-
Posts
5,225 -
Joined
-
Last visited
-
Days Won
329
Everything posted by Abby Normal
-
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.
-
Forms did not recalculate after a change was made
Abby Normal replied to DMT's topic in General Chat
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.
-
I've only had two calls about stimulus payments...
Abby Normal replied to Abby Normal's topic in COVID-19
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.
-
Moved back into a house which had previously been a rental
Abby Normal replied to TAG's topic in General Chat
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.
-
There are programs to recover deleted files like Recuva. Worth a shot.
-
I would also explain math to him. You spend 50k to save 20k in taxes, you are 30k poorer. Keep the cash and try to earn money instead. Or just give it to charity for the deduction and do some good in the world!
-
I'd cash it. The rule is that it's not to be taken back by the government. Maybe donate it to a local food bank. If the estate bank account is closed, I'd have the personal rep endorse the check over to the sister.
-
I have a policy of never entering 'the' at the beginning of any of my clients' names, both on tax filings and my internal file folders, because I've noticed that is what the IRS does.
-
Your clients have never heard of online banking and downloading bank statements? And how is payroll being done? Sorry, but we're functioning quite well here, due to using modern technologies for the past two decades, at least.
-
https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies A single-member LLC that is classified as a disregarded entity for income tax purposes is treated as a separate entity for purposes of employment tax and certain excise taxes. For wages paid after January 1, 2009, the single-member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes.
-
tax return was rejected due to dependent was claimed by others.
Abby Normal replied to cl2019's topic in General Chat
I wonder if Social Security can assign the kids new numbers? -
the way to avoid having your rental activity being classified as a bed and breakfast is not to provide substantial services to your guests—don’t provide them breakfasts, clean their rooms each day, or do their laundry. Charge renters a cleaning fee at the end of their visit that is separate from their daily rental charge. https://www.nolo.com/legal-encyclopedia/tax-issues-when-renting-your-home-airbnb-vrbo.html
-
We don't always follow the IRS' position.
-
It's a gray area to be sure. You clean and change linens before and after every guest, but it's certainly not like daily maid service with hotel amenities. This article says to report it on Sch E, unless you're providing maid services and changing linens during the stay. https://www.journalofaccountancy.com/issues/2017/apr/reporting-income-from-airbnb.html The breakfast thing is the wild card. I would advise to stop providing breakfast.