Randall

10 hours ago, Slippery Pencil said:

In college, each floor in the dorms had a pay phone in the middle of the hallway (for the two people on this board under the age of 40, https://en.wikipedia.org/wiki/Payphone).  One day I'm heading to my room after class and the phone rings as I pass it.  So I pick it up, lower my voice a little bit, and slowly say, "Greene County Morgue".  To my horror, it was my mom calling for me.  In spite of me having a very distinctive voice, she didn't recognize me.  Thinking she had dialed wrong, she asks, "What number is this?"  18 year old me is panicking.  I continue my pathetic Lurch imitation and start reading the number listed on the phone, changing the last number.  We hang up.  I go to my room. 

As I walk to my room, the phone rings.  I ignore it.  20 seconds later, one of my dorm mates knocks on my door to tell me I have a phone call.  I go pick up the phone:

Me:  Hello
Mom:  Dave, it's mom.  You won't believe the wrong number I just dialed, the Green County Morgue.  The number is one digit different than yours.  The guy sounded just like a cartoon stereotype of an undertaker. 
Me (my knees still a bit wobbly):  Wow, that's interesting.

That's funny.  I remember those dorms with the pay phone in the middle of the floor.

People wondered about ATX a few years back.  Owned by Walter Kluwers now and they have TaxWise too as a smaller package.  So I guess as long as they have the profitable business they'll keep it.

Insurance companies should provide an annual statement showing the activity.  People should save these annual statements.  It's doubtful your client has that saved.  You'll probably have to estimate his cost basis.

16 hours ago, BulldogTom said:

I sent my clients who were subject to the reporting the FinCen guide last fall.   I think that guide is well written and clearly explains the process.   I told my clients I was providing the guide as a courtesy but I would not be filing for them.   I have answered a couple of questions about when to file (my advice, this is an election year and some people are upset by this perceived government overreach - so wait till after the elections to see if anything changes in the law).   That is as far as I have gone with advice on the situation.

Tom
Longview, TX

The only problem with this being an election year is that the election is in November and if one party wins all, they won't be able to do anything until January, 2025, after the due date of Jan 1, 2025.

Anyone dealing with this yet?  Just opening it up for discussion.  Seems outlandish but then what else is new?

1 hour ago, BTS said:

Wow, you guys have to change code in your paid program ?  Are we back in the old IRQ DMA days of early PC's     

I don't mess with this stuff.  Too scared.  It may work for some and some may be more knowledgeable about this.  But I keep away from it.  I'll just have to close program when I get the message and reopen.  I don't like it but oh well.

It's running now.  I was able to create the OH efile.

I just clicked on the arrow next to 'some forms' and the Sch Credits shows up as not yet approved.

I just had my  first OH return.  I can't create the OH efile either.  My  message doesn't specify which form hasn't been approved yet, it just says some forms.  I do have the Sch Credits in the return.  I looked at ATX release forms list and this form is not listed as not yet approved.  So I don't know what the hold up is.

1 hour ago, Lion EA said:

Doesn't it change how much of the credit is refundable? Does it look like Congress will vote soon? You might want to wait a week.

I thought if they got the full credit ($2000) as nonrefundable, just a deduction of their tax, this pending bill would not affect it.  Only if they got a refundable credit.

Most of my returns are KY but I'm near the border and have a few OH clients.  I havn't tried an OH return yet.

I'm in a similar situation as OP.  Land line in my office, doubles for fax.  I don't get many faxes anymore, just come ons for vacations and such.  A few of my clients have my mobile number but I usually don't like to give that out to clients to avoid calls at any hour.  I'm trying to hang on a few more years, cutting back, hoping I don't have to get two mobile lines and all that.

Just to confirm, it will not affect those who get the non-refundable credit, max $2000.  Is this correct?  I have a few early returns getting the full $2000 as non-refundable credit.  My understanding is that this pending bill would affect the refundable credit.

3 hours ago, schirallicpa said:

Honest to God I swear "LLC" creation has become an industry of its own.  

Yes, these are absurd.  And organizing as one entity and electing to be taxed as another entity.  Who thinks up this stuff?  I'm not an attorney but the so called protection sounds like a load.  Small business people don't conduct themselves as said entity.  I had one client years ago (sole proprietor), built a garage for his customer.  Never got paid.  He sued the customer for payment, the customer sued him back, my client lost, never received payment, had to pay him $25k.  Then an attorney suggested he work as an LLC.  Ha.  

I tell clients the legal protection is between them and their attorney.  I can't comment on that.  But for tax purposes, I tell them 1065.  Even if it comes out the same in the end.  I have some clients with multiple rental properties, two owners (not husband and wife).  They use single member LLCs to own each property and the single member is a two member LLC with both partners.  SMLLCs are disregarded and the two member LLC files the 1065.  Only one 1065.

I've only rolled over one so far.  I didn't have a problem.  I have rolled over several payroll returns with no problem.

9 minutes ago, cpabsd said:

It's not you.... now ATX is saying it will be available tomorrow.... I guess we shall see.  I don't recall ever having such a delay in prior years.  

Thanks.

For ATX payroll, I click to create an efile.  But the option for 941 doesn't appear.  Only 940, W2, a state filing.  Am I doing something wrong or missing something?

26 minutes ago, Lion EA said:

If they're not selling until 2024-25, lay out the definition of primary residence for them, and they can make it fit -- or not.

They can record where they sleep each night, adjust paperwork to receive bills and statements at that address, garage their cars there for insurance, pension check and SS are probably direct deposit anyway, truly move themselves for 730 (or is is 731 when a leap year intrudes?) days out of the five years prior to the sale date. If they are using one out of two houses as their primary residence, then they should be using the address of their primary residence on their tax returns.

I think it's too late for that.  Sale pending, closing in a couple of weeks.  Early 2024.

On 1/12/2024 at 1:59 PM, Lion EA said:

Be careful if it looks like one house is their principal residence, but they told their state &/or locality that the other house qualifies for a homestead credit or senior tax relief or....

Is this a new/potential client? If so, you might want to decline if you don't feel they are giving you the whole story.

If this is a continuing client, you probably have a good feel for which is their principal residence. What address was on their tax returns? Other official documents? Mailing address for important things like bills? Does their insurance company list a principal residence and a second home; an address where their cars are garaged? How far apart are their houses? Do they go to doctors, church, recreation near one house. Which house has their good furniture, artwork, photo albums, near & dear stuff?

GLG gave you the code section.

Thanks.  I agree.  Actually this is an existing client and I have only given them the projected gain and tax.  I thought of the 121 exclusion possibility myself and haven't brought that up to them.  He is going to ask his investment advisor for possibilities and I wonder if they would bring this up so I'm just trying to get ahead of that.  I agree with all the comments and it really doesn't look like the house to be sold can qualify as their primary residence.  The sale will be in 2024 so not urgent although they may have to make a 1stQ es payment.

Thanks GLGACCT.  i - couple is retired and has been over 5 years.  ii - couple is older, children grown so only two spouses are family members.  I'm wondering if iii - vi are absolute deal breakers or not.

Both houses are in same state.  Yes, Ky offers a senior discount on RE tax but not a full exemption.  I will check if the discount applies to mulitple residences.  I was wondering about mailing address and the other things like voter registration.  A lot of these things could go either way I suppose, not necessarily the final say on primary.  I was thinking time spent at each home would be the deciding factor.

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).