payroll in 2020.
  12. Agree with cbslee. Track all the money in and out in the capital accounts.
  13. Have the employee fill out a W4 and state equivalent that will result in zero withholding of income taxes.
  14. These mostly arise when the shareholder has zero basis and the preparer doesn't want the shareholder to pay capital gains tax on distributions. It's a ruse the would not pass IRS scrutiny, especially if there are no loan documents, interest rate or regular repayments, and they likely totally ignored imputed interest rules. You'll have to move those to distributions if the shareholder can't/won't repay the money.
  15. Here's a good summary of some of these issues: https://www.thetaxadviser.com/issues/2014/jan/nitti-jan2014.html
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