Abby Normal

Life insurance is rarely deductible. I'd show as draws or guaranteed payments.

You can always amend a return. You just can't get refunds later than 3 years after 4/15 or the filing date, whichever is later.

I've never had coverage that didn't start on the 1st of a month, except some older employer plans. So this is really a 2 month gap.

You're welcome! I wanted to look it up for myself, too. I've not filed 1041s for estates with less than 600 before. Now I'm wondering if I was wrong!

From the instructions for 1041: Trust The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic trust taxable under section 641 that has: Any taxable income for the tax year, Gross income of $600 or more (regardless of taxable income), or A beneficiary who is a nonresident alien. I would file a final return because the penalties for not filing a return are stiff. And excess deductions will pass out to beneficiaries.

Because they added a new preference to make the letter always say 'will be efiled', whenever you need the letter to be for a paper filed return, you have to go to Preferences, Client Communications and temporarily change it to Calculate based on efile status. Horrible impementation, ATX!

Yes, it's not a taxable event to distribute assets to partners, like it is with S corps & C corps.

I always seem to have good Friday the 13ths! There will be several alcoholic beverages in my near future!

http://www.irs.gov/uac/Newsroom/IRS-Makes-it-Easier-for-Small-Businesses-to-Apply-Repair-Regulations-to-2014-and-Future-Years

Rev Proc 2015-20 attached. Rev Proc 2015-20.pdf

Had my first ACA today. They recieved 1700 credit but had to pay back 1500. The 1700 was for 8 months. If they keep getting subsidy for 12 months in 2015 they'll get over 2,500 and pay back 1,500. Why wouldn't they do that? They get to keep paying 130/mo for health insurance and use their child tax credits to repay the 1,500. Improved cash flow and a $1,000 bonus is hard to pass on.

Just put a note on my calendar to update the evening of the 18th. Hopefully they'll have this worked out before then.

That's nuts!

They moved the Admin Console program for 2014. It's located here: C:Program Files (x86)Common FilesCCH Small Firm ServicesATX 2014 Admin Console

You just have to manually override the depreciation every year until it's done or sold.

You probably just need to wait longer before opening 2014. Opening 2013 may be just a red herring.

Agreed. Installs all went smoothly and quickly. Updates have been fine too. Program starts faster too.

Yes, always backup your backups! I back up the whole ATX 2014 Server folder. Actually, I backup the entire (hidden) ProgramData folder even though a lot of the stuff in there isn't really important.

Good luck ever trying to refi or sell the house! I would get the name changed sooner rather than later.

Jut found this: Example 11—unmarried parents. You, your 5-year-old son, and your son's father lived together all year. You and your son's father are not married. Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, and joint return tests for both you and his father. Your earned income and AGI are $12,000, and your son's father's earned income and AGI are $14,000. Neither of you had any other income. Your son's father agrees to let you treat the child as a qualifying child. This means, if your son's father does not claim your son as a qualifying child for the EIC or any of the other tax benefits listed earlier, you can claim him as a qualifying child for the EIC and any of the other tax benefits listed earlier for which you qualify. I don't do a lot of EIC returns so it's not an area of expertise.

Tie-Breaker Rules Under the tie-breaker rule, the child is treated as a qualifying child only by: The parents if they file a joint return; The parent, if only one of the persons is the child's parent; The parent with whom the child lived the longest during the tax year, if two of the persons are the child's parent and they do not file a joint return together. The parent with the highest AGI if the child lived with each parent for the same amount of time during the tax year, and they do not file a joint return together; The person with the highest AGI if no parent can claim the child as a qualifying child; or A person with the higher AGI than any parent who can also claim the child as a qualifying child but does not. If he is the father, only he can claim the EIC because he has the higher income. If he is not the father, she can claim it if she chooses. Edit: http://www.irs.gov/Individuals/Qualifying-Child-of-More-Than-One-Person

The reg and the court case have nothing to do with the owner living in the house. If you're paying mortgage interest and you're living in and paying all the expenses of the house, you get a mortgage interest deduction and real estate tax deduction, even if your name is not on the title or the loan.

I considered switching to PDFFactory. It looks much slicker than PDF995.

http://www.journalofaccountancy.com/Issues/2008/Oct/EquitableOwnerEqualsDeduction.htm Treas. Reg. § 1.163-1(B ) permits a deduction for interest paid on a mortgage when a taxpayer is the legal or equitable owner of the property, even though the taxpayer is not directly liable for the mortgage. In Saffet and Ana Uslu v. Commissioner, TC Memo 1997-551, the Tax Court held that a married couple was the equitable owner of a home titled to the husband’s brother since, from the date of acquisition, they had occupied the home and made all payments for the mortgage, taxes, repairs, maintenance and improvements. Take it!

That looks good!