Randall

A person owns two houses, none is ever rented.  Sells one of the homes.  What constitutes which home is his primary residence?  Would the amount of time spent at each home establish the primary residence?  Would this have to be for each calendar year?  The wording in 1.121 reg says 'for periods aggregating two years' in the past five years.  Assuming about 50/50 of their time is at each home, would the total of the last four years qualify aggregating the two years?

9 hours ago, DANRVAN said:

The limits were recently increased for 2024 per Notice 2023-75.

The total sec 415(c)(1)(A) annual addition, which is the sum of E'R and E'E contributions is $69,000 for 2024.

The E'E contribution limit under sect 402(g) for 2024 is $23,000.

 

The annual addition limited by 415(c)(1)(A) is per plan participant as I read, as long as the two employers are not related.

I am curious if you are planning for employee or employer?

Both employee and employer, same person, two companies.  So they would be related employers.

I've been putting off researching this while I'm getting my Engagement letters and organizers out.  But from what I looked at so far, it seems the total limit would apply to all employers.  Maximum annual additions, where annual additions include both employee and employer portions.  Examples I've seen only discuss the employee portion limit of $22,500.  But the overall limit is $66,000 (assuming compensation is at least that high).

1 hour ago, Lee B said:

Well, this question definitely pushes the creative envelope

Ha.  Plannning for a client in 2024.  His 2023 is a done deal and ok.

To clarify a bit (I hope):  Employee contribution is limited to $22,500 (under age 50).  This would apply if employee had two or more employers.  As I understand it.  Employer contribution can be in addition to the employee contribution ($22,500) but over all limit is $66,000.  So my question is does this limit ($66,000) apply to each employer per employer or to both employers in total?  Of course, grand total limit is limited to employee's compensation (total of both employers).

Example:  Two employers, say compensation $100,000 each employer.  Employee can contribute $22,500 total.  100% one employer or half each but total of employee contribution cannot exceed $22,500.  Is the total limit of $66,000 (which would include employee's $22,500) per employer or total of both employers?

I understand that an employee is limited to the maximum $22,500 regardless of number or employers.  But is each employer limited to the maximum per all employers or is each employer allowed to conribute as an employer the maximum even if the total of all employers goes over the max?

19 hours ago, JimTaxes said:

thanks.. I am ready for January!

Ha.  I can wait.  Enjoying my slack time this month.

On 11/29/2023 at 10:47 AM, JimTaxes said:

10 or more returns in a calendar year beginning in 2024, tax year 2023.

Are you talking about tax returns (1040s, 1065s, 1120Ss, etc)?  Yes, I efile those.  I was asking about W2s & 1099s?

What is the new threshold?  1099s?  W2s?  I only do a very few.  I've just been prepareing printed ones and letting client mail.

I prefer to wait and efile.  I have one who just brought in info.  Missing additional info.  I'm not going to bother.  Whenever he brings in the info, I'll wait until Jan to efile.

I copied the info for a client to explain the rules for RE professional.  And told him to keep good records, time sheets, etc.  This was in 2021 for preparation of 2022.

Are they open to renew yet?

8 minutes ago, BrewOne said:

you are correct.  Tell her to look down at the bottom of the front page of Pub 547 Limitation on personal and casualty theft losses

Thanks.  I did send her a picture of page 3, highlighted.

Client incurred some casualty loss.  It is not a federally declared disaster area.  Client's wife said she read in Pub 547 that they could still write off the loss.  My review of Pub 547 says this loss is deductible only to the extent that there are casualty gains.  I just want to get some reassurance on this.  It seems they cannot write off the losses since they have no gains.

16 hours ago, NECPA in NEBRASKA said:

Stupid Toasters! For anyone that watched Battlestar Galactica. 

But Grace Park was a good looking cylon.

Waiting on further information from client.

Problem solved.  Corrected W2-c shows corrected info as zero.  Thanks for comments.

1 hour ago, cbslee said:

It could get really ugly!

Yes and I expect it do so.  Reminds me of an old Bowie song:  President Joe once had a dream, the world held his hand, so he told them his scheme for a saviour machine.

Way back in the Navy, in Norfolk,  VA, the day before deploying to the Med, we would go to a movie and pig out at BK.  Two whoppers.  It would be six months before seeing an American fast food hamburger place.  They didn't have McD or anything else in other countries back then.

17 hours ago, cbslee said:

More than likely the SSA will reject the W2 and send it back to the employer but that may not happen right away.

Interesting.  I hadn't thought about the SSA.  Getting close to the extension deadline.  Wondering to include or not to include? Amend later?  Or include, and attach copy of W2 showing income and withholding on spouse return.  Or will it go thru on the efiling?

Client brought in a W2 for her deceased husband (died in 2021).  W2 is for 2022.  How do I report it as her income on her 2022 return?  Do I ignore it since he is deceased and she is filing as single?  Wages are $4551 but there is $545 Fed tax withheld.

On 8/31/2023 at 8:13 PM, Catherine said:

You may not live forever doing that, but it sure will seem like it?

I don't care how long I live, I just want to be healthy when I die.

I had a client sell a rental home this past year.  Normally not a problem.  He was a year from going on Medicare and was getting a big advance credit on the health insurance exchange.  With the gain, his income went way up and he had to pay back the credit.  Ouch. 

15 hours ago, Patrick Michael said:

I found auditing very boring too so opted out from going the CPA route.  After a couple of staff accounting jobs at private business's I landed a position as an accounting manager with the 3rd largest vegetation management company in the country.  They also owned a Canadian company and I found the international component and consolidation work very interesting.  They even paid for me to get my CMA with a nice raise when I passed. 

When I was young (way back), I thought auditing was THE thing.  As I got older and jaded and what took place out there in the world, I began to think of auditing as more meaningless, just glossing over things.  Not that it should have been but what it had become.  Maybe that's just me.  Maybe there is still something to it.  But I wonder how can you really audit these big organizations?

Contributions are allowed up to the extension due date.  Just to double check, this means the Oct 15 due date even if the actual return is filed before that date, say Sept 1?  Just double checking.