Abby Normal

At this point, it's just another drop in the bucket. I gave up on debt when, after the budget was close to being balanced around 2000, they passed, not one, but two big tax cuts, started two wars and passed an a giant unfunded prescription plan, which blew a ginormous hole in the budget, because math. Then the banks blew up the world financial markets! Ah, good times!

It's an assumption that it was a mistake. If the money is out there in circulation, then it's achieved the purpose of stimulating the economy.

And he may need some permit or zoning allowance. If I was a tenant, I might not renew my lease if loud parties were going on all the time. I'd be checking my lease for 'peaceful enjoyment' clauses.

The way I look it is, it saves from having to do a lot of extensions. I wish the due date was changed to 10/15 (no need for extensions) and balances due had to be paid by 4/15 (or 5/15). This really wouldn't change my workload. The people who come in before 4/15 will still be the same people, especially if they normally get a refund. And the ones who show up in August or September will still show up in August or September. But we won't have to spend time doing extensions, and we'll have until 10/15 + 3 years to amend for refunds.

I would argue that holding onto payments until the 2020 tax forms come out, is prudent.

From the law: "For purposes of this section, the term ‘eligible individual’ means any individual other than— (1) any nonresident alien individual, (2) any individual with respect to whom a de- duction under section 151 is allowable to another taxpayer for a taxable year beginning in the cal- endar year in which the individual’s taxable year be- gins, and (3) an estate or trust. That is it. Pretty wide open if you ask me.

https://www.journalofaccountancy.com/news/2020/may/expenses-reimbursed-by-ppp-not-tax-deductible-paycheck-protection-program.html

I'd like someone to show me in the law where it says you have to return it. It's simply not there.

This is a complete mess! There needs to be an arbitrary date that if you died before you aren't entitled to the 2020 credit, regardless of the date you actually received the payment, because the payments are slowly getting paid over several months. And what if you die after you received the check but before you had a chance to deposit it? Will the IRS check the 2020 date of death to the date the check was issued, or the date the check was cashed, to determine whether to disallow the credit? And is any of this fair? People who got their payment direct deposited on 4/15 and die today can keep it. But people who die today and get a payment in June or August, can't keep it? Can we please stop the insanity?!

TaxWise will have an online version next year.

Where did you see this?

After my second ipod died from a 5 inch drop onto a table, and I saw online this was common and due to an inherently cheap design of the switch, I vowed to never give the evil Apple corporation another dime of my money. This decision was cemented when I found out my android phone sounded much better than my ipod ever did.

Do they still use magnetic ink on those numbers are have they modernized to optical reading? Just curious.

F9 is the recalculate key. Closing and reopening the return will definitely recalculate the entire return. I've done that whenever something doesn't seem right.

No, you don't need to do that. PTP losses are limited, even if you have basis. See and print the PTP summary tab in the K1 input form. When a PTP has income, you can use any carryover losses up to the amount of income. All losses are deducted on a final disposition. When a PTP is sold (OR PARTIALLY SOLD), you will get a worksheet showing the adjustment to basis AND the portion of gain that will be ordinary income (on form 4797). The brokerage statement of investment sales will show the original basis of the investment. On the 8949, enter codes BO in column f. B for basis adjustment and O for other. (Enter BMO if ther are multiple transactions on that line as well. BMOW if wash sales are in the mix. Codes are entered alphabetically.) Net the basis adjustment and the 4797 portion by ADDING the basis adjustment and SUBTRACTING the 4797 adjustment. This might seem backwards, but it's not, because 8949 adjustments are adjusting the gain/loss, not the basis. Then go to 4797 and enter a part II gain for the amount of the ordinary income adjustment. There is a drop down where you can choose the K1 that was sold or partially sold. It's extremely easy to miss partial sales because the K1 isn't marked final. You have to carefully read all the attachments each year with the K1. And you're supposed to attach 751 statement to the return. I have a generic 751 statement typed into a blank ATX statement for just this purpose, but I seriously doubt any problem could arise by not attaching this statement. Thankfully, I've never had to test that hypothesis. https://www.thetaxadviser.com/issues/2018/apr/reporting-publicly-traded-partnership-ordinary-income.html

I predict there will be a lot more people choosing direct deposit from now on. I've been encouraging it for a long time, and the majority of my clients have opted for the smarter choice of direct deposit. There's no good reason not to.

I believe that the only returns that were changed to a due date of 7/15 were returns that were due 4/15. Everything else is the same.

Had a client with 3 kids tell me she got the full 500 for each kid, even though two of them were over 16. From what I've heard, when she files 2020, the excess will not have to be returned.

Yes, but it sounds like the devil is whispering in your ear!

But if they use the IRS calculator mid-way thru the year, it's very important that they do another calculation on 1/1 of the next year.

K1s don't show basis, they show capital, unless the K1 has supplemental schedules showing the basis calculations. The amount he was paid is a long-term capital gain, to the extent it exceeds basis. The losses allocated to him are his. The capital gain does increase his at-risk amount, but it does not increase his basis, so the losses are probably not deductible. https://www.thetaxadviser.com/issues/2012/mar/clinic-story-04.html If there was any income in the final year, that would increase his basis and you could deduct losses to that extent, assuming there were no other items affecting basis. ATX has a basis worksheet form in the 1040.

Finer points: To get ATX to calculate the partial year depreciation for the final year, assuming they didn't move back in on 1/1, pretend like you're disposing the asset and enter the date it stopped being a rental on the disposition tab. Override the depreciation amounts in the main asset tab to the amount was calculated. Then removed the disposition info. Make a note for next year to change the business use % to zero by entering 0.001 in the business use field in fixed assets, so no more depreciation is calculated. When you delete the Sch E, the assets will become 'Unassigned'.

Heroes.