Randall

I have ATX on my office PC and my laptop (used at home). I believe I am allowed. I remember asking about this with ATX in the past.

Thanks for comments. JohnH, I was thinking of the retirement pension from a church that a part could be designated Housing Allow.

Retired clergy, drawing social security. If he continues some part time work (ministerial) for the church and receives a housing allowance, is it still subject to SE tax? Seems like I looked into this in the past and saw a case but can't remember the outcome of the case. I'll look for that but thought I'd ask the forum if anyone knew off hand or had a reference lead.

Watch out for the update appearing in your list of regular updates. I have my setting to inform me of updates but wait for me to select and install the updates. Recently I saw the W10 update and it was pre-checked. I had to uncheck it.

Thanks for the references. This is what I had come up with too. It's just a matter of what amount to include.

jklcpa, do you have a reference for that? My first thought was as you say in your example. That is, the amount of the actual tax benefit would be the includable portion of the refund. But the wording in Pub 525 says that you include up to the amount of the 'deduction' that 'reduced' your tax in the earlier year. The example PPC gives follows this method by taking the dollar amount of the tax benefit and dividing by the tax rate to get the amount to be included in income. In other words (my thinking) is that since the Sch A deduction reduced income by that amount and didn't reduce tax dollar for dollar, so you don't simply include the tax benefit dollar amount in the following year in income but the amount of the deduction that reduced taxable income in the prior year. That deduction then allowed the tax benefit. So taking the tax benefit divided by the tax rate would seem to be the correct amount to include in the following year income. I would like to include only the smaller amount but I'm thinking that is incorrect.

Looking at PPC 1040 Deskbook, they have an example that takes the tax dollar benefit and divides by the tax rate to determine the amount of the refund that should be included in taxable income. Their example is simple with the low tax rate of 15%. If I take my $5k tax benefit from 2013 and divide by 28% (top marginal rate of 2013 return), I come up with about $18k to include in taxable income. It sounds reasonable and I tested it by taking $18k income out of my recomputed 2013 return resulting in a close total tax outcome that my original 2013 return had. Unless anyone has a more definitive method, I think I'm going with this. I'm including preparer comments with the efiling to show total 1099-Gs and amount I'm reporting as taxable.

jmdaviscpa, you do agree that the tax amount (2013 tax savings $5000) being the limit of refund included in 2014? My 2nd thoughts in my 2nd post was that the amount of the 2013 (Sch A deduction-$33,000) causing tax savings ($5000) would be the limit of the refund included in 2014.

I've been using the PPC Deskbooks. PPC (Practitioners Publishing Co) is now part of Thomson Reuters but they still refer to them as PPC Deskbooks. They have separate ones called 1040 Deskbook, 1120, 1120S, 1065, 1041, etc. I receive them in CD format. I think they have an online format but you can check it out. They are annual subscriptions. Should be able to search Thomson Reuters website.

Sara, I'm using ATX. Going to the worksheet for Line 10 (2014 program), there is a line to manually input the amount of the limit if tax benefit was limited due to prior year AMT. Without entering an amount there, the program automatically shows the full refund taxable. UltraTax is one of the high end programs but ATX is not calculating the taxable amount, just showing the full refund as taxable unless I manually enter a limit on the Line 10 worksheet. 1040 instructions have a similar worksheet as ATX but says if prior AMT limited tax benefit, go to Pub 525. Pub 525 is a little wordy in the section discussing the prior year AMT limitation. I went to my 2013 ATX program and duplicated the 2013 return so I could play around with the Sch A tax deduction to see the tax and AMT outcomes. With my original post, I was thinking the taxable limit of the refund would be the $5k tax increase but I don't think that's correct. I went back to my 2013 duplicated return and entered different amount for the Sch A tax deduction to see when the total tax (Reg plus AMT) would change. It appears the first $28k of the Sch A deduction causes no change in the tax. But above that amount, there is a tax benefit. In my case, the refund is $61k and the total tax paid to MD was $68k. So now I'm wondering if $28k of the refund should not be taxable and the limit entered into my Line 10 worksheet should be $33k (61 minus 28). It appears that the additional $33k Sch A deduction has resulted in the tax benefit ($5k). Pub 525 says to go back to 2013 and recompute the tax. If no change in tax, do not include recovery (refund) in 2014 income. If recomputed tax increases, include the recovery (refund) up to the amount of the deduction that reduced your tax in the earlier year. That's why I'm thinking $33k of the refund should be included in 2014 income.SA

Client (OH resident) sold property in MD in 2013. MD required a large withholding on gross proceeds ($60k). 2013 Sch A included the $60k as a state tax deduction. But this caused a large AMT also. For 2014 return, reading instructions and Pub 525 seems wordy and confusing. To recompute 2013 tax without the Sch A state tax deduction, I went to 2013 ATX, duplicated the return and backed out the $60k deduction. This showed regular tax $17k more and AMT $12k less. Total tax shows $5k more. Am I correct that the amount to show on 2014 1040 line 10 would be limited to the $5k, the actual tax savings of the 2013 Sch A deduction for the state tax?

Her attorney should work with his attorney on getting a corrected 1099 issued. You may still have to expense it out to get the 2014 return completed by 10/15. But longer term, the corrected 1099 will be best.

Yes. But you have to do one asset at a time. Can be time consuming if you have a lot of assets. In Fixed Assets, highlight an asset. Click on Print Page. You get a drop down menu. You can check the sheets you want to print. Before doing, change printer to your pdf printer so you don't get a lot of paper printed.

This is what the software companies are doing. I had Peachtree (Sage) for years. I didn't renew this past year. Now I can't use the previous year version which I paid for and have installed on my computer. I can only read what I previously have entered. I can't make changes or start a new company. It's called software as a service (saas) whether it's in the cloud or on your machine.

I agree with David and Sara. When property is disposed, suspended passive losses are freed.

What if one of the IRA accounts is an Annuity Contract IRA (traditional) and the other is a brokerage IRA account?

Jack, could you elaborate on that? I thought (at least by computer), they may compare 5498s, 1099Rs matched to one's ssn and age.

Thanks for responses. My case, all regular IRAs. I was mostly interested in any IRS correspondence if one chose to withdraw from only one account.

My understanding is with multiple IRA accounts, the minimum distribution must be calculated on each account. But the actual distribution (total of minimum amount on all accounts) may be distributed out of only one of the accounts. Has anyone experienced a problem when this is done this way? That is, IRS letters assessing penalties for no distributions on the other accounts. I would assume the IRS would trace the ssn from all accounts and realize the distribution from the one account covers all the accounts. But I'm wondering if that is so and would there be a need for follow-up letters and explanations, copies of statements, etc. to clear things up.

I remember that discussion. Something about a late 2014 DOL ruling. IRS extended the previous conditions to 6/30/2015. Has anyone heard anything about IRS ruling on that beyond 6/30? As I recall, we were uncertain how to treat 2% S Corp shareholders. My understanding now is that the S Corp shareholder will have to include premiums paid in his W2 not only for income tax purposes but also social security and medicare tax purposes. I would also advise shareholder to pay his premiums with a personal check and not a business check. Then shareholder also take SE health insurance deduction on 1040 p.1. For other employees, if employer wants to help employees with their health insurance, the additional pay must be included in W2 and have no restrictions on how employee spends the money.

I've gotten more info. Some stays may only be 2-3 days but one was 6 weeks. No cleaning service except in between rentals. Yes furnishings are there but you can rent furnished apartments, etc. I suppose you can go either way. I've decided to go with it as a rental.

Thanks DANRVAN for comments. I keep going back and forth. I'm leaning toward rental now. There's no meals or dialing cleaning services.

A side question. If the original return has not been filed yet, is the refund deadline two years from when the tax was paid?. Say 12/31/xxyear for W2 withholding.

Working on a past year return. Client's farm hit by tornado in 2012. Want to claim the casualty loss in 2013. I think any 2012 refund is lost. Is there some input selection for 4684 to carry this over from 2012 to 2013? Or do I just enter it in 2013? If I enter it in 2013, how do I show the fixed asset depreciation ending in mid 2012. That carries over to 4684 in 2012.

I have the same version.