Randall

Yes and he can't blame his advisor because he is a DIY investor.

Client has Code H in Box 12 of W2. Looking at this appears to allow a deduction to AGI on line 36. But the W2 summary is showing this amount deducted as a pre-tax deduction with the reduced amount of income in Box 1. Client says he is entitled to the deduction and others at work have been doing this for years marking line 36 with 501(c)(18)(D). It appears to be a double deduction. Has anyone encountered this before? I could see the line 36 deduction if Box 1 included the amount to begin with. Could it be their HR people are coding this incorrectly? Or are they entitled to the additional deduction.

They are a pain. Last year, a client had $29,000 reported to him as cancellation of debt income. He was in the top tax bracket. A few days after I got his info, I saw an article in WSJ that this PTP had a major reorganization and had billions in restructured debt. My client's share was 29k. Cost him $14k in tax (Fed & State). He got out of it after that.

Thanks. Just wanted a look ahead. This may happen within the next few years.

Client has a like kind exchange with gain deferral. Reduced basis of received property. If client dies, do beneficiaries get that reduced basis stepped all the way up to FMV at death? Or only from the purchase price (in the exchange) to the new FMV at date of death? In other words, does the deferred gain go away?

Ok, thanks.

I put the earnings in the Line 21 worksheet. Then input qualified ed expenses up to that amount as a negative amount at the bottom of the worksheet.

I agree. I'll file the extension, and he'll meet the test 9/30. A follow up question: Instructions of 2555 say to mail the return. ATX is allowing an efile to be created. I assume we can still efile a return with Form 2555. Or do these have to be paper filed? That wouldn't seem right. Maybe the instructions are just not up to date. Have you been efiling your returns with 2555?

I was going to use the physical presence test so the 12 months would end 9/30/17. Then with a regular extension, I could get it in by 10/15/17. I was hoping to avoid the 2350. So, Margaret (or Abby), can you still use the anticipated date for the physical presence test and file now or would I have to wait until 10/1?

Thanks Margaret. Yes, I did that and the efile was created with no problems. The instructions do say you can enter an end date after 2016. But the first part of the instructions seem to indicate you need to have already passed the test (that is, as of 3/15/17 today been there a year). I too was wondering about just filing it and if accepted, ok. If he returns early, then amend the return.

Anyone done these? Client's son moved to Japan to work there. Began Oct 1, 2016. If I'm reading the instructions correctly, I can't file Form 2555 and take the exclusion until he has met the bona fide resident or physical presence test which won't be until 9/30/17. I can file return and pay tax and amend return later or file an extension. The extension will give us until Oct 15 when he will have been there for a full year. Is this correct, no way to file return now and project his time there out to Sept 30?

Client states that that they were forced to choose from several options regarding a pension plan when company was sold. Were told that the distribution was not subject to penalty and client verified with the pension custodian who issued the 1099R. So I'll go with that and go with the code 7 on the 1099R.

Client has 1099R (one each for each spouse) coded 7. But they are under 59 and half. It seems 10% penalty should apply. Should I just include on 5329 or are there reasons the penalty might not apply to them. Usually the financial institution would have this as code 1.

Yes, I just had one. I requested the client to bring in account statements showing dates and deposits so I'll have it for my records.

Or could it be treated as management fees on the 8825 and not guaranteed payment to partner? Partner would still have to pick it up on his 1040 (Sch C and SE).

Me too. I'm always concerned of going back into the program and doing something that might make a change. I use my pdf copy like the old paper copy in the file.

I keep Fed and State return separate for quick access (separate pdf for 8867 too). Also other business local returns separate. Combine all others, letters, worksheets, etc. When 8879 is signed, I scan signed version back in for a pdf copy.

Thanks for explaining the difference. I do try to click save now and then while working in a return. Can't help it if there's a crash but I wouldn't want to unplug my computer just to test it.

Did someone say the auto save doesn't work in ATX? I opened a new client just to put some numbers in to see a hypothetical outcome. Put in the names John and Jane Doe. Did not click save. Closed the return, was prompted to save or don't save. Clicked don't save. But in the return manager, I had an 'Auto Saved Return' with John and Jane Doe. I'm not sure if this is the same thing, but this return was auto saved.

I just received a Fed 1040 efiling as accepted with messages. This is a first. The message was 'if you need health insurance, then listed a website. The return was a dependent's return not claiming herself.

Client asked if his SEP-IRA could be designated a Roth. I didn't find that it could. I know Roths can be part of 401, 403, 457 accounts. But I didn't see anything regarding SEPs. Anyone know differently?

ATX website shows Ky 765 (Partnership) efiling estimated release date as 2/13 but also shows it released 2/8. Any one in Ky been able to efile a 765 yet? My return showing still unable to create efile as forms not yet approved for efiling. I was just wondering since the website shows it has been released.

I see Practical Tax Expert under Federal Tax Editorial Content. A list of topics available. It doesn't say Pro though. I also have under the CCH Tax Prep Partner Series, not just 1040 but 1041, 1065, 1120 and 1120S.

Abby, what's the TPP 1040 Lite. I see in the comparison chart, that's listed under the Max package but not the Total Tax package. I think I have that under my package. I didn't see the TPP 1040 Lite listed as you mentioned but I have the CCH A LINE D in my list of items in Intelliconnect. I still don't get anything when I click on the 'Open Tax Research' link in the popup. When I right click in a form line, I get the menu. Clicking on Master Tax Guide takes me there but when I click on the 'Tax Line Research' item in the menu, I don't go anywhere. I have to click on the green button at top 'Tax Research'. Thanks for your earlier tip on doing that, then Federal Tax, Fed Tax Editorial Content, CCH Tax Prep, etc. I need to utilize this more.

Thanks Abby. Yes, I have the Total Tax Office package. Not sure how much more cost for each level up.