Abby Normal

I'm running ATX on Win11 now and it's fine.

I just noticed that the Permanent File form has a field for Driver's License Number, on the Data tab, so you can enter it there and create a link to the Main Info field for ID Number. And, if you want to enter the issue date and expiration date, you can use the Date of Birth and Date of Death fields on the Permanent File Data tab, and link those as well. Fortunately, ATX doesn't link anything on the Permanent File form to any other forms. How to create links: https://support.cch.com/oss/sfs/kb/solution/000176488

https://answerconnect.cch.com/document/arp283494a0307b681000befa001b78be8c78070/federal/irc/explanation/accountable-and-nonaccountable-plans-in-general

But you need to know the formula for calculating. They usually involve accumulating inflation amounts until they reach a certain threshold, before an increase is allowed. So prior year calculated amounts that weren't enough are added to the current year calculation, if they didn't reach that threshold in the prior year(s).

Congrats! It's a shame Microsoft was so tricky in getting you to "upgrade." My new computer came with 11 and it's annoying and took me awhile to tame, but it works and seems to be getting better with each update. But the average user wouldn't want to have to deal with taming a new OS.

https://answers.microsoft.com/en-us/windows/forum/all/downgrade-from-windows-11-to-windows-10/84a2416d-ccfb-4d87-9eee-e1056591e91f After upgrade to Windows 11, if you realize that your system is not working correctly, or some of the crucial features you need are not working as expected, and troubleshooting didn’t helped you, you might want to go back to Windows 10. You can only downgrade to Windows 10 within the 10 days of your upgrade.

I buy the 1040 package for family and friends. It costs about 1,000 and you can do up to 75 1040 forms at no extra charge with up to 3 states. Entity returns are about 75 each extra. I charge for some of the returns I do and that ends up being more than the cost of the software.

Yeah, it's a complicated area of tax law that I'm sitting here wondering if I ever screwed one of these up.

https://www.thetaxadviser.com/issues/2017/jan/carryovers-death-spouse.html Death is treated like a sale of the property and therefore triggers the allowance of the passive losses. However, the amount of carryover that can be deducted must be reduced by the excess of the basis of the property in the hands of the transferee (the heir) over the decedent's adjusted basis in the property just before death. In other words, the amount of loss equal to the step-up in basis at death is not allowed to the decedent or to anyone else because the heirs receive that tax benefit from the step-up in basis. If the decedent's PAL carryover is less than the step-up in basis, none of the carryover is allowed on the final return.

Praise Freyr!

I don't do 1099s but for tax returns, you open the return, click on the E-file menu and choose Display Acknowledgement History.

It could be deducted on a Sch C as ordinary and necessary, since they're essentially borrowing the money from the IRS to fund their business. If line of credit interest is deductible on Sch C then this is just a substitute. Facts and circumstances apply.

Several points. The IRS interest is deductible but the penalties are not, and IRS interest rates are now higher than banks are paying, especially after paying taxes on the interest income. If he borrowed on a line of credit, all the interest should be deductible and the interest rate should be about the same as what the IRS is charging. And if cash flow is good, you can even put expenditures on a credit card and pay it in full every month, for a short-term interest free loan. Bottom line is, you need to crunch the numbers to see what is best.

It's more of a lifestyle than any financial logic. They're just being contrary and childish, and they're willing to pay the price.

https://www.law.cornell.edu/uscode/text/26/2036 The value of the gross estate shall include the value of all property to the extent of any interest therein of which the decedent has at any time made a transfer (except in case of a bona fide sale for an adequate and full consideration in money or money’s worth), by trust or otherwise, under which he has retained for his life or for any period not ascertainable without reference to his death or for any period which does not in fact end before his death. Sounds to me like as long as they had the right to possess the house until they died, it is included in their estate and the kids get a step up in value. In other words, a de facto life estate should work. In instances where the owner of the property has deeded the property to others but did not retain a life estate in the deed, but nevertheless continued to live in the property as a life tenant, see IRC § 2036 which uses the word “retained” not “reserved”. It has been successfully argued in the past that a right can be retained without being reserved, and that the continued occupancy of the home after the transfer of title, without paying fair market rent, is evidence of an implicit agreement, understanding or assumption of the parties of the transaction. Estate of Linderme v. Commissioner, 52 T.C. 305 (1969)

The notice tells you who issued the 1099R. Have the client call them.

Yes, a transcript of the account so you can see what actually happened. Could be a previous debt or inaccurate estimates or a host of other possibilities. Wait for the IRS notice.

It's my understanding that basis gets full step up in value as if the life estate never existed.

Because a life estate changes the gift into an incomplete gift. https://www.stoufferlegal.com/blog/navigating-life-estate-remainderman-tax But the death of the "previous owner" essentially wipes out the life estate and the beneficiaries get a full step up in basis. Basis is more complicated if the house is sold before the life estate owner dies.

I just did this for MD. Check the box on the state EF info form to unlink from MeF. Then just create the state efile. Easy peasy.

Both articles I read said it was half year, and I tend to assume ATX has it right. https://www.journalofaccountancy.com/issues/2022/nov/amortizing-r-e-expenditures-under-tcja.html

Use Z-Amortization and 5-Amort-174-Rsch and exp and you'll get 5 year SL HY.

Thank you and good luck with the move!

I dropped back to 1040 to do my 1065, 1120S and 1040, plus my fiancee's 1040. Still cheaper than paying someone to do all of those or messing with some other software. But then I added 8 or 9 simple paid returns that more than pay for the software.