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peggysioux5

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About peggysioux5

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    CA

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  1. I am having the same issue in the Drake software for CA. Odd that Drake and ATX has the same programming issue. Peggy Sioux
  2. Handling tax returns for registered domestic partners in CA, both receiving Social Security income. I have researched to determine if social security income should be considered community income in the year received and I do not find anything definitive; however it appears from things I have found, it appears that social security income is considered community income. However, the last two tax preparers who have handled taxpayers' returns have not applied the social security income as community. Hoping other tax preparers have handled this issue in the past and provide some input. Thank you. Peggy Sioux
  3. Thank you so much for the detailed info Sara; very much appreciated. Peggy Sioux
  4. Would a gift tax return be required for 2018 being partial gift completed at time of sale?
  5. Taxpayer purchased hot tub mid-2018. Taxpayer obtained a prescription for hot tub in October 2018. Would you consider expense to be legitimate medical expense? Peggy Sioux
  6. Yes, sales proceeds divided between mom and children. Yes, children are on deed along with mom with life estate.
  7. Life estate created 15 years ago and parent is now 90 and still living. Children are selling home. I realize children will pay capital gains on their share and parent should be eligible for 121 exclusion, However, I have not dealt with the actual calculations of a life estate. What IRS tables do I use to determine Life Estate/Remainder % (I think Table S, but need confirmation) and do I use table based on current age of parent , date of sale, and sale price of residence? Will I need to determine value of life estate at creation date? Or are the calculations based on original basis of parent and then percentage of Life Estate/Remainder based on parent's age at time of sale? Any direction is greatly appreciated.
  8. The expenses in question are utility costs, upkeep of landscaping, and administrative fees, not repairs or improvements to the home. (I should have provided this information in the original post.) If the estate reimbursed executor in 2018 for 2015 through 2017 expenses, would the expenses be deductible in 2018? Thank you in advance for your input. Peggy Sioux
  9. Taxpayer is executor of mother's estate. Mother passed away in 2015 and only asset was residence which had to be repaired prior to sale. Estate was cash poor so executor paid for expenses from 2015 to 2018 when home was sold. Taxpayer did not file any estate income tax returns from 2015 through 2017 thus no election to capitalize expenses. Probate did not begin until 2018 and executor was reimbursed for a portion of his expenses in 2018 through probate. If expenses from 2015 through 2017 were reimbursed in 2018, would those expenses be deductible in 2018 on 1041 estate income tax return or being expenditures took place in previous years and no income in those years, would those deductions be lost? (I think it would be the second choice, but hoping there is some exception being there were almost $15,000 in expenses that will be lost). Unable to make 2018 tax return final (attorney advising me that probate will take another four months)
  10. Can an estate use the 663(b) election (the 65-day rule) if the distributions are capital gains?
  11. Taxpayer has a small business and is also a W-2 employee in similar type work. Through his self-employment business, he has access to better rates for some material than his employer. He purchases material through his self-employment business and "sells" same product to W-2 employer at same rate of purchase. Would that be considered a reimbursement and not be considered as income/deduction for his self-employment business being there is no mark-up or should it be considered income/deductions that basically wash each other out on Schedule C?
  12. Approximately $40,000. Peggy Sioux
  13. So what would be the correct procedures being I have corrected W-2c's for previous years? Should I include the income in 2016 even those the 2016 W-2 is not going to reflect the award pay and attach an explanation of the situation with copies of the W-2c's? I would think the IRS would send audit letters for the previous years once they receive the W-2c's and no amended returns will have been filed; so I would handle that issue once audit letters arrive? Appreciate everyone's input. Peggy Sioux
  14. Being taxpayer received W-2c's in 2016 for prior years, would those understatement penalties still apply?
  15. It definitely would be more beneficial to the taxpayer to be able to amend prior year tax years rather than claim the lump sum in the current tax year. But.....what is my requirement as a tax preparer. The taxpayer has now received copies of the W-2c's and the city (large city in CA) that employees him adjusted his income box 1 of the W-2c's. Taxpayer does not pay into Social Security or Medicare so no adjustment in box 3 or 5. The taxpayer is a police officer who had a case brought against him and the outcome was in his favor so he received his back pay. Is there certain circumstances where there are exceptions?? I would think a large city would know how to properly handle. Taxpayer said that other officers who were in similar circumstances filed amended tax returns after receiving the W-2c's. Being he has W-2c's, should I amend previous years' tax returns even though the W-2c's are not in line with IRS regulations? Peggy Sioux
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