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Possi

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    VA
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  1. ... why? Because I don't know why. I'm fried. Yes, that's why. THANK YOU for smacking some sense in me.
  2. Client lives in Germany with her German spouse. He is not a US citizen, no SS number, no link to US. She (client) has a rental that has been BEING RENOVATED for years, and has just now (2021) become habitable and rented. Her gross receipts are $13,200, netting a loss. She has no other income. Since her gross receipts are $13,200 and the property is in MD, she is required to file Federal and MD. She has 3 children, 2 of whom have SS numbers. She is qualifying for the stimulus payment filing MFS with zero exemptions. Am I doing her an injustice by not putting her 2 children with SS numbers on her return? No EIC of course, but what about the child tax credit? It sounds crazy that I am even asking this question, but these are crazy times. Donna
  3. A client brought me one that had fallen in the toilet. "It's ok, it was clean water." Um, no. And you get a @RitaB HUG.
  4. I don't know if this will help the next person or not, but NC does tax disability when it is reported on a W2. It was worth a try!
  5. I have a client with MS on 100% disability. She gets SSI, but my question is regarding the W2 from the insurance company. Her disability payments are in box 1 wages, zero FICA, zero fed or state w/holding, box 13 "3rd party sick pay." VA does not tax this because it is complete and total disability from which she will not recover, even though it is paid on a W2. She moved to NC and I can't find on the website whether or not this is taxable to NC. Help! Thanks!
  6. Possi

    1099 NEC

    I know that car salespeople receive "spiffs" on a 1099. In that particular case, it is other income not subject to s/e tax. So, I think it depends on your particular situation.
  7. Thank you! It would be a free standing structure. I would bet it won't be exclusive use, but I'll ask. He will be honest with me. He's not trying to cheat, just asking. So, I'll get the truth about the usage and go from there.
  8. He does have the skills to do all the maintenance, and in fact does it all. He is very active in maintaining the properties with no property manager involved. If something happens while he is deployed, he hires out, but that is rare. These are high end rentals, not junk. I can't say what exactly happens in the workshop. He's one hottie, I know that. I don't know if it would be a depreciable asset or used more in line with a home office, simple sq footage use. I would add it to any one of the properties in that way. Under expenses, home office, whatever the measurements are, and then the total using $5 sq ft with a max 300 or $1500. That way, there's a cap and no depreciation. Does this make sense?
  9. Interesting. I like the way you're thinking.
  10. My client has multiple rental properties. He is military, and his rentals are not Sch C, but are Sch E income. Average. He plans to build a workshop at his home.... "Since I will use this to work on projects and do repair work for the rentals can I write it off on next year's taxes?" My knee jerk reaction is "no, and get out of my office, I'm busy...I think Rita has a hug for you..." BUT, is there any reality to this? Is he able to deduct this in any way? What if it really was exclusive use for maintaining the rentals? (I know it won't be, but just for the sake of discussion.)
  11. Oh my gosh, thank you so much! I paid my donation today... and you are part of the reason I love and support this site.
  12. Yes, so that makes her a "special case non-resident." Following that, would the pension be exempt along with the wages?
  13. "The other exception under #2"; she is not a resident of another state according to DFAS payroll records. She is a resident of OR according to DFAS payroll. Maybe VA won't tax the pension, and OR might not tax it, either. I was a little confused about VA because I was thinking of another situation. I was thinking of a FL home of record service member (living in VA) whose new wife gets a pension from ex husband, and has wages. Her wages are not taxable to VA because she hopped on the FL state with her husband, but all other income is taxable to VA. This is different because it is actually the service member herself who received the pension. Since her home of record (which is the state according to DFAS payroll records) is OR, it will all go to OR. Wages won't be taxable, so all I need to know is whether or not the pension will be. Regarding VA, if a service member's Home of Record is VA, then VA would tax the pension, no matter if it came right from Heaven. VA gives no breaks.
  14. This isn't your typical tax client. Military are treated differently. Since her home of record is OR, her wages are not taxed to OR or to any other state where she resides. You did hit on something, though. I think her pension will be taxable to VA since she lives here, as a "non-resident" because the military curtsey only applies to wages. The OR practitioner line didn't know the answer, but an auditor will call me back. With your help, I think we have solved this one. Thank you!
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