Randall

My Samsung has a button on the left edge. I wondered why my ring and text sound was so low. It used to be louder. I was looking all around the settings to change the volume. I accidentally discovered this button on the left edge was to adjust volume.

I think 2007 because you said in your original post, the nontaxable treatment would begin at age 62 and he is currently 70. So I assume it would have begun 8 years ago.

I think you do have to calculate the taxable amount yourself and then enter it in the 1099R input screen.

Side question. Can they transfer title of property from personal to LLC if there's an outstanding mortgage in their personal name? Would they need the approval of the lender or actually take a new mortgage in the LLC name and pay off the mortgage in their personal name? I've heard they can do the title transfer and the lender probably wouldn't care as long as they're being paid. The lender would still have a lien on the property.

Are distributions shown on 1041 K-1s?

Pub 575, Worksheet A, Simplified Method. The table gives the number to divide by. My 'guess' was 260 from that table. There are other numbers in the table depending on the situation. But this is where you get the number to divide into the contributions amount. In your case the number may be 240 or one of the higher numbers in the table. This is then multiplied by 12 mos for a full year to give you the nontaxable. Your problem is when to start and how much if any was used in the past. I was only suggesting that since this can't be determined, you would assume it has been done and go forward. If prior prepares used this beginning in 1990, there probably won't be any nontaxable amount remaining.

What amount is in box 3? If you use the simplified worksheet, divide box 3 by say 260, then times 12 mos., it's doubtful that will be a large number. He definitely has something in box 3 so you may be able to assume the amount calculated is the nontaxable amount and just go with that from 1990 forward to see if there is any left for the current year. May not be too helpful but I think it might get you to an reasonable estimate.

Thanks, may try this.

I do it the same as lynnEA. But if in the past he has used all the contributed amount, then 100% might be taxable going forward. I don't know how you would know this without the prior preparers' worksheet, or at least the last one showing part non-taxable. You might be able to re-calculate non-taxable portion estimating back to 1989.

Ins agent sent me some info. One piece pointed out that the LTC was an exception to ACA. IRC 9831(c)(1) and 9832(c)(2). It appears to be so. But the agent was wrong about deduction by the corp. Still must be added to W2 Box 1 and then 1040 p1 above the line deduction. And limited to the LTC premium limits depending on age with excess deducted on Sch A. Anyone agree or disagree with this?

I'm not sure about the peace of mind part.

Sometimes I break the ice and say 'let me see that' and then reach for the whole stack, then say something like 'I see, looks like everything's here, anything new or different from last year?'

I won't login on behalf of clients. They have to login and retrieve the documents. Or have the broker send me directly.

If I recall, the extension was that the penalties would not be assessed. But I don't think that meant the treatment of the tax position was extended.

Client is telling me his insurance agent says the LTC premiums can be deducted on the Corp return. My understanding is that LTC is treated like other health insurance. Under the old rules, added as compensation to W2 and deducted on 1040 p1 to the extent LTC premiums allowed. With the new ACA rules, S Corp has other employees and the plan doesn't comply with ACA, then the premiums cannot be deducted by Corp, shareholder deducts on Sch A similar to the other health insurance premiums. Is there something I'm missing. Just wanted to run this by the forum before I go back to client.

This is what I was thinking too.

We discussed this last year with the S Corp shareholder health insurance. With ACA, Corp not paying the insurance, shareholder is paying from personal funds. W2 showing same amount in boxes 1,3,5. The question is can the shareholder still qualify for the 1040 page 1 deduction as self employed health insurance premiums. Are there any cites or references? I can never seem to find something that specifically mentions this.

Probably Fed but I don't know about PA. I couldn't with KY. ATX told me I could since the modified system started. But the KY returns still didn't go thru.

Some say the way to make a small fortune is to start with a large fortune.

I've found out that the scholarships are allowed to be used for other than tuition such as room and board. Can we assign the scholarships to room and board, apply payments and loans as parents education expenses for purpose of taking the education credit on the parents' return? Then report the taxable scholarship on the student's return. He has no other income and the scholarship amounts minus standard deduction results in no tax (no tax at state level either). Is this allowable? It doesn't seem right? Scholarship amounts are reported as W2 income. Would he be subject to SE tax?

Yes, KY. I'm near OH but the adoption is in KY. I have the question out to the client for him to contact his attorney. Thanks for the replies.

This works both ways. Some people just can't save money and a nice check each year is good for them. Even at no interest. Others who have to pay, whew. How do you get them to have more withholding or make ES payments. I have a few clients who don't do this year after year. And they wonder why they have to pay so much.

I give paper copies in a nice folder. It's just as much of a hassle for me to put things on a CD or flashdrive. I have a few clients who don't want the paper copy. I load it on my Sharefile site and they can get it there.

I give the client paper returns. Review it with client. Some clients, very brief, usually just mention similarities to prior year, nothing in particular to point out. Unless there is something to point out. Some might ask some questions, etc.

Thanks.