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peggysioux5

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About peggysioux5

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  1. I feel rather ignorant asking this question, but here goes…..I have not set up the process to receive electronic signatures from my clients as of yet; however, I have a client asking me if I will accept an electronic signature through Docusign. Do I need to initiate the software that processes the electronic signatures so that verification standards are met for tax purposes or does Docusign process all signatures through a verification process no matter who initiates? Peggy Sioux
  2. The deceased spouse died over five years ago and estate closed several years ago. So, does another estate return need to be filed? Peggy Sioux
  3. Taxpayer does not want to request correction of deceased husband's W-2 even though W-2 was issued incorrectly with federal and state withholdings rather than correctly reporting on 1099 under taxpayer's social security #. She said she did not want to go through the hassle and didn't care about getting corrected......so, should I include the the W2 income on taxpayer's tax return as "other income"??? Peggy Sioux
  4. Taxpayer’s mother had a revocable trust and passed away in 2019. No estate/trust income in 2019. Personal residence with mortgage was in trust. Attorney obtained an EIN for trust in January of 2020 and attorney had taxpayer obtain a loan under trust’s EIN in January of 2020. Loan was only in existence for two months (high interest loan) and then taxpayer (trustee and beneficiary of trust) refi’d in taxpayer’s name to buy brother out. Taxpayer made the payments from her personal funds on the high-interest loan for those two months (interest and points over $11,000). Would the taxpayer be
  5. Thank you so much for providing the above link. Very informative and helpful. Peggy Sioux
  6. How are other tax preparers handling taxpayers who state they did not receive their economic impact payments in 2020 and early part of 2021? Are you inputting zero economic impact payments received; therefore creating a credit on tax return? Or are you asking taxpayers to set up account with IRS to confirm they did not receive their payments before inputting info on tax return? I have a client that adamantly states he did not receive the first stimulus payment, but received the second stimulus payment in full. Payments would have not been directly deposited because taxpayer has never provi
  7. Previous tax return shows no amortization or ABP adjustment and taxpayer isn't aware of amortization in prior years. Excuse my ignorance, but why would a taxpayer not want to reduce the annual interest each year by amortizing? If there is no amortization each year, is there an adjustment at maturity being taxpayer did not amortize?
  8. Taxpayer has interest on Treasury obligations reported in box 3 of 1099-INT. No entry in box 12, bond premium on treasury obligations. However, in details of the 1099 Consolidated, financial institution shows “noncovered bond premium on treasury obligations” with a note that “these amounts are not reported to IRS but may affect your tax return.” I know that covered bond premiums listed in box 12 will reduce the interest noted in box 3. How does noncovered bond premiums of treasury obligations come into play? Peggy Sioux
  9. Would hotel and meals also be included in travel expenses while he was working at temporary location?
  10. If self-employed taxpayer has no employees and has workman's comp insurance covering himself, would the expense be deductible business expense on Schedule C? Or would it not be deductible being the workman's comp benefit would not be taxable? Taxpayer is a sub-contractor and is required to carry workman's comp insurance by general contractor. Peggy Sioux
  11. Student going to school for one semester in 2020 who is 19 years of age. He was NOT a full-time student, but a part-time student at 11 credits (college taxpayer attended shows full-time status at 12 units), and he made just over the threshold of gross income of $4,300 so he does not qualify as a qualifying child (not a full-time student) nor a qualifying relative (didn't pass the gross income test), so is he eligible for the refundable portion of the AOC and Stimulus monies?
  12. I reviewed Pub 537 and do not see any instruction regarding updating Part 1 of form 6252. Pub 537 is where I found the worksheet for the recalculation of gross profit percentage. Pub 537 instructions show a recalculation is required but does not go into detail about updating the 6252. The instructions for form 6252 also provide no info regarding updating form due to recalculation. Peggy Sioux
  13. Another question regarding the reporting of new gross profit percentage due to reduction in sales price for an installment sale.....Do you adjust Part 1 of the 6252 when you have a new gross profit percentage due to reduction in sales price or leave all information as originally input and just change the gross profit percentage based on new calculations? Peggy Sioux
  14. Taxpayer’s husband passed away several years ago. 2020, W-2 was issued under deceased spouse’s social security # with federal withholding due to class action suit. Does taxpayer need to request for correction from W-2 in husband’s name to 1099 in taxpayer’s name and social? Peggy Sioux
  15. Question regarding a complex trust – two beneficiaries of complex trust. In 2020, trustee distributed $1,000 to one of the beneficiaries and nothing to the second. Trust earned income in 2020 of $6,000 and normally accumulates the yearly income rather than disbursing. Trust document states funds can be disbursed to beneficiaries at the discretion of trustee. In my research, I read that the distribution to the beneficiary is treated as coming first from the income being corpus can’t be distributed without first distributing income. If the trust is set up at 50% per beneficiary, is it possi
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